The figure reflects a noticeable growing interest from foreign groups in franchise operations in Vietnam, where the consumer market is getting more powerful and the population has now reached 85 million people.
Currently, the US’s Grainger Group is looking for Vietnamese manufacturers of industrial equipment and other devices to supply to the group. Grainger has established a network of 18 distribution centres and 600 branches scattered around the world.
The Vietnam Business and Franchise Association and the Business Centre from the Republic of Korea have forecast that the Vietnamese franchise sector will earn US$36 million in revenue in 2010 if it keeps growing at the current rate.
They also forecast that by 2010 the number of franchised shops in the country will rise by 50 percent. In 2008 there were only 890.
The Japan External Trade Organisation (JETRO) has predicted that franchise activities in Vietnam will heat up in the near future, particularly in the catering and tourism industries, as a large number of Japanese businesses have shown their eagerness to start up businesses in the country.
At present, there are around 70 franchising networks operating in Vietnam such as Malaysia ’s Parkson , Germany ’s Metro, the US ’s CBRE, Dilmah and KFC. Several Vietnamese businesses are joining these networks, such as Trung Nguyen Coffee, Pho 24, Kinh Do Bakery, AQ Silk and 24-Seven.