Executives from foreign food and beverage, education and services franchises meet with executives of Vietnamese firms at an international business matching event in HCM City on August 28 (Photo: VNA)HCM City(VNS/VNA) - With its high economic growth rate and population of over 90million, Vietnam is becoming an increasingly attractive destination forinternational franchising businesses, especially in the food and beveragessector.
Executives fromleading food and beverage, education and services franchises fromSingapore, Hong Kong, Taiwan, Japan, and the US met with executives ofVietnamese firms at an international business matching event in Ho Chi MinhCity on August 28. The event was organised by VF Franchise Consulting.
Speaking to the media,Akihito Koga, managing director of Japan Food Culture Pte Ltd, which helpsJapanese brands expand abroad, said he was “optimistic” about the franchisemarket in Vietnam due to its population and economic performance.
His company has aVietnamese partner, and since business is good it wants to find more partnersfor many Japanese clients, he said.
Now it is looking forpotential partners for three brands: Machida Shoten, the second biggest ramenbrand in Japan; Mennya Kokoro, which offers dry ramen; and Pronto, a cafébrand.
“We expect our partnersto have funds to invest in three to five restaurants,” with each restaurant needinga minimum investment of 300,000 USD, he said.
He hoped to find abusiness partner who “can get a good location” because location is quiteimportant [for restaurants] and has “good connections with locals”.
Andy Hsu, generalmanager of Taiwan-based Reng Feng International Food Co, Ltd, said he wants tointroduce to Vietnamese partners four out of his company’s six food andbeverage brands.
One of them is Cha JiTang, which sells many kinds of bubble tea. It makes its own bubbles with amachine that is displayed at each of its outlets unlike other operators, whokeep their bubble making a secret, he said.
Hsu said this is thefirst time his company is planning to take its brands abroad.
The company plans to itselfopen a shop under each brand, with the first scheduled to open next month atthe Takashimaya shopping mall in HCM City’s District 1, before franchisingthem.
Explaining the rationalebehind this, he said: “We are still new, customers do not know us.”
Sean T.Ngo, founder andCEO of VF Franchise Consulting, a leadingfranchising consultancy in Southeast Asia, said figures from theMinistry of Industry and Trade show that over 200 brands have registered asforeign franchises in Vietnam.
But Thailand and thePhilippines have over 1,500 each, and so there is still a lot of potential forgrowth in the franchise business in Vietnam, he said.-VNS/VNA
VNA
