Retail brands are among the most franchised brands in Vietnam (Photo: VNA)HCM City (VNA) – About 200 brands have been franchisedin Vietnam over the last decade, but the franchise of Vietnamese brands is justin the initial stage at present, insiders said at a workshop in Ho Chi MinhCity on May 4.
They shared the view that although Vietnam isassessed as potential for franchising, businesses need strategies to succeedsince it is very difficult to develop a franchised brand.
Nguyen Phi Van, head of the board of directorsat Retail & Franchise Asia, said Vietnam’s franchise market will becomemore and more vibrant in the next few years with the landing of global andregional brands.
Some young Vietnamese startups with new brandshave been asked to franchise their brands, which is a positive sign ofVietnamese brand franchising. However, they should gear up internal strengthand a strong support system before franchising, she noted.
Le Thi Ngoc Thuy, Director of the IQ Plus JointStock Company and representative of brand Viva Star, said if enterprises lack agood strategy and thorough preparations when they begin franchising, they willencounter problems as franchisees become involved too much in the managementand operation of franchised brands.
She took store design as an example, elaboratingthat if franchisees change store design too much, it may alter brandrecognition.
Echoing the view, Pham Ngoc Liem, who owns brandLeeAndTee, said without a clear development strategy and preparations, it willbe hard to reach consensus between franchisers and franchisees when they needbrand restructuring.
Lawyer Ho Huu Hoanh from the Viet Franchise lawfirm recommended companies make franchise contracts with concrete regulations,have risk prevention measures, and keep franchised brand development policiesconsistent.
According to the Ministry of Industry and Trade,a number of foreign and domestic brands have been successfully franchised inVietnam, especially in retail, cuisine, restaurant-hotel, and food-beverage.
The franchise of retail brands is forecast tocontinue expanding by 25 percent each year. Meanwhile, cuisine franchising willenjoy an annual growth of some 15 percent.-VNA
VNA
