Sean Ngo, a speaker at a conference on franchising held at the 2022 Vietnam Retail-Tech and Franchise Expo (Photo: VNA). Sean Ngo, CEO and Co-founder of VF Franchising Consulting Company,said with the world having gone through a pandemic, a lot of countries haveseen their GDP spiral down, but not Vietnam.
The country expects GDP growth of 7-8% this year, and per capitaGDP reached 3,373 USD last year, he said.
Vietnam also has a relatively young workforce compared to othercountries, such as the Republic of Korea and Singapore, and disposable incomesare set to rise in the coming years, he said.
It has a stable socio-political environment, he pointed out.
Thanks to these, Vietnam, especially HCM City, has become a greatfranchising market, he said.
“In 10 years it will be an exceptional market in Vietnam.Companies are now looking at the long term, and to be here in 10 years’ timethey have to enter the Vietnam franchising market now.”
According to the Ministry of Industry and Trade, 280 internationalbrands have franchises in the country.
Ngo said, in comparison, Singapore has 500-600 internationalfranchises and the Philippines has more than 1,000, and so Vietnam has a lot ofspace to grow.
Vietnamese companies seeking franchises should not only focus onthe food and beverage sector but also others such as fitness, education andfashion, he said.
Fads do come and go, and so it is essential they do not bank onthem, he warned.
In the current economic situation, if companies want to becomefranchisees, they should opt to become a master franchisee since it could fetchthem big revenues.
A master franchisee is a company that has the right to open abranch of the original company in a country or region, owns the trademark andoperational procedures and has the right to distribute them.
In return, they can collect royalties and other related fees fromthe sub-franchisees.
Ngo said being a franchisee should help companies get a quickstart to their business since franchisors provide training in managementbesides supply lines and goodwill.
A master franchisee supports its sub-franchisees with fees andother issues related to the franchisor, he said.
A franchisor has to know its target customers and the country’sculture, he added.
The conference was held late last week as part of the 2022 VietnamRetail-Tech and Franchise Expo being held at the Sai Gon Exhibition and ConventionCenter in District 7./.
VNA
