A Vinmart+ convenience store (Photo: VNA)Hanoi (VNA) – Vietnam’s retail market, one of thethree most dynamic in Asia-Pacific, grows 12 percent annually, making it a newrich land for franchisers.
According to Yun Ju Young, managing director of GS25Vietnam, the country has yet to have any retail franchise brands.
Meanwhile, Nielsen Vietnam’s statistics show that the numberof convenience stores nationwide has increased four-fold since 2012. Thousandsof these are operating nationwide, with the largest density recorded in the twomajor cities of Hanoi and Ho Chi Minh City.
It is projected that convenience store franchises will be anew profitable business model in the coming time because costs are lower thanin other sectors while management is easier.
Insiders said convenience store chain franchises from Japan,China’s Taiwan and other countries are eyeing the Vietnamese market. Followingthe trend, Vietnamese retailers have also stepped up their franchising efforts.
Saigon Co.op for instance is franchising its Co.op Foodconvenience store in HCM City and other cities and provinces, and targets theopening of 100 new stores this year.
Nguyen Phi Van, founder and chairwoman of Retail &Franchise Asia, said Vietnam is rated highly by the International FranchiseAssociation as a franchise market.
However, she said 90 percent of franchisers in Vietnamfollow the traditional model without applying digital technology, which islikely to result in losses and withdrawal from the market.–VNA
VNA
