Nguyen Phi Van, founder and chairwoman of the Retail and Franchise Asia and founder and executive member of World Franchise Associates, speaks at the ‘Start your own business with franchise model’ seminar organised by the HCM City Investment and Trade Promotion Centre in HCM City (Photo courtesy of the centre)NguyenTuan, Deputy Director of the Ho Chi Minh City Investment and Trade PromotionCentre (ITPC), told the ‘Start your own business with franchise model’ seminarin the city last week: “With its positive economic growth rate last year and apopulation of nearly 100 million, the future of franchising looks promising in Vietnam.”
Tuansaid, “Besides bringing huge benefits to franchisors, the model also minimisesthe risk to franchisees.”
Accordingto the International Franchise Association, Vietnam has become an attractivefranchising destination, especially in sectors like food and beverages,education, health and nutrition, business services, hospitality, fashion,beauty and skin care, entertainment, and convenience stores.
NguyenPhi Van, founder and chairwoman of Retail and Franchise Asia and founder andexecutive member of World Franchise Associates, said the franchising industrycontributes 5-10 percent of GDP in countries where it is developed.
Inthe US, where it originated, the figure is 5.1 percent, and it is 10 percent inCanada, 9 percent in Australia and 9.7 percent in South Africa, she said.
InAsia, franchising is strongest in the Republic of Korea (7.8 percent of GDP),followed by Malaysia (6.3 percent), the Philippines (5 percent) and Singapore(3 percent).
InMalaysia it has been chosen by the government as a long-term strategy todevelop SMEs by exporting business models and brands instead of exportinggoods, Van said.
Afterthe pandemic passes, franchising has the potential to develop strongly, shesaid.
But,to be successful, franchisees need to make sure they have good business plansand management, she said.
Vietnamesefranchisees invest a lot of money to buy a franchise but not to build amanagement team to run it, she revealed.
Tohave a sustainable model, businesses must focus on brands and the businessmodel, the operating platform, personnel training, supply chain, and technologyplatform, she added.
InVietnam, well-established franchisees include Trung Nguyen Coffee, Pho 24, T&T,Cafe Bobby Brewers, Kinh Do Bakery, Wrap and Roll, Café Cong, AQ Silk,Shop and Go, and Highland’s Coffee.
Theseminar was organised by the HCM City Investment and Trade Promotion Centre./.
VNA
