Franchises will gain momentum to develop strongly in Vietnam in the coming time as the country’s business climate has been much improved to be able to support the business model, said one local businessperson.
Vietnam’s business environment has seen improvements in recent years, allowing franchises to become popular, said Louis Nguyen, managing director of VinaCapital Group at a business seminar in HCM City June 28.
The fund management company cooperated with the G18 group, representative of big private companies in southern Vietnam to organise the event. Franchises are being viewed as effective business models for companies in the retail sector to expand market share.
Franchising involves a firm with a successful product or service (the franchisor) who enters into a continuing contractual relationship with other businesses (franchisees) to operate under the franchisor’s trade name.
Vietnamese companies that have succeeded with franchising, include Trung Nguyen Coffee Co., Pho 24 selling Vietnamese traditional noodles, and confectionary and snack producer Kinh Do.