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Franchise of Vietnamese brands just in initial stage: insiders

access_time May 05,2017 chat_bubble_outline 24 views

About 200 brands have been franchised in Vietnam over the last decade, but the franchise of Vietnamese brands is just in the initial stage at present, insiders said at a workshop in Ho Chi Minh City on May 4.

Franchise of Vietnamese brands just in initial stage: insiders

Retail brands are among the most franchised brands in Vietnam

They shared the view that although Vietnam is assessed as potential for franchising, businesses need strategies to succeed since it is very difficult to develop a franchised brand.

Nguyen Phi Van, head of the board of directors at Retail & Franchise Asia, said Vietnam’s franchise market will become more and more vibrant in the next few years with the landing of global and regional brands.

Some young Vietnamese startups with new brands have been asked to franchise their brands, which is a positive sign of Vietnamese brand franchising. However, they should gear up internal strength and a strong support system before franchising, she noted.

Le Thi Ngoc Thuy, Director of the IQ Plus Joint Stock Company and representative of brand Viva Star, said if enterprises lack a good strategy and thorough preparations when they begin franchising, they will encounter problems as franchisees become involved too much in the management and operation of franchised brands.

She took store design as an example, elaborating that if franchisees change store design too much, it may alter brand recognition.

Echoing the view, Pham Ngoc Liem, who owns brand LeeAndTee, said without a clear development strategy and preparations, it will be hard to reach consensus between franchisers and franchisees when they need brand restructuring.

Lawyer Ho Huu Hoanh from the Viet Franchise law firm recommended companies make franchise contracts with concrete regulations, have risk prevention measures, and keep franchised brand development policies consistent.

According to the Ministry of Industry and Trade, a number of foreign and domestic brands have been successfully franchised in Vietnam, especially in retail, cuisine, restaurant-hotel, and food-beverage.

The franchise of retail brands is forecast to continue expanding by 25 percent each year. Meanwhile, cuisine franchising will enjoy an annual growth of some 15 percent.


Gold and jewellery traders ask for support

Those working in the gold, jewellery and fine art trades are facing difficulties caused by the Government Decree 24/2012/NĐ-CP on gold trade management. The May 2013 decree requires gold and jewellery producers to apply for a certificate from the State Bank of Viet Nam before doing business. The certificate regulates the quality, labeling and specificity of gold products.Nguyen Thi Thanh Huyen, a representative from the municipal Department of Planning and Investment, said the Business… chat_bubble_outline Read More...


Ca Mau gas processing plant to start commercial production in June A gas processing plant in U Minh district of the southernmost province of Ca Mau, designed with a capacity of 6.2 million cubic metres per day, will finish trial operations and begin commercial production in June 2017.According to deputy head of the management board of the factory Nguyen Tien Hai, the project has completed 99 percent of the workload, and ran for 2.5 million hours without any incidents on a pilot basis.The… chat_bubble_outline Read More...

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Vietnam's biggest beer producer Sabeco to have new CEO

The Deputy CEO of the scandal-hit Sabeco seems likely to become CEO of the beer giant after the position remained vacant for months and led to its recent leadership crisis. Mr. Le Hong Xanh, Deputy CEO of the Saigon Beer Alcohol-Beverage Joint Stock Corporation (Sabeco) was named as a candidate for the CEO position in the brewer’s proposal sent to the Ministry of Industry and Trade (MoIT) on July 20, according to sources close to the matter.If the proposal is approved Mr. Xanh, born in 1957,… chat_bubble_outline Read More...

Uber, Grab operations in Vietnam to be evaluated

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