The International Franchise Association ranked Vietnam eighth out of the 12 most valuable markets for global expansion, according to Nguyen Phi Van, chairwoman of Retail & Franchise Asia.
The potential sectors for franchising include food and beverage (F&B), education, healthcare and nutrition, business services, hospitality, fashion, beauty and skincare, entertainment, children’s services, and convenience stores.
According to a report by the Korea Agro-Fisheries & Food Trade Corporation, Vietnam is the most popular destination for 43 percent of companies from the Republic of Korea. As for presence, the total number of Korean F&B outlets reached 360 stores in Vietnam.
In regards to market outlook, Van said Vietnam will remain an appealing destination for international brands, especially regional brands, in the next three years.
Health services, salons and repair services will be a trend of franchises, she noted, adding the model requires enterprises to invest in plans and resources before the franchise progress.
Franchising began in Vietnam in the 1990s with the introduction of well-known fast food chains like KFC, Lotteria and Jollibee. It began in regional countries like Malaysia, Singapore and Thailand in the 1980s.
The Vietnamese franchise market is still relatively new, and local businesses do not have much understanding of or experience with it.
Last year, the Minisry of Industry and Trade reported it had granted 206 franchise licences to foreign brands since 2007.