Phở 24 is a successful Vietnamese franchising brand. (Photo: Hoai Nam/ kinhtedothi.vn)

Data from the Ministry of Industry and Trade shows that since 2007 hundreds of foreign businesses have franchised in Vietnam. Several world famous brands of fast food, hotels, restaurants, cosmetics, and clothes have entered the Vietnamese market and are expanding.

Late last month Go Global Holdings, a global franchise accelerator which is franchising the Made-in-Vietnam brand in the domestic and foreign markets, hosted a conference on how to franchise successfully. Go Global Holdings said that after the COVID-19 pandemic, franchising continues to spawn, both for foreign businesses franchising in Vietnam and Vietnamese businesses franchising in the domestic market. Investors need to choose suitable financial, operating, business, and management methods. Investors must know how to take advantage of the resources and support of the franchiser to participate in a professional system with a solid foundation.

Nguyen Phi Van, Chairman of the Board of Directors of Go Global Holdings, said: “It’s important to know your capability and find a suitable investment method for your conditions. For example, invest money and also manage yourself, or invest money only and hire the franchiser to operate. Making the right decision is the key to success.”

Pizza Hut restaurant at AEON Mall Hanoi (Photo: Hoai Nam/ kinhtedothi.vn)

Last year, 18 foreign franchisers entered or re-signed contracts in Vietnam. In the next three years, foreign brands entering Vietnam is expected to increase dramatically, especially brands from Malaysia, Singapore, Thailand, and the Philippines whose proximity gives them an advantage in logistics and transportation.

Ms. Van said franchising helps businesses take advantage of capital and human resources from partners to expand their business.

“If you contract to franchise, you must consider all partners of that brand as friends to work together. Only combined strength, knowledge, and experience can create success in franchising,” said Ms. Van.

The International Franchise Association (IFA) identifies Vietnam as an attractive franchise market in Southeast Asia. Potential areas for franchising include food and beverages, education, health and nutrition, business services, hospitality, fashion, beauty and skincare, entertainment, child services, and convenience stores. Vietnam is also forecast to be a destination for international brands, especially those from Southeast Asia.