S’pore franchise firms sound out opportunities
HCMC – Singaporean franchise companies in various sectors on Thursday showed keen interest in the Vietnam, saying they saw great potential in the local economy with a population of nearly 90 million people and fast economic growth.
A Singaporean franchise entrepreneur (L) chats with local partners at the conference “Top Franchise Asia 2011 – Vietnam Edition” that was opened in HCMC on Thursday - Photo: Quoc Hung HCMC – Singaporean franchise companies in various sectors on Thursday showed keen interest in the Vietnam, saying they saw great potential in the local economy with a population of nearly 90 million people and fast economic growth.
Speaking at the “Top Franchise Asia 2011 – Vietnam Edition” that opened in HCMC on Thursday, several entrepreneurs from the island-state said that now is the right time to build more links with local partners in franchising business
The Singaporean franchisers are in the food and beverage, lifestyle and services and education sectors including Country Chicken, Don’s Pie, Empire State, Popeyes, Snackz It!, Auto Saver, Kooshi, and Mondo among others. They joined the event to seek partners to franchise their brands in Vietnam.
Bobby Ong, managing director of Auto Saver Pte Ltd. that has general car service & repair workshops, told the Daily that the business environment is better than a few years back.
“Five years ago, I was not confident to franchise our brand in Vietnam, but now is the right time for our company to come knocking, though motorcycles are still the main transport means for Vietnamese people,” he said.
Ong noted that with a population of more than 86 million with 70% being young people and a GDP growth rate of 7% annually, Vietnam will become a potential market for his company to supply auto services in the near future.
Meanwhile, Pamela Lin, director of Kooshi Koncepts Pte Ltd, owner of the Kooshi brand, said that her company saw Vietnam as a good market. She hoped to cooperate with qualified individuals, business owners or companies in Vietnam to do business
Hsien Naidu, founder of Singapore’s Astreem Corporation, said, “Singapore companies consider Vietnam a potential destination which is ‘very hot’ in the region for franchising.” This is the reason why her company cooperated with Vietcham Expo to hold the event that was supported by the Vietnam Chamber of Commerce and Industry and the Franchising and Licensing Association of Singapore.
This was the second such event in Vietnam. The first conference was held last year with several contracts signed between enterprises of both countries.
She noted many Singapore companies were now interested in Vietnam for franchise expansion. “The rapid economic development and the young and dynamic consumers are the main reasons for the Singaporean firms to seek franchises here in the country,” she noted.
She said her company has opened a representative office in HCMC that would serve as a bridge to connect enterprises from both countries for franchise cooperation.
Some Singaporean franchise companies, like BreadTalk, Popeyes and New York Dessert Café, have already been doing business in Vietnam.
“It is expected that retail and franchise in Vietnam will grow rapidly thanks to young and dynamic consumers,” said Bui Le Quan, representative from Vietcham Expo. He said that the franchise business would continue strong growth in Vietnam as it had started from a low base.
Quan said the Vietnam franchise market is estimated to experience 20%-30% growth annually. Last year, this sector’s total revenue was slightly over US$36 million, which is still a modest number.
Vietnam has some 70 international brands operating under franchise agreements with local partners. They include KFC, Loteria, Pizza hut, Gloria Jean’s Coffee, and Coffee Bean.
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