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.

After rapid expansion, the franchising market in Vietnam is expected to continue upwards over the next few years with its increased involvement in free trade agreements. 

 VietNamNet Bridge – Vietnam’s Cộng Café franchise will franchise its first overseas outlet in the Yeonnam-dong neighbourhood in the South Korean capital Seoul with opening set for July 31.

VietNamNet Bridge - Foreign brands have been flocking to Vietnam, creating a “franchise wave” in which more Vietnamese are taking part. 

According to the Ministry of Investment and Industry (MOIT), 183 foreign brands have been granted a franchise in Vietnam, mostly from the US, Australia, South Korea and the EU.

The Vietnamese “street food” shop market with products such as steamed rice, banh mi (Vietnam sandwich), pho (noodle soup), banh xeo (Vietnamese crepe) and bun bo (beef noodle soup) is valued at VND47 trillion. 

VietNamNet Bridge - The heyday of fast food chains seems to be over in Vietnam. The number of fast food shops has been decreasing in an era when people are trying to ‘live slowly’.

VietNamNet Bridge - Franchising has become popular in many business fields in South East Asian countries, but not in Vietnam.

VietNamNet Bridge - Most of the brands to be franchised in Vietnam in the coming years will be in food, education and healthcare, analysts say.

VietNamNet Bridge - More and more merger and acquisition (M&A) deals in the food sector have occurred recently, with most of the buyers from Thailand, Japan and South Korea.

VietNamnet Bridge - Many newly emerged businesses have been sold to foreign investors as soon as they became better known, and before they could become powerful conglomerates. 

VietNamNet Bridge - Coffee chains require long-term capital, but profits can be unpredictable as some chains have found.  

VietNamNet Bridge - Many investors who once intended to start up business with franchise contracts have given up because of the high investment rate.

VietNamNet Bridge - Vietnamese trading companies are being eyed by many Japanese investors who are planning to join the domestic market.

Real estate starts to recover; Thai businesses seek franchise partners in Vietnam; Vietnam, RoK develop agricultural value chain; Supporting industries to be developed; SOEs make good move towards capital withdrawal

The biggest benefit of the business type is that the owners can make money from both the daily business and from the brand franchising. The market witnesses the high annual 20-30 percent growth rate.

VietNamNet Bridge - After Starbucks, another famous American brand of coffee has begun to enter the Vietnam market. It is Dunkin’ Donuts.

 VietNamNet Bridge – There has been no success story about the secondary franchising in Vietnam, according to experts.

 VietNamNet Bridge – McDonald’s plans to set up its first shop in Vietnam in early 2014. If so, the US giant is slower paced than many other rivals in the market.