With Vietnam’s strong economic growth and improved legal regulations, the potential of franchise business in the country is taxiing for a takeoff, a US official said at a conference held in Ho Chi Minh City Monday.
The Master Franchise Investor Conference heard that dramatic growth – which reached 8.5 percent last year – and wealthier local consumers have led to an increase in franchising activities.
William Marshak, principal commercial officer of US Commercial Service, said local laws related to franchise have also been improved to provide the foreign franchisors with brand and business protection.
The conference was co-organized by the US Commercial Service, Edwards Global Services Inc. (EGS) and the August Bao Law firm. They held a similar event in Hanoi last week.
William Edwards, CEO of EGS, said “We have been watching Vietnam for five years and the country’s positive economic situation together with Vietnamese entrepreneurs’ understanding about franchise have encouraged us to enter the market.â€
Last month, the Shoebox New York brand opened its first franchise outlet in Hanoi, joining the series of foreign franchised brands in Vietnam for several years including KFC, Pizza Hut and Gloria Jean Coffee.