Franchising is a form of intellectual export with the highest value, contributing greatly to GDP. Although it is very effective in bringing Vietnamese goods, agricultural products, and brands to the world, this sector has not yet received proper investment and attention.
Ms. Nguyen Phi Van (Shark Van) expressed hope that in 5 years, Vietnam will have more successful international franchise brands - Photo: BONG MAI
Sharing with Tuoi Tre at the "Store and Franchise Technology Exhibition" taking place in Ho Chi Minh City, Ms. Nguyen Phi Van - President of the Franchise and Licensing Network in Vietnam, President of Go Global Holdings - presented many remarkable data about the strong development potential of this important market, as well as the serious lack of policies to support businesses.
The model helps Vietnamese goods and agricultural products increase in value up to 100 times but has not received due attention.
"In Vietnam, many small and medium-sized enterprises have a great need for franchising, but usually still have to figure it out on their own," Ms. Nguyen Phi Van shared.
Meanwhile, franchising is one of the most successful forms of exporting models and brands in the world, attracting the attention of many governments around the world, contributing 3-12% to GDP.
This industry contributes highly to the GDP of Australia, New Zealand, Korea, Philippines, Japan, Indonesia, Malaysia, India...
"This shows the importance of the franchising industry to the economic development of countries interested in building a knowledge economy. It is the form of intellectual export with the highest value," said Ms. Phi Van . This is the optimal solution for small and medium-sized enterprises lacking capital resources.
Vietnam is a market with huge room for growth, an opportunity for all brands to dream of internationalization. This is both a way to accelerate internationalization and a channel to develop revenue and brand value, especially in the manufacturing, agriculture and retail sectors.
Our country has strengths in culinary development. Franchising is also an effective model, helping to increase the value of Vietnamese agriculture and agricultural products by 30-100 times, compared to the current export of raw materials such as coffee, pepper, etc.
Up to now, Vietnamese brands that have taken the first steps in international franchising such as Pho 24, Trung Nguyen, Highlands, Cong Ca Phe... are still limited in terms of the extent and speed of development. However, some young brands such as Phuc Tea milk tea, Care With Love mother and baby care service, Pho'S... have also made moves to go international.
Note, businesses need to build a systematic system, should not do anything haphazardly, learn from others. Be careful in choosing the right partner. Never sign a contract with anyone who has money and intends to invest because of the desire to expand quickly. Franchising is not an investment channel for everyone, to be successful you must understand the industry.
Shark Van signed a deal to invest capital and support international franchise for a chocolate brand using 100% domestic ingredients - Photo: BONG MAI
Many Chinese, Taiwanese, Korean, Japanese... businesses want to "plant the flag" of franchising in Vietnam.
Not only Vietnamese businesses want to expand to the world through franchising, many large and small businesses from other countries in the fields of cuisine, technology, education, services, finance... are also looking to and promoting their entry into Vietnam.
Currently, many famous global brands from North America, Western Europe and North Asia have penetrated Vietnam through franchising, gradually dominating the market such as: McDonald's, KFC, Starbucks, Domino's...
In Asia, many countries have been 20-30 years ahead of Vietnam, creating a series of brands and export models to our country. 2024 is the year that witnessed Japanese, Korean, Taiwanese, Chinese, Malaysian and Singaporean enterprises... looking for investors , flocking to Vietnam through franchising.
Besides seizing opportunities, Ms. Phi Van also emphasized caution. There are foreign enterprises that only seek to "plant the flag" in Vietnam and expand massively.
For example, the Mixue milk tea chain offers very easy conditions, along with financial promises, causing many people to fall into it. "It's too late when you see that it's not as expected." You need to clearly understand the professionalism, reputation, strong support foundation... before accepting a franchise.
The largest and only "Store Technology and Franchise Exhibition" in Vietnam is taking place at the Saigon Exhibition and Convention Center (SECC, District 7), gathering more than 300 booths - 250 brands from 15 countries, lasting from October 31 to November 2, 2024.
Market research firm Technavio predicts the total value of the global franchising market to increase from $2.9 trillion to $4.3 trillion between 2023 and 2027, representing a 48% increase.
Pho Viet franchised to the PhilippinesSource: https://tuoitre.vn/dua-thuong-hieu-viet-ra-the-gioi-bang-nhuong-quyen-gia-tri-nong-san-tang-den-100-lan-20241031145505027.htm
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