The franchising model is not an alien concept. There were many successful brands in franchising, that helps expand the market share and promote their brands.
Franchising has proven to be one of the best successful business models since World War II. Today the franchising model is widely used in many industries such as foods, retail, services, etc. Every industry that has intellectual property assets, has established effective business system can be franchised, even with e-commerce industry blooming now.
Because of the franchise’s a hundred-year history, this has seen as a key model for the development of the world market by businesses in developed countries such as North America, Western Europe, Japan, Australia. Therefore, it is not surprising that many international brands choose this method to penetrate the market in Vietnam.
Since Vietnam joined the WTO ( the World Trade Organization) in 2007, the retail industry and the franchising started with signal flourishes. Circle K entered the market in 2009. This was followed by the appearance of the Domino’s in 2010, Burger King in 2011 and it was marked 10 years of presence in the market KFC Vietnam in 2012.
In fact, despite the presence since 10 years ago, KFC just really started developing the system in recent years. In 2013 and 2014, it was marked a lively market with the arrival of two giant brands Starbucks and McDonald’s. It can be noticed that Vietnam is becoming the market is paid attention by regional and international brands.
Besides the major international brands mentioned, the Asian franchise began to penetrate the Vietnam market, possibly including some typical regional brands like Jollibee (Philippines), BreadTalk (Singapore), The Pizza Company, Thai Express (Thailand), Cafe Bene (South Korea), Chattime (Taiwan), etc …
With signing regional and international economic agreements, it is sure that Vietnam franchising market will receive a series of new brands in the future. According to the website of the Ministry of Industry and Trade, there are 122 international trademarks which register the franchising in Vietnam since 2009. For domestic brands, the franchising is one of the most promising models to help businesses develop effectively, not only in domestic market but also out of the region.
However, the franchising is still relatively new in Vietnam. The correct understanding and application of this model is a big challenge for many businesses. This requires domestic enterprises to update their knowledge about the industry quickly.