Frank Joseph, a commercial officer of the US Embassy, stated this at a seminar themed “Franchising: Opportunities and Challenges” held in Ho Chi Minh City on June 12.
Current international franchises in Vietnam are mainly from the US, Hong Kong, Singapore and Thailand, with well-known names such as KFC, Pizza Hut, Round Table Pizza and Hard Rock Cafe.
Joseph said that franchises bring a huge benefit for both businesses and the country.
They help to raise turnover and promote businesses’ prestige, create more jobs and offer customers more options, he said.
Sean T. Ngo, a representative from the Vietnam Franchises Co. Ltd, said that businesses that offer franchises will grow rapidly and have the capacity to out pace their rivals in the market place while businesses that take on a franchise will benefit from cheaper input materials and support, including training programmes from the parent company.
However, he said, in order to guard against risks both parties have to fulfill their commitments and work closely with each other.
According to experts, with its large population and high purchasing power, Vietnam is perfectly placed to attract franchises.-VNA