“Vietnam and Indonesia are home to over 325 million people, and their emerging economies represent a fantastic opportunity for international franchise development,” said Steve Caldeira, IFA President & CEO. “The real GDP growth rates in both countries have risen above pre-2008 levels, making Vietnam and Indonesia attractive sites for international expansion.”
Vietnamese GDP growth has been consistently above 7 percent and disposable incomes are rising. Vietnam is fueled by a rapidly emerging middle class demanding quality products and services. Vietnam’s franchise sector has grown 30 percent annually in recent years and is set to outpace that during the next five years.
Representatives of the companies will learn more about the culture and the business climate in Vietnam during meetings with industry experts and government officials, including David Shear, U.S. Ambassador to Vietnam.
Since 1970, franchising in Indonesia has grown from three firms to more than 278 foreign and 92 local franchises operating across a wide range of sectors. American brands are highly respected in Indonesia and hold roughly 55 percent of the domestic market for foreign brands. Indonesia is Southeast Asia’s largest economy and has the fourth largest population in the world. It has delivered consistently high annual growth exceeding 6 percent in both 2007 and 2008. During the difficult global conditions of 2009, Indonesia’s economy was among the top worldwide performers.
Companies attending the trade mission include, restaurant chains; Applebee’s, Denny’s, Johnny Rockets, The Melting Pot, Carvel Ice Cream, Cinnabon, Schlotzsky’s, Moe’s Southwest Grill, Auntie Anne’s Pretzels, Seattle’s Best Coffee, Great American Cookies, MaggieMoo’s, Marble Slab Creamery, Pretzelmaker, Pollo Tropical, Rita’s Italian Ice, Round Table Pizza, Which Wich and Wing Zone. Non-food brands include Crestcom, a leadership training franchise, and The Vitamin Shoppe.
“International development is an increasingly strong business opportunity for growing franchisors,” said Beth Solomon, IFA Vice President, Strategic Initiatives & Industry Relations. “Asia, with its strong growth rates and embrace of U.S. brands, represents a terrific market for franchise brands, including those who are new to the international market.”