More foreign franchise companies get licensed

The Ministry of Industry and Trade (MoIT) has so far this year granted operating licences to 15 foreign franchise companies.

Most of them are from the United States, Belgium and Canada and operate on such fields as restaurants, fashion shops and information technology.

MoIT admitted that franchising is a fledgling industry in Vietnam. Many companies therefore are tentative about the market, or face difficulties in filing applications for franchising.

Vietnam has so far boasted 70 franchised systems, mostly foreign brands such as Parkson of Malaysia, Metro of Germany and CBRE, Dilmah and KFC of the US, according to the World Franchise Council.

At the same time, several Vietnamese businesses have franchised their trademarks, including the Trung Nguyen Coffee, Pho 24, Kinh Do Bakery and AQ Silk.

Economists have said that franchise companies world-wide are interested in the Vietnamese market, thanks to its favourable locations, political stability and a young market with a majority of consumers aged under 30 years old.

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