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Food service market heating up as foreign investors jump in
A lot of foreign investors are hunting for business premises on advantageous positions, preparing to pour their capital into the food service market – the market with great potentials.
The commitment on opening the market to foreign food service providers would only be valid in the next few years. However, the move by foreign investors from Japan, South Korea, China and Singapore to look for premises right now shows that they have begun learning about the market.
Early birds can catch worms
Takayuki Hisano, Director of a Japanese restaurant chain, said that he is learning about the opportunities in the Vietnamese food and drink market.
Highly appreciating the opportunities in the business field, he has decided to spend 1.5 million dollars to open Japanese style restaurants in the central areas of HCM City, including districts 1, 3, 4, Phu Nhuan and Binh Thanh.
According to the Japanese businessman, though the national economy is in big difficulties, the demand for food and drinks does not decrease, but has increased rapidly.
Mr Hisano said that it is very likely to see foreign investors to flock to Vietnam to pour money into the drink and food sector, after the limitations on foreign investors are removed in accordance with the WTO commitments.
Therefore, he has to prepare for the “landing campaign” by retain advantageous positions.
He admitted that the pioneer would have to bear risks, but it does not matter. Higher risks mean higher profits.
Sharing the same profit, a Singaporean investor said that when renting business premises, investors can flexibly expand or narrow the business scale. Therefore, food and drink businesses always attach much importance to the work of choosing business premises.
He said that if he can find advantageous premises now, he would accept to pay high to buy or lease the premises to re-lease later, when there are favorable conditions.
Commenting about the foreigners’ move, experts said that competition is inevitable in the market economy, and that domestic service providers have no other choice than upgrading themselves to cement their firms in the home market.
Vo Ngoc Quang, General Director of Thao Moc Corp, the developer of Thao Moc restaurants, also anticipated that foreign investors would jump into the business field, sooner or later. Therefore, domestic businesses should take initiative in facing new obstacles.
“In order to develop, domestic businesses need to follow their own ways, moderns but suitable to the traditional culture. This would create the original feature of Vietnamese providers,” he said.
vietnamnet
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