According to the Ministry of Industry and Trade, as of April this year, some 120 international brands have registered for franchises in Viet Nam. — Photo dangkylogo

HCM CITY (Biz Hub) — Franchises are expected to grow strongly in Viet Nam in the coming years, according to the Viet Nam Chamber of Commerce and Industry.

Franchises are popular in the world market but are still new to many Vietnamese companies as they have only developed here in the last five years, Vo Tan Thanh, director of VCCI in HCM City, told a Thailand-Viet Nam business meeting in HCM City yesterday.

According to the Ministry of Industry and Trade, as of April this year, some 120 international brands have registered for franchises in Viet Nam, Thanh said.

"Franchises in Viet Nam have increased by 30 per cent per cent per year in recent years, with annual revenue reaching more than US$30 million," he said.

Doing business under franchises would help reduce business risks, he said.

In addition, Vietnamese firms could learn management experiences from their franchisers, he added.

Sompong Nopsuvan, a representative of the Thai Ministry of Commerce, who led a delegation of 11 Thai businesses coming to Viet Nam to seek franchisees, said with a population of 90 million and cultural similarities to Thailand, Viet Nam was a promising market for Thai firms. — VNS