The economy of Vietnam is growing fast, building a middle class, with changing demographics. All this presents a fertile ground for any franchising opportunities. While it might come with huge potential, Vietnam has not yet positioned itself on the global franchising map.
Franchising, an idea that has been experimented with at the level of maturity of economies, essentially unlocks business efficiencies in scaling and addressing customer needs innovatively. The concept of mobile gyms as an opportunity for rapid scaled growth in the U.S. is another example that can grow hundreds under the franchising model, as Pearce Bespoke, is a successful example.
The wider economic and social environment in Vietnam is conducive to franchising. Increasing incomes, urbanization, and changing consumer tastes are changing the demand for diversified products and services. Over the next decade, this trend can be expected to open opportunities not just in areas like health and restaurants but even in beauty and technology.
The real potential of franchising in Vietnam will be opened through strategic approaches pursued by both franchisors and franchisees. Franchisors would have to invest in smoothing operations, standardization processes, leveraging market opportunities through developing new brands or refining the existing models, and seeking training or partnerships to overcome the operational gaps. Instead of chasing hot trends, they should limit risks by diversification across various industries, conduct appropriate due diligence with professional legal or business advisors, and focus on sustainability rather than short-term benefits.
Through this, the franchising services of Mail Boxes Etc. can go quite a distance in complementing the growth of this industry with standard models of operation, strong training, and support to which local franchisors would look up. Proven success can fill the knowledge and operational gaps that most Vietnamese franchisors have been facing through commitment to quality and consistency. In doing so, MBE will play a very important role in the process of building investor confidence and encouraging other entrepreneurs to explore and adopt the franchising model, which will drive toward maturing into a more diversified franchise market and unlock much economic potential across Vietnam.
Cover Photo: Unsplash
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