Franchising in Vietnam - VF Franchise...
Transcript of Franchising in Vietnam - VF Franchise...
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Franchising in Vietnam
Sean T. Ngo, MBA,
PMP®
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
About Us * Our Vision: Within the next five years, Vietnam
Franchises will be the leading, most trusted, and “Go-To” franchise and licensing consultant for Vietnam and Asia.
* Vietnam Franchises targets a select few concepts that are highly adaptable to Asia. These brands are selected due to their success internationally. They are recognized, proven brands with strong potential growth, and have sustainable competitive positions.
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Why Us
* Uniquely experienced management team with both operational and development experience throughout Asia.
* We have over five decades of international experience in strategic business planning, franchising development and operations, business development, real estate, and project management. With offices at the center of South-East Asia, we are positioned to assist our clients enter the fastest growing emerging region in the world.
* Vietnam Franchises and Edwards Global Services exclusive partnership for key ASEAN markets.
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Our Team Sean T. Ngo, MBA, PMP®
* Managing Director * SEA EGS Managing Director * Bi-lingual Vietnamese-American in Vietnam for 10 years * Developed and operated Carl’s Jr. in Vietnam * Over 20 years of franchising, project management, business
development, real estate, and finance experience * Previously worked for Microsoft, Coldwell Banker, Lockheed * MBA Adjunct Professor in Franchising, Entrepreneurship, Project
Management, Strategic Management * Speaker at franchising events organized by government and industry * Contributing Writer to Inside Retail Asia * MBA, University of San Francisco, USA * Certified Project Management Professional (PMP®)
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Specializing in
1. Vietnam 2. Singapore 3. Indonesia 4. Malaysia 5. Thailand 6. Philippines 7. Myanmar 8. Cambodia 9. Laos 10. Brunei
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Our Clients
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Vietnam • Socialist Republic of Vietnam (SRV) • Centrally planned economy • Communist Party of Vietnam: Nguyen
Phu TRONG • Chief of state: President Truong Tan
SANG • Prime Minister: Nguyen Tan DUNG • The capital is Hanoi, the commercial
capital is Ho Chi Minh City or “Saigon” • Vietnam has the 3rd largest population
in ASEAN and ranked 14th in the world • Rural population accounts for 70%
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
• HCMC is estimated to have 10M+ people and Ha Noi 8M+ people
• Da Nang is estimated to be 1M+ people • Vietnam has 58 provinces, 5 municipalities
Source: Wikipedia
Largest Cities in Vietnam
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
• 0-14 yr: 24.3%
• 15-24 yr: 17.8%
• 25-54 yrs: 44.8%
• 55-64 yrs: 7.4%
• 65+ years : 5.6%
Source: CIA Factbook
Vietnam Population Pyramid
Median Age: 29.2 yrs
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Vietnam Highlights • 93M people, growing 1.0% per year • Stable socio-political environment • High literacy rate of 93.4% • Poverty rate fell from 37.4% in 1998 to 9.9% in 2013 • GDP was US$171 billion in 2013 • GDP/capita is currently US$1,900 US$4,348 by 2021 • Labor force of 44 million (13th largest in the world) • In 2013 retail sales grew 12.6% to US$124.7 billion • Member of WTO (2007) • Expected member of Trans Pacific Partnership (TPP) in
2015
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Vietnam GDP (2005 – 2014)
Source: World Bank
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Real GDP Growth Rate (2000 – 2014)
Source: GSO
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
GDP per Capita USD (2000 - 2014)
Source: Ministry of Planning and Investment
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Source: GSO
Registered FDI • Total registered FDI in 2013 was
USD21.6 billion • The processing industry has the
largest interest with over 70% of total registered FDI capital
• Investors from Asian countries continued to account for the major portion of new FDI in 2013
• Japan – 28% • Singapore – 22% • S. Korea – 21%
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Franchise Highlights • There over 110 foreign brands per MOIT • Market leaders: KFC, Lotteria, Jollibee, Pizza Hut
– Lotteria has 200+ restaurants – KFC has 140 restaurants (19 cities & provinces) – Jollibee has 40+ restaurants – Pizza Hut has 29 dine-in, 5 delivery restaurants
• Newcomers: McDonald’s, Starbucks, Dunkin Donuts, Texas Chicken, Baskin Robbins, Dairy Queen
• Food consumption to grow 61.6% from 2012 – 2017 • Nearly 50% of household spending is on F&B • Vietnam has franchising laws
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Vietnam Foodservice
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Vietnam Retail Demand
Source: CBRE Vietnam
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Asian Retailers’ Preference
Source: CBRE Research
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Source: CBRE Vietnam
Trade Agreements Update
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Recent Entries & Expansions
Source: CBRE Vietnam
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Franchise Legal Framework
Source: Baker and McKenzie
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Overview of Franchising Rules
Source: Baker and McKenzie
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Conditions for franchisee
• Have business license covering business lines subject to the franchise
Overview of Franchising Rules
Source: Baker and McKenzie
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
• Franchise Agreement and FDD must be provided to franchisee 15 days prior to signing
• Must inform franchisee of any substantial changes to the franchise system
• Sub-franchisor must inform sub-franchisee of termination or expiration of master franchise agreement
• FDD covers 10 essential franchise areas
Franchise Disclosure Document (FDD)
Source: Baker and McKenzie
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
• Must be in written form • Vietnamese version is required • No need to submit to MOIT • Foreign governing law allowed but cannot be
contrary to Vietnamese laws
Franchise Agreement
Source: Baker and McKenzie
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Franchising Challenges
• Real Estate • Supply Chain • People • Inflation • VN Dong
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Source: CBRE Vietnam
Real Estate Comparison
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Supply Chain • Available
– Pork, Chicken, Seafood – Baked products – Vegetables – Paper products
• Imported – Beef – Quality dairy products
• Kitchen equipment, furniture, POS, Signage
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
People
• Few qualified and experienced senior managers – requires further investment in training
• Many university graduates, but few with extensive experience
• PLUS – labour costs are cheap compared to region
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Vietnam Inflation Rate (2005 – 2014)
Source: GSO
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Vietnam Dong (2005 – 2014)
Source: GSO
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Our Services
1. Franchising & Licensing Services 2. Assistance in establishing Distribution, JV
partnerships and Direct Investment 3. Management Consulting (e.g. feasibility
studies, market-entry plans, etc.) 4. Project Services (eg. due diligence, site
acquisition, etc)
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Floor 6 & &, Me Linh Point 2 Ngo Duc Ke, District 1 Ho Chi Minh City, Vietnam 16 Collyer Quay Lầu 18, Tháp Hitachi Singapore 589154 55/2 Moo 2 Ladyao, Chatuchak Bangkok, 10900 Thailand
www.vietnamfranchises.com [email protected]
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Appendix
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Source: GSO
Registered FDI - 2013
Source: GSO
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
With Focus on China & ASEAN
Source: CBRE Research
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Internet Penetration in 2011
Singapore Bangkok, Thailand Ho Chi Minh City, Vietnam
Internet Penetration in 2016