Malaysia considers VN new strategic market

VGP - The Malaysian Franchise Association (MFA) has planned to send 7-8 Malaysian franchising companies to Việt Nam from now to the year end, and more next year.

October 11, 2010 4:27 PM GMT+7

Malaysian firms are deeply interested in the Vietnamese retail market

At a recent seminar in Malaysia, the MFA has described Việt

Nam

as a new strategic market for Malaysian firms to invest in franchising.

MFA chief executive officer Sofia Leong Abdullah highly appreciated the Vietnamese market with 87.9 million consumers who have a high purchasing power.

The Vietnamese franchising market is developing quickly with an annual growth rate of 50% in revenue till 2012.

However, only two Malaysian firms, SP Setia and Berjaya, have set strong footholds in Việt Nam.

According to Mr. Sofia, the fields of franchising that have high demand in Việt Nam include retail (25%), drinks (20%), restaurants (16%), fashion (9%) and education (5%). MFA will focus on education because English training demand in Việt Nam is very high.

Vietnamese urban centers such as Hà Nội, Hồ Chí Minh City, Đà Nẵng, Cần Thơ and Hải Phòng will be strategic investment destinations, the MFA chief stated.

By Ngọc Vân