At a Glance Vietnam is projected to continue to benefit from recovering global and domestic demand with GDP growth expected to increase modestly, but steadily, to reach 5.8% by 2016. Franchise Glance For us, the Vietnam market is a huge opportunity, and we’re taking a long-term view on how we build our business there the right way,” said John Culver: Starbucks, President for China and Asia-Pacific. Vietnam is most often in the shadow of its Bigger Asian Brothers. But it is emerging into the light, and it is because Vietnam is in early growth stage and
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At a Glance
Vietnam is projected to continue to benefit from recovering global and domestic demand with
GDP growth expected to increase modestly, but steadily, to reach 5.8% by 2016.
Franchise Glance
For us, the Vietnam market is a huge opportunity, and we’re taking a long-term view on how we
build our business there the right way,” said John Culver: Starbucks, President for China and
Asia-Pacific.
Vietnam is most often in the shadow of its Bigger Asian Brothers. But it is emerging into the
light, and it is because Vietnam is in early growth stage and lags behind certain Asian
neighbours that such a great franchise opportunity exists.
The country represents a period of growth similar to China in the early 2000s and given the
increasing competitiveness and costs in other Asian countries it would be a mistake for
franchisors not to see this as prime entry time.
GDP has been strong at around 5% even through the global financial crisis and the 2014 outlook
is one of the best in Asia: Q1 2014 GDP was at its best for 3 years and the year forecast is 5.5%.
The government has laid out a specific 5 year plan with on-track GDP targets until 2015.
Domestic consumption accounts for 68% of GDP and retail sales were up 10.2% in Q1 2014 and
are forecast to increase by around 26% from 2014 to 2016.
Vietnam’s 87.8 million population will reach approximately 96 million people in 2020, with an
urban population of around 37%. Vietnam’s rate of urbanisation 2010-2015 will be 3% higher
than Thailand, the Philippines, China; Korea and Singapore, (Savills). It is a population of eager,
young consumers, whose lifestyles and living standards are becoming more prosperous.
| FRANCHISE Key Point | Vietnam has been touted as one of the five most lucrative retail markets
in the world (“Vietnam Retail Market Forecast to 2014”:Research and Markets). It is a country
with indicators of a very viable market and should be on all franchisor’s radars.