VINACHEM

HA NOI — Viet Nam is a new strategic market for Malaysian businesses to invest in franchises, the Malaysian Franchise Association (MFA) has announced.

At a seminar held in Kuala Lumpur on Wednesday, MFA Managing Director Sofia Leong Abdullah praised Viet Nam's potential, a country with a population of 87.9 million and ranked third in economic growth across the world.

Viet Nam's purchasing power had also rapidly increased, partly thanks to US$20 billion in foreign remittance, he said, noting that the country's franchise market was strongly developing with average turnover increasing by 50 per cent each year.

This trend was expected to last till 2012.

The two Malaysian brands that already operate in Viet Nam were Setia and Berjaya, he added.

During talks with reporters after the seminar, Abdullah said the MFA would work with Perbadanan Nasional, a leading agency employed by the government to develop the country's franchise industry, and the Malaysia External Trade Development Corporation (Matrade) to promote Viet Nam's potential market to Malaysian businesses.

The MFA intended to bring seven or eight local franchises to Viet Nam by the end of this year, he said, adding that the number would increase in 2011.

(Source: VNS)