Vietnamese business sectors have been experiencing a wave of improvement through transformation and investment. Food, beverage, and many other sectors have all benefitted from an enticing market. However, now is the turn of convenience store franchisers to eye the huge Vietnam market.
According to experts and economists, Vietnam currently holds all the requisite elements for the retail and franchise industry to boom. Some of these factors include rapidly rising income, a large and growing consumer base, and a steadily increasing young and educated demographic.
At a “Building an International Franchise Model” talk, Yun Ju-young, managing director of GS25 Vietnam, said the country is among the fastest growing retail markets in Asia, with convenience stores recording strong growth in recent years.
GS25 itself is a South Korean convenience store chain which has an approximate 14,000 stores in it’s home market; 8 per cent of which are franchised.
“We are looking for business opportunities in new markets like Vietnam, ” he said.
Vietnam has a very large population that is steadily growing. Currently, there are almost 100 million people living in the country. Conversely, there are around 2,000 convenience stores spread throughout the nation. This means that there is still a massive opportunity for growth for both GS25 and other convenience store franchisors and retailers.
“Vietnam also has policies facilitating foreign investment. In Korea, convenience stores are not allowed to open within 15m of another, but in Vietnam there is no such restriction,” said Ju-young.
“GS25 sees the opportunity in the Vietnam market to be 50 times higher than in South Korea,” he added.