The franchise market in Vietnam has experienced rapid expansion in recent years, driven by favorable demographics and a growing economy. In 2024, the market size is estimated to reach $22 billion, highlighting the sector’s immense potential. This growth is fueled by a young population, increasing urbanization, and a growing middle class with disposable income.
The food and beverage (F&B) sector dominates the franchise landscape, with numerous international and local brands establishing a strong presence. Notable examples include:
- KFC: With an initial investment of approximately $1.44 million, KFC has become a leading fast-food franchise in Vietnam.
- Jollibee: The Filipino fast-food giant has successfully expanded in Vietnam, offering affordable meals that resonate with local tastes. Read more on Jollibee,
- Pizza Hut: With an investment of around $302,000, Pizza Hut has established numerous outlets across the country.
However, not all international franchises have thrived. Brands like McDonald’s and Burger King have faced challenges in achieving broad success and market coverage in Vietnam, with McDonald’s reporting continuous financial losses.
Local beverage franchises have also gained significant market share. Vietnam ranks as the third-largest bubble tea market in Southeast Asia, with a turnover of $362 million in 2021. Brands like Dingtea, TocoToco, Tiger Sugar, The Alley, Phúc Long, and Gong Cha have developed early in Vietnam and have gained a large market share.
The Small Business Landscape: Resilience and Growth
Vietnam’s small businesses have demonstrated remarkable resilience and growth. In 2024, 82% of small businesses reported growth, up from 77% in 2023—the country’s highest result since 2019. This positive trend is expected to continue, with 92% of small businesses anticipating growth in 2025.
The country’s economic performance supports this optimism. Vietnam’s economy recorded a 7.6% year-on-year increase in the last quarter of 2024, surpassing its annual growth target of 7.1%. This robust growth provides a conducive environment for small businesses to thrive.
Moreover, Vietnamese small businesses are becoming more internationally focused. In 2025, 28% anticipate a strong improvement in overseas sales, up from 15% in 2024, signalling growing confidence in their ability to compete globally.
Successful Franchise Brands in Vietnam
Several franchise brands have successfully established themselves in Vietnam, capitalizing on the country’s dynamic market:
- Kichi Kichi: A hotpot buffet chain that offers a unique dining experience, appealing to Vietnamese consumers’ preferences for communal meals.
- King BBQ: Specializing in Korean-style barbecue, this franchise has tapped into the growing popularity of Korean cuisine in Vietnam.
- Hotpot Story: Offering a variety of hotpot styles, this brand caters to diverse tastes and has expanded rapidly across the country.
- Sumo BBQ: Combining Japanese cuisine with a buffet concept, Sumo BBQ has become a favourite among Vietnamese diners.
These brands have succeeded by adapting their offerings to local tastes, investing in quality service, and maintaining consistent brand experiences.
Vietnam’s franchise and small business markets are thriving, supported by a robust economy, favourable demographics, and increasing consumer demand. While international franchises have found varying degrees of success, local brands have demonstrated strong growth by aligning with Vietnamese consumers’ preferences. The positive outlook for small businesses further underscores Vietnam’s potential as a vibrant market for entrepreneurs and investors alike.
To learn more about how to franchise your business in Vietnam and scale a franchise system in Asia, contact FMS Franchise Asia.
