Potential industry franchising after Covid-19

Mrs. Nguyen Phi Van - Chairman of Retail & Franchise Asia, founder and executive member of World Franchise Associates, said: The franchise industry contributes significantly to GDP and has an important influence on the economies of many countries around the world. In countries with developed franchising, its contribution is about 5-10% of GDP. In the United States, the cradle of the franchise industry, that figure is 5.1 percent. The franchise's contribution to the national GDP is even more spectacular than in Canada with 10%, Australia at 9%, and South Africa at 9.7%.

In Asia, franchising is strongest in Korea with the contribution to GDP of 7.8%, Malaysia 6.3%, Philippines 5%, Singapore 3%. For Malaysia, the franchise industry has been chosen by the government of this country as a long-term strategy to develop small and medium enterprises, by exporting models and brands instead of exporting goods and products.

The recent "2020 Franchise Reopening" report shows that in the US, franchising is considered the mainstay of small and medium enterprises. In past recessions, this business model that has been shown to be resilient and a leading way of expansion out of the recession needs to be encouraged.

In Vietnam, Mrs. Nguyen Phi Van added that Covid-19 had had long-standing and very successful franchises, such as Trung Nguyen Coffee, 24 City, T&T, Cafe Bobby Brewers, Kinh Do Bakery, Wrap and Roll, Café Cong, AQ Silk, Shop and Go, Highland's Coffee ... In the post-Covid-19 period, franchising was able to thrive in technology-applied business models, O2O (Online - to - Ofline), and DevOps (working model combined with software development  engineers  with systems engineer, security staffs, network engineer, infrastructure engineer and etc aims to shorten product development life cycle), flexible models or top-level models with low investment and quick payback.