KFC and Lotteria are popular, but blame high overhead costs for their millions of dollars in losses over the past few years , Photo: Dung Minh Giants report business losses Active in Vietnam since the 1990s with a 26-per-cent annual growth rate, KFC has expanded its scale to 140 stores across the country and holds 60 per cent of Vietnam’s fried chicken market. Lotteria, entering the country since 2004, has also quickly cemented its position holding 60-70 per cent of the hamburger and sandwich market with 220 stores nationwide. Taking advantage of being fast food pioneers and offering acceptable priced dishes, good service, and clean spaces, KFC and Lotteria have continued to hold their positions in the market, despite new players, including McDonald’s, Jollibee, and Burger King, all competing for customers. The latest financial reports of KFC and Lotteria recorded revenues of trillions of VND. KFC in 2015 and 2016 reached an average revenue of VND1.2 trillion ($53.1 … [Read more...] about Locals ignore fast food losses
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M&A market poised for “New Thrust, New Era”
Mergers and acquisitions (M&A) in Vietnam are opening up new opportunities to create a new thrust and a new era building on the record high value of $10.2 billion in 2017, promising new opportunities for both foreign and local investors this year. Today's press conference announcing Vietnam M&A Forum 2018 Three sectors, namely customer goods, retail, and real estate, are expected to be targeted sectors for M&A deals. According to the report released at the press conference organised by VIR and AVM Vietnam this morning to officially announce Vietnam M&A Forum 2018, during the past ten years, 4,000 M&A deals were completed with the total value of approximately $48.8 billion. In 2017 alone, M&A activities reported numerous record deals, including ThaiBev’s purchase of 53.59 per cent of Sabeco’s stake for $5 billion, pushing the total value of deals to $10.2 billion, up 175 per cent on-year. For the whole year of 2018, the total value of … [Read more...] about M&A market poised for “New Thrust, New Era”
Boom in convenience store model
(VEN) - The number of convenience stores is growing rapidly in Vietnam. Increased number According to the Ho Chi Minh City Department of Industry and Trade, at the end of 2014, the city had 326 convenience stores. By March 2018, that figure had surged by 3.5 times to 1,144 stores, biting into the business of traditional markets and supermarkets. While traditional markets are gradually degraded, convenience stores continue to increase its number. Leading convenience store names such as 7-Eleven and Circle K have flocked to Vietnam, drawn to one of the world’s most attractive retail markets. Vietnamese retail businesses have also been expanding the convenience store model. By March 2018, Saigon Co.op had 181 Co.op Food stores and 71 Co.op Smile, while VinMart+ had more than 800 stores. Vietnamese consumers have grown increasingly accustomed to shopping in these convenient stores, often preferring them to supermarkets and hypermarkets. Support policies Vu Vinh Phu, a retail … [Read more...] about Boom in convenience store model
Dining among the plants
Viet Nam News There is an unusual restaurant in Tam Kỳ City. People can dine there among growing food plants. The person who started Triet’s Coffee Shop once played there as a child. Phạm Ngọc Vỹ used to play there when it was just a field, catching crickets for fun. By Lê Hương Fancy drinking coffee in the middle of a vegetable garden, enjoying the greenery around as leaves sparkle in the morning sunlight? That’s a routine most would like to enjoy. And it is already a reality. Triet’s Coffee, set in a vegetable garden grown through the hydroponic method, is a unique model attracting residents of Tam Kỳ City in the central province of Quảng Nam. The café is run by start-up graduate Phạm Ngọc Vỹ. “When I was young, my grandparents took me to the vegetable field with them to keep an eye on me as they went about planting,” Vỹ tells Việt Nam News. … [Read more...] about Dining among the plants
Harvesting the potential of the organic cafe
VietNamNet Bridge – Fancy drinking coffee in the middle of a vegetable garden, enjoying the greenery around as leaves sparkle in the morning sunlight? That’s a routine most would like to enjoy. And it is already a reality. Triet’s Coffee, set in a vegetable garden grown through the hydroponic method, is a unique model attracting residents of Tam Ky City in the central province of Quang Nam. The café is run by start-up graduate Pham Ngoc Vy. Circle of life: Planting vegetable using hydropnic methods allows produce to take care of itself. Photos courtesy of Triet Cafe “When I was young, my grandparents took me to the vegetable field with them to keep an eye on me as they went about planting,” Vy tells Viet Nam News. “The field was usually crowded, with people busy watering, preparing the soil, harvesting, all the while chatting among themselves and laughing. I would wander around to search for nests of crickets. Whenever I found one, I … [Read more...] about Harvesting the potential of the organic cafe
Philippines closes Boracay to tourists under high security
The Philippines shuttered its most famous holiday island Boracay to tourists on Thursday for a six-month clean-up, which the government has imposed with a muscular show of its security forces. Soldiers and police have held show of force drills ahead of Boracay's planned shutdown AFP/NOEL CELIS Assault-rifle wielding police were posted at entry points to the once-pristine island that has become tainted by heavy commercialisation and overdevelopment. Regional police head Cesar Binag told AFP the shutdown began past midnight, with tourists barred from boarding the ferry that is the main way onto the island. "Boracay is officially closed to tourists. We are not closing establishments but tourists cannot enter. We are implementing the instruction of the president," Binag said. About 600 policemen were deployed, with some performing life-like drills including riot officers battling bottle-hurling protesters and mock hostage taking of sunbathers - all before startled locals. "It … [Read more...] about Philippines closes Boracay to tourists under high security
The angel child
He smiled at himself to ease his tension. Soon he was relaxed after two cups of coffee. He laughed quietly. The stories of his marriages were very simple. His first wife was five years older than him. She was the owner of a tea stall by the roadside. In addition to tea, sweets, biscuits, bananas and a lot of simple fast food such as sticky rice cakes and boiled eggs, and so on and so forth, she also sold spirits for lorry drivers who, after their long and tiresome journeys, called at her place for a rest and something to eat and drink. At first, he only flirted with her by caressing her hands while drinking; nevertheless, she made him dizzy with her amorous looks. In his eyes, she was quite charming. Her heart was true but her love was false. One day, she told him that she was with child, and he agreed to take her as his wife without a wedding. No problem, provided that each month he dropped in on her. Then their second baby came into being when the first one was only two years old. … [Read more...] about The angel child
Into the game
At 8am on a wintery December 2, music blasted out as a crowd of hundreds queued up outside the first McDonald’s restaurant to open in Hanoi. “I’m very happy McDonald’s has finally opened a restaurant in Hanoi, and my kids were so excited they woke up at 6.30,” said Ms. Lana Shipley, a-34-year-old American. Three years after opening its first restaurant in the country, in Ho Chi Minh City, McDonald’s is now ready to offer northern customers its delicious menu of signature items.The Hanoi outlet is at 2 Hang Bai Street, Hoan Kiem district, overlooking the fabled Hoan Kiem Lake. Covering an area of more than 400 sq m, its décor features images of the capital’s rich culture. More than 100 staff are on hand and there is seating for nearly 200 customers. The area with a full view of Hoan Kiem Lake is a great spot to enjoy McDonald’s while watching the world go by down below.McDonald’s has an annual lease on the … [Read more...] about Into the game
Vietnamese spend US$354m on snacks
Snack food industry growth has already slowed compared to the 2011-2015 period. It is predicted that the growth rate in 2018 will be around 5.5% and unlikely reach to double digits.However, it is still a huge number. The total revenue in 2021 is estimated to be US$455 million. Crisps from Thailand and the Republic of Korea were being sold for VND100,000 (US$4.40) to VND140,000 a packet.According to the market research company Decision Lab in Vietnam, people who were born in 1995 and younger spend US$573 m to eat out each month. 25% spent time at fast-food restaurants, 18% ate at street food restaurants and 17% used convenience stores. Nguyen Duc Tuan from the Children Psychology and Psychosis Research Centre in Hanoi claimed that children were given too much pocket money and didn't know how to manage it properly yet. "In other countries, with the average monthly wage of US$20,000, children are given US$50 of pocket money. Meanwhile, the average monthly wage in Vietnam is US$2,000 but … [Read more...] about Vietnamese spend US$354m on snacks
BUSINESS IN BRIEF 11/12
Investments in drugstore chains turn activeFPT Retail has recently confirmed its investment in the Long Chau drugstore chain, thus lengthening the list of tech retailers that are venturing into drugstore business.The Gioi Di Dong and Digiworld that have long been known as retailers of tech products have invested into drugstore chains as well.At a meeting on business operations at the Hochiminh Stock Exchange earlier this month, FPT Retail general director Nguyen Bach Diep said the company started injecting capital into Long Chau drugstores early this year on a pilot basis and would expand its investment in this sector next year.Revenue from drugstore business operations would be included in FPT Retail’s revenue as from 2019, Diep added.News about FPT Retail’s investment in the Long Chau drugstore chain broke early this year. But when reached by the media, the company said negotiations were ongoing and that there was no official information.Some of the well-known drugstore … [Read more...] about BUSINESS IN BRIEF 11/12