VietNamNet Bridge – The International Investment and Urban Development Jsc (IDJ) plans to grant franchises to regional agents. If the business deal is successful, this will be the first consultancy service franchising deal in Vietnam.
According to Tran Trong Hieu, Investment Director of IDJ, the main products and services for franchising will be investment connection, credit source access and corporate trading on its websites idj.com.vn; muabandoanhnghiep.com.vn and thuevachothue.vn.
IDJ will make final decisions on granting franchises to general agents in three regions, the north (excluding Hanoi), south (excluding HCM City), and central region after considering the results of auctions.
The initial price for a franchise deal is VND1bil ($0.0625mil) for a regional agent, while the agent can exploit the brand name and service for three years. After gaining the franchising contracts, general agents will have the right to further grant the franchise to other partners and agents in the localities (the initial price for a franchise deal is VND100mil ($6,250) for a provincial agent).
According to Mr Hieu, every province must have one agent only, or two agents at maximum in big cities and provinces.
Mr Hieu said that 80 applications have been filed to IDJ for the provincial general agent positions. However, no contract has been signed yet.
The income of the provincial agents will depend on the total fees collected from clients and commissions for every deal of investment, corporate trading and merging and other valued added services.
Analysts said that once Vietnam becomes a WTO member, the investment and corporate trading activities will become bustling, especially when the new Enterprise Law and Investment Law can create most favourable conditions for foreign investors in Vietnam.
Under the laws, foreign investors can buy local companies operational in the fields with unlimited investment. Mr Hieu has forecast that foreign investors will set foot on Vietnam by buying back existing entities in Vietnam.
Phuoc Ha | 
