Vietnam Fast food industry becomes larger when Mc Donald, the largest fast food company joins Vietnam market. Although joining the market 10 years later than KFC, Lotteria, or Jolibee etc. Mc Donald has its own competitive advantage due to some characteristics of Vietnam current market.

1. McDonald & its opportunity in Vietnam fast food market
McDonald has being targeting
Vietnam market since 2012. They
have sought for franchise partner in
Vietnam. Although, there was no
official information, people believe
that they were planning for opening
100 stores in Vietnam.
In February 2014, McDonald has
opened their first store in HCMC,
Vietnam. They are going to open the
second store in HCMC, Vietnam in
next few months. Many experts have
questioned their opportunity in
Vietnam because of the aggressive market with major competitors: KFC, Lotteria, Jolibee etc.
Opportunity:
Vietnam population has a young population with more than 90 million people allows a large
market to Fast Food Industry in Vietnam. However, the market becomes aggressive because of
KFC, Lotteria, or Jolibee etc. who are going to expand more and more their business in
Vietnam.
Currently, Lotteria is leading in number of store in Vietnam (146 stores). KFC takes the 2nd
position with 134 stores and Jolibee take the 3rd
position with 30 stores. Besides that, many
other franchise brand names with different food types were joining the market like: Subway or
Burger King.
Aggressive competition in this market makes weak player cannot compete against other
competitors. BBQ Chickens, a brand from Korea is one of those brands as they are quite
strange to Vietnam consumer
McDonald joins Vietnam market in 2014, 10 years later than other competitors. There are many
opinions that McDonald is too late to join the market. However, this giant fast food company has
their own reason for that action:
A rapid GDP per capita development in Vietnam 1997 - 2012

2. Thanks for high GDP per capita, Vietnamese people are more willing to pay high price for a
meal rather than they were before. Besides that, after 10 years of fast food industry in Vietnam,
fast food meals are no longer strange to them, which give McDonald an easier opportunity
because they don’t have to face “barrier of new product” at this moment.
AMR Group is an expert in Vietnam and its markets. The team is local but with international
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Compiled by AMR Group (Marketing Research in Vietnam-Nghien Cuu Thi Truong Viet
Nam) on 2014
Source: Doanh Nhan Sai Gon
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This article is compiled by AMR Group to provide updated information on markets. AMR Group
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