With a young population and fast income growth, Vietnam is seen as a promising market for foreign fast-food companies.
After opening 4 stores at airports in the country in 1 year, the American fast-food company Burger King launched its first store in the center of HCM City recently. It aims to open 12 stores in Ho Chi Minh City, Hanoi, and Da Nang by the end of the year.
Krispy Kreme Doughnut Corp. has reached an agreement with Star360 Group to develop 15 franchised stores in Singapore over the next 5 years. “We are pleased to finally introduce Krispy Kreme, the brand that has won fans the world over, to Singapore,” said Andy Chaw, CEO of Star360 Group. “We expect that Krispy Kreme has the potential to take the local doughnut scene by storm.” Krispy Kreme said that the company has nearly 500 stores in international markets and this and other development agreements adds another 400 international sites to the queue.
The developing economies of East Asia will grow less rapidly this year than previously expected, says the World Bank. But domestic demand and economic stimulus measures will allow growth to accelerate again next year. The euro zone crisis and a looming “fiscal cliff” in the United States continue to pose “considerable risks” to the global outlook, but in East Asia and the Pacific — a region that includes countries such as China, Thailand, and Indonesia but not Japan and India — robust domestic demand is helping growth remain well above that in other parts of the world.
More than a third of Inditex’s sales are in Asia and America, up from 29% a year earlier, while Spain generated 22%, down from 26% a year earlier. The emerging-market expansion has allowed Inditex to grow faster than H&M and Gap Inc. in recent years.