HO CHI MINH CITY UNIVERSITY OF

FOREIGN LANGUAGES - INFORMATION TECHNOLOGY

FACULTY OF BUSINESS ADMINISTRATION

🙠🕮🙢

CORPORATE MANAGEMENT
FINAL ASSIGNMENT

Instructor: Nguyễn Thành Luân

Goup members: Nguyễn Lương Tường Vi -21DH123434
Nguyễn Thị Thuỳ Trinh – 21DH123410

HCMC, March; 2024

QUESTION 1
Case for Petite Shop (A)
Number of families 29,200
Per family expenditure on women’s clothing $ 1,000
Women’s clothing expenditure in Prince George's$ 29,200,000 (29,200 x
1,000)
Market potential (20 percent of all women fit in the size 3 to 9 category)
$ 5,840,000 (29,200,000 x 20%)
Question 2:
Women's clothing stores 18,000 square feet (180,000 x 10%)
Target market 6500 square feet
Alice's shop 1000 square feet
Market share 0.039 (1000/18,000 + 6,500 +
1,000)
=> Market share: 0.039 x $5,840,000 = $227,760
Question 3:
1) Alice should focus on the quality of merchandise.
2) Alice should update fashion trends and customer preferences.
3) She needs to establish positive relationships with customers.
4) She has to learn more about economic factors that could impact her business.

QUESTION 2
Due to the increased focus on health in the current era of development, foods with high
nutritional content and support for health protection are also prioritized. One of these is
brown rice, a calorie-dense whole grain. It's low in fiber, free of gluten, cholesterol, and
trans fats, and it works for a lot of individuals. Below are analyses showing that Nha
Trang city is a suitable location to develop the brown rice food industry.

Rationale for choosing “Nha Trang” to own new business

Brown rice is a nutritious food that is no longer strange to us. In Vietnam, brown rice
gradually becomes a daily food for Vietnamese people thanks to the nutrients and
benefits it brings. Currently, brown rice is not only simply processed, but it is also
processed into dry foods such as brown rice cakes, brown rice tea or milk. These products
can be used for afternoon meals, and people can easily use them or buy them as gifts.
That's why we chose Nha Trang as the location to open a business selling brown rice. The
population in Nha Trang is quite large, about 535,000 in 2023 and is also one of the top
livable cities, so it also attracts a lot of tourists. Besides, the number of businesses from
small to big scale selling products related to brown rice is not high (20 stores). Nha Trang
is an ideal location for business development.

Feasibility Analysis
Target Market and Trade Area
The location of the office and store is on 23/10 Vinh Hiep street in Nha Trang city. This
is an ideal location for the business since it is a two-front apartment with a spacious street
area that is perfect for business development. When Vinh Hiep links with important
routes like Vinh Thai, Phuoc Hai, Le Hong Phong, and particularly the residential sector
in Le Hong Phong, the adjoining road has a lot of promise as well. This region has ready
economic conditions and great potential. willing to pay for goods made with brown rice;
the target area to be reached is 6000 square meters; the overall sales area is around
20,000 square meters. Products made with brown rice are appropriate for nearly any
consumer. items, which are suitable for use by children older than six months. Rice is
also a staple meal in Vietnamese families. I anticipate that the store will generate roughly
50% more income than the surrounding area.

Market Potential
VND
Market Potential
Target customers 30%
City population 535,000
Cost per customer 250,000
Total 133,750,000,000
Estimated market potential 40,125,000,000
Trade area 20,560 m
 2
m
Target area 6,000 2
m
Your store 66 2
% Market share 1.09%
Estimated sales in 2024 436,572,700.30

The population of Nha Trang in 2023 is 535,000 people, including young and old people
and everyone who can use brown rice and brown rice products. The store is in the central
area near residential areas where it will attract get a lot of potential customers with cost
per product is 250,000VND and the monthly income of each individual in this area
exceeds 6.9 million VND, they are prepared to pay for this product.

The total market potential of Nha Trang city in 2023 is

250,000VNĐ x 535,000 = 133,750,000,000 VND

The company intends to serve 30% of customers as interest in connected, supportive, and
healthful meals grows. Therefore, the total market potential of Nha Trang city in 2023
will be adjusted as follows
133,750,000,000 x 0.3 = 40,125,000,000 VNĐ

The most precise estimate of the overall market potential to date will be 40,125,000,000
VND, which is based on demographic data, inflation, per capita income, and the expected
outside shopping rate.

Market share
Nowadays, health awareness is increasing, which means that the quality of food intake is
also carefully considered. The habit of using brown rice instead of white rice, or using
brown rice products for afternoon meals, is gradually becoming more familiar to people,
not just to dieters. In Khanh Hoa Province, most businesses provide unprocessed brown
rice; businesses providing bakery, milk and cereal products from brown rice are limited.
Specifically, in Vinh Hiep commune, there are about 15 stores selling cereals and brown
rice products. The Co Gai Bhnong dealership store is expected to have an area of about
66 square meters. Based on the given data, Bhnong Company's market share is expected
to be:
MARKET SHARE= (66/(66+6000)) = 1.09%
Co Gai Bhnong, a new store in the area, has both strengths and weaknesses. Its lack of a
loyal customer base and reputation may limit its customer base and impact its success.
Before that, there were many businesses that had been operating for a long time. Even
though their products were of similar quality, they had the advantage of a stable and loyal
customer base. However, Co Gai Bhnong is in a prime location with two street frontages
- at 23/10 Street, Vinh Hiep Commune, Khanh Hoa Province, which makes it easy to
attract customers' attention in the first days of opening. Nearby there is a hospital, school,
temple and badminton court. Location provides a significant number of potential
customers for businesses. We focus on customers aged 20-55 years old and mostly
tourists. Products are priced from 90,000-350,000 VND. At this price, customers not only
receive quality products but also dedicated after-sale customer service.

Projected income report for the next five years

VND
2024 2025 2026 2027 2028
1,234,409,31
Sales 436,572,700 654,859,050 949,545,623 0 1,543,011,638
% +/- 50% 45% 30% 25%
COGS 109,143,175 163,714,763 237,386,406 308,602,328 385,752,909
%/Sales 25% 25% 25% 25% 25%
Rent 120,067,200 120,067,200 120,067,200 120,067,200 120,067,200
Wages 180,000,000 216,000,000 216,000,000 216,000,000 216,000,000
%/Sales 41% 33% 23% 17% 14%
Owner's
salary 72,000,000 72,000,000 72,000,000 72,000,000 72,000,000
Employee
benefits 3,600,000 4,320,000 4,320,000 4,320,000 4,320,000
Advertising 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
%/Sales 1.49% 0.99% 0.68% 0.53% 0.42%
Licences
and taxes 0 0 0 500,000 1,000,000
SG&A
expenses 20,000,000 13,097,181 18,990,912 24,688,186 30,860,233
%/Sales 5% 2% 2% 2% 2%
Interest
expenses 32,000,000 33,280,000 34,611,200 35,995,648 37,435,474
% Interest
rate 6.40% 6.66% 6.92% 7.20% 7.49%
Loan
amount 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000
Depreciation 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000
Other
expenses 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
%/Sales 1% 1% 1% 1% 1%
Profit before -
tax - 176,737,675 44,120,093 169,669,905 375,735,948 599,075,822

With product prices ranging from 90,000 - 350,000 for each product, it is expected that
Co Gai Bhnong will start cutting losses from the third year (2026: 169,669,905 VND),
profit before tax of the fourth year increased significantly, up 150% compared to the
previous year (2027: 375,735,948 VND). According to the expected plan, the
development strategy is on the right track, Sales from 2026 are estimated to increase each
year. Starting in 2026 sales will reach 949,545,623 VND, it is expected that next year in
2027 sales will reach 1,234,409,310 VND, by 2028 sales will be 1,543,011,638 VND. To
achieve these sales successfully, Bhnong Company decided to spend 10 million annually
on advertising to consumers. Run promotions and increase the close rates for online
channels. During the first three years, because the business was still new and revenue was
still at a loss. Businesses are required to pay business-license tax (also known as license
fee). However, from the 4th and 5th years, after profits are over 300 million and 500
million, the business-license fees to be paid annually are 500 thousand and 1 million
respectively. Although annual sales have increased steadily by 25%, the business has not
yet fully utilized it to increase personal profits, because of the influence of operational
factors such as employee salaries, maintenance fees, and loss of inventory, electricity and
water bills, rental expenses. In this case, when carrying out actual business, Bhnong
Company considers paying and signing a long-term contract with the landlord to reduce
rental costs.
The store in Vinh Hiep has significant potential but needs to manage costs. To increase
awareness and profits, the store should suggest e-commerce tools, not just local sales, to
boost its success.
QUESTION 3:

I. INTRODUCTION

Franchising is like when a big company shares its brand name and way of doing business
with someone else, who then runs a store or business using that name and system. The
big company is called the franchisor, and the person running the business is the
franchisee. The franchisee usually pays a fee to the franchisor for the right to use their
name and system. So, basically, franchising is when a big company lets someone else use
their name and way of doing things to run a business.

One of the benefits of franchising is business support. Depending on the terms, they have
the right to use the brand, be provided with equipment, advertising strategies, etc.
Besides, when opening a franchise with a recognizable brand, the brand recognition is
high, everyone well known. In general, franchising has a higher failure rate due to fear of
corporate support. There are also disadvantages, not having complete control over their
business activities. They must follow the rules. Restrictive regulations and potential
conflicts due to differences in personality and management style.

Getting a franchise from a well-known Bh.nong company with market share in the
industry will give you the fastest and simplest way to penetrate the market and reach
consumers. However, franchising from Bh.nong requires careful consideration due to
new legal requirements, infrastructure constraints and cultural differences. thoughtfully
and completely. This report will look at the advantages and disadvantages of developing a
business in Vietnam, focusing on the franchise model of food and nutrition company
Bh.nong.

II. BH.NONG NUTRITIONAL FOOD COMPANY FOR EXPANSION IN

VIETNAM

2.1 Vietnam market potential

Vietnam's total import-export turnover reached a record level of 732 billion USD,
bringing the country into the group of 20 countries with the largest trade scale in the
world and maintaining a trade surplus for the 7th consecutive year. 2022 is also the year
Vietnam's per capita income reaches 4,000 USD/person/year. GDP per capita is predicted
to increase by 160 USD from 2022 to 101.9 million VND/person in 2023, equivalent to
4,284 USD. As a result, Vietnam's per capita income will exceed 100 million
VND/person by the end of 2023. Therefore, the expansion of the middle and upper
classes is encouraged by Vietnam's GDP growth rate., which is also driving growing
demand for premium products linked to nutrition and health.

Vietnamese businesses are also growing, especially in the e-commerce sector, where
there are strong distribution and social networks. This is favorable for Vietnamese
businesses that want to expand and is especially profitable for franchisees in densely
populated urban areas. With a population of approximately 100 million people as of
December 29, 2023, 8,475 markets, 1,009 supermarkets and 210 shopping centers,
Vietnam is considered by international investors to be a potential market for franchising
activities. commercial rights. business. Furthermore, the high rate of consumption and
overall retail sales of products, the increasing income level of people and the increasing
openness of the economy are factors that attract multinational companies. wants to
develop franchise activities in Vietnam.

2.2. Considerations of expanding business in Vietnam

2.2.1. Sales and profit trends in the Food industry

As Vietnam's economy slowly recovers from the Covid-19 outbreak, the food industry is
regarded as a bright area. The sector reported projected revenue for 2022 of $21.6 billion,
a 55% increase over the previous year. The influence of Western nations and rising
urbanization have led to the rapid expansion of global food chains in recent years. The
consumption of food in the West makes up roughly 35% of total sales. The majority of
the 183 franchise licenses given by the Ministry of Industry and Trade to foreign food
brands in Vietnam to date are from the US, Korea, and the EU. The increasing popularity
of meal delivery applications and online ordering and payment systems presents further
growth prospects for the regional food sector.

Figure 1:

https://www.statista.com/outlook/cmo/food/vietnam

Vietnam is regarded as a market with significant food and beverage consumer demand.
According to estimates, 35% of consumers' monthly income is spent on food and drink.

From 2021 to 2026, the food and beverage industry are expected to increase at a
compound annual growth rate (CAGR) of 8.65%. The Government has designated the
food sector as one of the major businesses that need to be emphasized for development in
the period 2025-2035. Vietnam is also increasingly keen to encourage global
collaboration to advance the food sector.

Healthy Food is the trend, as Vietnamese customers are willing to pay more for products
that promote health following the COVID-19 pandemic. This is also a major factor
driving the emergence of trends in healthy eating. To draw in clients, companies in
Vietnam's food and beverage sector might thus capitalize on the market niche of healthy
snacks, organic foods, etc.

Distribution to dealer systems accounts for 80% of BH.Nong's revenue, a significant

portion of which is attributable to tight collaboration with a statewide network of
trustworthy partners. By concentrating on dealer systems' distribution, BH.Nong has
extensive access to all regions, including rural and metropolitan locations, shopping
malls, and small businesses. By means of these associations, BH.Nong may guarantee the
availability of its merchandise on the shelves of several retail establishments, thereby
augmenting prospects to connect with a wide range of customers and boost revenue.

Additionally, retail sales or outsourcing work for a few other businesses accounts for the
remaining 20% of BH.Nong's revenue. This illustrates how BH.Nong's business model is
diversified, enabling them to seize opportunities presented by various sales channels. By
engaging in retail operations, BH.Nong can establish direct communication with end
users, foster partnerships, and raise awareness of their brand. In the meanwhile,
outsourcing to other businesses offers the chance to grow the affiliate network and
establish long-term business partnerships in addition to providing a sizable source of
revenue.

2.2.2. Brand expansion and Advantages of the franchise model in Vietnam

2.2.2.1. Brand expansion

Currently, Bh.nong uses a 600 square meter factory to make its own goods. Products
from Bh.nong have received ISO 2000:2018 certification and have registered for food
safety and hygiene. Bh.nong sells to 200 agents and distributors nationwide using the
B2B model (business to business, or businesses selling to businesses). Each of these
agents uses e-commerce platforms to deploy sales. Thus, Minh Nga does its own free
advertising, yet Bh.nong's 2021 profit still comes in at 30%. Quang Nam has an estimated
4,000 hectares of upland rice growing area, producing roughly 600,000 tons of rice
annually, according to data. At present, Bh.nong has procured around 1/20 of the
accessible raw materials.

With its wide reach, Bh.Nong has a strong network of 250 retail locations that are
thoughtfully placed around the country. This broad reach is indicative of Bh.Nong's
strong market position and emphasizes the company's dedication to accessibility. These
250 locations act as living examples of Bh.Nong's core principles by providing
consumers with a firsthand look at the company's dedication to excellence, innovation,
and client happiness.

These 250 retail locations serve as more than just places of sale; they are the tangible
representation of Bh.Nong in communities all throughout the nation. Bh.Nong's influence
can be felt everywhere, from thriving metropolises to charming small towns, meeting the
varied requirements and tastes of clients from various backgrounds. Every store is
painstakingly created to embody the essence of the brand, fostering a warm and inviting
atmosphere that appeals to Bh.Nong's intended customer base.

2.2.2.2. Advantages of the franchise model in Vietnam

This method reduces risk and accelerates market penetration. The popularity of large
franchise brands has helped the products of small and medium-sized enterprises become
widely known and consumed in the market. Companies also save a lot of money on
branding, advertising and sales promotion. Along with regular support from the
franchisor, you'll also discover business secrets and receive training. In addition to
providing investors with excellent business investment prospects, franchising can support
the growth and development of a strong, competitive domestic market.

2.3. Brand recognition

In addition to captivating the audience, Vo Thi Minh Nga, the originator of the Bh.nong
field brown rice brand, left a profound impression on the Sharks, especially Shark Hung
Anh, who was moved to tears by her touching story. The audience was strongly moved
by Nga's personal journey, which was entwined with the spirit of Quang Nam's charm
and honesty. It also provided a glimpse into the foundational ideas of Bh.nong.

Nga is passionate about promoting health and well-being in her community, which is
demonstrated by her dedication to offering wholesome cuisine made from brown rice.
She wants to provide customers with an option through Bh.nong that respects the rich
cultural legacy of the province of Quang Nam while also providing nutrition for the body.
From the sourcing of materials to the painstaking crafting of each product, Bh.nong's
offerings are a testament to her dedication to quality and authenticity.

Shark Tank Vietnam's platform presented Bh.nong with a singular chance to tell its story
to a larger audience. The brand was able to establish a human connection with viewers by
presenting Nga's journey and the ideals that guide Bh.nong, which in turn fostered a sense
of trust and admiration. In addition to gaining important attention, Bh.nong's image as a
brand built on honesty and sincerity was reinforced by this exposure.

Shark Hung Anh's emotional reaction is evidence of the potency of Nga's story and the
significance of Bh.nong's goal. Brands like Bh.nong are able to make a lasting impression
on customers because of times like these, when sincere passion meets poignant
storytelling. The audience's comprehension of the brand is enhanced by Nga's tale, which
also fosters a sense of devotion and connection that goes beyond simple purchases.

More people were aware of and appreciated Bh.nong as a result of their appearance on
Shark Tank Vietnam. The brand was able to connect with people on a deep level and
create enduring relationships that go well beyond the television by sharing Nga's personal
narrative and the principles that embody Bh.nong. Bh.nong's growth and development are
accompanied by an unshakable adherence to its core values and the eternal legacy of
Nga's inspirational journey.
Figure 2: Rời bỏ nghiệp báo chí về quê khởi nghiệp với hai bàn tay trắng, startup gây
xúc động trên Shark Tank chốt deal với Shark Hùng Anh

https://vietnambiz.vn/roi-bo-nghiep-bao-chi-ve-que-khoi-nghiep-voi-hai-ban-tay-trang-
startup-gay-xuc-dong-tren-shark-tank-chot-deal-voi-shark-hung-anh-2022829616425.htm

2.4. Challenges of expanding business in Vietnam

2.4.1. Legal and regulatory environment

Vietnam's franchise law is still developing and quite young, so businesses buying
franchises from Bh.nong must understand in great detail the terms of the franchise
contract as well as the law. In addition, you should talk to a lawyer specializing in
franchise law to ensure the issues are specified in the franchise contract, such as:
- Obligations and rights of the franchisor and franchisee.
- Dispute resolution procedures in case the two parties cannot reach an agreement.
- Protect intellectual property, including brands, trademarks and confidential business
information.
Due to the complexity of legal issues, franchise agreement enforcement and company
growth in Vietnam, franchisors must collaborate with experts and legal advisors. Reliable
thinking to overcome unnecessary risks and potential obstacles.

2.4.2. Finacial investment

Franchise costs and royalties: Bh.nong's franchise agreement will likely include an
upfront franchise fee as well as regular royalties. Franchisors must carefully review these
costs and ensure that they have the necessary funds to cover them in addition to costs
related to labor, merchandise, and store setup.
Operating costs: These include marketing costs, staff recruitment, utilities, rent, and
transportation. Accurate financial forecasting requires an understanding of the
Vietnamese market as well as any potential cost fluctuations between regions.

2.4.3. Operational requirements

In order for the brand to remain consistent across all of its locations, franchisees must
comply with Bh.nong's operating rules. This may require certain guidelines regarding
personnel training procedures, inventory control, signage, and retail store layout. The
franchisor must evaluate Bh.nong's suitability to implement and maintain these
requirements.

To ensure that franchisees maintain the required level of service and product quality,
Bh.nong may employ quality control procedures. Therefore, franchisees must be prepared
to periodically audit and adjust their operations to comply with these measures.

2.4.4. Marketing and Branding

Franchisees may have to spend the majority of their marketing budget on regional
campaigns even if Bh.nong has a nationwide marketing plan. To attract customers in your
specific area, businesses must have a clear understanding of local marketing channels and
customer preferences. Additionally, franchisees may face difficulty establishing brand
recognition in their communities immediately.
2.4.5. Competitors

Bh.nong is up against a lot of competition in the market for nutritional products made
from brown rice. Bh.nong is under pressure from competitors like Trader Joe's, Uncle
Ben's, and Nature's Path, which have substantial resources and powerful brands. Bh.nong
may find it challenging to draw in and keep consumers in particular due to the variety of
products offered and the distinctiveness of rival businesses.

Large corporations' pricing pressure may also pose a serious threat to Bh.nong. Bh.nong
may look for ways to increase production efficiency and cut costs in order to effectively
compete if it is able to offer items at competitive pricing. Significant investment in R&D
is another crucial component that supports Bh.nong's ability to remain distinctive and
competitive in the market.

Bh.nong is also having to deal with demand from big businesses that have extensive
distribution networks. It might be challenging for Bh.nong to grow its distribution
network and draw in new clients given its wide range of customer reach through various
distribution channels.

Bh.nong's raw material source is 100% brown rice farmed by ethnic minorities in the
province of Quang Nam; this presents both a problem and a benefit for the company
because the raw material source is cleaner and retains the traditional cultural values of the
people. Severe weather in Quang Nam and the Central area can have an impact on output.
Storms and droughts make cultivating and raising upland rice more challenging every
year, which drives up the cost of raw material inputs. Additionally, a number of
production expenses have gone up as a result of the Covid-19 pandemic, which has had a
major negative influence on tiny start-up enterprises like BH.nong.

2.4.6. Cultural considerations

It may be necessary to modify Bh.nong's services to suit regional customer preferences.
The franchisor must be adaptable and willing to change its offerings or marketing plans
in response to consumer input and local market analysis.

2.5. Market and competitors’ analysis

- Tam Xuyen Rice Company:

Products: The primary goal of Tam Xuyen Rice Company is to supply rice products,
such as brown rice and other varieties. A corporation can enhance its production process
and develop industry expertise by concentrating on a certain product type.

Consumption Market: Tam Xuyen Rice Company can benefit greatly from the
expansion of the agricultural sector as well as local supply and demand by concentrating
on Vietnam's home market.

Price: In a sector where there must be intense competition, such as the rice industry,
offering items at competitive costs might assist the business draw clients. But keeping up
product quality is crucial to keeping customers' trust.

Brand recognition: The company's brand awareness focuses mainly on rural areas and
traditional stores. This may require the company to enhance its marketing strategy to
expand brand awareness to urban areas and online customers.

Distribution Channel: Mainly distributing through department stores and local rice
distributors can help the company reach potential customers in many different areas of
the country. However, expanding distribution channels can help the company reach a
larger number of potential customers.

- Duc Thanh Production and Trading Company Limited:

Products: Rice products from Duc Thanh include brown and white rice, as well as rice-
based items including rice cakes and milled brown rice. This enables the business to
streamline production procedures and accommodate a variety of clientele.
Consumer market: Duc Thanh has a lot of business prospects by catering to both
domestic and international markets. The variety of consumer markets reduces the dangers
associated with changes in the market.

Price: The excellent quality of the items is greatly acknowledged, which can draw
clients, especially those who care about quality, even though the price may be greater
than that of certain competitors.

Brand recognition: One of Duc Thanh's advantages is that it is well-known to

customers who are concerned about the product's origin and quality. This can increase
sales volume and build a sizable, devoted customer base.

Distribution channels: Utilizing a wide distribution network, including department

stores, supermarkets, and online channels, helps Duc Thanh reach various customer
segments and expand its consumer market. Additionally, having a presence on online
channels enables the company to access potential customers nationwide and globally.

- Lua Viet Food Joint Stock Company:

Products: Lua Viet Food JSC's specialization in producing products from barley and
rice, particularly brown rice and processed brown rice products, showcases a focus on
offering healthy and nutritious options to consumers. This niche specialization may
appeal to health-conscious consumers and those seeking alternative grain products.

Consumer market: While primarily targeting the domestic market, Lua Viet Food also
engages in exporting to select foreign markets. This dual focus allows the company to
capitalize on both local demand and opportunities for international expansion, potentially
diversifying its revenue streams and mitigating market risks.

Price: Lua Viet Food's ability to provide competitive prices alongside high-quality
products positions it favorably in the market. This combination of affordability and
quality can attract a broad range of consumers, including budget-conscious shoppers and
those prioritizing product value.

Brand recognition: Lua Viet Food's reputation as a quality and trustworthy brand in the
food industry enhances its competitive advantage. Positive perceptions of the brand can
lead to increased customer loyalty and repeat purchases, as consumers place trust in the
company's offerings.

Distribution channel: With a large distribution system encompassing department stores,

supermarkets, and online channels, Lua Viet Food ensures widespread accessibility of its
products to consumers. This diversified approach to distribution enables the company to
reach various customer segments and adapt to changing market dynamics, enhancing its
market reach and penetration.

2.6. Understanding of the business environment

- Political:

The health food industry is susceptible to substantial effects from global political
upheavals. Any alteration can have an impact on the production, import, export, and
consumption of goods, ranging from national policy to international trade agreements and
national stability. In order for the food sector to react to market demands in a flexible and
efficient manner, it is critical to have a comprehensive awareness and assessment of
political variables.

- Economic:

The health food sector is greatly impacted by economic development. Consumer income
rises with economic growth, driving up demand for nutritious and high-quality food
goods. Customers are more likely to focus on their health and select nutrient-dense,
organic, and preservative-free food items. The demand for healthy food products is being
driven by an increase in awareness of healthy lifestyles and nutrition. As a result, the
sector for healthy foods can grow and develop sustainably to satisfy the expanding
market need in an expanding economic climate.

- Social:

Health and nutrition consciousness are becoming more and more important in today's
world society, and interest in eating well is rising along with them. The food business is
under a lot of pressure to produce high-quality, secure goods as a result. In the food
sector, the rise of trends like natural foods, organic foods, and foods devoid of chemicals
and additives has spurred innovation and raised product standards. For food firms,
maintaining control and adhering to food safety regulations has also taken precedence.
Therefore, by encouraging the creation of healthful food products and raising people's
standards of living, global society is positively influencing the food sector.

- Technological:

By offering cutting-edge production and processing techniques, global technology is

propelling advancements in the health food sector. Modern methods of food preservation
that retain vital nutritional properties over extended periods of time include heat
treatment, cold treatment, and absorption technology. The development of genetically
modified foods (GMOs), which can boost productivity or enhance nutrition, is another
benefit of the growing field of genetic engineering. Information technology also helps
consumers make informed decisions about their health and nutrition by offering a wealth
of information via websites and mobile applications about nutrition and healthy living.

- Environmental:

The global climate has an impact on the healthy food sector through modifying
agricultural conditions, contaminating food, decreasing the amount of land that can be
used for agriculture, and encouraging unhealthful lifestyle choices. The food business
must come up with long-term solutions to these problems in order to safeguard the
environment and public health.

- Legal:

Healthy food items are produced and eaten in a safe and sustainable manner thanks in
large part to international food law, which focuses in particular on safety and nutrition
criteria. trustworthy. In addition to establishing guidelines for manufacturing procedures
and quality assurance, these rules also compel producers to give precise and
understandable information regarding the nutritional value and country of origin of their
goods. Respecting these rules contributes to the growth and preservation of the
community's overall health by fostering the development of the healthy food business and
boosting customer confidence. bridge.

- Cultural:

There is a noticeable movement in global culture toward eating healthier foods.

Nowadays' consumers are concerned with the provenance, quality, and nutritional content
of their food in addition to just enjoying it. Healthy eating is becoming more and more
popular, with a preference for nutrient-dense, organic, and non-GMO foods. This forces
the food business to innovate in order to satisfy the growing demand from consumers for
a balanced and healthful lifestyle.

III. THEORETICAL FRAMEWORKS FOR BUSSINESS EXPANSION

3.1. Transaction cost economics

Investigating the economics of transaction costs is critical to helping companies grow

using a successful franchise model, minimizing risk and maximizing revenue. Improved
understanding of the market and business environment, improved contract negotiation
skills and developing a viable and long-term franchising strategy are all benefits
franchisees receive from it.

3.2. Agency theory

Inquiry agency theory assists companies in establishing long-term cooperative
partnerships with franchise partners. It addresses asymmetric information problems to
reduce ethical ambiguity and increase openness. It has a better incentive system, a more
suitable contract structure, and more cleverly designed contracts. To ensure long-term and
sustainable cooperation, it also helps businesses evaluate the financial capacity,
management expertise and business model operations of viable and reliable franchise
partners. Finally, it assists companies in identifying and resolving problems and
disagreements between franchisors and franchisees, ensuring the mutual benefit of both
parties and maintain cooperative connections.

3.3. Resource dependence theory

Research shows that this theory assists companies in identifying the resources needed to
put the franchising model into practice successfully and can assess the ability to provide
the necessary resources, e.g. cash, people and marketing resources, among others.
Furthermore, it forecasts changes in the surrounding environment that may affect
resource accessibility. Ultimately, companies can forecast capacity and potential access
to resources based on an assessment of those factors. prosperity and increased
competitiveness when using the franchise model to develop the company.

IV. PRACTICAL INSIGHTS AND RECOMMENDATIONS ON EXPANSION IN

VIETNAM

4.1 Practical insights

Company expansion is a good trend for Vietnamese businesses, especially those using the
franchise model.

The main economic driver in 2024, according to Dr. Nguyen Quoc Viet, Deputy Director
in charge of the Institute of Economic and Policy Research, will encourage the recovery
of the manufacturing sector, especially supporting industry enterprises. supporting both
domestic output and exports.

The government also helps companies directly enter the market so that the manufacturing
industry can lead and dominate the domestic market, which will boost the wholesale and
service sectors. Domestic retail is increasingly vibrant. The main factor driving growth in
2024 and the following years is the revival of new manufacturing.
Expert Nguyen Bich Lam conducted an analysis of factors promoting economic growth
in 2024 and found that, first of all, attention must be paid to factors that the Government
has long supported such as institutional innovation, creating an open legal environment
and a transparent and healthy business environment support the operations and
development of businesses and economic organizations.

Expert Nguyen Bich Lam also believes that the Vietnamese economy will have many
new development drivers in 2024, which will give Vietnam many growth drivers in that
year and the following years.

As a result, the Government's support and favorable regulations for business expansion in
Vietnam have created favorable conditions for these businesses to easily implement their
plans, opening up new prospects. The power of society and trade growth is increasing.

4.2. Recommendations

4.2.1. Take advantage of technological developments

Increase the size of your consumer base by conducting online business on social media
and e-commerce sites like Facebook, Instagram, Shopee, Lazada, Sendo, etc. Use digital
technology to evaluate the market and customers, such as online marketing tools like
Google Ads, Facebook Ads, etc. and technology management applications such as CRM,
HRM, etc., enhance sales capabilities and meet diverse customer needs more easily.

4.2.2. Sustainable business development

Energy-efficient and low-pollution production techniques as well as recycled or

environmentally friendly materials should be used. Additionally, to contribute to the
sustainable development of communities, companies must help disadvantaged people and
groups by participating in community events. From there, we can maximize profits and
attract many environmentally conscious customers.

4.2.3. Cooperate with other businesses

This facilitates company connection and development, opens the door to cooperation,
allows organizations to learn and share experiences with each other, and helps them reach
other businesses. to find potential customers. ideal for companies that want to co-develop
with trusted partners who have similar corporate goals. To support resources to renew
knowledge and skills, this is also a great idea for businesses to organize seminars and
training courses with the participation of consultants, economic experts... strong.
Furthermore, it fosters a stronger spirit of solidarity among employees by allowing them
to exchange stories, success strategies, and solutions to business problems. This promotes
a more positive and growing work atmosphere.

V. CONCLUSION

In the context of the growing food and nutrition sector, businesses may find it
advantageous to expand operations in Vietnam through Bh.nong franchising. In the
current economic context, one of the basic premises to ensure success when choosing to
expand business in Vietnam when the country is on a strong development path is the
effective implementation of development activities. and management strategies for the
challenges that businesses are and will be facing. face. When using the Bh.nong franchise
to grow operations in Vietnam, companies can minimize risks and maximize potential
with proper planning. However, to choose the best course of action, franchisees from
Bh.nong Company must closely analyze risk factors, obstacles and market trends.
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