The Big Mac cometh...
After years of speculation and rumor, it appears that McDonald's, the world’s largest fast food chain, will open up its first location in Vietnam in 2014. McDonald's will join other American companies such as Burger King, Dominos and KFC, which have seen success in the Vietnamese market and are quickly expanding.
The company has hired Viet Kieu businessman, Henry Nguyen, to secure a development license and build the brand in Vietnam. Once the first store is opened, Vietnam will be the 38th Asian country with a McDonald's outlet.
The first store will be built in Saigon and will serve up the brand’s iconic Big Mac and French fries.
McDonald's first considered Vietnam over ten years ago but a poor supply chain and lack of domestic beef forced the Vietnamese market to the back burner. Additionally, in the 1990s, the Hanoi People’s Committee briefly banned McDonald's from the city due to its strong connection to US culture.
Henry Nguyen, who took a job at McDonald's while a student in the US, was picked to establish the brand in Vietnam due to his experience and business relationships.
“As we grow our presence in the Asia region, we are looking for partners with a blend of strong business acumen and a unique understanding of our brand,” said Dave Hoffmann, president of McDonald’s Asia Pacific.
“Henry Nguyen is that ideal business partner who has an impressive business background and proven record in driving new business ventures in Vietnam.”
While good news from an economic development point of view, Vietnam already faces skyrocketing obesity and diabetes rates as the country modernizes and adopts an increasingly western diet.
It will be interesting to see how quickly the company expands since both Burger King and Dominos took a very measured approach when they entered the market.
