EXECUTIVE SUMMARY

Over the period, Vietnamese consumer foodservice is expected to maintain a healthy growth rate in terms of value, outlets and transactions. The higher living standards, busier lifestyles and higher disposable incomes, as well as the increasing influence of Western lifestyles and cuisine on Vietnamese culture, especially among the young, will be key factors supporting the growth of fast food. Furthermore, more newcomers, both international and local players, are predicted to enter the consumer foodservice industry in Vietnam.

Chained players are likely to record a better performance than independent over the past few years. The main reason for this is that more people pay attention to service quality and food safety standards while chained operations are perceived in Vietnamese eyes as delivering better standards in this regard. Major cities such as Ho Chi Minh City and Hanoi will remain the centre of the fast food industry.

KFC entered the Vietnamese in 12/1997 in Ho Chi Minh City. KFC is commonly known in Vietnam under the special name “Ga ran KFC” — a fast food restaurant chain serving the meals made from chicken, hamburgers and the most famous meal is fried chicken sandwiches, chicken pot pies, crispy chicken strips, wraps and salads. KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of restaurant system, with more than 36,000 locations around the world. To this day, among big competitive brands, KFC is the market leader in Vietnam with over 140 restaurants throughout Vietnam.

KFC was one of the first international players to enter the Vietnamese fast food category. The brand’s main competitive advantages were its long-standing presence, affordable price and customized dishes based on Vietnamese preferences. The company possessed an effective and nationwide outlet network, with all outlets being