Boston, MA 02/10/2014 (wallstreetpr) – McDonald’s Corporation (NYSE:MCD), the fast-food retail-chain synonymous with US lifestyle, has begun operations in its thirty-eighth market space in Asia: Vietnam.
McDonald’s Corporation (NYSE:MCD), it appears is now focused on entering second- tier Asian markets, given the poor run its favorite Asian superpowers India and China are clocking in the recent past.
Fall in China and India markets
The rate of growth at the start of operations nearly a decade ago in both of these Asian super powers had been phenomenal. However, in the past couple of years, there has been a drop in the fast-food retail-chain market segment growth, both in India and China, necessitating McDonald’s Corporation (NYSE:MCD) to look at other markets as well.
Vietnam’s booming middle class economy
Countries such as Vietnam now appear attractive given that they have a booming consumer market, predict analyst such as Mayo-Smith.
Others such as Burger King, KFC, and Starbucks already have operations in Vietnam.
Analysts such as the Rick Mayo-Smith say that the entry into Vietnam though delayed, is expected to be a smart choice, though, it has to be noted that McDonald’s Corporation (NYSE:MCD) entry into Thailand was when the country had $50 billion GDP.
Vietnam has over 90 million population and $130 billion GDP with substantial real estate assets as well as a booming consumer market.
Strong fundamentals, perfect time to enter the market
The strong fundamentals in Vietnam- such as one of the better performing stock market in the region – and substantial stability in the Vietnam currency are ideal for foreign investors like McDonald’s Corporation (NYSE:MCD). Besides, Vietnam is home to some of the manufacturing major such as the $1 billion Intel plant and also consumes over $20 billion mobile handsets that Samsung exports to cater to growing demand in the country. Consumerism is driving the economy and there is demand for companies such as McDonald’s.
Though, the country has been one of the lesser known markets, dwarfed by China, the recent boom has begun to attract the major consumer brands. Analysts also offered that there is room for good growth as merit of entrepreneurs drives the economy and not nepotism.
