The listed Licogi 13 is to sell 70 per cent of its stake in the Twitter Beans Coffee franchise to an as yet unknown buyer.

A total of 840,000 shares will be sold at VND23,600 ($1.04) each, bringing in an expected VND19.8 billion ($880,000) and will be included in profits for the second quarter of this year.

“Ligico 13 has a partner and we are in ongoing negotiations,” a representative from Licogi 13 told VET while giving no further details about the sale.

Twitter Beans Coffee has charter capital of VND30 billion ($1.35 million) and six outlets in Hanoi.

The company also owns 2 ha of land in a high-tech zone in Thach That district, Hanoi, on which it plans to build a fast food outlet and coffee shop.

At its recent annual general meeting for 2016, Licogi 13 decided not to limit the holding of foreign shareholders.

Under its 2016 business plan it is to earn revenue of VND1.35 trillion ($60.7 million) with pre-tax profit of VND89.5 billion ($4.02 million).

Franchised coffee brands are appearing in greater numbers in Vietnam, such as Starbucks, Caffe Bene, The Coffee Bean & Tea Leaf, Effoc Café, and Gloria Jeans Coffee.

Starbucks recently opened its fifth outlet in Hanoi, on the ground floor of The Garden Shopping Center in The Manor residential urban area in Me Tri Street, Nam Tu Liem district.

Vietnam is a destination of some potential for franchises. According to figures from the Ministry of Industry and Trade, since 2007 it has licensed more than 140 foreign brand franchises in the country.

Ms. Nguyen Phi Van, Chairman of Retail & Franchise Asia, which represents many foreign franchisors in Vietnam, said there are about 40 foreign brands seeking partners in the country.

Ninety per cent are from the EU and the US, primarily in the fields of food and beverages, education and training, and gymnasiums.

The number of franchise businesses in Vietnam is forecast to increase substantially given the number of free trade agreements (FTAs) the country has signed.

The recent FTA with the EU and, more importantly, the upcoming TPP promise to be beneficial for Vietnam, Mr. Sean T. Ngo, CEO of VF Franchise Consulting and Southeast Asia Managing Director of Edwards Global Services (EGS), told VET.

While industries such as manufacturing, textiles, and food processing are sure to benefit, other businesses that are in franchising industries will also do well as equipment, furniture and fixtures, and raw materials can now be imported into Vietnam more cost effectively.