MARKET ANALYSIS FOR

FAST FOOD CHAIN MARKET

IN CAMBODIA, LAOS,
MYANMAR AND VIETNAM
September 2014
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Web: www.canvassco.com
Email: contact@canvassco.com
Phone: +662 627 3081

Canvassco 2014

Fast-food industry is developing its presence in the last marketing frontier in

ASEAN which include Cambodia, Laos, Myanmar and Vietnam (CLMV)

Canvassco 2014

During the past 10 years, we have seen not only the global players made their
entrance into CLMV market but also Asians fast food chain stores are now within
the race to strive for first mover advantage

Canvassco 2014

CLMV markets are attractive as the hot-spots for fast-food chain stores to grow their
market share for ASEAN market. To choose what most attractive market among
CLMV we take the following factors into consideration;

LIFESTYLE
URBANISATION
AVAILABILITY OF RAW FOOD SUPPLY
PURCHASING POWER
COMPETITION

MARKET GROWTH

EASE OF DOING BUSINESS

MARKET POTENTIAL

Canvassco 2014

MARKET POTENTIAL
Population of targeted age group for fast food restaurant is high for Vietnam and Myanmar

15.1 mn

Population

6.7 mn

53.2 mn

89.7 mn

Population
by Age Group

Target Age Group

(15 - 39)

>80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
05-09
<4

Cambodia

Laos

Myanmar

Vietnam

6.5 MN

3.0 MN

23.3 MN

39.2 MN

Source: World Bank and Canvassco Analysis

Canvassco 2014

MARKET GROWTH
CLMV market is expected to grow constantly
Estimated GDP Growth Rate (%)

Total Foreign Direct Investment (USD Million)

For Year 2013

8,900

8.2
8
7.5

7.7
7.5
7.2

7.8
7.6
7.3

7.5
7.3

7.7
7.5
7.3

5.6

5.7

5.8

5.9

5.4

2013

7.5

Cambodia
Laos
Myanmar
Vietnam
2014

2015

2016

2017

2018

2,621
1,345
269

Source: IMF and Canvassco Analysis

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PURCHASING POWER
Among the CLMV market, Vietnam has the highest purchasing power
GDP Per Capita (For Year 2013)
Current USD

Vietnam - 1,911

Cambodia - 1,008

Laos - 1,646

Thailand GDP Per Capita was:

USD 5,779 in 2013
USD 2,849 in 1995
USD 1,933 in 1992
USD 1,508 in 1990
USD 1,122 in 1988

Today fast food industry in Thailand

is worth about USD 700 million, if
CLMV market follow similar trend to
Thailand, their fast food market
would be approximately within the
range of USD 300 - 500

Myanmar - 1,177

Source: World Bank, IMF, CP Thailand and Canvassco Analysis

Canvassco 2014

http://www.publicdomainpictures.net/view-image.php?image=13249&picture=coin-graph

URBANISATION
The hotspot for retail and fast food store for Cambodia is Phnom Pehn, and Laos is still focused in the
capital city, Ventiane. The urbanization of Vietnam is scattered from Ho chi Minh city to Hanoi(Captial);
Haiphong, and Danang. For Myanmar; the economic cities are Rangoon and Mandalay.

% of Urban Population

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LIFESTYLE - LAOS
Modernizing lifestyle is coming to LAOs
Daily Purchased Meal
Unit: Percentage
No Purchase
2%
Dinner
17%

Average Cost Per Meal

Unit: Percentage
>THB 120
THB 100 - 120

Breakfast
26%
THB 80 - 100
THB 60 - 80

Lunch
55%

Leisure Activities After

School/Work (Unit: Percentage)

Others
Sport and Music
Special classes, Overwork
Movies, dining, shopping
3%
13%
19%
65%

THB 40 - 60

<THB 60

Source: C ASEAN 2014, Esaan Center for Business and Economic Research
Canvassco 2014

LIFESTYLE - MYANMAR
Only 17% of consumers are eating out everyday

Eating out monthly

HOW OFTEN
BURMESE PEOPLE
GO EATING OUT?

Eating out 1 - 2 times a week

Eating out everyday

Eating out more than a month

Never

Source: CLMV Pulse Consumer Behaviour, Lifestyle & Attitude, Esaan Center for Business and Economic Research and Canvassco Analysis
Canvassco 2014

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LIFESTYLE - VIETNAM
40% of consumers are eating out everyday

Eating out everyday

HOW OFTEN
VIETNAMESE
PEOPLE GO EATING
OUT?

Eating out weekly

Eating out monthly

Eating out more than a month

Never

Source: CLMV Pulse Consumer Behaviour, Lifestyle & Attitude, Esaan Center for Business and Economic Research and Canvassco Analysis
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AVAILABILITY OF RAW FOOD SUPPLY

Myanmar are Vietnam have the highest raw food supply among the four countries

Cambodia
(2014f)

Laos
(Est. 2010)

Poultry meat production (tons)

26,697

20,567

976,419

746,900

Pork meat production (tons)

120,942

39,720

569,434

3,217,900

Buffalo & Cattle meat production (tons)

80,752

68,063

227,869

370,800

Myanmar
Vietnam
(2010 - 2011) (2010)

Source: General Statistics Office of Vietnam, Department of Animal Production and Health Cambodia, Myanmar Livestock Federation,
FAO and Canvassco Analysis
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EASE OF DOING BUSINESS

Currently, Vietnam leads other countries in terms of ease of doing business factor (99) ; followed by
Cambodia (137) and Laos (159); leaving Myanmar the hardest place to do the business (182).

This is due to the fact that Myanmar has just opened its door to business after facing political
uncertainty for several decades.

Ease of Doing Business Ranking

137th

Canvassco 2014

159th

182th

99th

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COMPETITION
Vietnam has the highest number of competitors in the market
Vietnam

Cambodia

Myanmar

Laos

VIETNAM

Key players in Vietnam are 1) KFC (137 outlets) 2) Lotteria; the Korean
brand(86 outlets) 3) Jollibee; the Filipino brand (39 outlets).

CAMBODIA

Key leaders are Lucky burger and KFC with the equal total number of
outlets of 13 outlets each. The penetration from new investors are quite
slow, a few players enter in the industry, Burger king with 3 outlets; Master
Grill offering grilled chicken having total of four outlets, Pizza Company with
ten outlets, and four outlets of BBQ Chicken a leading South Korean fast
food chain.

LAOS

There is a silent movement of fast food chain store in Laos as only The
Pizza Company entered Laos in 2012 with 1 outlet and another 1 outlet of
Swensen in the year later.

MYANMAR

A first mover in Myanmar, Lotteria plans to open 24 more branches by the

end of 2016 after it established its first store in early 2013. They partnered
with MYKO (Myanmar Korea) to serve as a master franchise in Korea.
BBQ Chicken plans to open 10 fast food restaurants by the end of 2014
through a signed agreement with Myanmar Culinary Holdings Co., Ltd.
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MARKET ATTRACTIVENESS
Vietnam is the most attractive market for CLMV market entry

Ranking score for CLMV market based on qualitative and quantitative information

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Lets us know if need consultation on market

prioritisation project

CONTACT US
FOR MORE INFORMATION

www.canvassco.com
Tel. +662 627 3081
email: contact@canvassco.com

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