Vietnam restaurant chain receives $3.5m in funding

These investors include New Asia Partners and Zhang Yong, founder of Sichuan Haidilao Catering, a leading hot pot restaurant chain in China.

The latest round follows on from a $3.5 million Series A round which took place in September. The company has also said it is considering raising additional capital through a public listing on the main board of the Hong Kong Stock Exchange in early 2015.

Set up in 2007, Huy Vietnam claims to be the first international, professionally managed restaurant chain operated in Vietnam serving traditional Vietnamese food.

The company currently runs 24 quick service restaurants - up from 17 in September 2013 - under the Mon Hue and Com Express brands. It prepares food at a central kitchen to ensure consistency across all restaurants while reducing food and labor costs.

According to a release, this latest investment will be used to  support the restaurant chain's expansion in Ho Chi Minh City, Hanoi, and Danang, opening an additional 2-4 Mon Hue and Com Express restaurants per month in 2014. The company will also continue to expand its central kitchen to improve its operating efficiency.

Ther are plans to enter the Hong Kong market later this year with a view to entering further jurisdictions over the next three years.

Referring to the Haidilao connection, Dennis Nguyen, vice chairman of Huy Vietnam and chairman of New Asia Partners, said: “This equity partnership allows the company the opportunity to supercharge our future expansion into China and will allow us to establish ourselves the leading Vietnamese restaurant chain in Greater China.”

Vietnam’s strong GDP growth – averaging 7% over the past decade - has fueled the development of the restaurant industry and Huy Vietnam is not the first chian to attract funding in the country. In 2008, Mekong Capital backed hotpot restaurant operator Golden Gate Joint Stock Company.It later exited the business in late 2010 generating a 3.6x.

MacDonald’s is also looking to tap into the space, appointing Henry Nguyen - managing partner of IDG Ventures Vietnam - as its developmental licensee.

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• Topics
• Venture
• Consumer
• Southeast Asia
• Early-stage
• Vietnam
• Venture
• Consumer