A laundromat shop opened by Masan Group. Vietnam is a huge potential market for the laundromat business. — Photo from Internet
Vietnam is a huge potential market for the laundromat business thanks to its fast-growing economy and big population, business experts said.
Statistics from the Ministry of Industry and Trade in May 2022 informed that the size of the country’s commercial laundry market was estimated at US$205 million per year with a growth rate of 6 per cent, higher than the Asian average of 3.6 per cent.
Statistics of 2022 also showed that there were about 15,316 laundry shops in the country with more than 60 per cent of them launched within the period of 2020-22, of which, more than 96 per cent were small-scale and household businesses.
New consumption habits, improved living standards of the Vietnamese middle class and a younger generation in urban cities have led to more adoption of new consumer trends.
The preferred business model by Vietnamese business owners has been a combination of traditional kilo-laundry serviced by support staff and a self-service laundromat.
Therefore, laundromats have become a potential investment as the market is growing with high demand and low competition.
An owner of a laundry shop in Hai Ba Trung District of Hanoi said that many customers coming to her shop are young people who seek laundry service to maintain the quality of their clothes. Furthermore, many customers are visitors who have no time to wash clothes.
The laundry market has attracted many investors who are laundry equipment providers or laundry shop developers.
Recently, Alliance Laundry Systems (ALS), a global leader in commercial laundry equipment, announced that they were looking for new business partners by welcoming all local entrepreneurs who share a vision for revolutionizing the commercial self-service laundry sector in Vietnam.
The company said the Vietnamese market reflected the growing demand for quality laundry services from domestic consumers and international travelers.
This, in turn, has resulted in a rise in investment in laundry services, especially in the big cities, and ALS believes now is the right time to accelerate its foothold in Vietnam.
The company is making a strategic move to penetrate and expand its presence in Vietnam under its five well-known brands, namely Speed Queen, UniMac, Huebsch, Primus, and IPSO.
According to the company, as has been proven in other ASEAN markets where it has had strong foothold, the self-service laundromat is a business model that is more favored by entrepreneurs thanks to the fact that it can be operated without the need for 24/7 staff, with faster wash and dry cycles, usually within one hour, unlike traditional laundries.
This results in a significant reduction in labor cost and higher return on investment for this new generation of stores.
Apart from supplying commercial equipment, the company is recognised for successfully growing laundromat franchises around the world, particularly in markets with similar characteristics to Vietnam.
“The feedback on our laundry equipment and solutions we’ve received in Vietnam through our local partner has been positive. Vietnam and Thailand markets share great similarities in consumer culture and behaviors and we’re positive that, with our experience in Thailand and other Asian markets, we could facilitate the rapid growth of this relatively new business sector here,” said Sukree Kirai, senior regional sales manager, Alliance Laundry Systems.
In August this year, Masan opened a chain of four laundromat shops called Joins Pro in the Binh Thanh and Go Vap districts of HCMC.
Masan expects this model to bring a different experience with the ability to wash and dry in 25 minutes.
This is also a solution for tight living spaces, with no room for drying, especially with large sized items such as blankets, pillows, etc.
Users will no longer have to worry about the weather, while also saving time when washing and drying at home, according to Masan.
Another company, GV Laundry, in May opened a laundry chain in the northern region with many services.
In addition to big investors, many small businesses also open laundry shops due to their affordable investment and high demand in the country.
Vietnamnews