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Hanoi finally gets its first McDonald’s

By Maria Santos
2 min read
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mcdonalds hong kong
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Global burger behemoth McDonald’s opened its first branch on Saturday in the historic heart of communist Hanoi, a conservative city renowned for its traditional – and cheap – Vietnamese staples beloved by food-obsessed locals.

Hungry customers lined up for Big Macs and Chicken McNuggets at the Vietnamese capital’s first McDonald’s outlet. It overlooks the tree-lined Hoan Kiem lake, which draws millions of tourists annually to see French-era colonial buildings and sample street-food favourites like pho noodle soup and banh mi sandwiches.

The restaurant is the first outside of the southern commercial hub Ho Chi Minh City, where 16 branches have opened since McDonald’s first came to Vietnam in 2014 to much fanfare, especially among the rapidly-growing middle class and American-obsessed youth.

The global fast food chain received a similarly warm welcome in Hanoi on Saturday, as hungry diners crammed into the two-storey eatery for a first taste of the Golden Arches.

For 84-year-old Tran Dinh Luyen, who fought against the US in the Vietnam War, the restaurant was a sign of warming ties with a former enemy.

“I am happy that McDonald’s has opened a restaurant in Hanoi. It’s a very famous American brand, so it shows how far US-Vietnam relations have come,” he told after mowing down on a Big Mac with his daughter and granddaughter.

Some curious tourists stopped to see what all the fuss was about, perplexed that a brand ubiquitous in the West would draw so much attention.

“It’s kind of random to see McDonald’s opening … it’s an interesting cultural experience to see how important it is that the store is opening here,” American Dan Moore told AFP, after his wife remarked she might not have expected to find one of the most salient symbols of capitalism in the communist country.

For 84-year-old Tran Dinh Luyen, who fought against the US in the Vietnam War, the restaurant was a sign of warming ties with a former enemy.

The one-party state has seen dizzying economic growth in recent years as it has opened its doors to foreign investment, which has included an influx of western chains like Starbucks, KFC and Burger King.

Growth in the fast food sector has been buoyed by rapidly rising incomes – annual per capita income has more than doubled in the past decade to about US$2,100 today – especially among under-30s, who make up half of Vietnam’s population of 93 million people.

The fast food industry in Vietnam has seen double-digit growth annually for the past five years, and the country has the highest 2017 growth in Asia-Pacific for fast food chains, according to market research firm Euromonitor International.

Though meals can cost as much as three times the local fare, customers are still showing strong appetite.

“Young people like to hang out in fast food restaurants as they are seen as a cool and nice place … and these customers also like the taste of the food,” Euromonitor analyst Samuel Huynh told.

Questions & Answers

Q.

Why has it taken until now for McDonald's to open a branch in Hanoi?

A.

Hanoi is described as a conservative city known for its traditional Vietnamese food. The article also highlights Vietnam's past as a communist one-party state, which has more recently opened its doors to foreign investment and western chains.

Q.

What is driving the growth of the fast food sector in Vietnam?

A.

Rising incomes, especially among under-30s who make up half the population, are a key factor. Young people view fast food restaurants as cool places to socialise and enjoy the food.

Q.

How does the cost of McDonald's compare to local food in Vietnam?

A.

Meals at McDonald's can cost as much as three times the price of local fare. Despite this, customers are showing a strong appetite for the fast food options available.

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