The Evolution of Vietnam’s Laundry Market and Wash Friends' Journey: From the 1st to the 3rd Generation [Part 1]

This article is based on Wash Friends’ experiences and market analysis. It does not intend to single out or criticize any specific company, nor does it aim to engage in defamation or unfair competition. All content is meant to explain general market trends and may differ from actual situations. Wash Friends holds no responsibility for any misunderstandings arising from this article.

1st Generation: The B2B-Centric Era of Laundry Distribution in Vietnam

Vietnam’s laundry market has evolved through three generations. The 1st generation was dominated by B2B (business-to-business) laundry equipment distributors. During this period, companies that secured exclusive contracts with global laundry equipment brands focused on supplying equipment to hotels, hospitals, and industrial complexes. Meanwhile, the B2C (business-to-consumer) market was composed of over 98% household laundry services using home washing machines, with professional laundry services being nearly non-existent.

Commercial/Industrial Laundry Equipment, Alliance Speed Queen Equipment Models

In the north, Thai Binh (now operating under the Hoa Phat brand) led the market, while Vuong Luc dominated in the south.

Thai Binh distributed Alliance Speed Queen from the U.S., Oasis from China, Realstar dry-cleaning machines from Italy, Ghidini finishing equipment from Italy, Fagor from Spain, and Eunsung dry-cleaning machines from Korea. They specialized not only in laundry equipment but also in kitchen appliances, establishing themselves as a leading distributor.

Vuong Luc in the south held exclusive distribution rights for Alliance Speed Queen and Girbau from Spain, focusing on the B2B sector. Notably, they set up a state-of-the-art laundry plant for Phu Quoc Vinpearl Resort using Girbau equipment and expanded into supplying hotels, hospitals, and general consumers. These 1st-generation companies gained expertise, experience, and sales capabilities that new market entrants found difficult to match.

GIRBAU Professional Laundry Plant

Additionally, TMC, which held exclusive distribution rights for Electrolux commercial equipment in Vietnam, was another notable player. Initially, TMC attempted to enter the traditional B2C laundry market but struggled with customer complaints and maintaining laundry quality. As a result, TMC pivoted to focus on hospital laundry services, operating an Electrolux-equipped laundry plant in Hanoi. However, with Electrolux’s exclusive contract ending in 2024, the brand has since shifted to long-term partnerships with potential laundry companies, similar to Alliance and LG, to expand its market presence.

B2B Hospital Laundry Facility (Processing is only allowed in government-approved plants in Vietnam)

Global laundry equipment companies recognized Vietnam’s potential early on. For example, Alliance attempted to enter the B2C market using Speed Queen equipment, collaborating with local firms to participate in trade fairs and open stores. However, at the time, Vietnam’s economic and cultural conditions were not yet ready, leading many brands to withdraw without significant success.

Vietnam's First Self-Service Laundry Set Up with Alliance Speed Queen Equipment in 2017

Wash Friends' Entry into Vietnam: Challenges and Limitations in 2019

Wash Friends entered the Vietnamese market in 2019, initially aiming to introduce Korea’s successful self-service laundry model. To achieve this, Wash Friends imported Alliance Huebsch machines from the U.S. to Korea before shipping them to Vietnam. Given Korea’s booming self-service laundry market, Wash Friends expected a similar outcome in Vietnam.

WAPOS (Self-Payment System) Independently Developed by Wash Friends Korea and Alliance Huebsch Equipment, 2019 Hanoi Mỹ Đình First Store in Vietnam

Around the same time, Sell Plus, another Korean company, entered the Vietnamese market. Sell Plus had specialized in distributing Alliance Speed Queen and LG commercial washing machines to military bases, universities, and hotels in Korea. Like Wash Friends, they sought to penetrate the self-service laundry market in Vietnam. However, both companies quickly realized that the market was not yet ready for this model.

2019 Sell Plus Vietnam Hanoi First Store

Vietnam’s economic development and cultural transition required more time. Wash Friends swiftly adjusted its strategy to focus on premium laundry services for the Korean community. However, this meant competing with USA Laundry, which had already partnered with Vietnam’s largest Korean supermarket chain, K-market, to operate collection stores. These stores collected garments, processed them at a laundry plant, and returned them to customers.

Initially, Wash Friends collaborated with USA Laundry for outsourced services but terminated the partnership due to long processing times and insufficient damage and loss prevention measures. K-market also discontinued its contract with USA Laundry following customer complaints and instead partnered with a Korean laundry business (which operates a small-scale laundry plant in Hanoi). Although the Korean laundry company was recognized for its technical skills, it remained limited to operating direct collection stores rather than a franchised network.

K-Market Korean Laundry in Hanoi, Vietnam (Mostly Located on the 2nd Floor of Supermarkets and Operating as Collection Stores)

The Beginning of the 2nd Generation Laundry Market: 2017 to 2019

The 2nd generation of Vietnam's laundry market began around 2017. During this period, professional laundries using Speed Queen equipment started to emerge, and the global laundry franchise Mr. Jeff entered the market, establishing its business in Ho Chi Minh City. By 2019, Mr. Jeff had over 8 stores in Ho Chi Minh City and more than 15 across Vietnam.

Mr. Jeff operated as a collection store system, where laundry was processed at a central small-scale factory and delivered back to each store. Some locations installed small-capacity Alliance Speed Queen commercial machines to provide on-site laundry services.

Wash Friends conducted an in-depth analysis of Mr. Jeff’s business model at the time. There were plentiful investment materials available online for Mr. Jeff’s operations in various countries, and Wash Friends used these insights to strategize for competition with global players. However, after the COVID-19 pandemic, Mr. Jeff exited the Vietnamese market.

Mr. Jeff Store Opened in Ho Chi Minh City in 2020

During this period, Wash Friends and Sell Plus shifted their focus toward the premium laundry market targeting Korean customers. While Wash Friends had extensive experience operating self-service laundries in Korea, its understanding of professional laundry technology was still developing, requiring the company to build everything from scratch.

Sell Plus launched its Sell Giặt Sấy brand in Vietnam, offering specialized wet cleaning services instead of traditional dry cleaning. At the time, Hanoi had no providers of professional wet cleaning, leading to intense competition between Wash Friends and Sell Giặt Sấy among Korean expatriates.

Wash Friends Store Opened in Vinhomes West Point in July 2022

Challenges During the COVID-19 Pandemic and Industry Restructuring

The COVID-19 pandemic brought significant changes to Vietnam’s laundry market. Many franchise laundry companies, including Wash Friends, faced challenges, and most businesses exited the market.

Cosmo Laundry, which operated over five collection stores and a central laundry plant in Ho Chi Minh City, closed most of its stores and sold its factory. Currently, Cosmo Laundry maintains only 2-3 collection stores and a small-scale laundry operation.

USA Laundry attempted a rebranding under the name Amaze after the pandemic, continuing its franchise-based collection store model.

USA Laundry Rebranded as Amaze

Sell Giặt Sấy had expanded with over five premium stores across Vietnam, but was unable to survive the pandemic, leading to the closure of all locations. The company later sold its business rights to 1st-generation equipment distributor Thai Binh (Hoa Phat).

Thai Binh planned to expand into the B2C market and develop a franchise system, but failed to achieve significant success. Currently, Thai Binh operates only one Sell Giặt Sấy showroom in Hanoi, focusing primarily on distributing OPL (On-Premises Laundry) equipment to hotels and hospitals.

Sell Giặt Sấy Store Located in the Shushine City Villa Complex, Hanoi, Vietnam

Meanwhile, Wash Friends continued expanding during the pandemic, maintaining service quality and opening over 10 new stores. The company sold equipment at minimal profit margins to sustain operations, allowing franchise owners who invested at that time to benefit significantly compared to today’s standards.

Wash Friends Store Opened in Vinhomes Smart City S2 in July 2021