The F&B (Food & Beverage) industry in Vietnam is growing strongly, with an estimated scale of tens of billions of USD per year with a large number of stores, brands and franchise models. Along with the opportunities are familiar "bottlenecks": capital needs for expansion, high operating costs, lack of cash flow transparency, difficulty accessing capital sources, and the risk of losing actual revenue.
This article introduces a perspective on “tokenizing revenue” – standardizing and digitizing the right to receive a portion of future sales cash flow, based on recorded revenue data from the sales system. Why is F&B revenue suitable for “tokenizing”?
F&B revenue is generated continuously by the hour, by the day; data generated from POS, electronic invoices, QR codes/electronic wallets, etc. can be reconciled and monitored almost in real time. Unlike traditional models that record property ownership, this model is only linked to sales cash flow; thereby minimizing legal risks related to property transfer. The large scale of the industry, the regular capital needs for opening branches, upgrading and renovating stores are also favorable conditions to consider.
How it works
- Connecting sales data (POS): Revenue recorded from POS/electronic invoices is synchronized to the “digital ledger” (using blockchain technology) and reconciliation system.
- Determine the sharing ratio: The business chooses the percentage of revenue it intends to allocate to the revenue claim holder (e.g., 10%), the payment period, payment cycle, and safety thresholds.
- Distribution of revenue rights: Enterprises record benefits for investors through "revenue right certificates" (symbol REV for easy tracking) according to appropriate procedures, objects and scope. The cooperative capital is used for the announced purpose (expansion, renovation, etc.).
- Periodic Payment: Actual revenue after reconciliation is allocated according to the set rate/cycle (day/week/month), executed by contract/automated logic, with a mechanism for holding and adjusting errors.
- Controlled transfer: Once a specific legal framework is in place, REV Certificates can be traded on platforms with KYC/AML mechanisms, custody – supervision and compliance within the licensed scope.
Simulation illustrating the revenue RWA model
Suppose a coffee shop has an average revenue of 500 million VND/month (assuming that all tax and financial obligations have been fulfilled...). The business chooses to share 10% revenue on a monthly basis, equivalent to a maximum of 50 million VND/month to distribute to REV certificate holders. If 100,000 REV units are issued, each unit can in principle correspond to a maximum of ~500 VND/month in revenue, depending on actual sales results, adjusted by the reserve mechanism, refund and valid expenses according to the agreement.
With this model, Enterprises can access capital for expansion/upgrade; Certificate holders can track data through a transparent dashboard. This model can bring many advantages in the future, when there is a specific legal framework to regulate.
Expected benefits
For F&B businesses, the model helps access capital more flexibly than traditional forms; increases customer-brand engagement thanks to data transparency; maintains control over operations. For individuals participating in the role of revenue holders, the participation threshold can be small; monitoring is more transparent thanks to data from POS and periodic reports. At the market level, if applied within the right framework, the model can contribute to increasing financial discipline, promoting accounting and reporting standardization in the SME F&B sector.
Challenges & Operating Standards
Success depends on data quality and operational discipline: standardized POS connectivity, clear contracts and payment processes, cash flow management and risk prevention, transparent information disclosure.
The recommended standard framework includes: business identification; cash flow audit; POS integration – digital ledger; digital revenue allocation contracts; periodic reporting; compliance with accounting standards; risk management; complaint mechanism – dispute resolution.
“It's a lot cheaper to get it right from the start than to 'patch' it up at the end.‘ — Eric Vuong
Conclude
F&B is a field with fast cash flow, continuous capital needs and relatively transparent sales data thanks to POS. “Tokenizing revenue” – understood as digitizing and standardizing the right to receive a portion of revenue – is an approach worth considering if designed, controlled and piloted within the right framework, aiming for more transparency for businesses and participants.
This series of articles is for sharing knowledge and information, not for investment recommendations or financial product offerings, not for legal analysis or predictions, but focuses on sharing about technology, economics, and investment. The contents referring to regulations, if any, will be written based on existing legal principles, the parts without detailed regulations will be explained and mentioned based on experience in countries that have implemented them in practice. Readers need to proactively read and understand the current policies and legal framework of Vietnam through official documents; at the same time, need to comply with the current legal framework and only operate when specifically licensed, cautiously and responsibly towards the State, community, and society.
Eric Vuong
Chairman of BOD
HVA Investment Joint Stock Company
