Legal Framework For Franchising in Vietnam
Franchising began to bloom in Vietnam from 2009, when the country eased restrictions in the retail market to fulfill its WTO commitments. Since then, the franchise business model has developed quickly. Today, many famous foreign brands reach Vietnamese customers through franchise networks. The common trend has been to receive franchises from foreign franchisors, but several Vietnamese businesses are also franchised within Vietnam and abroad.
In fact, franchising is well suited to Vietnam, where there is a strong culture of entrepreneurship. It is a good method for small and medium size entrepreneurs who want to start a new business in a short period of time. However, more and more, franchising is the business of large local and foreign sub-franchisors. Franchises, in comparison to new businesses, have a more limited risk, a modest amount of invested capital, and a proven track record of success. Franchising continues to grow rapidly in Vietnam, not only in the fast food and beverage business, but also in other sectors. A strong surge of interest in franchised businesses exists among local entrepreneurs, and interest from franchisors has also grown.