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May 3, 2011

Franchising in Vietnam

Tilleke & Gibbins

With Vietnam’s entry into the WTO, it is expected that franchising activity in the country will increase markedly over the next few years. There are presently a handful of major franchises operating in the country, including Kentucky Fried Chicken, Lotteria, Jollibee, Pho 24, Gloria Jean’s Coffees, Buntamita, and Cartridge World. In the past, Vietnamese law did not provide a clear basis for franchising arrangements, but the passage of Decree No. 35 and Circular No. 09 in 2006 laid the groundwork for franchising to develop in Vietnam. This article provides an overview of the legal framework that is now in place.

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