You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

September 25, 2012

Getting the Deal Through – Franchise 2013, Vietnam Chapter

Subscribe to Updates
Law Business Research

With regulatory changes occurring in Vietnam to promote foreign investment, familiarity with the law on franchising in Vietnam is imperative to strategic decision-making for all types of investors, ranging from foreign companies to entrepreneurs. Getting the Deal Through has published a multi-jurisdictional guide to franchising in 33 different countries worldwide. The Vietnam chapter was written by Thom Thi Mai Nguyen and Huong Thi Thanh Nguyen, attorneys-at-law at the Tilleke & Gibbins corporate and commercial team in Vietnam, and covers the following:

A general overview: the forms of business entities that are relevant to the typical franchisor, the laws and agencies governing the formation of business entities, and the relevant aspects of the real estate market.

Legal requirements: The requirements for forming and maintaining a business entity, any restrictions that may apply to foreign business entities and foreign investments, labor and employment requirements, including any risks involved, and protecting intellectual property, particularly trademarks.

The offer and sale of franchises: The legal definition of a franchise, how the Commercial Law Decree 35/2006/ND-CP and Circular 09/2006/TT-BTM regulate the offer and sale of franchises, with reference to specific provisions and parts of the franchising procedure, any exemptions and exclusions, pre-contractual disclosure laws, a brief description about liabilities in sub-franchising, and what action to take if a franchisor engages in fraudulent practices in connection with the offer and sale of franchises.

Legal restrictions on terms of franchise contracts and the franchise relationship: Specific laws regulating the franchise relationship, even after the contract comes into effect, and the effect of intellectual property law, commercial law, real estate law, competition law, and government or trade association policies on the franchise relationship.

Termination of the franchise relationship: The circumstances under which a franchisor may terminate the relationship, including legal restrictions on their ability to do so, circumstances in which a franchisee may terminate the relationship, and renewal of the franchise agreement by the franchisor.

General aspects of the franchise relationship: Whether the franchisor can restrict a franchisee’s ability to transfer ownership interests, laws affecting the nature, amount, or payment of fees, restrictions on the amount of charges on overdue payments, laws regulating the currency of payments, and the law on good faith in the franchise relationship.

Dispute resolution relevant to franchising: A brief overview of the court system, the procedures available for dispute resolution for franchise cases, the advantages and disadvantages of arbitration for foreign franchisors considering business in Vietnam, and the difference between foreign and domestic franchisors.

This edition of Getting the Deal Through – Franchise is one volume in a series of annual reports, all of which provide analysis of key areas of the law globally for corporate counsel and legal practitioners.

Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Franchise 2013 (published in August 2012; contributing editor: Phil Zeidman of DLA Piper (US) LLP). For further information please visit www.GettingTheDealThrough.com.

Download Full Article
Related Professionals

Practices

Corporate/M&A

Intellectual Property

Location

RELATED INSIGHTS​ 

October 26, 2025
AI-generated songs are now making waves in Vietnam on platforms like TikTok, with tracks such as “Say mot doi vi em” quickly gaining popularity and sparking widespread attention. This phenomenon raises a host of legal and ethical questions: Who is the author of these songs? Can they be protected by copyright? Who is responsible if there is an infringement? These questions are becoming increasingly urgent as AI music becomes more mainstream in Vietnam. Copyright Protection for AI-Generated Music in Vietnam Under current Vietnamese law, copyright protection is reserved for works that bear the mark of human creativity. The 2022 amendments to Vietnam’s Intellectual Property Law reaffirm that only works created by humans are eligible for copyright. In practice, if a human meaningfully contributes to the creative process—by providing prompts, making selections, editing, or arranging—their contribution may be protected. However, if a song is generated entirely by AI without significant human input, it is unlikely to qualify for copyright protection. When an AI-generated song does not qualify for copyright protection, the question arises as to whether the person who writes the prompts, edits, or compiles the work can still be considered the owner of an asset under the Vietnamese Civil Code. According to Article 105 of the Civil Code 2015, assets include objects, money, valuable papers, and property rights. While AI-generated music that is not protected by copyright is not considered money or valuable papers, it may be regarded as an object (in the form of a digital file or recording) or as a property right if it can be possessed, used, transferred, or exploited for value. Use of AI-Generated Works Without Copyright Protection If a song is not protected by copyright, does that mean anyone can use it freely? Not necessarily. The absence of copyright does not mean the
Read More
October 24, 2025
Thailand currently lacks a specific franchise act. Consequently, the legality of any franchise agreement is determined by its compliance with various existing laws, such as the Civil and Commercial Code, the Trademark Act B.E. 2534 (1991) (as amended), and the Unfair Contract Terms Act B.E. 2530 (1997). Thailand is a freedom-to-contract jurisdiction. This allows for a high degree of flexibility and autonomy in contractual arrangements, provided that the terms do not violate any laws or public policy and do not fall under the scope of unfair contract terms. Given this, the requirement for fairness in franchise agreement terms often leads to uncertainty, but decisions from the Trade Competition Commission of Thailand (TCCT) can provide guidance on whether specific contentious terms are in fact fair.  One issue worth examining in this light is the inclusion of terms on nonrefundable franchise fees and strict purchasing conditions. Franchise Fee: Unfair to Refuse Refund? Nonrefundable franchise fees represent a significant upfront investment for franchisees, often becoming a point of contention if the franchise relationship deteriorates or the franchisor ceases operations. Their fairness and enforceability are frequently scrutinized by regulatory bodies like the TCCT, highlighting the critical balance between contractual freedom and franchisee protection. Faced with one such case, the TCCT considered whether it was unfair for the franchisor to refuse to refund the franchise fee after the franchisor ceased operations.  The franchisee had entered into a service agreement on August 2, 2021, and begun operating on October 9, 2021. However, by November 21, 2023, the franchisee was notified that the system would be shut down for maintenance, and by December 26, 2023, the franchisor announced the cessation of operations due to financial losses. The franchisee then requested a refund of the franchise fee. Unfortunately for the franchisee, the TCCT found that the franchisor’s
Read More
October 24, 2025
On October 22, 2025, the Thai government posted a directive not to grant gambling licenses for gambling involving poker nationwide to crack down on illegal gambling activities. The directive was issued by Thailand’s Ministry of Interior to align with government policies to prevent the legalization of all types of gambling businesses, including poker as a sporting activity. This will result in the revocation of poker activities as sport and institute a strict ban on such activities nationwide. Businesses should note the new government’s strict approach toward gambling activities as the legal situation regarding gambling in the country continues to draw close attention.
Read More
October 23, 2025
Myanmar’s customs authorities have introduced new procedures allowing copyright holders to protect their intellectual property from infringing goods at the border. The Ministry of Finance and Revenue issued Notification No. 107/2025 on September 11, 2025, establishing rules and requirements for customs recordation under the Copyright Law of 2019. The notification includes eight official forms for copyright-related customs matters—three for applicants and five for the Customs Department. This was followed by Customs Department Announcement No. 1/2025, dated September 29, 2025, which details the security required for suspended goods. Customs recordation provides a proactive mechanism for rights holders to prevent importation of pirated works. By registering their works with the Customs Department, rights holders gain access to enhanced border enforcement measures, empowering customs officials to identify and intercept pirated goods before they enter the market. While copyright protection in Myanmar arises automatically under the Copyright Law of 2019, a registration certificate for copyright or related rights is required to apply for customs recordation. Customs Recordation Registered copyright and related rights holders can apply directly or through authorized legal representatives for customs recordation to prevent cross-border trade in pirated works. Applications must use the prescribed form and include all supporting documentary evidence specified in the form. The Customs Department will notify applicants within 15 days of receiving their application. Each recordation remains valid for two years from the date of acceptance and may be renewed for successive two-year periods by submitting a renewal application at least 30 days before expiration. Rights holders whose works are recorded must notify the Customs Department within five days of any amendment or withdrawal of information at the Intellectual Property Department. Suspension Orders Registered copyright and related rights holders can request a suspension order to prevent release of pirated goods into free circulation, regardless of whether they
Read More