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April 29, 2011

How to Ride the Franchising Boom

Managing Intellectual Property

With Vietnam’s entry into the World Trade Organization, 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, Subway, Lotteria, Jollibee, Pho 24, Gloria Jean’s Coffees, Buntamita, and Cartridge World. These franchises view Vietnam as strong potential market, as it is the 12th most populous country in the world, with a young dynamic population that places a high premium on reputable international brands. 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.

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