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

November 4, 2019

International Franchising 2019 (Second Edition, Release 5) – Vietnam Chapter

Center for International Legal Studies (Juris Publishing)

International franchises have taken off in the past decade in Vietnam, with signs of some of the world’s most well-known consumer brands lining the streets and shopping centers of major cities. While franchising has become a common form of business in Vietnam, the country’s laws in this area are in a relatively early stage, which can lead to uncertainties for many businesses wishing to operate a franchise system in Vietnam.

Tilleke & Gibbins professionals Tu Ngoc Trinh, attorney-at-law, and Waewpen Piemwichai, registered foreign attorney in Vietnam, cover all the terms most likely to present challenges for a franchisor in the Thailand chapter of International Franchising, Second Edition (Release 8, 2019), a guide providing analysis of franchising law and practice in 34 countries worldwide. The chapter covers the following principal subjects:

  • Legal Framework: Qualifications, franchisors, franchisees, procedures, disclosure of information, agreements, competition law, pricing, compliance with operational manuals, restraint of trade clauses, renewal, assignment, termination, and business restrictions
  • Intellectual Property: Trademark registration, license agreements, and enforcement
  • Taxation: Corporate income tax and foreign contractor tax
  • Dispute Resolution: Arbitration, courts, jurisdiction, and administrative sanctions
  • Alternatives to Franchising: Distribution agreements and technology transfer

The full PDF of the chapter is available below. Tilleke & Gibbins also provided the Thailand chapter of the guide.

International Franchising  is published by Juris Publishing and edited by the Center for International Legal Studies, an Austrian-based law research, training, and teaching institute that promotes and disseminates knowledge among members of the international legal community.

RELATED INSIGHTS​ 

March 27, 2026
Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has publicly indicated that it is preparing a new regulatory framework for data center operators that may introduce foreign-ownership restrictions. In particular, the NBTC is considering reclassifying data center operations from a type 1 telecommunications business license to a type 3 license. If implemented, this change would subject data center operators to a significantly more stringent regulatory regime, especially in relation to foreign ownership and control. The NBTC has indicated that it intends to propose a draft framework to the NBTC board. This would be followed by a public hearing process, with a view to implementing the new rules within 2026. Under the Telecommunications Business Act B.E. 2544 (2001), as amended, telecommunications businesses operating under type 3 licenses are subject to foreign ownership restrictions, including a requirement that less than 50% of the total issued shares be held by foreign shareholders. In addition, type 3 licensees are subject to foreign dominance restrictions, which prohibit arrangements that allow foreigners to dominate the business. These foreign dominance restrictions are broad in scope and may capture various forms of direct and indirect control or influence. This includes circumstances in which a foreign national is able to influence or control the formulation of policy, management, or business operations, or the appointment of directors or senior executives. At this stage, the exact scope of the proposed rules remains unclear. Businesses with existing or planned data center operations in Thailand should therefore monitor upcoming NBTC developments in this regard and prepare for the expected public hearing process.
March 23, 2026
In March 2026, the Myanmar Investment Commission (MIC) introduced two regulatory updates affecting investors planning new investments or implementing MIC-approved projects. Minimum Investment Conditions for Tax Incentives MIC Notification No. 1/202 clarifies the minimum conditions for investments in promoted sectors to qualify for tax exemptions or relief under the Myanmar Investment Law. The notification establishes the following requirements: Investors must contribute at least 35% of the total investment amount in cash, as reflected in the relevant proposal or endorsement application. Where an investment involves a foreign loan, the investor must obtain approval from the Central Bank of Myanmar, together with a loan repayment schedule, and provide evidence that both the foreign loan proceeds and the capital contribution have been remitted in cash through an authorized dealer bank. Chinese Yuan Accepted for Investment Capital The MIC also issued Investment News Bulletin No. 1/2026, confirming that Chinese yuan (CNY) is now accepted as foreign investment capital for applications for MIC permits and endorsements, in addition to US dollars (USD). Investment funds contributed in CNY may be remitted through banks authorized to deal in foreign currency in CNY, following the same process currently applied to investments made in USD. These developments may affect how foreign investment capital is structured and remitted, as well as the availability of tax incentives for investments under the MIC framework.
March 20, 2026
Thailand’s Board of Investment (BOI) now requires data center projects to demonstrate measurable benefits for local workforce development, R&D, SME capability, and domestic supply chains to qualify for corporate income tax (CIT) exemptions. BOI Notification No. Por. 3/2569, issued on February 6, 2026, updates the requirements for projects seeking promotion under BOI category 8.2.1 (data centers). All data center projects must now submit and implement plans covering development of Thai human resources and domestic supply chain support before benefiting from any CIT exemption. Human Resources Development Plan The BOI seeks to promote local talent development beyond basic training. Plans must include the following elements: Training for data center design, construction, and operations targeting vocational students, engineering and ICT undergraduates and postgraduates, and energy and building personnel in Thailand. Joint curricula with Thai universities and technical institutes. Collaborative R&D with Thai nationals or institutions in areas including AI, resource allocation, high-performance computing, and data center hardware and systems. Thai SME upskilling in electrical and energy systems and IT services. Domestic Supply Chain Support Plan Plans must demonstrate knowledge transfer in design, construction, cooling, security, and power and water management. Projects must also include usage or installation of domestically manufactured equipment or engage specialist domestic entities. Criteria for BOI Evaluation The BOI will assess data center operators’ eligibility for CIT incentives based on two criteria: Scale requirement: Training and joint-curriculum initiatives must reach a total participants equal to at least 10 times the project headcount and run for the duration of the CIT incentive. If this threshold is not met, the applicant must also implement continuous R&D or SME skills-development plans throughout the incentive period. Substantiality test: Supply-chain plans must be substantive, meet industry standards, and show measurable development of the domestic digital and data center supply base. To ensure compliance,
March 16, 2026
Indonesia’s Ministry of Law has introduced a new framework for patent applications that tightens filing requirements and introduces formal mechanisms for accelerated examination. Minister of Law Regulation No. 6 of 2026 on Patent Applications, which was issued on January 13, 2026, and took effect on February 23, 2026, serves as the implementing regulation for Law No. 65 of 2024 on Patents. It replaces the previous patent application framework (under Minister of Law and Human Rights Regulation No. 38 of 2018, as amended by Regulation No. 13 of 2021), which was considered no longer aligned with current legal, institutional, and technological developments. The regulation also reflects the institutional restructuring of the Ministry of Law and Human Rights into the Ministry of Law. Patent applications filed on or after February 23, 2026, must fully comply with the new regulation. Applications that were filed before this date will continue to be examined and processed under the previous regulation, pursuant to transitional provisions. Substantive Changes Definition of Invention The definition of “Invention” now explicitly includes systems, methods, and uses, in addition to products and processes. This expansion creates broader protection opportunities, particularly for software-enabled, digital, and method-based technologies, although it may also result in closer scrutiny during substantive examination. Excess Claims Fee Excess claims fees must now be paid at the time of filing. Failure to pay excess claims fees at filing results in the application being deemed withdrawn. There is no longer an option to defer payment to the substantive examination stage. This amendment forces applicants to face higher upfront costs. Patent claim strategy must be finalized prior to filing, reducing flexibility at later stages. Procedural and System Changes Fully Electronic Filing Patent applications must be filed electronically via the Directorate General of Intellectual Property (DGIP) online filing system. Assisted filings to