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

March 1, 2016

International Franchising (Second Edition, Release 4) – Vietnam Chapter

Center for International Legal Studies (Juris Publishing)

Lawyers at Tilleke & Gibbins have contributed the Vietnam chapter to International Franchising, Second Edition (Release 4, 2015), a guide to franchising law and practice in 36 countries worldwide. The Vietnam chapter provides an overview of the following main 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

International Franchising  is published by Juris Publishing and edited by the Center for International Legal Studies, an Austrian-based nonprofit institute that promotes the dissemination of information among members of the international legal community.

RELATED INSIGHTS​ 

March 31, 2026
Vietnam’s most recent amendment of the Law on Intellectual Property (amended IP Law), passed by the National Assembly on December 10, 2025, and effective from April 1, 2026, represents one of the most significant updates to the IP Law in recent years. This amendment modernizes the IP framework, moving a step closer to international standards, while addressing the realities of Vietnam’s booming digital economy, e-commerce growth, and increasing foreign investment, which is crucial for Vietnam’s objective of complete economic transformation. For trademark practitioners, brand owners, and businesses, the changes are largely positive, as they promise faster processes, stronger enforcement tools—especially for online actions—and better commercialization options. However, they also introduce stricter requirements and a need for proactive preparation. Below are some of the most noteworthy changes in the amended IP Law related to trademarks. Significantly Shortened Timelines and Introduction of Fast-Track Examination The statutory timelines under the amended IP Law have been notably reduced: Substantive examination for trademarks is shortened from 9 months to 5 months (from the publication date). The publication period is shortened from 2 months to 1 month. A new fast-track mechanism allows substantive examination in as little as 3 months for qualifying applications (e.g., marks in actual use, facing infringement threats, or meeting government-specified criteria; details to be clarified in implementing regulations). The opposition period is shortened from 5 months to 3 months from publication. This is arguably the most welcome change. Vietnam’s IP Office has long faced criticism for lengthy backlogs, often stretching the trademark registration process to 18–24 months or more. The new timelines bring Vietnam closer to efficient systems. The fast-track option is particularly smart for high-value or urgent cases such as counterfeit threats on e-commerce platforms. However, careful preparation is mandatory for flawless applications from the start to maximize fast-track eligibility.
March 31, 2026
Thailand’s Office of the Consumer Protection Board has opened a public hearing period on draft regulations governing the transfer of direct sales and direct marketing businesses. The draft Notification of the Direct Sales and Direct Marketing Committee: Criteria and Procedures for Business Transfer and Amendment of Registration for Direct Sales or Direct Marketing Businesses establishes a compliance-focused process with strict documentation requirements and timelines for transferring direct sales and direct marketing businesses. The proposed framework also defines the roles of transferors and transferees and establishes application procedures with the Office of the Consumer Protection Board. Applications may be submitted in person or electronically and will be examined to confirm they are complete, authentic, and compliant with legal requirements. This includes verification that: The transferee meets all required qualifications; No disqualifying factors apply; and The applicant is not subject to legal restrictions. The public hearing period is open until April 29, 2026. Direct sales and direct marketing business operators should prepare for these proposed requirements to ensure compliant implementation once the regulations are finalized.
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.