Did you know how a foreign franchisor conducts franchising activities in Vietnam?
By law, foreign franchisors in any business sector must register their franchising activities with the Ministry of Industry and Trade (the “MOIT”) before conducting franchising activities in Vietnam. Also, it is required the franchise systems of foreign franchisors must have been operating for at least one (1) year anywhere in the world to be registered with the MOIT.
There are four (4) steps that a foreign franchisor needs to take care of in order to franchise into Vietnam:
- Reviewing the franchise agreement to be signed with the Vietnam-based franchisee;
- Ensuring the status/portfolio of trademarks (and any other intellectual property) to be used with the franchising in Vietnam;
- Preparing the franchise description document which is in compliance with Vietnamese standard form and registration formalities; and
- Preparing and submitting the application file for registration with the MOIT and obtaining approval from the MOIT within 5-7 working days from the date of receipt of the complete and proper application file by the MOIT.
Please note that if local or overseas franchising activities will not be required to submit the application file for registration to the DOIT but must submit a report to the DOIT
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