Complete Guide to Starting a Franchise in Vietnam

Vietnam's franchise market has grown exponentially in recent years, attracting both local entrepreneurs and international investors. Before you invest, here is everything you need to know.

Understanding the Franchise Model

A franchise is a licensing relationship between a franchisor (brand owner) and a franchisee (business operator). The franchisee pays fees in exchange for the right to operate under the brand's system.

Legal Requirements in Vietnam

Vietnam has specific regulations governing franchise agreements under the Commercial Law and various government decrees. Key requirements include registering the franchise agreement with the Ministry of Industry and Trade and ensuring the brand has been operating for at least one year.

Choosing the Right Brand

Research thoroughly before committing. Look at the brand's track record, support systems, and the total investment required including working capital.