Home Blog How to Open a Franchise in Vietnam Uncategorized How to Open a Franchise in Vietnam InCorp Editorial Team 19 May 2020 3 minutes reading time Table of Contents Who can Open a Franchise in Vietnam Dossier Requirements and Procedure for Franchise Registration in Vietnam Goods and Services Prohibited to be Franchised in Vietnam Conditions to be Met by Franchisors and Franchisees How Cekindo Can Assist Foreign and local investors and corporations have been focusing on the trend of franchise business in Vietnam. The Vietnam market has always been a potential land for international brands’ franchise activities. These investors have obtained the required license to market famous brands such as Zara, Holiday Inn, McDonald’s Subway, Carl’s Junior, Sonic, Dunkin’ Donuts, Starbucks, Wendy’s and many others. In 2017, Mitra Adiperkasa made a huge impact on the entire franchise market by launching Pull and Bear, Massimo Dutti, and Stradivarius in Ho Chi Minh City, and Zara in Hanoi. The sales of these franchise businesses are spectacular and the two Zara stores in Ho Chi Minh City and Hanoi were ranked two of the best-performing franchise stores in 2017, thanks to their remarkable sales records. Seeing the successful trend of franchise business in Vietnam, an increasing number of foreign investors and enterprises are looking for opportunities to penetrate the country’s booming franchise market. This article will tell you more about how you can open a franchise in Vietnam. Who can Open a Franchise in Vietnam As of August 2019, the total number of both local and foreign franchise businesses in Vietnam were recorded at 213. According to the franchising law in Vietnam, here are the eligibility criteria on who can open a franchise in Vietnam: Franchise business from a Vietnamese franchisor to a foreign franchisee Franchise business from a foreign franchisor to a Vietnamese franchisee A franchise agreement must be signed and registered. Both parties will be fined if such an agreement doesn’t exist and isn’t registered. Dossier Requirements and Procedure for Franchise Registration in Vietnam Required documents for franchise registration in Vietnam are listed below: Power of attorney Franchise agreement Application form of franchise registration Previous year’s audited reports Franchisor’s business certificate Franchisor’s introduction Copyright or trademark certificate Approval document regarding the primary franchisor’s permission (if any) Goods and Services Prohibited to be Franchised in Vietnam Under the franchise law, some goods and services are prohibited for franchise business such as weapons, toxic minerals, addictive drugs, dangerous toys that are harmful to children, wild animals, and plants, imported scraps which pollute the environment, organized gambling, marriage broker services, adoption broker services, and many others. For a full list of prohibited goods and services, please seek consultation from Cekindo. For goods and services subject to conditional franchising, investors or enterprises shall acquire a business license from the authority. Conditions to be Met by Franchisors and Franchisees By Franchisors The franchisor’s business must be in operation for a significant period, i.e. a minimum of 1 year The franchisor must obtain written approval from the Ministry of Industry and Trade By Franchisees The franchisee must register their business in relevant sectors with regard to their franchise business in Vietnam For a master franchisee in Vietnam to sub-franchise to another party in Vietnam when permitted by the franchisor, the master franchisee must also have been operating for at least 1 year before the sub-franchising can be conducted How Cekindo Can Assist The franchise business in Vietnam is one of the most popular models that foreign companies choose to enter the Vietnamese market. Through franchising, you can expand your business and earn profits in a shorter period, while retaining control over the brand. Having over years of experience and involvement in company formation and franchise business in Vietnam, Cekindo’s registered consultants help domestic and international investors and companies to grow their franchise empire. Contact us through the form below to discuss your plan for opening a franchise in Vietnam. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Is it safe to register a product under a local distributor? Yes and no. It is vital to choose a reliable distributor as they will register the product under their company and become the product license holder and the import license holder. Changing the local distributor is easier if you are satisfied with the cooperation. How do foreigners decide on the proper entity in Indonesia? It all depends on your business’s purpose and nature. Our consultants will help you to clear out the matters. If investors intend to conduct business in Indonesia, what kind of organization must they establish? Within the scope of foreign direct investment in Indonesia, foreign investors can typically do business in two ways: Set up a PMA (Perusahaan Modal Asing) PMA is a local subsidiary in the form of a limited liability corporation for foreign investment reasons Set up a RO (Representative Office) According to Law No. 25/2007 on Investment, foreign investors are required to establish a PMA company in order to make direct investments and conduct commercial and business activities in Indonesia. A PMA firm in Indonesia is a legally recognized business entity that can engage in various commercial and business operations as long as it complies with the current laws and regulations. As for RO, its purposes include conducting market feasibility studies and liaison activities. Can you provide pricing details for HR outsourcing services? To provide you with accurate pricing information for our HR outsourcing services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, please get in touch with our consultants. Get in touch with us. Lead Form Contact Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Mergers and Acquisitions Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Uncategorized How to Establish a Legal Peer-to-Peer (P2P) Lending Business in Indonesia Read more Mandatory Use of Indonesian Language in Business Environment Read more 7 Facts You Should Know Before Expanding to Indonesia Read more