🇻🇳 For foreign investors considering franchise expansion in Vietnam
― Practical points on legal and investment regulations ―

With the growth of the Vietnamese market, more foreign companies are considering franchise expansion in the fields of dining, education, retail, and services. However, in Vietnam, it's not just a matter of signing a contract to get started.
Franchise business involves commercial law, investment law, foreign investment regulations, and registration systems.

Basic structure of franchises in Vietnam

✔ Franchise activities are legally defined as commercial activities
✔ If a foreign company acts as a franchisor,
certain registration procedures are required
✔ Regulations and procedures vary depending on whether you enter directly, establish a local entity, or use an agency model

Wrong scheme design can prevent business commencement.

Risks that foreign investors might face

❌ Starting operations without completing franchise registration
❌ Business activities that violate foreign investment regulations
❌ Issues with foreign exchange and taxation regarding royalty remittances
❌ Contract terms inconsistent with Vietnamese law

Franchising is a "contract business," but it doesn't stop with the contract alone.
Key points to watch out for

・Foreign Contractor Tax (FCT) when paying royalties
・Consistency with trademark registration
・Minimum operation period requirements
・Division of responsibilities with local partners

Pursuing this with the same mindset as in Japan might lead to unexpected legal obstacles.

Practical responses for success

✔ Pre-organizing the entry scheme
✔ Legal compliance with franchise registration
✔ Contract design (preventing disputes, considering tax implications)
✔ Structural design for exit and scaling expansions

Vietnam's franchise market is expanding, but "entry barrier = understanding the law" is also a point to consider.

Detailed explanation available here (in Japanese)
🔗 https://betoho.vn/post/vietnam-franchise-business-foreign-investors-20260203

BETOHO LAWFIRM offers comprehensive support for foreign companies in designing franchise entry, registration procedures, contract review, and tax arrangement.

📩 Feel free to consult us via DM or on our website.

#ベトナム進出 #フランチャイズ #外国投資家 #外資規制 #ロイヤリティ #日系企業支援 #ベトナム法務 #BETOHO