Business executives have asked lawmakers to adopt more rules governing franchising practices as soon as possible to facilitate this nascent market, heard a seminar in HCMC last Friday.
Ho Huu Hoanh, director of the Vietlotus Company, said companies could not franchise their business because the legal framework for it was deficient.
The Ministry of Finance has not promulgated regulations on franchising fees, for which franchisors have to pay tax when they sell their business systems to franchisees though the law on franchising has taken effect since July 1 last year, he said.
Vietnam Franchise Club chairman Ngo Duong Hoang Thao said, “Many companies have prepared to franchise their business systems, but they have to wait for clearer regulations.�
The local franchising market will grow strongly when there are sufficient regulations in this regard, he said.
Lawyer Phung Anh Tuan from the VCI Company said at the seminar that businesspeople should register with competent agencies to get permission for franchising practices.
Many companies have franchised their business systems to partners in domestic and overseas markets, including Trung Nguyen Coffee, Pho 24 noodle restaurants and AQ silk, KFC, Jollibee, Lotteria and Dilmah. However, few of them have registered with authorities.
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