VietNam Franchise laws need reforming
VietNamNet Bridge – Legal reforms are needed in regulating franchising, said delegates at a seminar on intellectual property and trademark management held earlier this week.
Delegates said current laws are insufficient and limit growth in the industry.
A US commercial attaché in Vietnam, William Marshak added that current regulations on franchising were not in line with international trends.
The norm in most countries is to allow firms to franchise their trademarks through intermediaries following direct negotiations. The rules in Vietnam are a little different.
To create a franchise, executives have to register with the Franchising Committee, even if they own the trademark directly, and have to request Government protection.
The lengthy legal requirements slow growth, said delegates at the seminar, while current rules do not fully address intellectual property rights.
Le Non, director of foreign affairs at Trung Nguyen Coffee, said that when the company wants to establish a franchise, technology and recipes are handed over.
Current laws do not consider protecting the company in case a franchise owner decides to give the recipes to a third party.
Vietnamese firms also face challenges in franchising trademarks to foreigners. Local firms have to create joint ventures in order to go into business with foreign partners.
This is a missed opportunity, said Marshak, since international giants are currently looking to invest in Vietnam and franchising offers local companies a real opportunity to grow.
Subscribe to my RSS feed! Thanks for visiting!
