[Vnbiz] Enterprises to require legal framework for franchise development

[Tai Phan]

  Enterprises to require legal framework for franchise development 14:27'
23/01/2008 (GMT+7)

 *VietNamNet Bridge – **Vietnam's enterprises will require a strong legal
framework including government legislation and supporting policies to
develop franchises in the coming years, according to economists at a
symposium held in HCMC late last week.*

   Economists at the Franchise Vietnam 2008 conference stated that
franchising is a relatively new concept in Vietnam, and in order for it to
develop stably, the central Government should improve the legislative
sectors.

Pham Chi Lan, an economic expert, said Vietnam needs to continue to improve
commercial law, intellectual property law, standards for goods and protocols
for solving commercial disputes.

"If these four legislative improvements are executed, franchises will
develop more stably because the risk of commercial dispute in franchising is
predictable," said Lan.

According to economists, franchises have been developing in Vietnam for the
past two years. However, few enterprises or trademarks were able to
successfully franchise until now.

Le Cong Dinh, a lawyer from DC law firm, said most of Vietnam's 65
franchises are foreign-owned. However, after the country's inclusion into
the World Trade Organization there has been a surge in franchise
development.

Ly Qui Trung, chairman of the Nam An Group which owns Pho 24, said that
enterprises should apply these four steps in franchising nationally and
internationally: franchising demand specification, partner selection,
partner examination and partner negotiation. "The enterprise's franchise
development could be impeded if one of the four steps is neglected," Trung
said.

The development of domestic and foreign franchises will be crucial for
commercial activities, especially in the service sector. It is predicted
that franchises will be fully developed in Vietnam by 2012, said Tran Anh
Tuan of the FT-Pathfinder Consulting Group.

"The enterprises need more supporting policies from the government in the
legislative and administrative sectors, so that they can successfully
conduct franchising activities in the country," said Tuan.

*(Source: SGT)*
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