This paper presents a comprehensive analysis of the regulatory framework governing non-competitive agreements within Vietnam's franchising system by tracing the evolution of Vietnam's Competition Law, with a particular focus on the legal framework before and after the implementation of the new Competition Law. The paper also highlights significant challenges in the current regulations concerning non-competitive agreements in the context of franchise relationships. Through an examination of Japan's experiences and practices, the paper offers practical recommendations for Vietnam’s regulatory change to better reflect the inherent characteristics of the franchise system, aiming to mitigate existing regulatory gaps and ultimately promote the expansion of franchising in Vietnam.