MANILA, Philippines — Vietnamese and Filipino firms are forging a $25-million franchise agreement for the establishment of 200 coffee shops around the country.

Based on the memorandum of understanding signed by Filipino-owned IP Ventures Inc. and Viet-Thai International Joint Stock in time for the ongoing visit of Vietnamese President Truong Tan Sang in the country. The agreement ESS signed by IP Ventures President Jaime Enrique Y. Gonzales and Viet-Thai International Joint Stock commercial director Dan P. Thai.

Under the agreement, VTI has agreed to provide franchising rights which includes use of rights of trademark, brand and trade "Highlands Coffee’ to IP Ventures for purposes of operating coffee shops in the Philippines.

Such use of rights shall include the transfer of technology and know how necessary to operate “Highlands Coffee.”

The franchising use rights shall also necessitate the execution of supply agreements between VTI and IP Ventures, which will involve the importation of coffee and other coffee – related products fromVietnam.

In consideration of the franchising use rights, IP Ventures commits to further expand its retail business by rolling out at least 200 retail outlets or investing $25 million for the distribution of “Highlands Coffee” brand in the country.

IP Ventures is an investment holding company that owns a wide range of businesses through it various subsidiaries, including among others, operating the largest and top five internet cafes in the Philippines.