Laws in Vietnam

The Trans-Pacific Partnership (TPP) agreement will give Vietnam numerous opportunities to establish and expand its export markets, experts say. In particular, Vietnam will increase its key exports such as garments, seafood, footwear and wood products to the US, while attracting more investment from the world’s largest economy.  The country can also take full advantage of opportunities created from the restructuring of regional economies and the trend of closer cooperation, experts said at a workshop in Ho Chi Minh City on January 30. However, the agreement will put more pressure on Vietnam to open its markets, as well as on the competitive capacity of domestic businesses.  Along with revising the legal system and developing human resources, the government needs to pay attention to a number of sectors such as agriculture, manufacturing and service industries which have yet to meet development requirements, they suggested. Le Thanh An, US Consul General in HCM C...

Foreign-invested enterprises (FIEs) with distribution rights will be able to open retail outlets of up to 500 sq m under a draft decree clarifying the trading of goods by FIEs under the Commercial Law. Convenience stores predicted to develop quickly if draft decree comes into being. The Ministry of Industry and Trade (MoIT) is collecting opinions on FIEs establishing such outlets or outlets in planned areas for retailing goods made overseas without the need to conduct an Economic Needs Test (ENT). If the draft decree comes into effect, distributors and foreign investors will have the right to open outlets of less than 500 sq m without needing an ENT from the local city or province. By limiting outlets to less than 500 sq m, retailers will not be able to develop such outlets into supermarkets or shopping malls. If it comes into effect the decree will create favorable conditions for the develo...

1. Limited Liability Company A limited liability company is a legal entity established by its members by way of capital contribution to the limited liability company. The capital contribution of each member is treated as equity. The members of a limited liability company are liable for the financial obligations of the limited liability company to the extent of their capital contributed or undertaken to be contributed to the limited liability company. The management structure of a limited liability company comprises the members’ council, the chairman of the member’s council, the (general) director and a board of supervision (where the limited liability company has more than 10 members). A limited liability company established by one or more foreign investors (from 2 to 50 members) may take the form of either a 100%-FOE (where all members are foreign investors) or of a foreign-invested joint venture enterprise between one or more foreign investors and one or more domestic i...

Offers and acceptance of offers are among the most important parts of a international sale contract. In this section, the provisions of offer acceptance will be carefully illustrated. When does a reply of the offers turn to be the acceptance? According to what has been regulated in the article 18,19 of the Convention, a reply to an offer could be conducted in the forms of a statement or simply a behavior. It required both of the two forms must indicate the assent of the offeree. It is regulated that silence or inactivity does not in itself amount to acceptance. However, in practical situations, silence or inactivity from the party that receive the offer could be considered as an acceptance as well, in case of there are trade practices between the contract parties. A reply that has the tendency of acceptance but contains additions or other modifications will become a rejection of the offer instead of the acceptance. Nevertheless, it is not every changes in the reply that woul...