Under the Commercial Law, the parties to a commercial transaction with a “foreign element” may agree to apply foreign law if such foreign law is not contrary “to the fundamental principles of the law of Vietnam”. The Civil Code defines a civil relation involving “foreign elements” to be a civil relation in which a least one of the participating parties is a foreign body, organisation or individual, or a Vietnamese residing overseas, or the civil relation is between participating parties being Vietnamese citizens or organizations but the basis for the establishment, alteration or termination of such relation was the law of a foreign country, or such basis arose in a foreign country, or the assets involved in the relation are located in a foreign country.