Confusion regarding time limitation under Vietnamese Civil Code 2015

Under the Civil Code 2015, the time limitation for making a claim is longer than that of the Civil Code 2005. For example,

  • Under the Civil Code 2015, a claim for breach of contract or for non-contractual damages now has a time limitation of three years commencing on the date on which the claimant knows or should have known that the claimant’s rights or interests have been violated. This is longer than two years under the Civil Code 2005. In addition, the two year time limitation period under the Civil Code 2005 may commence on a much earlier date (i.e. the date on which the claimant’s rights or interests have been violated).
  • Under the Civil Code 2015, a claim for an inheritance of an immovable property is 30 years instead of 20 years under the Civil Code 2005.
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Written by Nguyen Quang Vu On In ,

New choice of foreign governing law in a contract with Vietnamese counterparty

From 1 January 2016, the Civil Code 2015 introduces a new set of rules regarding choice of governing law in a civil contract signed with a Vietnamese counterparty. In particular, parties to a contract in which there is at least one party is foreign individual or foreign “legal person” may agree to choose foreign governing law in the contract except in the following cases, among other things:

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Written by Nguyen Quang Vu On In , ,

Implementing Decree of the new Vietnam Law on Laws

The new Decree 37/2016 implementing the Law on Laws 2015 provides some notable clarifications of the Law on Laws 2015 as follows:

  • Various types of decisions of the Prime Minister are excluded from being a law such as decision approving development strategy or a master plan or decision not satisfying the conditions of a law under the Law on Laws 2015;
  • Decree 37/2016 provides detailed drafting and formatting rules on a legal document including various sample Decrees and Circulars; and
  • Decree 37/2016 requires Vietnamese language to be used in a legal document. The Vietnamese language used in a legal document must be consistent and must not be local dialect or old-fashioned words. Vietnamese words in a legal document must be clear and should not have multiple meaning. If a word can have multiple meaning then the meaning used in the legal document must be used.
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Written by Nguyen Quang Vu On In