Consumer contracts in Vietnam

“Consumer” is defined to mean “a person purchasing or using goods and services with the aim of consumption for daily needs of individuals, families or organizations. The term “person” here could mean either an individual or an organization. Therefore an organization under Vietnamese law may also be treated as a consumer. The only distinction is that a consumer uses the goods for consumption purpose. However, for a business entity which purchases various inputs during its operation in order to provide goods or services to its clients, the inputs could be treated either as “consumption purpose” or as “business purpose”. 

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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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Offshore subsidiaries of Japanese investors investing in Vietnam

Under the Bilateral Investment Treaty between Vietnam and Japan (VJ BIT) and the Agreement for an Economic Partnership between Vietnam and Japan (VJ Partnership), a subsidiary incorporated outside Japan by a Japanese investor has certain legal grounds to claim for enjoying the rights preserved for Japanese investors when investing into Vietnam under these treaties. This is because:

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Multi-manager funds in Vietnam

The concept of multi-manager fund has been introduced under the regulations on investment by foreign investors in Vietnam stock market. In particular, Vietnamese law allows a foreign multi-manager fund trading on the Vietnamese stock market to obtain one separate securities trading codes for each investment portfolio in such fund. Accordingly, an offshore multi-manager fund may have more than one securities trading code. However, the law does not seem to allow a multi-manager fund to be set up onshore in Vietnam. This is because the fund regulations require a member fund to be managed by one fund management company only. In case of public funds, various reports or forms also suggest that a public fund must also be managed by one fund management company.

 

This post is contributed by Nguyen Bich Ngoc, a VILAF associate. 

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