Vietnam Business Law is a website managed by lawyers of Venture North Law Limited (VNLaw). Venture North Law Limited (VNLaw) is a Vietnamese commercial law firm. We won the Rising Law Firm of the Year Award at the Southeast Asia Law Awards for the years 2020 and 2021 held by The Legal 500. Very few Vietnamese law firms have achieved a similar regional recognition.
The new Civil Code 2015 allows a party to a contract to (i) request the other party to re-negotiate the contract; or otherwise (ii) request the court to decide terminating or amending the contract if the circumstance has been substantially changed. A circumstance could be invoked as substantially changed if it satisfies the following conditions:
“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”.
The new Decree 37/2016 implementing the Law on Laws 2015 provides some notable clarifications of the Law on Laws 2015 as follows:
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: