07:00 | 03/02/2023

Vietnam: Is a continuous service contract a contract on service provision with an indefinite term?

"Is a continuous service contract in Vietnam a contract on service provision with an indefinite term?" - asked Ms. Ninh (Hai Phong)

Is a continuous service contract in Vietnam a contract on service provision with an indefinite term?

According to the provisions of Clause 2, Article 3 of Decree 99/2011/ND-CP, the continuous service contract is as follows:

Interpretation of terms
In this Decree, the following terms are construed as follows:
...
2. Continuous service contract means a contract on service provision with an indefinite term or a term of three (3) months or more.

Accordingly, a continuous service contract means a contract on service provision with an indefinite term.

What does the continuous service contract in Vietnam include?

Pursuant to Clause 1, Article 18 of Decree 99/2011/ND-CP as follows:

Continuous service contracts
1. A continuous service contract must contain:
a/ Name and contact address of the service provider;
b/ Description of the service to be provided;
c/ Service quality;
d/ Time and duration of service provision;
e/ Method of calculation of service charge and price;
f/ Modes of service provision and payment.
2. A continuous service contract shall be made in writing and one (1) copy shall be given to the consumer.

Accordingly, the continuous service contract in Vietnam include must contain the following contents:

- Name and contact address of the service provider;

- Description of the service to be provided;

- Service quality;

-Time and duration of service provision;

- Method of calculation of service charge and price;

- Modes of service provision and payment.

Note: A continuous service contract shall be made in writing and one (1) copy shall be given to the consumer.

Is it allowed to unilaterally terminate the continuous service contract in Vietnam at any time?

According to the provisions of Clause 3, Article 18 of Decree 99/2011/ND-CP on continuous service contracts as follows:

Continuous service contract
...
3. Unless otherwise agreed by involved parties, a consumer may unilaterally terminate a continuous service contract at any time and notify such in writing to the service provider. When a consumer unilaterally terminates a contract, he/she shall only pay the charge or price for the service he/she has used.

Thus, unless otherwise agreed by involved parties, a consumer may unilaterally terminate a continuous service contract at any time and notify such in writing to the service provider.

When a consumer unilaterally terminates a contract, he/she shall only pay the charge or price for the service he/she has used.

Are service providers in Vietnam not allowed to unilaterally terminate continuous service contracts in Vietnam?

According to the provisions of Clause 4, Article 18 of Decree No. 99/2011/ND-CP on the obligations of service providers under continuous service contracts as follows:

Continuous service contract
...
4. A service provider has the following obligations:
a/ Unless otherwise agreed by involved parties, not to request a consumer to make any payments before the service is provided to the consumer;
b/ Not to unilaterally terminate a contract and stop providing a service without a plausible reason. When repair or maintenance is required or there is another reason forcing it to stop the service, to notify consumers at least three (3) working days in advance before stopping the service;
c/ To regularly examine the quality of its service and ensure the quality as committed with consumers;
d/ Upon a consumer's notification of an incident or complaint about service quality, promptly examine and settle such incident or complaint.

Accordingly, service providers in Vietnam must not unilaterally terminate continuous service contracts and stop providing a service without a plausible reason.

When repair or maintenance is required or there is another reason forcing it to stop the service, service providers in Vietnam must notify consumers at least three working days in advance before stopping the service.

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