What are the damages to be compensated due to goods poor quality in Vietnam?

Regarding this matter, LawNet would like to answer as follows:

1. What are the damages to be compensated due to goods poor quality in Vietnam?

According to the provisions of Article 60 of the Law on product and goods quality 2007, damages to be compensated due to goods poor quality are as follows:

- Damage in terms of value of broken or destroyed goods or assets.

- Damage in terms of human life or health.

- Damage in terms of interests associated with the use or exploitation of goods or assets.

- Reasonable expenses for prevention, mitigation and overcoming of damage.

According to the provisions of Article 59 of the Law on product and goods quality 2007, principles for compensation for damages due to goods poor quality in Vietnam

- Damage caused by violations of regulations on product and goods quality must be compensated wholly and promptly.

- Damage to be compensated is specified in Article 60 of this Law, unless otherwise agreed upon by disputing parties.

Thus, all cases of damages due to goods poor quality must be compensated and must be compensated promptly and fully in accordance with the law, unless the parties agree otherwise or in other cases not subject to compensation in Section 2.

2. What are cases where sellers need not pay compensation to purchasers or consumers in Vietnam?

According to the provisions of Clause 2, Article 62 of the Law on product and goods quality 2007, sellers need not pay compensation to purchasers or consumers in the following cases:

- Consumers use goods of which the use duration has expired;

- The statute of limitations for complaint or denunciation has expired;

- That the goods are defective has been notified to purchasers or consumers but they still purchase or use those goods;

- The goods are defective because the producers or importers comply with regulations of competent state agencies;

- The world's scientific and technological level is not high enough to detect that the goods may be unsafe by the time they cause harms;

- The damage is caused at the purchasers or consumers fault.

In addition, according to Clause 1, Article 62 of the Law on product and goods quality 2007, producers and importers need not pay compensation in the following cases:

- Sellers sell or users use goods of which the use duration has expired;

- The statute of limitations for complaint or initiation of lawsuits has expired;

- The withdrawal of defective goods has been notified to sellers and users before the goods cause harms;

- Products or goods are defective due to their compliance with regulations of competent state agencies;

- The world's scientific and technological level is not high enough to detect that products may be unsafe by the time they cause harms:

- The damage is caused at the sellers fault;

- The damage is caused at the purchasers or consumers fault.

Thus, in some cases where the goods expires, defects are detected, the statute of limitations for complaints or lawsuits expires, or it is due to the consumer's fault... the seller will not have to compensate for damages

3. Who is responsible for damage caused by goods in Vietnam?

According to Article 61 of the Law on product and goods quality 2007, compensation liabilities for damage caused by goods is stipulated as follows:

- Producers and importers shall pay compensation to sellers or consumers when their goods cause harms to the latter due to their failure to ensure the goods quality, except for cases specified in Section 2

- Sellers shall pay compensation to purchasers or consumers for damage caused by their failure to ensure the goods quality, except for cases specified in Section 2.

- Compensation shall be paid according to agreements between involved parties or court decisions or arbitral awards.

In addition, Article 63 of the Law on product and goods quality 2007 stipulates the compensation liability of conformity evaluation organizations which supply wrong results as follows:

- Conformity evaluation organizations which supply wrong results shall pay compensation for damage caused to evaluation-requesting organizations or individuals according to the civil law. (*)

- Organizations and individuals with products or goods evaluated in terms of conformity are obliged to prove the wrong results given by and the faults of conformity evaluation organizations specified in (*)

Thus, the compensation liability of conformity evaluation organizations which supply wrong results belongs to the following three subjects: producers and importers; Sellers and conformity evaluation organizations. Thus, depending on the cause of damage, responsibility will belong to one or several of the above mentioned entities.

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Key word: compensation | damages to be compensated due to goods poor quality | goods poor quality | in Vietnam | Vietnam |

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