According to the in Vietnam, what is a business cooperation contract? What content is the included in a business cooperation contract in Vietnam?

According to the in Vietnam, what is a business cooperation contract?

Pursuant to Clause 14 Article 3 of the Law on Investment in 2020 stipulating as follow:

Definitions

For the purposes of this Law, the terms below are construed as follows:

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14. “business cooperation contract” means a contract between investors for business cooperation and distribution of profits or products without establishment of a business organization.

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As regulations above, business cooperation contract means a contract between investors for business cooperation and distribution of profits or products without establishment of a business organization.

Business cooperation contracts can be signed between domestic investors, between a domestic investor and a foreign investor, or between foreign investors.

The business cooperation contract is important contract in business activities.

The business cooperation contract is signed with the purpose of business collaboration, profit sharing, and product distribution among investors.

The business cooperation contract must be in writing and include the essential provisions as prescribed by the law.

According to the in Vietnam, what is a business cooperation contract? What content is the included in a business cooperation contract in Vietnam? - Image from Internet

What content is the included in a business cooperation contract in Vietnam?

Pursuant to Clause 14 Article 3 of the Law on Investment in 2020, business cooperation contract means a contract between investors for business cooperation and distribution of profits or products without establishment of a business organization.

Pursuant to Article 28 of the Law on Investment in 2020, a business cooperation contract in Vietnam includes following content:

- Names, addresses and authorized representatives of parties to the contract; business address or project address;

- Objectives and scope of business;

- Contributions by the parties to the contract, and distribution of business investment results between the parties;

- Schedule and duration of the contract;

- Rights and obligations of parties to the contract;

- Adjustment, transfer and termination of the contract;

- Responsibilities for breaches of the contract; method of dispute settlement;

During the execution of a business cooperation contract, parties may reach an agreement on using assets derived from the business cooperation to establish an enterprise in accordance with regulations of law on enterprises.

The parties to a business cooperation contract are entitled to agree upon other items which are not contrary to law.

What are regulations on investment under business cooperation contracts in Vietnam?

Pursuant to Article 27 of the Law on Investment in 2020 stipulating investment under business cooperation contracts in Vietnam as follows:

Investment under business cooperation contracts

1. Business cooperation contracts signed between domestic investors shall be executed in accordance with the civil law.

2. Procedures for issuance of investment registration certificates in Article 38 of this Law shall apply to business cooperation contracts signed between a domestic investor and a foreign investor, or between foreign investors.

3. Parties to a business cooperation contract shall establish a coordinating board to execute the business cooperation contracts. Functions, tasks and powers of the coordinating board shall be agreed upon by the parties.

As regulations above, investment under business cooperation contracts in Vietnam is stipulated as follows:

- Business cooperation contracts signed between domestic investors shall be executed in accordance with the civil law.

- Procedures for issuance of investment registration certificates in Article 38 of the Law on Investment in 2020 shall apply to business cooperation contracts signed between a domestic investor and a foreign investor, or between foreign investors.

Parties to a business cooperation contract shall establish a coordinating board to execute the business cooperation contracts.

Functions, tasks and powers of the coordinating board shall be agreed upon by the parties.

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