Can director in sole proprietorship be the legal representative in Vietnam?

I would like to ask, when I set up a sole proprietorship and sign a contract to hire a director to work for the enterprise, can that person be the legal representative in Vietnam?

Pursuant to Clause 3, Article 190 of the Law on Enterprises 2020 regulating the administration of sole proprietorships as follows:

3. The sole proprietorship’s owner is its legal representative who will represent it during civil proceedings, as the plaintiff, defendant or person with relevant interests and duties before the court and arbitral tribunals, and in performance of other rights and obligations prescribed by law.

Therefore, the principle that the Sole proprietorship Owner is the legal representative even though you have hired a director to work for the business, one of the regulations set is because the characteristic of the type of Sole proprietorship is that the business is owned by an individual and is responsible with all its assets for all the activities of the business in Vietnam.

Best Regards!

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