Is a Foreign Business Branch Allowed to Advertise Commercially?

Do branches of foreign merchants have the right to advertise commercially?

According to the provisions of commercial law, do branches of foreign merchants have the right to advertise commercially in Vietnam?

Answer:

According to Clause 1, Article 103 of the Commercial Law 2005, regulations on commercial advertising are as follows:

Vietnamese merchants, branches of Vietnamese merchants, and branches of foreign merchants permitted to operate commercially in Vietnam have the right to advertise their business activities of goods and services or hire merchants advertising services to conduct commercial advertising for them.

Therefore, branches of foreign merchants permitted to operate commercially in Vietnam have the right to advertise their business activities of goods and services according to the above regulation.

Only individuals are considered merchants?

Regarding the provisions of commercial law, is it true that only individuals conducting commercial activities independently, regularly, and with business registration are considered merchants?

Answer:

Clause 1, Article 6 of the Commercial Law 2005, defines merchants as follows:

Merchants include legally established economic organizations and individuals conducting commercial activities independently, regularly, and with business registration.

Thus, not only individuals conducting commercial activities independently, regularly, and with business registration are considered merchants but also legally established economic organizations, such as joint-stock companies, limited liability companies, or cooperatives.

Do representatives of merchants have the right to participate in fairs and exhibitions?

Our company, based in Hanoi, has established a representative office in Ho Chi Minh City. There is an upcoming exhibition event in District 7, Ho Chi Minh City. Can our company's representative office participate in purchasing at this fair?

Answer:

Based on Clause 2, Article 131 of the Commercial Law 2005:

Representative offices of merchants are not allowed to directly organize or participate in commercial fairs and exhibitions. In case of authorization by the merchant, the representative office has the right to sign contracts with merchants providing fair and exhibition services to organize or participate in commercial fairs and exhibitions on behalf of the merchants they represent.

Based on the above regulation and the information you provided, your company's representative office is not allowed to participate in purchasing at the fair. The nature of a representative office is not to engage in commercial activities for profit.

Respectfully!