06 Principles in commercial activities in Vietnam

06 Principles in commercial activities in Vietnam (Internet image) 

1. What is commercial activity?

Pursuant to Clause 1, Article 3 of the Commercial Law 2005, commercial activities are as follows:

Commercial activities mean activities for the purpose of generating profits, including: sale and purchase of goods, provision of services, investment, commercial promotion and other activities for the profit purpose.

2. Principles in commercial activities in Vietnam

2.1. Principle of traders’ equality before law in commercial activities in Vietnam

Article 10 of the Commercial Law 2005 stipulates the principle of traders’ equality before law in commercial activities as follows:

Traders of all economic sectors are equal before law in commercial activities.

2.2. Principle of freedom and freewill to agreement in commercial activities in Vietnam

Article 11 of the Commercial Law 2005 stipulates the Principle of freedom and freewill to agreement in commercial activities as follows:

- Parties have the rights of freedom to reach agreements not in contravention of the provisions of law, fine traditions and customs and social ethics in order to establish their rights and obligations in commercial activities. The State respects and protects such rights.

- In commercial activities, the parties shall act on their own freewill, and neither party is allowed to impose its own will on, to force, intimidate or obstruct, the other party.

2.3. Principles of application of custom in commercial activities are established between the parties in Vietnam

Article 12 of the Commercial Law 2005 stipulates the principle of application of customs in commercial activities pre-established between parties as follows:

Except otherwise agreed, the parties shall be regarded as automatically applying customs in commercial activities pre-established between them which they have already known or ought to know, provided that such customs are not contrary to the provisions of law.

2.4. Principle of application of practices in commercial activities in Vietnam

Article 12 of the Commercial Law 2005 stipulates the principles of application of custom in commercial activities as follows:

Where it is neither provided for by law nor agreed by the parties, and there exist no customs pre-established between them, commercial practices shall be applied provided that such practices are not contrary to the principles provided for in this Law and the Civil Code.

2.5. Principle of protection of legitimate interests of consumers in Vietnam

Article 12 of the Commercial Law 2005 stipulates the principle of protection of legitimate interests of consumers as follows:

- Traders conducting commercial activities are obliged to provide consumers with sufficient and truthful information on goods and/or services they trade in or provide and take responsibility for the accuracy of such information.

- Traders conducting commercial activities must be responsible for the quality and lawfulness of goods and/or services they trade in or provide.

2.6. Principle of recognition of legal validity of data messages in commercial activities in Vietnam

Article 15 of the Commercial Law 2005 stipulates the principle of recognition of legal validity of data messages in commercial activities as follows:

In commercial activities, data messages which satisfy all technical conditions and standards provided for by law shall be recognized legally valid as documents.

Ngoc Nhi

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE