06 fundamental principles in commercial activities in Vietnam

06 fundamental principles in commercial activities in Vietnam (Internet image) 

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

1. 06 fundamental principles in commercial activities in Vietnam

fundamental principles in commercial activities according to Articles 10, 11, 12, 13, 14 and 15 of the Law on Commercial 2005 are as follows:

* Principle of traders’ equality before law in commercial activities

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

* Principle of freedom and freewill to agreement in commercial activities

- 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.

* Principle of application of customs in commercial activities pre-established between parties

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.

* Principle of application of practices in commercial activities

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 the Law on Commercial 2005 and the Civil Code 2015.

* Principle of protection of legitimate interests of consumers

- 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.

* Principle of recognition of legal validity of data messages in commercial activities

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

2. Right to commercial advertising in Vietnam

Right to commercial advertising in Vietnam under Article 103 of the Law on Commercial 2005 are as follows:

- Vietnamese traders, branches of Vietnamese traders and branches of foreign traders licensed to conduct commercial activities in Vietnam shall have the right to advertise their goods and/or service business activities or to hire traders providing advertising services to do so for them.

- Representative offices of traders must not directly conduct commercial advertising activities. When being authorized by traders, representative offices may sign contracts with traders providing commercial advertising services to advertise for the traders they are representing.

- Foreign traders who wish to commercially advertise their goods and/or service business activities in Vietnam shall have to hire Vietnamese traders engaged in business of providing commercial advertising services to do so.

3. Means of commercial advertising in Vietnam

Means of commercial advertising according to Article 106 of the Law on Commercial 2005 are as follows:

- Means of commercial advertising are instruments used for introducing commercial advertising products.

- Means of commercial advertising include:

= The mass media;

= Means of communications;

= Publications of all kinds;

= All kinds of boards, signs, banners, panels, posters, fixed objects or means of transportation and other movable objects;

= Other means of commercial advertising.

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