VIETNAM Law and Practice Contributed by: Minh Duong, Phong Nguyen and Justin Gisz, Asia Counsel Vietnam Law Company Limited
Asia Counsel Vietnam Law Company Limited Unit 9, 10, Level 9, Deutsches Haus, 33, Le Duan Boulevard, Sai Gon Ward, Ho Chi Minh City, Vietnam. Tel: +84 28 38 22 77 67
Email: minh@asia-counsel.com Web: www.asia-counsel.com
1. Legal System and Regulatory Framework 1.1 Legal System
Implications for Businesses Navigating the complex and extensive Vietnamese legal framework, with its numerous laws and regula - tions, poses a challenge for businesses. While courts rely less on precedents than in common law systems, focusing instead on applying statutory law, business - es should prioritise understanding relevant statutes and regulations to ensure compliance. The Vietnam - ese government also plays a significant role in regulat - ing business activities through various agencies and regulations. Vietnam has recently undergone a significant reform of its state agency system and administrative bounda - ries, which lead to corresponding updates in the regu - latory framework. 1.2 Regulatory Framework for FDI Foreign investors entering the Vietnamese market may be required to obtain approval from Vietnamese government authorities. This typically involves obtain - ing an investment registration certificate from a com - petent authority before establishing a subsidiary to implement the project. The level of authority granting approval depends on the project’s scale and type. Various authorities may be involved in the approval process, including the People’s Committee, its affili - ated departments (eg, the former Department of Plan - ning and Investment, which has now been merged into the Department of Finance), relevant industrial
Vietnam operates under a civil law system, where codified statutes hold the highest legal authority. This system contrasts with common law systems, where judicial precedents carry more weight. Structure of the Legal Framework The Constitution forms the pinnacle of the legal hier - archy, outlining fundamental rights and principles. Vietnam’s Constitution was amended in 2025, the most significant change being the elimination of the District level as a formal level of local government. This restructures the country’s administrative system from three main tiers (Province/District/Commune) to two (Province/Central City and Commune/Ward/ Township). Beneath this lie codes and laws enacted by the National Assembly, addressing specific legal areas such as civil, criminal, administrative, corporate law, labour, land and real estate, etc. The government fur - ther implements and interprets these laws through decrees and regulations. In addition, ministries and local authorities issue circulars and decisions provid - ing guidance within their respective jurisdictions.
715 CHAMBERS.COM
Powered by FlippingBook