Law in Vietnam: Regulations on Economic Law
The law in Vietnam, economic law was born and recognized as an independent law branch in the system of Vietnamese law branches since the 70s of the twentieth century and it is an important part of the economic legal system. Up to now, economic law still exists and develops in terms of content as well as form.
Concept of Economic Law in Vietnam
Economic law is a collection of legal norms promulgated or recognized by the State, regulating social relations arising in the process of organization, management and production and business activities between enterprises and enterprises. and between enterprises and state management agencies in charge of the economy.
Economic law is a part of economic law, which is a system of legal norms promulgated by the state to regulate economic relations arising in the process of economic organization and management of the state. and in the process of production and business between business entities.
Economic Law in Vietnam was born to maintain and settle disputes in business and commerce as well as ensure the operation process of enterprises in the process of exchange and trade both domestically and internationally.
Economic law regulates two main groups of social relations, namely: relations between the state management agencies in charge of the economy and enterprises, arising in the process of organizing and managing business activities, and the relationship between the state management agencies in charge of the economy and enterprises. relationship between enterprises, arising in the course of conducting business activities. In addition, economic law also regulates internal economic relations, that is, regulates the relations between the constituent parts of an enterprise, a business entity. The subjects of economic law are business entities and economic state management agencies.
Economic law appeared in the early years of the twentieth century in capitalist countries when some bourgeois states increased their intervention in the field of economic relations. After the Russian Revolution of 1917, along with the formation of the Federal State of the Soviet Socialist Republic and then the system of socialist countries, in these countries, economic law was recognized as a branch of law in the legal system of each country.
In Vietnam, economic law was born and recognized as an independent law branch in the system of Vietnamese law branches since the 70s of twentieth century and it is an important part of the economic legal system. Up to now, economic law still exists and develops in terms of content as well as form.
Economic law includes the following specialties:
- International trade law
- Business law
- Law on Banking and Finance.
What is the study of Economic Lawin Vietnam?
Students studying Economic Law in Vietnam are provided with in-depth knowledge and skills in law, legal practice, and business law; the ability to research and handle legal issues posed in the practice of business activities of enterprises and state management of enterprises.
Some key subjects in the economic law training program: Intellectual Property Law, Enterprise Law, Commercial Law, Competition Law, Non-contractual Damage Compensation Obligation, Registration Procedure business and investment procedures, Bankruptcy and dispute resolution in business activities, Law on real estate business, Law on Investment, Law on construction investment…
Concept of economic law in Vietnam
Economic law in the context of a market economy is a combination of legal norms promulgated by the state to regulate economic relations arising during the organization and management of the state’s economy and in the process of economic development. business processes between business entities:
The target audience of economic law
Regulatory objects of economic law are economic relations affected by economic law, including:
Group of economic management relations
- Is the relationship arising during economic management between economic state management units and business entities?
Features of this group of relationships:
- Economic management relations arise and exist between management agencies and regulated agencies (Business entities) when the management units perform their management functions.
- Subjects participating in this relationship are in an unequal position (Because this relationship is formed and made based on the principle of authority and submission)
- Legal basis: Focus on approving legal documents that are promulgated by competent management units.
Economic relations arising in the course of business between business entities
These are economic relations that often arise due to the performance of production activities, product consumption activities, or the performance of service activities in the market for profit purposes. In the apparatus of economic relations belonging to the target audience of economic law, this group of relationships is the most important, frequent, and popular group of relationships.
- They arise directly in the business process to meet the sales needs of business entities
- They arise on the basis of the agreement of the will of the parties through the legal form of economic contracts or agreements.
- Subjects of this group of relationships are mainly business entities of all economic sectors participating in this relationship on the principle of voluntariness, fairness, and mutual benefit.
- This group of relations is the group of property relations – commodity-money relations.
Economic relations arise within some enterprises
Economic relations arise in the course of sales activities between the corporation, business group, and member agencies as well as between member units within the corporation or sales group. there together…
Legal basis: Approving internal rules, regulations, charters, and guarantees.
Because economic law in Vietnam both regulates economic management relations between unfair subjects and regulates property relations between fair subjects arising in the course of business, economic law uses and coordinates many different methods of influence such as the combination of the imperative method with the agreement method according to the degree of flexibility depending on each specific economic relationship.
However, the regulatory method of economic law is supplemented with many new points:
The imperative method in the legal regulation of business activities is almost no longer widely applied. Property relations for the purpose of sale are returned to them according to the principle of free will.
Mainly used to regulate the group of economic management relations between unequal subjects. In order to match the characteristics of this group of relationships, economic law has affected them by providing for the economic state management units within the scope of their use to have the right to make decisions on mandatory directives. for business entities (the controlled party). The managed party is obliged to implement such a decision:
Method of Agreement
Used to adjust economic relations arising in the course of sales between fair subjects.
The essence of this method is reflected in the fact that: Economic law stipulates that the parties visiting an economic relationship have the right to be fair to each other and to agree on issues of interest to the parties when establishing or terminating the economic relationship. economic without being dependent on the will of any organization or individual.
This means that the law stipulates that economic relations are only considered to be formed on the basis of the agreement of the parties will and not contrary to the regulations of the state.
The basic content of the Economic Law in Vietnam market economy
Economic Law provides for the legal regulations on the types of business entities in the economy – Economic Law regulates the types of companies and other business entities
- The Economic Law stipulates the conditions and procedures for investors to enter the market
- The Economic Law stipulates the rights and obligations of enterprises, business individuals, and capital contributors
- The Economic Law stipulates the organizational structure and management (internal governance) of each type of enterprise
- The Economic Law stipulates the issue of reorganization of enterprises
- The Economic Law stipulates the conditions and procedures for organizations to withdraw from the market (including procedures for dissolution and bankruptcy of enterprises).
Economic Law regulates commercial and investment activities and contracts in trade and investment (collectively referred to as commercial contracts).
In the market economy, commercial activities are done within the framework of freedom of contract and freedom of trade.
In terms of relevance, commercial activities not only affect the interests of enterprises and partners of the company, but also the interests of consumers, other organizations and individuals, and the development of enterprises. goods, services, and socio-economic development in general.
This is why the law should provide the necessary legal basis for the company to conduct a particular commercial activity.
Economic Law regulates competitive behavior in the company’s business activities
Freedom of business and freedom of contract together with the promptings of the law of values and human nature lead to spontaneous competitive activities that tend to be excessive, and extreme, cause trouble, prevent, restrict, or eliminate competitors’ competition… Destroying the driving force for economic development.
This is the reason why the state must intervene in the competitive activities of business entities.
The Economic Law provides for the settlement of conflicts arising in commercial and investment activities of enterprises and business individuals.
Economic conflicts include disputes arising in the commercial activities of the company, including conflicts in investment relations, purchase and sale of goods, and supply of services,…
Through certain legal documents, Economic Law is the legal basis for determining:
- Rights of businesses and individuals selling goods in handling commercial conflicts arising between themselves or with other related subjects;
- Obligations and acts of breach of contract of disputing parties in commercial activities;
- The legal liability of the party committing acts of violation in commercial activities manifested in the implementation of contractual sanctions such as fines for breach of contract, compensation for damage caused by the breach of contract, contract cancellation, etc.
- Ways to resolve conflicts arising from commercial activities through self-discussion, mediation, commercial arbitration, and courts.
You can read the previous article here: Visa Policy Vietnam: Forms and Types
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Q: What is the currency in Vietnam?
The currency in Vietnam is the Vietnamese dong (VND). The exchange rate as of February 2023 is around 23,000 VND to 1 USD.
Q: What are the main industries driving Vietnam’s economy?
Vietnam’s economy is driven by several key industries, including manufacturing, agriculture, and services.
Q: What is the current state of the economy in Vietnam?
Vietnam’s economy has been experiencing rapid growth in recent years, with a 7.11% growth rate in 2019 before being impacted by the COVID-19 pandemic in 2020.