Franchise is an increasingly common form of business operation and investment across many countries, including Vietnam. It plays an important role in facilitating market expansion and transferring business models efficiently. The following elaboration explains the concept, characteristics, and legal aspects of franchise agreements under Vietnamese law, particularly the 2005 Commercial Law and its guiding regulations. […]
1. Legal Recognition of Liquidated Damages in Vietnamese Law Liquidated damages refer to a sum of money that contracting parties agree to in advance, which one party must pay if they breach the contract. This concept, common in common law jurisdictions, is also recognized in Vietnam’s civil and commercial legal framework, albeit with certain limitations. […]
When disputes arise, the parties involved may choose to resolve them through negotiation, mediation, litigation, or arbitration. Arbitration is a common alternative to litigation in commercial disputes as it is often faster, more efficient, and more confidential than court proceedings. In Vietnam, arbitration agreements in the resolution of commercial disputes are governed by the Law […]
Currently, there is no fixed minimum capital requirement for most businesses entering the Vietnamese market, providing a wide range of opportunities for new entrepreneurs. According to the Enterprise Law, charter capital must be fully paid within 90 days of receiving the business registration certificate. Differences in Minimum Capital Requirement by IndustryThe required capital varies depending […]