Vietnam Law on International Agreement

The CPTPP aims to create a new model for international trade and investment. As a result, Vietnam needs to open its market to goods and services from other CPTPP members in a broader and deeper way. This will undoubtedly be reflected in the expansion of the legal framework for investment in Vietnam. That is, often the law is not changed in time. It is not easy for public authorities, especially local authorities, to keep track of all the conditions and/or obligations to which Vietnam is bound by its international treaties. Licensing officers can familiarize themselves with the investment conditions under WTO obligations, but not with those under subsequent treaties/agreements. Of course, they are not prepared to apply a contract they are not familiar with or to interpret the contract if the language of the contract is incompatible with the applicable law. Even if they wanted to, it would be chaotic for different local authorities to interpret contracts differently. 5. If, after no agreement with the Ministry of Foreign Affairs, the proposing body appoints the head of a negotiating delegation, a person to sign a contract or participate in an international conference abroad, it shall propose a competent body authorising or mandating the head of the diplomatic mission or the head of the representative agency to an international organisation or other representative; the head of the delegation for negotiation, the person who signs the contract or participates in such an international conference. 2. to respect national independence, sovereignty and territorial integrity, not to use or threaten to use force or interfere in the internal affairs of each other, to ensure equality, mutual interests and other fundamental principles of international law. Foreign ownership in certain sectors is restricted (or prohibited) under domestic law or international treaties (such as WTO obligations or free trade agreements).

In some sectors, foreign investors are required to work with a Vietnamese side to set up joint ventures. Where international treaties and domestic laws remain silent, it is up to the licensing authority to decide whether or not to allow foreign investment in the sector in question. Apart from the practical problem, an international treaty can only be applied if there are specific guidelines for the implementation of the treaty by the government or ministries, although the law is formulated in such a way that treaties prevail over Vietnamese law. The authorities will not accept the granting of benefits and/or incentives under a contract until legal documents are available to implement it. The refusal of local authorities to transpose the language of a contract is based on the fact that there are no guidelines for the application of such a contract and therefore have no legal basis for its application. This is not an inappropriate outcome. The International Treaties Law, promulgated in 2016, stipulates that the Prime Minister is responsible for the implementation of treaties to which Vietnam is a party. But is a treaty ratified by the National Assembly self-implemented? Certainly not. It requires the adoption of legislation transposing contractual obligations into national law. In practice, Vietnam, as part of its obligations under international treaties following the ratification of a treaty, should take steps to adopt, adopt and/or revise legislation in accordance with its new international obligations. Several legal documents must be issued to transpose the provisions of the Treaty into national law and to replace the existing contradictory provisions.

It takes a long time for the authorities to do this. Too often, treaties have entered into force, but existing law continues to prohibit what it allows. 1. The Supreme People`s Court, the Supreme People`s Procuratorate, the Court of Auditors of Vietnam, a ministry, a ministerial-level authority or an authority affiliated with the Government (hereinafter referred to as the Proposal Agency) request international cooperation in the framework of their tasks and powers and propose to the Government to submit to the President the negotiation of a treaty on behalf of the State; or propose to the Prime Minister the negotiation of a treaty on behalf of the government. 1. The Ministry of Foreign Affairs shall grant powers to negotiate and sign contracts or letters of credence for participation in international conferences in accordance with the written decisions of the competent governmental authorities. 1. The bodies prescribed by article 8 of this Act shall propose to the Government to act on the basis of their tasks and powers and the requirements of international cooperation, submit them to the President for decision or submit them to the President for submission to the National Assembly for decision on accession to treaties in accordance with their competence prescribed in paragraph 1; 2 and 3, article 43 of this Act. The Law on signing, accession and implementation of international treaties or the law on international treaties reaffirms Vietnam`s strict commitment to agreements it has signed with other countries, international organizations and foreign parties. A recent decree 31/2021/ND-CP of the government of 26. March 2021 contains a list of 25 areas of activity in which foreigners are not allowed to invest, including trade in goods and services subject to the state monopoly, press affairs, opinion polls, tour operators (except international travel), etc.

Foreign investment in 59 other fields of activity is subject to market access conditions, namely: (3) The head of a delegation to an international conference will be assisted by the Prime Minister. in writing. 1. The termination, waiver, revocation or suspension of the performance of all or part of the contract shall be in accordance with the provisions of the treaty or agreement between the Vietnamese party and the foreign party. (c) The establishment and accession to an international or regional organization is when the establishment, accession or withdrawal of such an organization affects fundamental national policies in the fields of external relations, national defence, security, socio-economic development, financial and monetary matters; 1. Treaty means a written agreement concluded on behalf of the State or on behalf of the Government of the Socialist Republic of Vietnam with a foreign Party establishing, modifying or terminating the rights and obligations of the Socialist Republic of Vietnam under international law, by whatever title, such as. B a treaty; Convention, Covenant, Covenant, Agreement, Protocol, Memorandum of Understanding, Note or any other title. 3.

Where an authorization or mandate decision does not specify the authorized or mandated person and the full title of the treaty in Vietnamese and foreign language at least 5 days before the start of negotiations or the signing of a contract or participation in an international conference, the proposing body shall communicate this information in writing to the Ministry of Foreign Affairs: so that the procedures for granting powers of attorney can be completed. or credentials. Although candidate arrangements are not uncommon in Vietnam, there is no concept of “trust” under Vietnamese law. As a result, in practice there are candidate arrangements in various forms. These are often nominee commitments, service agreements with the nominee, loan agreements, call option agreements, equity mortgage agreements, and power of attorney agreements. In situations where the foreign party has valuable rights abroad, there may also be a licensing agreement that allows the designated company to use those rights in Vietnam. In the context of sectors that are not considered sensitive, the risk of such collusion being investigated and reversed is not high, as the authorities tend to view agreements not as a whole, but each element of the agreement as a separate transaction. .