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Business "How to?"Monday, 03/21/2005, 03:51

Can a Vietnamese limited liability company sign economic contracts with the representative office of a foreign company?

Can a Vietnamese limited liabili

Can a Vietnamese limited liability company sign economic contracts with the representative office of a foreign company?


According to Article 2 of the Economic Contract Law approved by the National Assembly on May 10, 1997, economic contracts can be signed by the following parties:

- Legal party with legal party
- Legal party with individual doing business registration as regulated by the law.

In the meantime, according to Article 38 of the Commercial Law approved by the National Assembly on May 10, 1997, representative offices of foreign companies in Vietnam are affiliates of foreign companies established as ruled by Vietnam�s Law to promote commercial activities. Therefore, representative offices of foreign companies in Vietnam are not liable to sign economic contracts.

However, according to Article 9 of the Economic Contract Ordinance, legal representatives of the legal party (director or person representing in business registration certificate) or individual with business registration can entrust another person by a written document to sign the economic contract. Therefore, legal representatives of foreign companies can entrust another person by a written document to sign economic contracts with Vietnamese limited liability companies. The entrusted person is allowed to sign the economic contract but is not allowed to entrust the third party to do so.

In addition, according to Article 14 of Decree 45/2000/ND-CP dated September 6, 2000, regulating representative offices of foreign traders and foreign tourist companies in Vietnam, chief of the representative office can sign contracts of goods trade, service providing (except contracts about travel and tourist transportation) with Vietnamese businesspeople and companies in tourism industry when he or she is legally entrusted by the foreign party for each contract.

 


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