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Corporate law in Vietnam


Corporate law in Vietnam was originally based on the French commercial law system. However, since Vietnam's independence in 1945, it has largely been influenced by the ruling Communist Party. Currently, the main sources of Corporate Law are the Law on Enterprises, the Law on Securities and the Law on Investment.

Corporate law in Vietnam is largely influenced by French laws due to its colonial past. After the 1954 Geneva Conference, Vietnam separated into two zones: the North and the South. In 1980, after the North took control of the South, the country adopted a centrally-planned economy, with officials discouraging private commerce.

In 1986, the government initiated economic reforms (Doi Moi) to the corporate sector to reinvigorate the ailing economy. These policies aimed to reverse most of policies that led to economic crises in the 1970s and 1980s following the Vietnam War. Development of the private sector was encouraged and the economy was liberalized in hopes of increasing the potential for economic development. In 1987, the Law on Foreign Investment was passed, allowing foreign investors into the country.

In 1990, the Law on Private Enterprises and Companies Law were introduced to boost economic development. They were subsequently superseded by the Law on Enterprises (LOE) in 1999, which introduced Partnerships in addition to Limited Liability Companies and Shareholding Companies. Within three years of implementing the LOE, over 70,000 enterprises were registered as compared to just over 40,000 for the previous nine years. Law on Investment (replacing Law on Foreign Investment) and a new LOE were enacted in 2005. These statutes are expected to further strengthen Vietnam's economy and its potential for international economic integration.

The Constitution - Mainly seen as the ultimate Party policy documents. 4 different versions (1946, 1959, 1980, 1992)

Legislation - Originated from civil law passed down from the French.


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