Legal
Vietnam lacks an independent judiciary, in part because the CPV selects judges and vets them for political reliability. The
country‟s judiciary is under the control of the CPV and the party exercises sufficient power to influence the outcome of cases
involving perceived threats to the state or the party‟s dominant position.
Vietnam‟s legal system is evolving fast. The dynamism and transparency of the legal system, as a result, have been
significantly improved. Despite these significant improvements, Vietnamese legislation is still weak resulting in the legal
system being inadequate and unstable. One of the main reasons for this is the function of the National Assembly. It does
not consist of professional and specialised legislators, rather working people gathering for two 30-day sessions per year.
There is a modest agenda to legal debate and approval of laws (UK Trade and Investment, 2009).
Global Marketing And Competitiveness
December 2010
6
1992, constitution recognised for the first time the development of a market economy
1996 a new law on foreign investment was passed.
2000 a bilateral trade agreement was signed between Vietnam and the United States.
2005 a new civil code and commercial law was passed.
2005 a new law on investment and law on enterprises which establishes a common regime and unified company law
for domestic and foreign investment in Vietnam5
.
Potential Impact
Vietnam is continually passing progressive laws that are making it more accessible for foreign investors to do business within
their country. However there are still tough legal restrictions to be acknowledged prior to attempting market entry and
companies should be aware of the potential influence of government interference to satisfy their own agendas.
3. Conclusion
Vietnam is an attractive market, full of many opportunities for potential business, investment and trade. There are however,
various issues which will need to be considered by an exporting company, specific to the particular product or service they
wish to offer this market. This tailored analysis will inform company decisions (Dibb et al. 1994; Ghemawat, 1999).
LegalVietnam lacks an independent judiciary, in part because the CPV selects judges and vets them for political reliability. Thecountry‟s judiciary is under the control of the CPV and the party exercises sufficient power to influence the outcome of casesinvolving perceived threats to the state or the party‟s dominant position.Vietnam‟s legal system is evolving fast. The dynamism and transparency of the legal system, as a result, have beensignificantly improved. Despite these significant improvements, Vietnamese legislation is still weak resulting in the legalsystem being inadequate and unstable. One of the main reasons for this is the function of the National Assembly. It doesnot consist of professional and specialised legislators, rather working people gathering for two 30-day sessions per year.There is a modest agenda to legal debate and approval of laws (UK Trade and Investment, 2009).Global Marketing And CompetitivenessDecember 20106 1992, constitution recognised for the first time the development of a market economy 1996 a new law on foreign investment was passed. 2000 a bilateral trade agreement was signed between Vietnam and the United States. 2005 a new civil code and commercial law was passed. 2005 a new law on investment and law on enterprises which establishes a common regime and unified company lawfor domestic and foreign investment in Vietnam5.Potential ImpactVietnam is continually passing progressive laws that are making it more accessible for foreign investors to do business withintheir country. However there are still tough legal restrictions to be acknowledged prior to attempting market entry andcompanies should be aware of the potential influence of government interference to satisfy their own agendas.3. ConclusionVietnam is an attractive market, full of many opportunities for potential business, investment and trade. There are however,various issues which will need to be considered by an exporting company, specific to the particular product or service theywish to offer this market. This tailored analysis will inform company decisions (Dibb et al. 1994; Ghemawat, 1999).
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