Legal System Overview
-Vietnam-
“Pháp luật,” - (LEGAL SYSTEM)
Legal Systems
Overview of the Legal Framework: Vietnam’s legal system operates under a civil law system strongly influenced by French civil law traditions and, more recently, principles from socialist ideology. The main sources of law are the Constitution, statutes passed by the National Assembly, government decrees, and ministerial circulars.
Court Structure: The judiciary includes the Supreme People’s Court, Provincial People’s Courts, and District People’s Courts. In addition to these general courts, there are specialized courts for issues like administrative, economic, or labor-related disputes. Vietnam’s judiciary does not practice case law as a primary source, and decisions are made based on statutes and codes.
Legal Codes & Regulations: The legal framework comprises the Civil Code, Criminal Code, Labor Code, and Commercial Code. Vietnam is in a period of ongoing legal reforms to improve its business environment, attracting more foreign investments and aligning some laws with international standards.
Key Differences from Western Legal Systems: Understanding the distinctions between Vietnam’s legal system and those of Western countries is important for expats.
Lack of Case Law & Precedent: Unlike many Western countries, where past judicial decisions set precedents, Vietnamese courts base their judgments solely on written statutes. This means that laws can be interpreted differently, and legal outcomes are sometimes less predictable.
Top-Down Legislative Process: The law-making process in Vietnam is driven by the Communist Party's policies and the National Assembly. Laws are interpreted and applied strictly according to government-issued regulations, and the flexibility seen in some Western legal systems is less common.
Key Legal Areas Affecting Expats: Certain legal aspects in Vietnam are particularly relevant for expats, especially when it comes to property, employment, and business practices.
Property Ownership Restrictions: Foreigners face restrictions on property ownership in Vietnam. While land cannot be owned outright by anyone (it is owned by the state), foreigners can purchase condominiums or lease property under 50-year leases (with the possibility of renewal). Working with a licensed real estate professional is crucial to understand these regulations.
Visa & Work Permit Regulations: Expats working in Vietnam require the appropriate visa and work permit, which must be obtained through the employer. A Temporary Residence Card (TRC) may also be granted to those with longer-term visas or work permits, allowing stays of up to 2 years. Penalties for working without a proper permit include fines and deportation.
Business & Investment Rules: Foreigners looking to establish businesses in Vietnam must adhere to rules set forth in the Law on Enterprises and the Law on Investment. Foreign-owned enterprises (FOEs) have more options for business structures today, but certain industries may have restrictions or require joint ventures with local companies.
Your Legal Rights
General Rights as an Expat: Expats living in Vietnam are subject to the local legal system and enjoy certain rights under Vietnamese law, particularly in terms of contracts, housing, and employment. However, it’s important to understand your obligations and limitations as a foreigner to navigate the system effectively.
Contracts & Agreements: Any contract signed in Vietnam is legally binding and must be written in Vietnamese to be valid in court. Contracts for employment, housing, or business must be clearly outlined, and it’s advisable to have them translated into your language before signing. Expats have the right to seek legal advice when dealing with contracts, and working with a lawyer is often beneficial.
Housing & Lease Rights: Expats renting homes or apartments have the right to fair treatment as tenants. Lease agreements usually specify the length of stay, rent amount, security deposit, and responsibilities of both the landlord and tenant. Vietnamese law protects tenants from unfair eviction, provided they abide by the terms of the lease.
Employment Rights: Foreigners working in Vietnam have rights under the Labor Code of Vietnam, which includes regulations on work hours, safety, and contract terms. Employment contracts should be clear about the job role, salary, benefits, and work conditions. Expats are entitled to fair treatment, and any violations can be reported to the Department of Labor, Invalids, and Social Affairs (DOLISA).
Protections, Obligations & Navigating Legal Concerns: Awareness of your rights and obligations helps avoid legal pitfalls and ensures fair treatment in Vietnam.
Rental & Property Protections: When renting property, make sure you have a written lease contract that outlines the terms, including the rent, deposit, utilities, and maintenance. The lease protects your rights as a tenant, and disputes can often be settled amicably with landlords. It's also important to have an Alien Residence Card or Temporary Residence Card (TRC) when leasing property, as it may be required by the landlord.
Work Permits & Employment Laws: Foreign workers must have a work permit, which is tied to the specific job and employer. The permit is typically valid for up to 2 years and is renewable. Expats must adhere to the rules of their work permit; working outside the scope of your role or without a valid permit can result in fines and potential deportation.
Consumer Protection & Business Rights: Under the Law on Consumer Protection, expats are protected against unfair practices, defective goods, and misleading services. Complaints about consumer issues can be filed with the Vietnam Competition and Consumer Authority (VCCA). Expats engaged in business should also be aware of tax obligations, licensing requirements, and other business regulations to ensure compliance.
Legal Assistance & Dispute Resolution: If you face legal concerns or disputes, there are avenues to seek help and resolve issues in Vietnam.
Seeking Legal Advice: Engaging a local lawyer familiar with Vietnamese laws is crucial for matters like contract disputes, property rights, or business regulations. There are law firms specializing in assisting foreigners and expats, and embassies can often provide references to reputable legal services.
Mediation & Dispute Resolution: Vietnam encourages mediation to resolve conflicts, whether they involve housing, employment, or business. If necessary, disputes can be taken to court, but be aware that legal processes can be lengthy, and finding a peaceful resolution is often the preferred route.