Following the regulations of law, international trade means the exchange of goods and services (tangible goods and intangible goods) between countries, following the principle of equal exchange in order to bring benefits to the parties. For most countries, that equates to a large proportion of GDP. So about the matter “International Commercial Law under Vietnam law” Let’s find out with LSX in the article below. Hope this article will help you with your issue!
Legal grounds
- Commercial Law 2005
What is international trade?
International trade has a long history and has gone through different stages of development. The formation and development of international trade can be divided into the following four periods:
The first period, from the nineteenth century BC to the fourth century. During this period. International trade activities have been considered formed when the activities of exchanging and buying and selling goods are no longer confined to a certain country but have gone beyond the borders of each country. One of the important events of this period for international trade was the formation of the “Silk Road” connecting Asia with Europe. Due to difficult traffic conditions and underdeveloped means of transport, international trade activities during this period only took place on a small scale.
The second period lasted from the 5th to the 13th century. During this period, due to constant wars between feudal forces, international trade was underdeveloped. However, commercial activities still take place quite bustling in some cities of Europe and the Middle East – places that are considered as trading centers such as Venice, Florence, Istanbul, Baghdad…
The third period, counted from the 14th century to 1945. This is the period marking the strong development of international trade. Due to the development of means of transport, especially sea transportation, the exchange of goods between countries also thrives. During this period, in order to meet the needs of exchanging goods, a series of services related to international trade activities were formed and developed such as financial services, banking, insurance, etc.
The fourth period, defined from 1945 to the present. This was a period of unprecedented growth in international trade. This strong development is due to the scientific and technical achievements of the special interest of countries in international trade, which began with the formation of GATT (1947) and the birth of the WTO (1995).
It can be said that, along with the development of international trade, the concept of international trade also develops. The concept of international trade has gradually been changed by the diversity of objects of exchange and the richness of subjects.
First, on the diversification of objects of exchange and purchase in international trade. If in the early days, the object of international trade was tangible goods, later, besides tangible goods, services, investment activities, and intellectual property have become the object of international trade.
Second, the richness of subjects participating in international trade activities. If in the past, especially in the early days of international trade, the subjects of international trade were only individuals, but today in international trade relations, besides the birth of many legal entities, States are also becoming a significant type of actor in this area.
From the rapid diversification of objects and richness of subjects in international trade, the term “international trade” in many cases has not been used uniformly.
In Vietnam, commercial activities are understood as activities for profit-making purposes, including: purchase and sale of goods, provision of services, investment, trade promotion and other activities for profit-making purposes. Meanwhile, the international sale of goods is understood as the export and import of goods, whereby goods are brought out, brought into the territory of Vietnam or a special area located in the territory of Vietnam is considered to be the import and export of goods. In other words, international trade is understood as commercial activities that go beyond national borders or customs borders.
With the above approach to the concept of commerce, in Vietnam, the two terms “international trade” and “international commerce” (roughly translated as international business) are often understood in the same way. However, in many countries around the world, these two terms have different meanings. If international trade is the term for international trade activities carried out by countries with each other, international commerce is the term for international trade activities conducted by merchants. Thus, it can be seen that the approach to the concept of “international trade” in these countries is not the same as that of Vietnam including the behavior of countries and traders) as a criterion for determining international trade relations, in some countries the determination of international trade relations is based on the sign that the subject is a country.
International Commercial Law under Vietnam law
Like other fields, international trade activities are governed by certain legal norms and principles. In the first period of international trade, through the exchange of goods and services between merchants of different countries, the commercial behavior of these merchants was governed by the agreements of their own. Surname. These agreements are called “gentle agreements”, because they are established and respected by traders. Later, when there was state intervention in international trade activities, legal regulations were promulgated by the state on the principle of protecting the legitimate interests of traders and protecting the interests of the state.
Commercial activities are activities aimed at making profits through the exchange of goods, services and other objects of exchange in commerce. According to the provisions of the 2005 Commercial Law passed by the National Assembly on June 14, 2005 (hereinafter referred to as the 2005 Commercial Law for short), then:
Commercial activities are activities for profit-making purposes, including the purchase and sale of goods, provision of services, investment, trade promotion and other activities for profit-making purposes (Clause 1, Article 3, Commercial Law 2005).
International trade is a commercial activity involving foreign elements. Foreign factors in international trade are determined on the basis of three signs:
+ Subjects in commercial relations are parties of different nationalities or having commercial offices in different countries;
Events giving rise to change or termination of commercial relations occur abroad and
+ The object of the commercial relationship such as goods, services or other objects in a foreign country.
Thus, international commercial law is a synthesis of principles and norms governing the relations between entities in international commercial activities.
Individual subjects in International Trade
Individuals, as subjects in international trade, are traders who meet the conditions prescribed by law. Due to various reasons, the laws of different countries may or may not specify conditions for individuals when participating in international trade relations as subjects.
If the law specifically stipulates the standards of the subject being an individual, then only those who fully meet all the requirements prescribed by the law can become subjects in international commercial law relations. When considering a person’s status in international trade relations, it is based on regulations applicable to individuals who are traders in domestic commercial legal relations, and at the same time, some conditions are added. In other words, in this case, an individual who wants to become a subject in international commercial law must be a trader in domestic commercial relations and at the same time meet additional conditions as prescribed by law to can participate in international trade transactions.
For example, according to the provisions of Vietnamese law, a person who fully meets the conditions to become a subject in domestic commercial activities, if he or she wants to conduct commercial activities with foreign countries, must satisfy all conditions prescribed by the Government. (Article 73, Commercial Law 2005).
Although there are different specific regulations, in general, when it comes to determining the status of an individual in commercial relations in general and international trade relations in particular, the laws of most countries are based on two legal standards directly related to individuals: personal conditions and professional conditions of the individual.
– Personal conditions
An individual’s identity condition is a legal condition attached to a particular person. According to the legal regulations of most countries in the world, the consideration of a person’s personal conditions to become a trader is not only based on his legal capacity and behavioral capacity, but also on the basis of his/her legal capacity and other requirements.
For example: A person who wants to become a subject in international trade not only has the legal capacity to act, but also has to comply with other provisions of each country’s law such as not being a person serving a prison sentence. …
If the law does not specify the conditions of the subject being an individual in the relationship of international commercial law, the competent authority shall deprive him of the right to engage in business or is not a person serving a prison sentence.
– Conditions of occupation
According to the law of many countries, especially Western countries, people who are doing certain occupations will not be allowed to participate in commercial activities, including international trade activities.
For example, according to the Commercial Law of the French Republic, people doing professions such as civil servants, lawyers, doctors, notaries, enforcers… are not allowed to participate in general and commercial activities in particular. According to the provisions of Vietnamese law, a trader being an individual must be a person who regularly conducts commercial activities and has a business registration (Article 6 of the 2005 Commercial Law).
In general, state regulations on legal standards for determining the status of individuals in international commercial relations are applied only to nationals of that country. Whether a citizen of foreign nationality can become a trader for international trade activities within the territory of the host country, this completely depends on the laws of each country and each case. In international relations, to solve this problem, countries often sign or join international treaties, which agree on legal principles in determining the legal status of foreign citizens.
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Frequently asked questions
What is international commercial law includes the following basic principles:
The principle of most favored nation treatment
– This principle is understood that a country will give a partner country the most beneficial incentives that it is and will give to third countries in the future. This is a principle made in order to further expand trade liberalization.
– In fact, this principle is often applied with conditions based on agreement between countries and parties.
Principle of national treatment
– This principle is that a country will give products, services and suppliers of another country preferential treatment no less than that which that country is and will give to products, services and suppliers. of his country.
– This principle is applied to ensure that foreign products, services or suppliers will not be discriminated against from domestic ones. Such as: taxes, fees, business conditions.Principles of market opening (market access)
– This principle requires countries to commit to and implement the development and realization of a roadmap for market opening for foreign goods, services and investment.
– This principle is implemented towards the liberalization and expansion of international trade.
Economy is the backbone of all countries in the world, so international trade is always focused on investment by countries. That is also the reason why international commercial law has begun to become a specific discipline and is being researched in many universities around the world.
International commercial law is known as a specialization of Economic Law. International commercial law provides a core knowledge of the principles and standards of international trade in goods, services and insurance. International commercial law aims to regulate two main relationships: commercial relationships arising between countries and commercial relationships arising between entities in 2 different countries.
Based on the principles of international commercial law, countries and companies and businesses in that country will have a solid basis to conduct business exchanges to earn legitimate profits. On the other hand, in the current integration context, the expansion of cooperation with foreign partners is being paid more attention. Accordingly, the field of international commercial law is also thoroughly researched and trained by other countries and universities in order to create human resources with highly specialized knowledge and skills, capable of handling problems well. related to trade relations between countries.
Legal person is an organization established or recognized by the state when it meets all legal conditions as prescribed by law. A legal entity as a subject in commercial relations in general and in international trade relations in particular may exist in many forms such as companies, business firms, etc. According to the provisions of the laws of many countries In the world, legal entities as subjects of commercial relations in general and international trade in particular are called traders. Legal standards to determine the status of a legal entity as a trader are specified in the commercial laws of countries.
According to the provisions of Vietnamese law, a trader is an economic organization that is legally established and has the right to operate within the scope of business lines in different localities, in forms and by methods that are not prohibited by law. (Clause 1.2, Article 6 of the 2005 Commercial Law).
On the principle of free business in international trade, the laws of most countries allow all legal entities that are traders, when fully meeting the conditions to participate in domestic commercial activities, also be allowed to participate in commercial activities. international commerce. However, due to the importance and complexity of international trade activities, the laws of some countries also provide some additional conditions to determine the subject status for this type of trader.
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