What is a commercial dispute? What are the common methods for resolving commercial disputes today?
In the course of business operations, commercial disputes are inevitable—especially when parties fail to prepare adequately in terms of legal aspects during contract negotiation and execution. Understanding the nature of commercial disputes and selecting the appropriate resolution method are key factors in protecting your rights and maintaining sustainable business relationships.
What is a Commercial Dispute?
A commercial dispute refers to conflicts or disagreements arising between parties in the process of entering into, performing, or terminating commercial activities. These disputes may involve contracts for the sale of goods, services, distribution, agency, franchising, leasing, financial leasing, construction, or investment, finance, banking, insurance activities, among others.
According to Article 30 of the 2015 Civil Procedure Code of Vietnam, these disputes fall under the jurisdiction of the courts unless the parties choose or are able to resolve the issue through alternative methods.
Common Methods for Resolving Commercial Disputes
Depending on the nature of the dispute and the agreement between the parties, businesses may choose one of the following methods to resolve commercial disputes:
1. Negotiation
Negotiation is the simplest, fastest, and most cost-effective dispute resolution method, allowing parties to maintain their business relationship. The parties meet to discuss and reach a mutual agreement without involving any third party.
However, negotiation is only effective when all parties are cooperative and genuinely want to resolve the dispute amicably.
2. Mediation
Mediation involves the participation of a neutral third party—known as the mediator—who facilitates the resolution process and helps the disputing parties reach a common ground. Mediation may be conducted through professional mediators, mediation centers, or court-connected mediation (prior to trial proceedings).
In Vietnam, commercial mediation is gaining attention due to its flexibility, time-saving process, and high level of confidentiality.
3. Commercial Arbitration
Commercial arbitration is a dispute resolution method chosen by the parties, carried out through an arbitration institution or arbitrator. The arbitral award is final and enforceable, similar to a court judgment.
Its major advantages include flexibility, faster resolution, and confidentiality. However, arbitration may involve higher costs compared to litigation. In Vietnam, reputable arbitration institutions such as the Vietnam International Arbitration Center (VIAC) are commonly chosen by businesses.
4. Court Litigation
Litigation is the most common and formal method of dispute resolution in Vietnam. When negotiation or arbitration is not feasible or agreed upon, disputes are brought before the court and resolved through civil litigation procedures.
The court has the authority to enforce its judgments and ensure justice. However, litigation may be time-consuming and public in nature, which can affect a company’s reputation.
Which Method Should Businesses Choose?
Selecting the right method for dispute resolution depends on several factors:
The nature and complexity of the dispute
The relationship between the parties
The need for confidentiality and speed
Terms of dispute resolution agreed upon in the contract
It is advisable for businesses to include clear dispute resolution clauses in contracts from the outset to minimize legal risks.
Professional Legal Services for Commercial Dispute Resolution
At [Law Firm Name], we have accompanied hundreds of domestic and foreign enterprises in resolving commercial disputes. We offer strategic, tailored legal solutions with key advantages:
Strategic advice to resolve disputes effectively and cost-efficiently
Drafting and reviewing contract terms to prevent legal risks
Representation in negotiations, mediation, arbitration, or court litigation
A team of experienced lawyers in commercial law, contracts, and investment
Contact DEDICA Law Firm today for expert legal advice!
Phone: (+84) 39 969 0012 (We are available on WhatsApp, WeChat and Zalo)
Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam
Hours: Monday–Friday (8:30 am – 6:00 pm)
Call us now or leave us a message to get advice. Initial consultation is free of charge.
What Is an FDI Enterprise? Legal Requirements for Establishing a Foreign-Invested Company in Vietnam
Vietnam has become an attractive destination for foreign direct investment (FDI), thanks to its open-door policies, competitive labor costs, and strategic location within the global supply chain. As a result, many international investors are exploring the opportunity to establish FDI enterprises in Vietnam. However, not everyone clearly understands what constitutes an FDI enterprise or the legal requirements involved in setting up a foreign-invested company.
In this article, DEDICA LAW provides a comprehensive guide on the definition, conditions, and procedures for establishing an FDI enterprise in Vietnam.
1. What Is an FDI Enterprise?
According to the Law on Investment 2020, a Foreign Direct Investment (FDI) enterprise is a company that includes foreign capital, established by foreign investors or by companies that already have foreign capital, through:
Capital contribution,
Share purchase,
Or direct investment in Vietnam.
Based on the level of foreign ownership, FDI enterprises are categorized as:
100% foreign-owned enterprises
Joint venture enterprises (a combination of Vietnamese and foreign investors)
Vietnamese enterprises with foreign ownership below 50%
📌 Note: The percentage of foreign ownership affects market access rights and investment procedures. For example, if a foreign investor owns 50% or more of the charter capital, the enterprise may be subject to conditions applicable to foreign investors under Vietnamese law.
2. Legal Conditions to Establish an FDI Enterprise in Vietnam
To legally operate in Vietnam, a foreign-invested company must meet the following requirements:
✅ 1. Foreign investor eligibility:
Must have full legal capacity according to the laws of their home country.
Must have a specific investment project in Vietnam.
✅ 2. Permitted business sectors:
Must comply with Vietnam’s WTO commitments and other international treaties.
Must not fall into prohibited or restricted sectors for foreign investment.
✅ 3. Clear source of investment capital:
Must prove lawful funding through financial documents or bank statements.
Some sectors (e.g., real estate, finance) require statutory capital.
✅ 4. Project location:
Must have a valid lease or office rental agreement in Vietnam.
The chosen location must align with local zoning and investment plans.
3. Procedures for Establishing an FDI Enterprise in Vietnam
Depending on the investment method (e.g., forming a new company, contributing capital, or purchasing shares), procedures may vary. For new FDI enterprises, the process involves two main steps:
🔹 Step 1: Apply for the Investment Registration Certificate (IRC)
Submit the application to the Department of Planning and Investment (DPI) where the enterprise’s headquarters will be located.
🔹 Step 2: Apply for the Enterprise Registration Certificate (ERC)
Once the IRC is approved, the investor must submit a standard company registration dossier.
⏱ Processing time: Approximately 15–30 business days, depending on the investment type and location.
4. Important Notes for Setting Up an FDI Company in Vietnam
Investors should research sector-specific conditions for foreign investment before proceeding.
It is recommended to authorize a legal representative (e.g., a law firm or investment consultancy) to handle paperwork to ensure compliance and save time.
Some business sectors require additional licenses or may need a Vietnamese partner.
Conclusion
FDI enterprises play a vital role in Vietnam’s economic development and offer significant opportunities for foreign investors. However, to establish a foreign-invested company in Vietnam successfully, investors must clearly understand the legal framework and be well-prepared with complete and compliant documentation.
Contact DEDICA Law Firm for expert legal consultation!
📞 Hotline: (+84) 39 969 0012 (Available on WhatsApp, WeChat, and Zalo)
🏢 Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City
🕒 Business Hours: Monday – Friday (8:30 AM – 6:00 PM)
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Who Can Register a Trademark in Vietnam? What Does a Trademark Application Include?
A trademark is a valuable intellectual property asset that plays a crucial role in building a business's brand identity and market position. However, not everyone fully understands who has the right to register a trademark or what documents are required in the registration process.
In this article, DEDICA LAW provides a detailed guide to help you navigate the legal framework around trademark registration in Vietnam—covering eligibility, required documents, and application procedures.
1. Who Has the Right to Register a Trademark in Vietnam?
Under Vietnam’s Intellectual Property Law, the right to register a trademark belongs to the following entities:
✅ Vietnamese Individuals and Organizations
Individuals, business households, and domestic companies have the right to file trademark applications for products or services they manufacture or provide.
✅ Foreign Individuals and Organizations
Foreign entities legally conducting business in Vietnam—or acting through a licensed industrial property representative—are also eligible to register trademarks in Vietnam.
🔒 Important Note:
The applicant must be the lawful owner of the trademark or a person/entity who has been assigned the right to file the application.
2. Cases Where Trademark Registration Is Not Allowed
Certain signs are not eligible for trademark protection, including:
Signs that are identical or confusingly similar to registered trademarks;
Signs that directly describe the type, quality, function, or form of the product or service;
Signs that are contrary to public morals or public order;
Signs that mislead consumers about the origin or source of goods/services.
📌 Tip: Before filing, it is highly recommended to conduct a trademark search to avoid rejection due to similarity or duplication with existing trademarks.
3. What Documents Are Required for Trademark Registration?
To apply for trademark protection in Vietnam, the applicant must prepare a dossier in accordance with the Vietnam Intellectual Property Office (NOIP) regulations. A complete application includes:
Trademark application form (using the official template);
Trademark specimen with a list of goods/services to be covered;
Proof of fee payment;
Documents proving the right to file (in case of assignment, inheritance, etc.);
Power of attorney (if applying through an IP representative);
Priority documents (if claiming priority rights under international treaties).
4. Where to File a Trademark Application?
Applicants may submit their trademark application through one of the following methods:
In person or by post to:
The head office of the Intellectual Property Office in Hanoi;
The representative offices in Ho Chi Minh City or Da Nang.
Online submission via the official portal:
👉 https://dvctt.noip.gov.vn
5. Trademark Application Processing Time
⏳ As regulated by law, the application process includes:
Formality examination: within 1 month from the filing date;
Publication of valid application: within 2 months of acceptance;
Substantive examination: up to 9 months from the publication date.
➡️ Estimated total duration: 12 to 15 months, provided there are no errors or oppositions.
Conclusion
Registering a trademark is not only a means of protecting your intellectual property but also a strategic tool for enhancing competitiveness in today’s marketplace. Knowing who is eligible to register, understanding the required documents, and properly following the registration procedures will help businesses and individuals avoid legal risks and save valuable time.
Contact DEDICA Law Firm for expert legal consultation!
📞 Hotline: (+84) 39 969 0012 (Available on WhatsApp, WeChat, and Zalo)
🏢 Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City
🕒 Business Hours: Monday – Friday (8:30 AM – 6:00 PM)
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Is Severance Pay Granted When an Employment Contract Expires?
During the course of employment, many workers leave their jobs when their labor contracts expire, yet they are unsure whether they are entitled to severance pay. This is an important benefit but depends on several factors governed by current labor laws.
So, are employees eligible for severance pay when their employment contract ends due to expiration? Let DEDICA LAW explain this issue in detail below.
1. What Is Severance Pay?
According to the 2019 Labor Code, severance pay is a sum of money that the employer must pay to the employee upon termination of the labor contract, provided that certain conditions are met.
2. Can You Receive Severance Pay When Your Contract Expires?
✅ Yes, if the employee meets all of the following criteria:
Has worked continuously for at least 12 months, and
Is not eligible for job loss allowance, and
The period of employment is not fully covered by unemployment insurance (UI).
📌 In other words, employees whose contracts end due to expiration may still be entitled to severance pay if:
They did not contribute to UI for the entire working period (e.g., work prior to 2009), or
They worked for employers who did not participate in UI contributions on their behalf.
3. How to Calculate Severance Pay (According to Current Regulations)
Under Article 46 of the 2019 Labor Code, severance pay is calculated as follows:
Severance Pay = 0.5 × Number of years not covered by UI × Average monthly salary over the last 6 months
Where:
0.5 is the severance coefficient (equivalent to half a month's salary for each year of work),
Number of years not covered by UI = Total actual working time – Time already covered by UI,
Average monthly salary = The average of contractual salary over the final 6 months before termination.
✔️ Example:
The employee worked from 2005 to 2024.
The employer only started contributing to UI in 2009.
Therefore, severance is calculated for the period 2005–2008 = 4 years.
If the average salary in the last 6 months was VND 12,000,000, then:
→ Severance Pay = 0.5 × 4 × 12,000,000 = VND 24,000,000
4. When Severance Pay Is Not Applicable
Employees whose contracts expire are not eligible for severance pay if:
The entire working period has been covered by unemployment insurance, or
They are dismissed or unilaterally terminate the contract unlawfully, or
They receive a retirement pension upon termination.
5. When Must Employers Pay Severance?
According to Article 48 of the 2019 Labor Code, employers must:
Pay severance within 14 working days from the date of contract termination.
In special cases (e.g., natural disasters, fire, epidemics, etc.), this period may be extended but must not exceed 30 days.
Conclusion
Employees whose labor contracts expire may still be eligible for severance pay, provided they meet the legal requirements and have working time not covered by unemployment insurance. Therefore, it is crucial to review your UI contribution history and actual working period to protect your lawful rights.
Contact DEDICA Law Firm for expert legal consultation!
📞 Hotline: (+84) 39 969 0012 (Available on WhatsApp, WeChat, and Zalo)
🏢 Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City
🕒 Business Hours: Monday – Friday (8:30 AM – 6:00 PM)
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How is The Maximum Overtime Working Time Regulated?
(1) Maximum overtime in 01 day
The maximum overtime in one day is regulated as follows:
Daily working schedule for regular working days: Overtime must not exceed 50% of the normal working hours in one day.
The normal working time is defined as not exceeding 8 hours/day. Therefore, the maximum overtime per day must not exceed 4 hours/day.
Weekly working schedule: The total of regular working hours and overtime must not exceed 12 hours/day.
Under the weekly working time regime, the regular working time must not exceed 10 hours/day. If the regular working time is 10 hours/day, the employer may only have employees work up to 2 additional hours/day.
Part-time working regime: The total of regular and overtime hours must not exceed 12 hours/day.
Part-time work is defined as work performed for fewer hours than the normal working time (Article 32, Labor Code 2019).
(According to Point b, Clause 2, Article 107 of the Labor Code 2019 and Article 60 of Decree 145/2020/NĐ-CP)
(2) Maximum overtime in 01 month
The maximum overtime in a month is 40 hours/month.
Note: Employers may only require employees to work up to 60 hours/month if the employee agrees.
(According to Clause 2, Article 107 of the Labor Code 2019)
(3) Maximum overtime in 01 year
The maximum overtime in a year is 200 hours/year.
Except for the following cases where up to 300 hours/year is allowed:
Manufacturing and processing for export in sectors such as textiles, garments, footwear, electronics, and processing of agriculture, forestry, salt production, and fisheries;
Electricity production and supply, telecommunications, oil refining; water supply and drainage;
Cases requiring skilled workers that are not readily available in the labor market;
Urgent work that cannot be delayed due to seasonal factors, timing of raw materials or products, or due to unforeseen events such as weather, natural disasters, fires, enemy sabotage, electricity shortages, raw material shortages, technical issues in the production line, etc.
(According to Point c, Clause 2, Article 107 of the Labor Code 2019)
(4) Overtime during nighttime
Currently, the Labor Code 2019 and its guiding documents only generally regulate overtime, without specifying separate limits for nighttime overtime.
Thus, it can be understood that the maximum overtime during nighttime is the same as that during the daytime.
Nighttime working hours are defined as from 10:00 PM to 6:00 AM the following day.
(According to Article 106 of the Labor Code 2019)
(5) Overtime during holidays and Tet (Lunar New Year)
When employees work overtime on holidays or Tet, the total overtime must not exceed 12 hours per day.
(According to Clause 4, Article 60 of Decree 145/2020/NĐ-CP)
How is overtime and nighttime wage payment regulated for employees?
Overtime wages are guided as follows:
Employees working overtime shall be paid according to their wage unit price or actual wage paid for the work being done, as follows:
On weekdays: at least 150%;
On weekly rest days: at least 200%;
On holidays, Tet, or paid leave days: at least 300%, excluding the daily wage for those days for employees paid by the day.
Employees working during nighttime shall receive at least an additional 30% of the wage calculated based on their wage unit price or actual wage for normal working days.
Employees working overtime at night shall, in addition to the above payments, receive an extra 20% of the wage calculated based on the wage unit price or the wage for daytime work on a normal day, rest day, or holiday.
(According to Article 98 of the Labor Code 2019)
Contact DEDICA Law Firm today for expert legal advice!
Phone: (+84) 39 969 0012 (We are available on WhatsApp, WeChat and Zalo)
Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam
Hours: Monday–Friday (8:30 am – 6:00 pm)
Call us now or leave us a message to get advice. Initial consultation is free of charge.
How Can Foreign Investors in Industrial Zones Benefit From Corporate Income Tax Incentives?
On Corporate Income Tax Exemption and Reduction:
(1) For foreign investors investing in industrial parks in the socialized sectors:
According to Point b, Clause 1, Article 16 of Decree No. 218/2013/ND-CP: tax exemption for 4 years and a 50% tax reduction for the following 9 years from:
The first year the project generates taxable income; or
The fourth year from the first year the project has revenue, if there is no taxable income for the previous 3 years.
(2) For foreign investors investing in industrial parks (excluding those located in areas with favorable socio-economic conditions) in other sectors:
According to Clause 3, Article 16 of Decree No. 218/2013/ND-CP as amended by Clause 6, Article 1 of Decree No. 91/2014/ND-CP: tax exemption for 2 years and a 50% tax reduction for the following 4 years from:
The first year the project generates taxable income; or
The fourth year from the first year the project has revenue, if there is no taxable income for the previous 3 years.
Note: According to Clause 4, Article 22 of Decree No. 35/2022/ND-CP:
Investment expenses for construction, operation or purchase, lease-purchase, or lease of housing, service works, and public utilities for workers in industrial zones and economic zones; infrastructure works connecting with industrial zones; and investment projects for constructing and operating infrastructure in industrial zones or functional areas in economic zones are deductible expenses when determining taxable income in accordance with the law on corporate income tax.
In addition, foreign investors investing in industrial parks may enjoy several other incentives:
(i) Land Rent Incentives
As analyzed above, when investing in industrial parks, foreign investors are entitled to policies similar to those applied in areas with difficult socio-economic conditions.
Therefore, enterprises shall be exempt from or receive reductions in land rental fees according to Clause 1, Article 110 of the 2013 Land Law.
(ii) Support in Carrying Out Administrative Procedures
According to Clause 6, Article 22 of Decree No. 35/2022/ND-CP:
Investors with investment projects in industrial zones and economic zones are supported by competent state authorities in implementing administrative procedures on investment, enterprises, land, construction, environment, labor, and trade through a "one-stop, on-site" mechanism, as well as in labor recruitment and other related matters during the implementation of the project.
(iii) Authority of the Industrial Park Management Board to Issue Investment Registration Certificates
The Industrial Park Management Board has the authority to issue, amend, and revoke Investment Registration Certificates for investment projects in industrial parks, except for cases specified in Clause 3, Article 39 of the 2020 Investment Law.
It can be seen that if a foreign investor chooses to invest in Vietnam by establishing an economic organization, the investor must first have an investment project and apply for an Investment Registration Certificate.
The fact that the Industrial Park Management Board has the authority to issue, amend, and revoke such certificates (except in the case under Clause 3, Article 39 of the Investment Law 2020) facilitates foreign investors in shortening the time required for related legal procedures.
This, in turn, can help investors save a significant amount of cost.
(iv) Enjoyment of Utility Services within the Industrial Park
Currently, utility services in industrial parks represent a promising area.
With the trend toward building a closed ecosystem within industrial parks, most industrial park developers aim to integrate production activities with utility services, fully meeting the living and convenience needs of employees and experts of enterprises.
This facilitates investors, especially foreign investors, by helping them minimize costs related to setting up utilities, while also attracting a skilled and high-quality workforce.
On What Basis Can Investors Determine and Apply Investment Incentives?
According to Article 17 of the 2020 Investment Law, investors determine and apply for investment incentives at tax authorities, financial authorities, customs authorities, and other competent agencies corresponding to the specific type of incentive, based on:
The eligible entities specified in Clause 2, Article 15 of the Investment Law 2020;
The Investment Policy Approval document (if applicable);
The Investment Registration Certificate (if applicable);
Other relevant legal provisions.
Contact DEDICA Law Firm today for expert legal advice!
Phone: (+84) 39 969 0012 (We are available on WhatsApp, WeChat and Zalo)
Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam
Hours: Monday–Friday (8:30 am – 6:00 pm)
Call us now or leave us a message to get advice. Initial consultation is free of charge.
Is Sunday Considered a Weekly Rest Day for Employees in Vietnam?
Understanding Weekly Rest Days Under Vietnamese Labor Law
Many employers and employees in Vietnam assume that Sunday is the default weekly rest day. However, under Vietnamese labor law, rest days are not automatically assigned to Sundays—they are determined by the employer. At DEDICA Law Firm, we help businesses and employees navigate these regulations to ensure compliance and fair labor practices.
Legal Basis: What Does the Law Say?
According to Article 111 of the Labor Code 2019, employers must provide at least one full day off per week, but they have the flexibility to determine which day that will be:
"Each week, an employee is entitled to at least 24 consecutive hours of rest. The employer has the discretion to arrange this rest day on Sunday or any other fixed day of the week, based on operational needs."
This means that Sunday is not automatically the weekly rest day—it depends on the employer's policy and the nature of the business.
Common Practices in Vietnam
Government & Office Jobs: Most follow a five-day workweek, with Saturday and Sunday as rest days.
Manufacturing & Retail: Often operate a six-day workweek, with a designated rest day that may vary by shift.
Hospitality & Service Industries: Rest days are often scheduled based on rotating shifts, meaning employees might have rest days on weekdays instead of weekends.
Can an Employer Require Employees to Work on a Rest Day?
Yes, but overtime pay applies. If an employee is required to work on their designated weekly rest day, they must receive overtime wages:
At least 200% of the standard wage (as per Article 98 of the Labor Code 2019).
For night shifts or public holidays, additional compensation applies.
Key Takeaways
✅ Employers decide the weekly rest day based on business needs.
✅ Sunday is not mandatory—it depends on company policy.
✅ Employees working on their rest day must be paid overtime under labor law.
Contact DEDICA Law Firm today for expert legal advice!
Phone: (+84) 39 969 0012 (We are available on WhatsApp, WeChat and Zalo)
Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam
Hours: Monday–Friday (8:30 am – 6:00 pm)
Call us now or leave us a message to get advice. Initial consultation is free of charge.
