Last updated: 18 May 2012
Business risks
Australian companies are advised to spend time investigating the market, obtain professional advice where appropriate and thoroughly investigate the issues in entering the market and establishing business relationships.
Australian firms wishing to operate in this country should commit to the highest level of corporate behaviour and familiarise themselves with Australia's law and penalties pertaining to bribery of foreign officials.
Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. Further information on the regulations governing bribery of foreign public officials is available.
For further information on frauds, scams, personal and asset security, intellectual property protection and other business risks please visit www.austrade.gov.au/Legal-issues/default.aspx
Intellectual property protection
Despite some formal legislative protection, intellectual property rights (IPR) infringements are pervasive in Vietnam. The problem stems from insufficiencies in the code of law, inadequate enforcement of regulations, lack of understanding of the concept of private ownership of IPR, and the powerful price advantage of counterfeit, versus genuine, merchandise. The experience of several major international companies indicates that informal negotiation and settlement, supported by educational campaigns, constitute a more effective approach in some instances.
Dispute resolution
Negotiation between the concerned parties is the most common and preferred means of dispute resolution.
Although contracts are difficult to enforce in Vietnam, particularly if one party to a dispute is a foreigner, investors generally should negotiate and include contract resolution procedures in their contracts.
Vietnam has acceded to the New York Convention on Foreign Arbitral Awards, but as yet there have been no disputes between a foreign and a Vietnamese entity settled under this multilateral agreement.
Economic Courts, in addition to hearing bankruptcy cases, also have jurisdiction over cases involving business disputes. Administrative Courts hear cases that concern alleged infractions of administrative procedures by government authorities.
Outside the court system, dispute resolution may also be pursued through the Economic Arbitration Centres. Each Centre must include at least five arbitrators licensed by the Ministry of Justice. The Vietnam International Arbitration Centre (VIAC) operates in close coordination with the Vietnam Chamber of Commerce and Industry.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.
APEC Business Travel Card Scheme
Managed by the Department of Immigration, the APEC Business Travel Card Scheme was developed to make travelling within the 21 APEC member countries much simpler and more efficient.