Commercial Law Inconsistent With Other Laws By Ho Phuong Luan, Indochine Counsel.

The National Assembly's passage of the Commercial Law in 2005 was a significant event in promoting commerce and a healthy business climate after nearly seven years in effect to the law has revealed some shortcomings making it imperative that the law be amended in order to create the most favourable conditions for commercial development in Viet Nam for the instance, the definitions of terms used in the law and example for a "business entities", "commercial activities", and "commodities exchanges", are inadequate and unclear, and provisions on penalties, promotions and complaints are incoherent in overall the law contains many provisions inconsistent with other laws and regulations.

A concept of "business entities" as defined in Article 6.1 of the Commercial Law is confused and appears to conflict with Article 7. Article 6.1 provides that "business entities shall be comprised of economic organisations to have been lawfully established and have business registration to an enterprise is already and the lawfully established only it has been established in accordance with the procedures prescribed by law.

And have obtained business registration to yet Article 6.1 also says that "business entities shall consist of economic organisations to conduct commercial activities independently and frequently this condition is both unclear and unnecessary as the law is otherwise silent as how an economic organisation may be judged to have satisfied such a requirement.