Author: TNTP LAW

Is it appropriate to use ChatGPT in law practice?

Written by TNTP LAW on 15 March, 2023. Posted in Legal newsletter.

ChatGPT is currently one of the most famous chatbot software in the world because of its intelligent communication ability and its ability to answer complex questions in just a few minutes. Many industries in society have begun using ChatGPT as a tool to assist humans in solving problems. So, is using ChatGPT in the law practice appropriate for current trends? Let’s find out about TNTP in this article.

1. Potential of ChatGPT

As mentioned above, ChatGPT is a chatbot that can answer any user’s questions by searching and synthesizing information in a huge database quickly. Unlike traditional search tools like Google which provide a list of answers based on user questions, ChatGPT proactively selects the most suitable answer to the user’s question and synthesizes it into a text. Even when users continue to interact with ChatGPT, it will continue to answer them with very intelligent and reasonable language, very “human-like” compared to previous search tools or AI, which has made ChatGPT’s popularity explode on the Internet.

Many people have tried using ChatGPT to reduce the workload in their work, and the fact has shown that many tasks have been improved with the help of ChatGPT, such as many programmers who have used this tool as a bug-fixing machine for their code and given very positive feedback that ChatGPT detected and fixed about 80% of the programming errors, but with a much faster time than usual.

2. The dark side of ChatGPT

Many American students have applied the ChatGPT tool to solve college entrance exams and have produced worrying results. According to some sources, ChatGPT can pass the final exam of the Wharton School of Business at the University of Pennsylvania, four exams of the Law School of the University of Minnesota, and a part of the United States Medical Licensing Examination, which has led many university leaders in the United States to apply various methods to eliminate or ban students from using this chatbot because if ChatGPT’s power is used for cheating in exams, it will seriously affect the quality of education in the country.

Furthermore, many people have started using this tool to write articles or participate in contests on poetry or literature, making it difficult to distinguish human works from ChatGPT. According to AI researcher Alan Mackworth at the University of British Columbia – Canada, only 52% of the writing can be identified as being written by AI or humans, and this rate is even lower if the AI-generated content has been edited by humans. This shows that the use of ChatGPT, in addition to the visible benefits, also poses significant challenges to society. We used to think that machines could only replace human manual labor, but ChatGPT may force us to seriously consider whether intellectual work can also be replaced by machines in the near future.

3. How does ChatGPT affect the law practice?

With its powerful information synthesis capabilities and vast database, many law firms have begun using ChatGPT in their legal profession. This is understandable because ChatGPT’s strength can be effectively utilized in legal work that requires fast, continuous processing of a wide range of information. In theory, tasks that require lawyers to search and synthesize legal regulations in dozens of legal documents and take several days to study can be solved by ChatGPT in just a few hours if provided with appropriate questions. However, in reality, ChatGPT is having a serious problem with the accuracy of the information it provides, some laws have even been changed or completely wrong. If legal work uses this content, it will directly affect work performance and may provide incorrect information, affecting the interests of clients.

Furthermore, if users implicitly consider ChatGPT’s answers as the final solution, their legal thinking will be dependent on this program, because using ChatGPT to provide solutions to all problems instead of reasoning and evaluating issues themselves will leave their brain with no chance to think and develop. This is particularly dangerous in legal work, which always requires constant thinking to solve work and develop professional skills.

However, the power of ChatGPT cannot be denied, if used correctly, it may provide unreliable and verifiable information, but a quick lookup of information will build a sufficient basic framework. version to solve the problem. With legal issues, if asked the right questions, ChatGPT can give useful suggestions to solve the problem and save a lot of time for lawyers. This is the undeniable benefit of ChatGPT that can be applied in the legal field if we know how to use it.

Similar to the previous industrial revolution in history, the advent and development of new technology create challenges but also create new opportunities for the development of society. ChatGPT is also a technology that will soon have a significant impact on the current law practice of Vietnam and the world. However, as history has proven, it is always better to catch up and use technology to your advantage instead of denying the value of technology and being eliminated, we believe that ChatGPT and AI platforms If used properly, will also be useful and bring high value to the law practice in particular and to society in general.

Best regards,

Disputes arising in the construction field in Vietnam

Written by TNTP LAW on 15 March, 2023. Posted in Legal newsletter.

In the construction industry, disputes can arise between parties due to various reasons and at different stages of the contract implementation process. This is a common occurrence in the construction sector and can affect the interests of all parties involved. In this article, TNTP will identify the typical disputes that arise in the construction industry, so that companies can prepare and take precautions in their operations.

1. Disputes related to construction quality

This is perhaps one of the most common issues that arise in disputes in the construction industry. One of the most important criteria, when parties sign a construction contract, is to ensure that the project quality meets the contractual standards. Typically, the contractor will have to commit to ensuring the quality of the construction work as agreed upon in the contract with the owner, and the owner, before choosing a contractor to build, will have to evaluate the contractor’s ability to meet the quality and progress requirements of the project.

In a construction project, there will usually be many different contractors involved, such as construction contractors, suppliers of construction products and materials, and consulting contractors. When errors related to construction quality occur, it is necessary to determine the responsible party to develop a plan to resolve the issue.

In addition, an important factor is the improper evaluation of the contractor’s capacity before proceeding with the owner’s project. Accordingly, the owner can only evaluate the contractor’s capacity based on their capacity profile and information about the projects in which the contractor has previously participated. However, the reality shows that many subcontractors have polished their capacity with “beautiful” profiles that do not accurately reflect their true capacity. The owner’s lack of ability to select suitable subcontractors also poses many risks related to construction quality during the construction process.

2. Dispute related to construction progress

Construction delays can be caused by many different reasons, including subjective and objective factors, specifically:

2.1 Objective factors

Weather conditions, natural disasters, epidemics, or force majeure cases. Or technical errors that are beyond the control of the parties, due to changes in laws leading to project design adjustments, planning adjustments, delays in the construction permit process, or scarce building materials resulting in a lack of input supply, etc.

These reasons do not originate from the parties’ contract performance errors but from a third party’s influence. Objective factors are beyond the parties’ control and directly affect the parties and the project’s progress.

2.2 Subjective factors

Usually, subjective factors are the main reasons leading to construction delays, typically including:

Mistakes made by the investor such as ineffective project supervision lead to contractors’ quality and progress issues affecting the entire project’s progress.

Mistakes made by contractors such as failure to ensure construction quality lead to project delays due to the need for changes and repairs.

These subjective factors stem from the investor or contractor’s errors in the project. The failure to perform their rights and obligations has led to the consequence of delayed project progress. Therefore, to solve arising issues, if the cause originates from the parties’ errors, the parties need to be aware of their mistakes to come up with a solution. If the parties cannot negotiate to settle disputes, they can bring the case to the competent authorities, including commercial arbitration or the people’s court.

Above is the article of TNTP regarding disputes arising in the construction industry, hoping that the article is useful for businesses’ activities.

Best regards,

Legal issues related to debt collection through technology in Vietnam

Legal issues related to debt collection by technology in Vietnam

Written by TNTP LAW on 7 March, 2023. Posted in Thu Hồi Nợ.

Debt collection activities are currently very popular in different forms, one of which is debt collection through the application of technology tools such as using phones, text messages, email, and the internet. However, the use of technology tools in debt collection activities that do not comply with the law can lead to serious consequences. In this article, TNTP will provide opinions on legal issues related to debt collection by technology means in Vietnam.

1. The current situation of using technology means for debt collection

The debt collection by technology is very popular nowadays. Contacting the debtor via email or phone is often the first measure that debt collection service providers apply because it saves time and costs. Just a phone call lasting from a few minutes to several tens of minutes will bring certain results for the debt collection process, even with the possibility of collecting a debt immediately if the debtor is willing to cooperate in payment. Moreover, this contract also aims to probe the goodwill of the debtor’s payment. In many cases, after knowing the number of the debt collector, the debtor may block the number or have an uncooperative attitude, or no longer use the subscribed number. After initially identifying whether the debtor is cooperative in payment or not, debt collection parties can apply appropriate measures.

Many credit institutions have also built databases to collect information about the debtor to serve the debt collection process. These databases are taken from the information of the debtor when registering loan accounts at the bank, or from other sources that the bank has a relationship. Then, the debtor’s data will be provided to the debt collection teams of the bank itself or the law firms where the enterprise uses debt collection services.

Therefore, it can be seen that the use of debt collection by technology in Vietnam is widely used and brings many values, however, if technology is used to carry out illegal debt collection, it will leave many bad consequences for society.

2. Exploiting technology to illegally collect debts

Although many debt collection activities that use technology within the scope of the law are allowed, many debt collectors have illegally applied technological means to collect debts. For example, using the internet to publish images and information of debtors to threaten and terrorize the debtor (even their relatives), these actions may constitute crimes as defined in the Penal Code.
Currently, many debt collection companies have been investigated and prosecuted by law enforcement agencies for crimes such as “Appropriation of property by force”, “Defamation, insult”, and “False accusation”. For example, in February 2023, the police in Kien Giang province prosecuted a case, arrested and detained suspects to investigate the crime of “Appropriation of property by force” at Phap Viet company, with many illegal debt collection activities such as making threatening phone calls and terrorizing debtors. Posting information and edited images of debtors on public platforms to threaten and force the debtor to pay. The police in Kien Giang province identified the offenders who had threatened, terrorized, and seized the property of thousands of victims, and confiscated nearly 1,000 billion dong in illegal gains.

It can be seen that the debt collection by technology has infringed on personal information rights as well as affected the reputation and dignity of the debtor. At the same time, these actions have also constituted crimes under the provisions of the Penal Code. The exploitation of technology to illegally collect debts is a very serious offense and must be strictly punished according to the law.

Above is an article on the topic ” Legal issues related to debt collection through technology in Vietnam” by TNTP, hope that this article will be useful to readers.

Best regards,

Essential skills for debt collectors in Vietnam

Written by TNTP LAW on 7 March, 2023. Posted in Thu Hồi Nợ.

Debt recovery in Vietnam is one of the necessary services with high demand for society, especially in the aftermath of the Covid-19 pandemic when the economy is declining, leading to the emergence of debt for businesses. However, for debt recovery services in Vietnam to be effective and truly beneficial for customers, debt collectors must be equipped with the necessary debt recovery skills. Let’s explore this topic with TNTP in the following article.

1. Equipped with legal knowledge

Debt recovery services today require debt collectors to understand the relevant legal regulations, as in any other profession in society, the debt recovery process needs to comply with the law. Many debt recovery companies that carry out illegal debt recovery activities have been heavily sanctioned by competent authorities for violating the rights and interests of individuals and organizations protected by law.

Therefore, legal knowledge is the most necessary debt recovery skill for debt collectors to help them avoid risks in their work and provide appropriate solutions for each case. This is a skill that every debt collector must learn and prioritize first when working in this field.

2. Communication skills

As a service provider, communication skills are also important in debt recovery activities. In every debt recovery case, debt collectors have to communicate with different people, from customers, and competent authorities to debtors. Therefore, to ensure clear communication of the content, intent, and expression of their views, debt collectors need to have good communication skills. In fact, the success of debt recovery depends greatly on communication skills, as when debt collectors are not professional and show hesitation, or weakness when negotiating debt recovery, it will not have a significant impact on the debtor and they cannot demand payment.

3. Flexibility in problem-solving

Like any other profession in society, debt collection services also have their own difficulties and challenges. When facing problems that arise during the process of debt collection, debt collectors need to have the ability to solve problems flexibly. For example, when exchanging with a debtor who has an uncooperative attitude, the collector must behave firmly, provide specific, clear evidence and emphasize the demand for repayment or take appropriate legal measures to force the debtor to pay. However, if the collector identifies that the debtor has the intention to pay, but needs time to prepare financially, they can approach the debtor more gently and on a goodwill basis. In addition, in many cases, debtors change their attitudes from cooperation to non-cooperation, and debt collectors need to have a way to deal with it appropriately.

4. Patience

When customers use debt collection services, it is usually because they have debts that they cannot recover from themselves. Therefore, the debt collection process is not simply an ordinary exchange where the debtor will pay. Many customers forget about their debts for many years, leading to a lengthy recovery process. Moreover, the debt collection process depends largely on the debtor’s financial ability, so the recovery time can range from a few months to several years. At that time, patience is a necessary skill for each debt collector to be able to pursue the case to the end and bring benefits to the customer.

5. Honesty

The core of debt collection services is to provide customers with money that the debtor did not pay on time. Therefore, if the debt collector is not honest during the exchange with the debtor, does not provide accurate information about the debt to be paid, “colludes” with the debtor to deceive the assessment of the situation, or takes advantage of the debtor’s payments, the debt collection process may not achieve results or may be prolonged. The most serious consequence is that if fraudulent behavior is discovered, it will cause customers to lose trust in the company and no longer want to cooperate, even affecting the reputation of the entire debt collection company. Like any other necessary debt collection skill, honesty is a quality that needs to be ensured to achieve the best results in the work and to ensure the reputation of the debt collector with the company.

Above is an article about: “Essential skills for debt collectors in Vietnam”, hope this article is useful for businesses.

Best regards.

Should choose a court or arbitration to commercial dispute settlement ?

Written by TNTP LAW on 3 March, 2023. Posted in Dispute Settlement, Giải quyết tranh chấp.

Arbitration and Court are two forms of commercial dispute settlement that are often chosen by the parties when negotiations are not possible. Each form has its own characteristics, advantages and limitations. Therefore, in this article, TNTP will clarify the differences, advantages and limitations of these two forms of dispute settlement so that readers have more grounds to choose the most appropriate and optimal form of commercial dispute settlement.

1. Advantages and Disadvantages of Court and Arbitration when commercial dispute settlement

1.1 Advantages and Disadvantages of Court

Advantages:

– Judgment/Decision is usually more enforceable than an Arbitration Award.

– Court fee/advance fee is lower than Arbitration’s.

– The court advance fee may be partially or fully refunded according to the Court’s Judgment/Decision.

– Public, deterrent trial.

Disadvantages:

– The trial procedure is not flexible and must comply with the law on civil procedure.

– The selection of the Court to settle the dispute must comply with the provisions of the law on civil procedure.

– Dispute settlement time usually takes longer than Arbitration.

– Public trial shall affect the relationship between the disputing parties, the image, reputation in the market or the business secrets of the disputing parties.

1.2 Advantages and Disadvantages of Arbitration

Advantages:

– Is a solution of commercial dispute settlement based on the agreement of the parties. The parties can choose ad-hoc arbitration or dispute settlement arbitration center, dispute settlement arbitrator, etc.

– Flexible procedural, quick case settlement time.

– The Arbitration Award is final (ie final and not subject to appeal like a Court’s Judgment/Decision) and has the same validity as a Court’s Judgment/Decision

– Confidentiality of information because commercial dispute settlement by arbitration is not conducted publicly, unless otherwise agreed by the parties.

Disadvantages:

– Arbitration fees are much higher than the Court’s.

– Investigating, verifying, collecting evidence, applying provisional urgent measures is more time consuming and limited than the Court.

– The Arbitration Award may be considered annulled by the Court upon the request of one party.

– Enforcement of Arbitration Awards is often more complex than enforcement of Court Judgments/Decisions.

2. Differences in commercial dispute settlement at Court and Arbitration

2.1 Dispute settlement at Court

Competence:

– Has competence in settling civil disputes in general, and commercial disputes settlement in particular.

– Has no settlement competence and must refuse to accept the case when the parties have an arbitration agreement (unless the arbitration agreement is invalid, the arbitration agreement cannot be performed).

Procedure:

– Some of the most basic steps when settling disputes in Court:

– Plaintiff sues Respondent at a competent court.

– Pre-litigation mediation.

– Session to check the handover, access, disclosure of evidence and conciliation.

The settlement of disputes at the Court can be done through two levels of trial: first instance and appellate. Court’s Judgments/Decisions that have taken legal validation can also be reviewed according to cassation or retrial
Validation of the Court’s Judgment/Decision:

Court’s Judgments/Decisions may have to go through two levels of trial, first instance, appellate and may be reviewed according to cassation or retrial procedures, so the Judgment/Decision may be changed.

Enforcement of the Court’s Judgments/Decisions:

Court judgments/decisions are binding and guaranteed to be enforced by the judgment enforcement agencies.

2.2 Dispute settlement at Arbitration

Competence:

– Disputes shall be settled by Arbitration when the parties have an arbitration agreement made before or after the dispute occurs.

– Disputes are under the settlement competence of the Arbitration:

– Disputes between parties arise from commercial business.

– Disputes arising between parties in which at least one party has commercial business.

– Other disputes between the parties as prescribed by law shall be settled by Arbitration.

Procedure:

Some of the most basic steps when settling disputes at the Arbitration Center:

– Plaintiff submits the Complaint to the Arbitration Center.

– Plaintiff and Respondent choose an Arbitrator.

– Investigate, collect documents and evidence.

– The Arbitration Council announces the date of the Dispute Settlement Session.

– Disputing parties participate in Dispute Settlement Session.

– Arbitration Award is issued.

Validation of the Arbitration Award:

– The Arbitration Award is final, ie the final award binding on the parties.

– However, the Arbitration Award may be annulled by the Court under Articles 68 and 69 of the 2010 Commercial Arbitration Law.

Enforcement of the Arbitration Award:

– The State encourages the parties to voluntarily implement the Arbitration Award.

– At the expiration of the time limit for enforcement of the Arbitration Award, but the enforced party does not voluntarily enforce it and does not request annulment of the Arbitration Award under Article 69 of the 2010 Commercial Arbitration Law, the enforceable party has the right to make an application of request and send the competent civil judgment enforcement agency to enforce the Arbitration Award.

– For an ad-hoc Arbitration Award, the enforceable party has the right to make an application of request and send to the competent civil judgment enforcement agency to enforce the Arbitration Award after the Award is registered in accordance with Article 62 of the 2010 Commercial Arbitration Law.

– The enforcement of the Arbitration Award is carried out in accordance with the law on civil judgment enforcement.

Thus, depending on the specific case and your needs, individuals and enterprises can choose one of the two forms of commercial dispute settlement mentioned above. Each form has its own characteristics, advantages and limitations, so understanding the properties of each form will help individuals and enterprises make the most appropriate and optimal choice.

Above is the sharing of legal knowledge of TNTP on “Should choose a court or arbitration to settle commercial business disputes?”. Hope this article will be helpful to you.

Sincerely,

Resolving disputes and debt recovery for businesses

Written by TNTP LAW on 28 February, 2023. Posted in Dispute Settlement, Giải quyết tranh chấp.

In business operations, one of the common issues that enterprises often encounter is resolving disputes and debt recovery. Both of these are related to the process of addressing financial issues and maintaining the cash flow of the enterprise, but they have different natures. In this article, TNTP will explain the difference between resolving disputes and debt recovery for enterprises.

1. Resolving disputes in business operations

Disputes in business operations can arise in every aspect of the enterprise’s operations. It can be a dispute regarding the exercise of rights and obligations of the parties in the contract execution process, such as disputes over non-delivery, non-payment, etc. Disputes related to the relationship between the enterprise and the employee, such as wage reduction, compensation, change of position, and dismissal, can also occur.

If the enterprise’s operations process is like navigating a ship in the sea, resolving disputes is similar to operating the ship in the right direction and avoiding sinking. If disputes arise but are not resolved in a timely manner, it can seriously affect the enterprise’s operations process, or even lead the enterprise to the situation of insolvency and inability to operate. Not to mention the legal implications that could result in fines or other legal actions against the enterprise.

Therefore, resolving disputes in the enterprise’s operations is equally important as operating the enterprise itself.

2. Debt collection for businesses

Debt collection is the process in which businesses take measures to force debtors or partners to pay their overdue debts. The purpose of debt collection is to ensure the liquidity of the business and minimize overdue debts to limit the credit risk of the business.

Debt collection methods may include negotiation, mediation, litigation, or the use of debt collection services from law firms. Depending on the amount of debt to be collected and the importance of the debt, businesses will apply appropriate measures.

If a business does not have effective and skilled debt collection methods, it can lead to many risks in the business operation such as losing customers or partners, losing control of cash flow, and facing difficulties in operation.

Furthermore, debt collection requires skills and contingency planning because businesses will also have to spend money and manpower, as well as time to carry out debt collection. This is not to mention that the debt collection process may be prolonged or even ineffective. Therefore, businesses need to invest in the legal department or use debt collection services to ensure the effectiveness of debt collection and save costs and time in the debt collection process.

3. The relationship between dispute resolution and debt collection

Although disputes and debts are two different issues in business operations, they are closely related to each other. When a business has overdue debts, it can lead to disputes arising. Conversely, when disputes arise, they can lead to difficulties in debt collection. Therefore, resolving disputes and debt collection are two issues that cannot be separated in business operations. Combining dispute resolution and debt collection will help businesses optimize their business operations, minimize risks, and ensure the liquidity of the business.

Best Regard.

Consequences of illegal debt collection in Vietnam

Written by TNTP LAW on 27 February, 2023. Posted in Debt Collection.

Debt collection in Vietnam is a service used by many businesses and is one of the essential services for society. However, the activity of debt collection that does not comply with the law poses many risks for both the user and the debt collector. In this article, we will analyze the consequences of illegal debt collection in Vietnam.

1. What is illegal debt collection?

Illegal debt collection activities include all debt collection behaviors that infringe upon the rights and interests of individuals, and legal entities in accordance with the provisions of the law. Examples of such behaviors include:

Publicizing images, personal information, and addresses of the debtor on the media without the debtor’s consent causes anxiety and threatens the debtor’s spirit.

When the debtor fails to repay the debt on time, the creditor usually immediately publicizes the debtor’s personal information such as their address of residence, workplace, name, age, date of birth, and identity card number. Even the images and information of the debtor’s family and relatives are also publicly disclosed on social media or in public places. This action can be considered one of the most common actions of creditors when the debtor fails to repay the debt on time.

Insulting, defaming the reputation and dignity of the debtor.

This behavior is very common when the creditor insults and defames the reputation and dignity of the debtor when the debtor fails to pay on time. In reality, many criminal cases originate from creditors cursing and using vulgar language toward the debtor. As a result, the creditor may be reported for violating the law.

Calling, and contacting acquaintances of the debtor to request repayment on behalf of the debtor.

Calling, and contacting acquaintances, friends, and family members of the debtor to request repayment on behalf of the debtor is a very common illegal debt-collection behavior of financial companies. However, this is also illegal debt collection behavior.

Threatening to use force or using force, damaging the debtor’s property.

The act of using force to threaten the debtor is very common and often appears in the media due to the serious nature of these activities. These actions not only violate the life and health of the debtor but also pose a risk of causing a loss of social order and safety.

2. Consequences of illegal debt collection

Firstly, the activity of illegal debt collection has led society to view and evaluate all debt collection activities as illegal services.

In fact, debt collection is necessary for the functioning of society, and there are many legal debt collection activities that society allows to operate. However, it is the proliferation of illegal debt collection activities that has led to society’s misunderstanding of this service. Therefore, the very debt collection activities that cause controversy in public opinion limit the demand for the use of debt collection services by society, as individuals and organizations who want to legally collect debts are often mistakenly influenced that debt collection is illegal and associated with “organized crime.”

Secondly, parties engaging in illegal debt collection will face legal measures, even criminal prosecution.

The common measures of illegal debt collection parties such as using offensive or threatening phone calls, using violence or property destruction against debtors, are all violations of the law and have clear sanctions under the Criminal Code. These actions infringe on the legal rights and legitimate interests of individuals and legal entities protected by law and also cause a loss of social order and safety. Therefore, those who engage in illegal debt collection are likely to be investigated and prosecuted by law enforcement agencies and subjected to sanctions such as fines or imprisonment.

Illegal debt collection behavior poses risks for both debt collectors and users of this service. The law has specified sanctions for violations to deter those who disregard the law. Therefore, individuals and organizations wishing to use debt collection services in a legal and professional manner should contact law firms with expertise in this field to ensure their rights and interests. We will help customers save time and costs and ensure that debt collection is conducted efficiently and legally.

Best Regard

Legal risks in contracts for the sale of future assets

Written by TNTP LAW on 26 February, 2023. Posted in Legal newsletter.

Transactions related to the sale of future assets are becoming increasingly complex, and contain many legal risks, while the regulations governing this area still have many gaps or overlapping provisions. In this article, we will assess and analyze some legal risks associated with contracts for the sale of future assets to provide customers with insights into the risks associated with entering into these contracts.

I. First, the legal regulations are not detailed and specific

The 2015 Civil Law only defines the concept of future assets but does not provide regulations for the activities of contracting the sale of this type of asset. Similarly, in specialized legal regulations, the legal framework has not kept up with the emergence and development of recently appeared types of future assets, such as some types of real estate, including office-tel, condotel, resort villas, shophouses, hometels, and more.

II. Second, the legal regulations are still flawed, limited, and not uniform

When the 2015 Civil Law did not have specific guiding regulations, the process of contracting and implementing contracts for the sale of future assets will be mainly governed by specialized legal regulations. However, even within these regulations, there are still conflicting provisions that affect the effectiveness of applying the law in practice and pose significant risks to the rights of the parties to the contract.

For example, the 2013 Land Law, together with the 2014 Housing Law and 2014 Real Estate Business Law, did not have uniform provisions on the right of foreign individuals to use land in Vietnam, which made it impossible to grant a certificate of ownership of the house to foreigners when implementing a contract to purchase a future house, even though they had received the handover and use of the house.

Or, legal regulations have not been standardized on whether notarization is mandatory or upon request for general real estate transfer contracts and future assets transfer contracts between real estate business organizations and individuals or other organizations.

Or as the law has not yet unified regulations on whether notarization is mandatory or notarization upon request for transfer of real estate contracts in general and real estate formed in the future in particular between real estate businesses and individuals or other organizations. The notarization depends on the needs of the parties. In addition, the housing law allows enterprises, and cooperatives with the function of real estate business to trade and purchase commercial housing formed in the future without notarization, or authentication, resulting in the recipient of the transfer being unable to inquire, verify whether the housing has been previously traded and likely to have disputes with a third party. At the same time, due to inadequacies in the regulations on the notarization of contracts for future real estate sales, there is no mechanism to monitor investors who perform their real estate transaction responsibilities according to legal regulations.

III. Third, the risk of major contract violations

Although specialized laws have provisions on certain conditions for the signing of future property sale contracts, the regulations are scattered across different documents, so the buyer will encounter difficulties in understanding their rights and obligations according to the law. Some violations from the seller’s side pose great risks to the buyer, such as: violating the obligation to hand over and transfer ownership of assets to the buyer; arbitrarily pressuring the price, increasing the sale price of assets; delivering assets with incorrect quality or description in the contract; failing to carry out procedures for registering ownership/use rights for the buyer, etc.

Inadequate and conflicting legal provisions also lead to covert transactions, especially for real estate assets formed in the future. Many real estate businesses deliberately circumvent the law to illegally mobilize the sale of commercial housing formed in the future when they do not have enough conditions to open for sale. Fake transactions between investors and customers pose great risks to both parties, especially customers.

To limit the risks arising in the process of buying and selling future assets, customers need to study and research carefully the legal status and formation of the property; as well as equip themselves with legal knowledge and advice when entering into and performing sale contracts; and create a safe trading environment.

Above is the article “Legal risks in contracts for the sale of future asset”. We hope this article was useful to you.

Best regards.

Is it illegal for enterprises to intentionally let employees “sit idle – get paid”??

Written by TNTP LAW on 26 February, 2023. Posted in Contract Law, Luật Lao động.

Recently, many websites have appeared about the story of a female worker, named Q, who is living and working in Ho Chi Minh City, which is currently receiving a lot of attentions from the public and reported by many Press Agencies, media because enterprises to intentionally let employees “sit idle – get paid”

It is known that Ms. Q has signed an indefinite-term labor contract with Company A since 2014, and Ms. Q has been assigned as a model developer, up to now, Ms. Q’s salary is more than 40 million VND per month.

Her working still had performed as usual until 2021, at this time, she has bought and used 1 product at a store of her Company, according to Ms. Q, the quality of this product is not good and the job Unsatisfied product warranty led to Ms. Q and the Company A’s store had some “unhappy” things.

Although, after that the case was resolved smoothly, but according to Ms. Q, her case was reported to the company by the store with the allegation that Ms. Q harassed the store.

After that incident, according to Ms. Q, the company set up a meeting to clarify the case, as a result, the store representative confirmed that her requirements for the store were correct, but as an employee of the company, this behaviors of Ms. Q is unacceptable. Moreover, from November 2021, the Company asked her to stop all her work, did not assign her work, but still required her to come to sit idle in the Company.

According to Ms. Q, during this time, Ms. Q was suggested by the company to “quit job” repeatedly.

Although the above incident is still being verified and clarified, there is no conclusion to confirm that Decathlon Company is trying to isolate and force Ms. Q to quit her job, but now a day, it is clear that similar incidents are happening a lot in current labor relations.

In today’s article, TNTP would like to give you a quick analysis and assessment of “Is it right or wrong for the company to let employees “sit idle – get paid”?

1.Is the employer violating the law?

We need to clarify that the employer still pays the employee but intentionally does not assign work to the employee. It is clear here that the employee is still working according to labor contract agreement with the employer but has “no work” to do and in fact the employer still pays the employee a full salary for the working position the employee has been assigned.

Therefore, in this case, it is difficult to prove that the employee is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract as prescribed in Point a Clause 1 of this Article. 2 Article 35 of the Labor Code 2019 on the right to unilaterally terminate labor contracts of employees.

2.Consequences that workers may be to face

If from a humorous perspective, it is clear that the workers here are “Gravy train”, but in fact, all of us understand that “No pain, no gain” and not a worker feels happily, comfortably receiving the company’s monthly salary when falling into this situation. So what can workers do?

The employee resigns actively: in this case, applying for leave and receiving some benefits will definitely be the choice of many people. In some cases, employees voluntarily quit their jobs because they were too dissatisfied with the company, thus losing many of their legitimate rights when the employer unilaterally terminated the labor contract because the employee voluntarily quit without a legitimate reason for 05 consecutive working days or more as specified in Point e, Clause 1, Article 36 of the Labor Code on the right to unilaterally terminate the labor contract of the employer.
Employees still continue to come to the company: the two parties will definitely not be satisfied, in this case the employee will have to bear a lot of pressure, to be isolated by the company and to be discriminated the colleagues.

There are many cases like M.s Q’s mentioned above happening, although it is not known who is right and who is wrong, it is clear that this is also a loose point in the labor law of our country that needs to be improved and supplemented. Nessesscary to have more detailed and specific legal sanctions for these cases not only ensures the interests of each party when entering into labor relations, but also contributes to building a more honest and developing working environment.

Above is an article by TNTP about whether the enterprise intentionally let employees “sit idle – get paid” violate the law? Hope this article is useful for enterprises and readers.

Best regards.

Franchising – Matters needing attention

Written by TNTP LAW on 15 February, 2023. Posted in Legal newsletter.

Currently, enterprises in the world and Vietnam especially prefer the form of investment and franchise business to be able to quickly increase coverage, dominate market share, and create value for corporate brands. Accordingly, in the article below, TNTP will help readers understand matters needing attention before franchising or receiving a franchise.

I. What is a franchise?

Pursuant to Article 284 of the 2005 Commercial Law, Commercial franchise means a commercial activity whereby franchisors permit and require franchisees to undertake by themselves to purchase or sell goods or provide services on the following conditions:

“The purchase or sale of goods or provision of services shall be conducted in accordance with methods of business organization prescribed by franchisors and associated with the franchisors’ trademarks, trade names, business know-how, business slogans, business logos, and advertisements;

Franchisors shall be entitled to supervise and assist franchisees in conducting their business activities.”

II. Conditions and registration of the franchise

1. Conditions for the franchisor

Pursuant to Article 8 of Decree No. 08/2018/ND-CP effective from 15/01/2018 amending Article 5 of Decree No. 35/2006/ND-CP detailing the implementation of Commercial Law 2005 regarding franchising: “Traders are allowed to grant franchise rights when the business system intended to be used for franchising has been operating for at least 01 years”.

Currently, in Vietnam, there is no legal document guiding and explaining “the business system intended to be used for franchising has been operating for at least 01 years”.

Referring to the views of the Ministry of Industry and Trade on answering the problem of Feddy Co., Ltd. published in the Government e-newspaper on 05/03/2019 for the content of asking “the timeline for the start of operation of the franchise intended system is from the date of issuance of the certificate of registration of enterprises with wholesale lines, suitable retail, or is the date of issuance of the certificate of business location registration of a Vietnamese enterprise?”, the Ministry of Industry and Trade replied:

According to the provisions of Article 8 of Decree No. 08/2018 /ND-CP dated January 15, 2018, the conditions for franchising are as follows: “Traders are allowed to grant franchise rights when the business system intended to be used for franchising has been operating for at least 01 years”. Conditions “has been in operation for at least 01 year” applies to the business system intended to be franchised, not to traders. Therefore, 01 year is the time calculated from the date of issuance of the certificate of the business location of the first store belonging to the trader’s business system, and the store and that business system must implement real business activities in practice.

2. Franchise Registration

Pursuant to Article 3 of Decree No. 120/2011/ND-CP effective from February 1, 2012, regulations on franchising have been added, in cases where franchise registration is not required, including Franchises in the territory of Vietnam and commercial rights from Vietnam to foreign countries; for cases where franchise registration is not required then it is only necessary to implement the reporting regime for the Department of Industry and Trade.

In addition to the cases that are not required to register the franchise mentioned above, when conducting a franchise, traders who are expected to franchise (including foreign traders who are expected to franchise) must register their franchise activities with the competent authority as prescribed in Decree No. 35/2006/ND-CP detailing the implementation of Commercial Law 2005 regarding franchising.

III. Responsibility to provide information about the parties in the franchise

1. The franchisor’s responsibility to supply information

Pursuant to Article 8 NĐ 35/2006/ND-CP, the franchisor shall have to supply copies of the franchising contract form and the written introduction of its franchising to the intended franchisee at least 15 working days before signing the franchising contract, unless otherwise agreed by the parties. Compulsory contents of the written introduction of franchising shall be specified and promulgated by the Ministry of Trade.

In addition, The franchisor shall have to promptly notify all franchisees of all important changes in the franchising system, which may affect the latter’s business activities by mode of franchising.

If the franchise is a general franchise, in addition to providing information according to the above, the Secondary Franchisor must also provide the intended franchisee in writing with the following contents: Information on the franchisor that has granted commercial rights to it and the handling of secondary franchise contracts in the event of termination of a joint franchise contract.

2. The intended franchisee’s responsibility to supply information

The legislation does not specify the contents that the proposed franchisor must send to the franchisor for the intended franchisee. The intended franchisee must, however, present the franchisor with the information reasonably requested by the franchisor in order for the franchisor to decide whether or not to grant the franchise to the intended franchisor.

Above are some legal contents related to franchise issues to note, TNTP hopes that the above article will bring readers useful information.

Sincerely,

Author: TNTP LAW

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