VN firms advised to study UN rules
VN firms advised to study UN rules
Vietnamese businesses should study the United Nations Convention on Contracts for the International Sale of Goods to boost exports and reduce uncertainty related to export contracts, a seminar heard in HCM City on October 25.
Dr Nguyen Minh Hang, dean of the Foreign Trade University's law faculty, said the CISG provides an equitable and uniform framework for sales contracts, which are the backbone of international trade in all countries, irrespective of their legal tradition or level of economic development.
The convention will take effect for Viet Nam on January 1 next year.
Hang said the CISG established a comprehensive legal code for contracts for the international sales of goods, the obligations of the buyer and seller, remedies for breach of contract and others.
Often, contracts signed between Vietnamese and foreign firms do not stipulate jurisdiction, meaning, in case of disputes, there are disagreements over which law would prevail, she said.
The convention would also benefit Vietnamese firms by reducing legal expenses for consulting on foreign law, helping resolve disputes quickly, reducing the risk of conflict and boosting trade with CISG partners by enhancing confidence, she said.
The convention has 85 member countries who account for two thirds of international trade, and most countries that have trade ties with Viet Nam have signed up, according to Hang.
There are many free sources of data about the CISG available on the internet, and Vietnamese exporters should take advantage, she said.
At the seminar, Nguyen Trung Nam of EPLegal Company spoke about drafting a contract with a focus on product quality, quality inspection, sanctions and arbitration.
Chau Viet Bac, deputy general secretary of the Viet Nam International Arbitration Centre, said business groups could apply CISG to create a sample of contract to help their members handle the risk of disputes while implementing sales contracts.
Organised by the Viet Nam International Arbitration Centre in collaboration with the Investment and Trade Promotion Centre of HCM City and the Foreign Trade University, the seminar attracted more than 200 business executives, members of business groups and others.
Signed in Austria in 1980, the CISG is a project by the United Nations Commission on International Trade Law. The self-executing treaty aims to reduce obstacles to international trade, particularly those associated with law issues, by creating even-handed and modern substantive rules governing the rights and obligations of parties to international sales contracts.
