Legal Form of General Partnership in Viet Nam

Abstract

Objective: This paper researches the legal form of general partnership under the provisions of the Enterprise Law 2020 in Vietnam, therefore, points out the limitations, inadequacies and some recommendations proposals. Method: To conduct a research about the legal form of general partnership in Vietnam, the authors have used a combination of traditional research methods of the social sciences and legal sciences such as legal analysis method, the legal efficiency evaluation method, and legal comparison method to achieve the objectives of the research. Results: Currently, the legal form of general partnership in Vietnam's Enterprise Law 2020 has not yet been defined clearly. This not only causes difficulties and complications for the general partnership in the organizational and operational process but also makes many foreign investors feel hesitate to choose this type of company. It is unconditionally unreasonable to combine two types of human-based companies in a form of general partnership regulated in Enterprise Law 2020 in Vietnam. Therefore, in order to overcome the limitations of the legal form of the current general partnership, the authors suppose that the following solutions should be considered. Conclusion: The regulations on the legal form of general partnership directly related to the efficiency of management and administration of this company. Simultaneously, the straightforward definition of the legal form of general partnership will advance the investors’ confidence to choose this type of company. However, the unclear regulations on the legal form of general partnership in Vietnam has been existing since Enterprise Law 1999, leading to limited space for the development of general partnership in Vietnam.