Differences between the Enterprise Law 2020 and the Enterprise Law 2014

Article 7 of Enterprise Law 2020 has pointed out the rights of businesses as follows:

1. Freely to choose Business sectors which are accepted by Law.

2. Running business freely and choosing the business model, free to choose business sectors, location, business process; adjust the scope and business sectors.

3. Choosing types and procedures of raising, allocating and using funds.

4. Free to search for the market, customer and sign the contract.

5. Import export trading.

6. Recruiting, renting and using the labors based on Vietnam labour legislation.

7. Being active in take the advantages of sience and technique to improve business productivity and competitive ability; being protected Intellectual property rights based on the regulations in Intellectual property law 

8. Possessing, using and trading the business properties.

9. Rejecting the requests from any group or individuals about providing the human resource not basing on the regulations.

10. Complaininng and suing in accordance with the law.

11. Other rights in accordance with the law.
Article 7 of Enterprise Law 2020 has 11  clauses  that are equivalent to 11 rights of businesses. In contrast to Enterprise Law 2014, article 7 of Enterprise Law 2020 has decreased several rights. According to Enterprise Law 2014, business has the right to "complain or sue in accordance with the law about complaining and suing". However, this rights has been deleted in Enteprise Law 2020. Thus, by the first of January, 2020; the business hasnt got the right to sue but complain and join in the lawsuit basing on the law. This cancellation is for synchronization with Law on denunciation 2018 because  suing is an action that an individual has based on the regulation to report to the authorized organization, group or individual about illegal actions of the other organization, group or individual that causes demages or threaten to the government benefits, rights and responsibilities of any organization, group or individuals (Article 2, clause 1). 

As such, when noticing any illegal actions, the business does not have the right to sue but complain and join in the lawsuit in accordance with the law. Individuals in the business can report on the illegal behavior of a business in accordance with Law on denunciation 2018.

In Enterprise Law 2020, what are the responsibilities of the businesses?

Article 8 of Enterprise Law 2020, it is said that the businesses have below responsibilities:
1. To satisfy all business conditions when conducting business in the lines of business investment which are subject to conditions in accordance with the Law on Investment and to ensure maintenance of all such business investment conditions during the process of business operation.
2. To fully and promptly perform the obligations regarding enterprise registration, registration of change to contents of enterprise registration, public disclosure of establishment and operation of the business, report and other responsibilities in accordance with the regulation.
3. Responsible for the truthfulness and accuracy of the information in the enterprise registration dossier  and reports; in case of noticing the inaccurate or deficient information, the business must amends and supplyments those information promtly.
4. Doing accounting job, paying tax and perform other financial responsibilities in accordance with the law.
5.Maintain the benefits and legal rights; not discriminate or insult to human dignity of the labor in the business; not mistreat, force the labors or  use youth employees; support and create favorable conditions  to upgrade the skills and level; execute policies and social insurance package, health insurance package and others for the employees in accordance with the law.
6. Other responsibilities in accordance with the law.

As such, Enterprise Law 2020 has eliminated three responsibilities decided in Enterprise Law 2014. They are: to maintain and responsilbilize for the quality of goods and services in accordance with the standard assigned by law or criteria in registration or declaration (Article 8, clause 5 of Enterprise Law 2014); follow the law of National Defense, security, order, social safety, gender equality, resources and environmental protection, Historical - cultural relic and famous landscape protection (Article 8, clause 8 of Enterprise Law 2014); Follow business ethics to maintain the rights and legal benefits of customers and consumers (Article 8, clause 9 of Enterprise Law 2014). The cancellation of the above responsibilities is suitable because specialized laws have pointed out responsibilities of businesses in every single particular case. It isn't  neccessory for the Enterprise Law 2020 to list those responsibilities that cause the pressure to the business.

What are the rights and responsibilities of product companies, a service business?

Article 9 of Enterprise Law 2020 has pointed out the rights and responsibilities of product companies and service business as follows:
1. The rights and responsibilities has been assigned at Article 7, Article 8 and other regulations involved. 
2. Management accounting and compensation costs basing on the fee assigned by Law on Bidding or charge the using fee basing on the regulation of regulatory agency.
3. To maintain the duration of supplying suitable products and services to recall investment and get reasonable interest.
4. To supply enough quantity, right quality products and services at an assigned time basing on the price and fee assigned by authorized state agency.
5. To maintain the conditions that are beneficial to the customer.
6. To be legally responsible in front of the customers about the quantity, quality and supply condition even cost and price of products and services. .
 Therefore, product companies and public service business has some rights as other lines of business such as: freely choose business line which is accepted by law; freely run business and choose business operating model; be active in choosing business line, location and business model; be active in adjusting the scope and business line; choose the ways of raising, allocating and using funds; freely find the market, customers and sign the contracts; import export trading; recruiting, renting and using labors basing on Labor Law; actively apply the science and technique to improve business productivity and competive advantages; be protected Intellectual property rights basing on the Law on intellectual property; own, use and dispose of the business assets; reject the requests from any group or individuals about providing the human resource not basing on the regulations; complain or sue in accordance with the law; other rights in accordance with the law. The product companies and public service businesses are managed accounting and compesated the fee based on the law on bidding or charge the fee of service based on the authorized state agencies and are maintained the duration of supplying the product and services which are suitable to recall investment and have reasonable interest.
  Product companies and service businesses have the responsibility to supply product and services the right quantity, quality at an assigned time with the cost and price which are decided by the authorized state agencies; maintain all conditions that are benificial to the customers and be in charge of the quantity, quality and conditions of supply even the cost and price of the product and services.
  As the above rights and responsibilities, Enterprise Law 2020 has kept the rights and responsibilities of the product company and service business stable.

Source: Entrepreneurs Saigon