Lawyer Chau Viet Bac: “Parties Must Pay Particular Attention To Risk Anticipation When Drafting Legal Provisions In Contracts.”

Exports are entering a period of increasingly intense competition amid unpredictable developments. Changes in laws and policies in importing markets are heightening the risk of disputes arising from the performance of international commercial contracts and the transportation of goods. In this context, as Dong Nai is one of the country’s major industrial and logistics hubs, the early identification and prevention of disputes have become an urgent priority.

In response, Dong Nai is implementing various measures to support businesses in proactively managing risks and minimizing potential losses in import-export activities.

At legal consultation points for businesses across the city, many enterprises have sought assistance with issues relating to international commercial contracts and logistics. According to a survey, nearly 78% of logistics enterprises had not yet been able to prepare the necessary documentation in accordance with the new regulations. Delays in customs clearance have resulted in additional warehousing and storage costs, causing losses for both businesses and their partners.

A member of the Dong Nai Young Entrepreneurs Association shared that, in the course of operating and managing their business, enterprises face numerous difficulties in contract execution, market selection, as well as keeping up with the policies of export and import destination markets. While some of these challenges may not have materialized yet, they carry significant potential risks, including legal risks and risks arising from insufficient market research. There are also risks that businesses may not yet be able to identify or assess, but once they materialize, the consequences can be substantial and difficult to address.

Experts note that while many enterprises have obtained international certifications such as FSC, ISO, and BSCI, they still lack comprehensive systems for data management and legal risk management. Small and medium-sized enterprises, in particular, often encounter difficulties throughout the process, from contract negotiation and execution to the resolution of commercial disputes. To support businesses in expanding into international markets, experts recommend that enterprises proactively keep abreast of legal regulations in their target markets.

Lawyer Nguyen Thi Hong Ngan-Head of the Legal Affairs Committee, Vietnam Logistics Business Association, stated that businesses seeking to expand internationally, develop markets, and broaden their business opportunities must study and understand the laws of their target markets in order to take the necessary compliance measures. In addition, one readily accessible source of information for businesses is the network of Vietnam Trade Offices abroad. As a general practice, significant regulatory changes are communicated by Vietnamese representative missions overseas to relevant authorities in Vietnam. This enables businesses to obtain more favorable and timely information before deciding whether or not to proceed with a particular transaction.

According to experts, given Dong Nai’s position as one of the country’s major industrial and logistics hubs, the early identification and prevention of disputes are an urgent necessity.

Lawyer Chau Viet Bac - Deputy Secretary, General of the Procedural Secretariat and Deputy Director of the Ho Chi Minh City Branch of the Vietnam International Arbitration Centre (VIAC).

Lawyer Chau Viet Bac -Deputy Secretary-General of the Procedural Secretariat and Deputy Director of the Ho Chi Minh City Branch of the Vietnam International Arbitration Centre (VIAC), stated that identifying risks in order to prevent and minimize potential disputes and losses is extremely important for both import-export enterprises and logistics businesses in the current context.

In terms of solutions, parties must pay particular attention to anticipating potential risks when drafting legal provisions in contracts. In particular, they should carefully structure provisions concerning force majeure events, fundamental changes in circumstances, as well as adjustments to service fees and matters affected by changes and fluctuations. In such circumstances, the conclusion and performance of the contract may no longer achieve the parties’ original objectives, thereby increasing the likelihood of disputes.

At recent thematic seminars on freight forwarding and insurance for import-export goods, lawyers also recommended that businesses in Dong Nai incorporate arbitration clauses into their contracts from the outset and proactively address potential issues as they arise. This is considered an essential technical solution to help businesses in Dong Nai strengthen their risk management capabilities and achieve sustainable development in an increasingly volatile international trade environment.