The growth of economics rises the need for commercial intermediary forms. Commercial agency is the most popular type of intermediary activities in commerce. In Viet Nam, that type creates numerous benefits and is regulated by law.
Vietnamese Commercial law 2005 defines a commercial agency means a commercial activity whereby the principal and the agent agree that the agent, in its own name, sells or purchases goods for the principal or provides services of the principal to customers for remuneration. Simply, the principals will sell their products or services to customers through the agents. There are three main forms of agency: off-taken agency, exclusive agency, general goods sale or purchase, or service provision agency.
The commercial agency is one of the most popular ways of promoting trades and economics. That form brings benefits for four main subjects: principals, agents, customers and economics.
Principals are traders delivering goods, authorizing the provision of services, or providing money for agents to sell. They are manufacturers or services providers so that they have more experience in creating, producing…and they need to concentrate on their main specialism. Especially smaller principals, they may not balance their roles as a seller and a manufacturer. However, agents will be good and believable partners, they will handle problems called sales. Agents are professional distributors with a great knowledge of selling, market, law and local custom so that selling goods and services is much easier for them. Principals reduce worries about the sale, marketing fees, … and they are able to focus on their experts completely.
Agents are traders that receive remuneration from selling. They could save production expenses while could invest to diversify products. Like the principals, they could pay attention to their job as sellers.
Furthermore, customers who indirectly consume goods of producers enjoy benefits from that intermediary form of commerce. Not only they are carefully advised by agents staff, but they also have the chance to choose a variety of products with reduced fees. It needn’t for them to search and find manufacturers and their goods, what they have to do is focusing on finding out believable agents.
Last but not least, all benefits, created and given to principals, agents and customers will result to promote and encourage consumption. Therefore, the domestic and international economy will grow.
In Viet Nam, there is some procedure to form a commercial agent. Firstly, businessmen have to register business establishments. In fact, a commercial agency is a form of business activities so the traders have to complete business registration. The traders must choose whether their agent is a household business or a private enterprise and what kind of business they are. Then the application form will be given at the Business Registration Office of Province. The factors of application are regulated in law on enterprises. There will be some differences in procedure between household business and private enterprise. The next steps for private enterprise are announcing business registration content, engraving and announcing the business seal sample, registration for a corporate tax code. The household businesses also have to pay their taxes. After all previous procedure is completed, the traders continue to register to establish agents.
There are many differences between Vietnamese and UK agency law. For the first point of definition, Viet Nam defines a commercial agency as a commercial activity while UK Regulations 1993 considers it as a legal person. As a result, the other parts of regulations about agency are affected by definition. Next, the rights and obligations are regulated more detailedly in Viet Nam. There are separate terms for principals' and agents' duties and interests. On the other hand, UK regulated commonly the duties of each party and the regulations intend to protect other parties rather than insisting on what they are liable to do. The third point is about remuneration. While Commercial law 2005 focus on whether there are agreements or not and whether the principals decide the prices of goods and services, it is expended in the UK in other circumstances such as entitlement to commission on transactions concluded during agency contract and entitlement to commission on transactions concluded after agency contract has terminated. The UK put more effort into balancing and clarifying the remunerations between parties. Last but not least, the regulations about contract and termination of the agency in the UK is more detailed than in Viet Nam. The UK recognizes legally written contracts however, they don’t inhibit unwritten types. They legislated about conversion of agency contract after expiry of fixed period, minimum periods of notice for termination of agency contract and other cases. Viet Nam focus on termination and compensation, however that article is limited and common.
To conclude, it is clear that commercial agency is a popular intermediary activity. It plays an important role in the growth of economics. However, the regulations about agency are not detailed and efficient enough. Especially, the change into digital economics and the latest signed EVFTA raise the need for new and suitable regulations in Viet Nam. The detailed and appropriate regulations of the commercial agency will create conditions and a safe environment for economic growth.
The growth of
economics
rises the need for
commercial
intermediary
forms
.
Commercial
agency
is the most popular type of
intermediary
activities
in commerce. In
Viet
Nam, that type creates numerous
benefits
and is
regulated
by law.
Vietnamese
Commercial
law
2005 defines a
commercial
agency
means a
commercial
activity
whereby the
principal
and the
agent
agree
that the
agent
, in its
own
name, sells or
purchases
goods
for the
principal
or provides
services
of the
principal
to
customers
for remuneration.
Simply
, the
principals
will sell their products or
services
to
customers
through the
agents
. There are three main
forms
of
agency
: off-taken
agency
, exclusive
agency
, general
goods
sale or
purchase
, or
service
provision agency.
The
commercial
agency
is one of the most popular ways of promoting trades and
economics
. That
form
brings
benefits
for four main subjects:
principals
,
agents
,
customers
and economics.
Principals are
traders
delivering
goods
, authorizing the provision of
services
, or providing money for
agents
to sell. They are manufacturers or
services
providers
so
that they have more experience in creating, producing…and they need to concentrate on their main specialism.
Especially
smaller
principals
, they may not balance their roles as a seller and a manufacturer.
However
,
agents
will be
good
and believable partners, they will handle problems called sales.
Agents
are professional distributors with a great knowledge of selling, market,
law
and local custom
so
that selling
goods
and
services
is much easier for them.
Principals
reduce
worries about the sale, marketing fees, … and they are able to focus on their experts completely.
Agents are
traders
that receive remuneration from selling. They could save production expenses while could invest to diversify products. Like the
principals
, they could pay attention to their job as sellers.
Furthermore
,
customers
who
indirectly
consume
goods
of producers enjoy
benefits
from that
intermediary
form
of commerce. Not
only
they are
carefully
advised by
agents
staff,
but
they
also
have the chance to choose a variety of products with
reduced
fees. It needn’t for them to search and find manufacturers and their
goods
, what they
have to
do is focusing on finding out believable agents.
Last
but
not least, all
benefits
, created and
given
to
principals
,
agents
and
customers
will result to promote and encourage consumption.
Therefore
, the domestic and international economy will grow.
In
Viet
Nam, there is
some
procedure to
form
a
commercial
agent
.
Firstly
, businessmen
have to
register
business
establishments. In fact, a
commercial
agency
is a
form
of
business
activities
so
the
traders
have to
complete
business
registration
. The
traders
must
choose whether their
agent
is a household
business
or a private
enterprise
and what kind of
business
they are. Then the application
form
will be
given
at the
Business
Registration
Office of Province. The factors of application are
regulated
in
law
on
enterprises
. There will be
some
differences in procedure between household
business
and private
enterprise
. The
next
steps for private
enterprise
are announcing
business
registration
content, engraving and announcing the
business
seal sample,
registration
for a corporate tax code. The household
businesses
also
have to
pay their taxes.
After all
previous procedure
is completed
, the
traders
continue to register to establish agents.
There are
many
differences between Vietnamese and UK
agency
law
. For the
first
point of definition,
Viet
Nam defines a
commercial
agency
as a
commercial
activity
while UK
Regulations
1993 considers it as a legal person.
As a result
, the
other
parts of
regulations
about
agency
are
affected
by definition.
Next
, the rights and obligations are
regulated
more
detailedly
in
Viet
Nam. There are separate terms for principals' and agents' duties and interests. On the
other
hand, UK
regulated
commonly
the duties of each party and the
regulations
intend to protect
other
parties
rather
than insisting on what they are liable to do. The third point is about remuneration. While
Commercial
law
2005 focus on whether there are agreements or not and whether the
principals
decide the prices of
goods
and
services
, it
is expended
in the UK in
other
circumstances such as entitlement to commission on transactions concluded during
agency
contract
and entitlement to commission on transactions concluded after
agency
contract
has terminated. The UK put more effort into balancing and clarifying the remunerations between parties. Last
but
not least, the
regulations
about
contract
and termination of the
agency
in the UK is more detailed than in
Viet
Nam. The UK recognizes
legally
written
contracts
however
, they don’t inhibit unwritten types. They legislated about conversion of
agency
contract
after expiry of
fixed
period, minimum periods of notice for termination of
agency
contract
and
other
cases.
Viet
Nam focus on termination and compensation,
however
that article
is limited
and common.
To conclude
, it is
clear
that
commercial
agency
is a popular
intermediary
activity
. It plays an
important
role in the growth of
economics
.
However
, the
regulations
about
agency
are not detailed and efficient
enough
.
Especially
, the
change
into digital
economics
and the latest signed
EVFTA
raise the need for new and suitable
regulations
in
Viet
Nam. The detailed and appropriate
regulations
of the
commercial
agency
will create conditions and a safe environment for
economic
growth.