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2024년 08월 05일Electronic contracts are increasingly being widely applied in various fields and are becoming the optimal means for using electronic transactions. However, in Vietnam, the number of people still asking about the legality of electronic contracts has recently been increasing.
Recently, as Vietnamese companies' overseas transactions have increased, the limitations of Vietnam's traditional paper-based contracts are gradually beginning to appear.
Recently, our company (TechValley Vietnam) had contracts with companies in Korea, Singapore, and the United States. According to Vietnam's traditional contract writing...
After writing the contract, the company's seal must be placed next to the representative's name and on the right side so that all pages are visible. Then, you have to mail it to the other company and get the other company to stamp and sign it in the same way. Usually, in order to compare the original, all signatures on the contract must be written in blue ballpoint pen, and the seal and signature must appear together to be recognized as an accurate contract.
All of these processes must go through human hands, and there is a possibility of mistakes, loss, or external leakage.
According to Vietnam Law Enforcement Decree Decree 30/2020/ND-CP , Articles 6 and 13, the following additional matters are also requested:
1. Sign with blue pen (do not use red)
2. No use of pencils
Those of you who actually do business in Vietnam will have experienced it a lot.
Usually, if you send a contract by mail from Vietnam, it takes 3 to 4 days, and if the receiving company receives payment from the representative and replies by mail, it takes more than 10 days just to deliver the contract.
If the representative is absent or there is a backlog of other approvals, there are many cases where the writing of a contract is delayed by about a month or more.
According to Article 3, Paragraph 8 of Decree 30/2020/ND-CP dated March 5, 2020, the application of the word “original document” refers to a version of the document signed directly on a paper document or digitally signed on an electronic document. It is explained that it means. Therefore, even if it is signed through a digital electronic contract, it can be said to have the same legal effect as the “original contract.
In addition, according to the provisions of Article 18, Paragraph 5, the signer's digital electronic signature has legal effect even if the document is printed on paper. Although electronic signatures are accepted in Vietnam, we recommend that you keep both the digital original and a paper copy for future inspections or audits.
Meanwhile, in the National Strategy for Digital Economy and Social Development 2025, the Prime Minister set a target for the proportion of the adult population using digital signatures or personal electronic signatures to reach more than 50% by 2025 and 70% by 2030.
These digital strategies are similar to reducing cash usage.
Just as it is impossible for the government to determine the source and purpose of cash, in the case of paper contracts, it is impossible for document management such as creation, management, and distribution to be manually recorded by humans, and there is a high possibility that they may be damaged or deteriorated because they are paper. .
Electronic contracts and electronic signature processes
Electronic signatures are processed through the following process.
Around June 25, 2024, our company had a small event where four contract negotiations were concluded on the same day. All four contracts were with overseas companies, and the contract date was July, when the new half-year of 2024 begins. The customer requested that it be set to 1 day.
As in the past, it was an impossible time to receive CEO approval internally, scan this paper document, send it to the customer, and have the customer's representative sign, but through electronic contracts and signatures, a reply was received within 3 days after the contract was written, and the project began on July 1. It's time for kickoff.
In Vietnam, there are companies that provide electronic signatures and electronic contracts, such as Misa, VNPT, and I-CA. I am using Dropbox Sign, which is familiar to Koreans, and the actual usage experience is as follows.
Digital Contracts & Electronic Signatures in Action
The first thing you need to know is that the electronic signature system does not automatically create contracts.
The contract is created directly using MS Word or Google Docs, then uploaded to an online electronic signature platform and delivered to the other party.
I used an electronic signature platform called Dropbox Sign. I have been using Dropbox personal storage for over 10 years, and I chose Dropbox Sign to take advantage of various advantages such as document security.
In Vietnam, as in Japan and Korea, the company seal (official seal) work is important. Currently, Dropbox Sign uploads an image (maintaining the original color) when signing, allowing the image to be loaded for each contract. At this time, it supports adding a red seal image. I'm doing it.
https://www.dropbox.com/ko/features/productivity/electronic-signature
Where are electronic contracts and signatures used?
As insurance contracts, bank loan contracts, bank account opening contracts, taxes, electronic invoices, etc. in Vietnam move to online platforms, electronic contracts and electronic signatures are expected to become essential in the future.
In addition to simple contracts, electronic signatures are used in daily corporate work in Vietnam, such as having people fill in and date an electronic signature and date without having to call to confirm after sending an invoice, or getting a signature on a final employee recruitment offer letter after an interview. If you do this, you can save time and the effort of having to contact each person to remind yourself, and improve work efficiency and speed.
This is a brief introduction to electronic signatures and contracts in Vietnam. According to the Vietnamese government's enforcement decree, electronic signatures and electronic contracts have the same legal effect as ordinary paper originals. However, in reality, we recommend that you use electronic signatures and contracts primarily to improve work speed and efficiency, and that you keep a backup of the original in Vietnam.
For companies interested in or considering introducing electronic signatures in Vietnam, Dropbox Sign can be used free of charge for a certain period of time on the website below, and Tech Valley Vietnam is currently running a special promotion for Vietnamese Kocham member companies as follows.
💎 Demo & PoC Inquiry
Korean: Manager Choi Jun codepresso@techvalley.biz M. +84 32 672 1482
Vietnamese: Ms. Jena Thu Manager jena@techvalley.biz M. +84 86 890 4502
💎 Business collaboration inquiry
CEO Doyeon Kim patrick@techvalley.biz M. +84 96 658 9300
