Delegating authority to branches is a common practice but raises legal uncertainties under Vietnamese law. This episode examines the inconsistency between the Law on Enterprises 2020 and the Civil Code 2015, clarifies the legal status of branches and branch heads, and proposes a practical solution: enterprises should authorize the branch head directly, clearly define the scope of authority, and ensure all transactions are executed in the name of the enterprise to mitigate legal risks.

_____

HM&P Law Firm

• Address: 7th Floor, ITAXA Building, 126 Nguyen Thi Minh Khai, Xuan Hoa Ward, HCMC
• Phone: +84 28 73080839
• Email: [email protected]
• Website: https://hmplaw.vn/