Upcoming Changes in Vietnam's Law on Electronic Transactions

This article by Venture North Law discusses the upcoming changes in Vietnam’s Law on Electronic Transactions (LET 2023), which will start affecting how contracts are signed using PDF copies from July 1, 2024. This new law introduces significant updates to the way electronic signatures and records are handled, aiming to streamline and enhance the legal framework for electronic transactions.

Previously, the Law on Electronic Transactions 2005 provided considerable flexibility for signing contracts through the exchange of PDF copies. People could print, sign, scan, and attach their signature pages to contracts without much hassle. However, LET 2023 brings stricter requirements that could impact this common practice. The new law specifies that e-signatures created from scanned signatures will no longer be considered valid. This change means that individuals can’t simply scan their signature and attach it to a contract as they used to.

Another important aspect of LET 2023 is its requirement for electronic records converted from hard copy documents. These records must clearly indicate that they have been converted from printed copies and must include the details of the person or entity responsible for the conversion. Without this specific information, a simple scanned PDF copy of a contract may not be recognized as a legitimate electronic record.

To navigate these new requirements, the article suggests practical solutions. One recommendation is to include a clause in contracts stating that a scanned signature page signifies written consent from the signatory, in line with Article 400 of the Civil Code 2015. This article allows entering into a contract through written consent, not just by a traditional signature. Another recommendation is to ensure that any PDF version of a contract that is a scanned copy includes a declaration from the sender confirming that they performed the conversion and that the document is a valid electronic record derived from a printed document.

By incorporating these provisions, parties can continue to sign contracts via PDF exchanges while staying compliant with LET 2023. The article underscores the importance of adapting to these changes to maintain efficient and legally sound contract-signing practices. The overall tone is optimistic, encouraging individuals and businesses to embrace these updates as a way to enhance the clarity and reliability of electronic transactions.