The 2020 Law on Enterprises with the issue “shell company” in Vietnam

Abstract

The reform of the 2020 Law on Enterprises regulations highlights that the right of freedom in doing business has been recognized and the implementation has been accumulatingly guaranteed. In addition to investors who are establishing and contributing capital to perform businesses with the sole purpose of getting profit, there are those who establish "shell companies" for illegal purposes. These subjects took advantage of the openness of the law to commit acts of infringing upon the legitimate interests of other persons and the society, as well as severely affecting economic and social life. The article outlines the characteristics of "Shell Companies" and assesses the implementation of provisions of the 2020 Law on Enterprises on "Shell Companies".