“In addition to direct transaction with customers, enterprises should consider other intermediate forms of trade to save time and cost and to increase their business presence in the market.“
There are 4 commercial intermediary activities, including: Representation for traders; Commercial brokerage; Goods sale or purchase entrustment; and Commercial agency.
Representation for traders
Representation for traders is deemed the most common commercial intermediary activity in the world. According to Commercial Law (2005): “Representation of traders means an activity whereby a trader (referred to as the representative) is authorized by another trader (referred to as the nominator) to conduct commercial activities in the name and under the instructions of the latter for remuneration.”
Based on the provisions of Commercial Law (2005): “Commercial brokerage means a commercial activity whereby a trader acts as an intermediary (referred to as the broker) between parties selling and purchasing goods or providing commercial services (referred to as the principals) in the course of negotiations and entering into contracts for sale and purchase of goods or provision of services and shall be entitled to a remuneration under a brokerage contract.”
Purchase and sale of goods by mandated dealers
Vietnamese Commercial Law (2005) stipulates: “Purchase and sale of goods entrustment is a commercial activity, whereby the mandatory conducts the purchase and sale of goods in his/her/its own name under the terms agreed upon with the mandator and is entitled to receive mandate commission.”
According to Commercial Law (2005): “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.”