Distance from Danang City Vietnam to Paris France...11Figure 6.World time zone...12Figure 7.Paid Vacation and Paid Holidays, OECD Nations, in working days...13Figure 8 Round Trip Vietnam
SPACE AND TIME BARRIERS
Geographical differences
Overall, France enjoys a temperature climate with a warm summer varying from 61°F to 75°F (from 16.11°C to 33.89°C) and a cool winter ranging from 32°F to 46°F (from 0°C to 7.78°C) However, there is a huge distinction between seasons and regions (“Climate in France,” n.d.)
France has five broad climatic zones and the weather varies from the North to the South
The North and West regions of the country experience a Maritime climate, characterized by mild winters and warm to hot summers This climate is comparable to the climate found in the South of the United Kingdom.
In the highest areas, in the South West in the Pyrenees and the East in the Alps it can be freezing all the year-round with lasting snow and ice cap, having a mean temperature of -2°C in January, and 17°C in July Next to this region at slightly lower altitudes, it is quite cool all year round and cold in the winters, with a lot of precipitation
In the lowest valleys in the Alps, it can get hot in summer and stormy This climate type can also be found around the mountain region of the Massive Central.
The fourth climate type is found in the North East of France around Alsace Here there is a continental climate where it gets hot quickly in the summer and very cold in the winter.
The final climate type is found around the South East coastline, on the Mediterranean This climate type is Mediterranean, which is very hot and dry in the summer months and has mild wet winters.
Figure 1 The 5 Climate Zones of France
Overall, the climate in France is generally characterized as temperate, with mild winters and moderately warm summers However, due to the country's diverse geography, there are variations in climate across different regions (“Climate in
Vietnam's tropical monsoon climate is characterized by year-round temperatures above 20 degrees Celsius, except in mountainous regions The country experiences abundant rainfall, typically ranging from 1500 to 2000 mm annually, contributing to its lush landscapes.
Vietnam has a tropical monsoon climate with high humidity, but diverse terrain means temperatures and seasons will vary from region to region In Vietnam, the climate is subtropical in the north and tropical in the center and south Moreover, the climate is influenced by the monsoons The southwest monsoon, from May to October, brings heavy rainfall in the exposed areas, i.e both the north and the south, while along the central part, protected by the mountains, it brings relatively little rain and leaves space for the sun The northeast monsoon, from October to April, is generally drier but brings heavy rains in the early months (October-December) along the coast exposed to the east, and light but frequent rains in the north (“Vietnam
Climate: Average Weather, Temperature, Precipitation, Best Time,” n.d.)
Figure 2 Compare the weather in Danang and Paris
In Danang, the average hot temperature all year round ranges from 30-40 degrees Celsius especially in the dry season between April to September In addition, it often has torrential rain, storms, and floods from September to December While in Paris, Temperatures usually vary from 2°C to 25°C and rarely below -4°C or above 31°C Specifically, the warm season lasts for 2.9 months, from June to September, with average daily high temperatures above 22°C and the hottest temperature of 25°C in July The cool season lasts for 3.7 months, from November to March, with average high temperatures below 10°C Paris experiences mostly mild weather across four distinct seasons Average daily highs range from 46°F (8°C) in the winter to 77°F (25°C) at the height of summer Extreme cold or heat is pretty rare, but rain is not In Paris, light showers can come and go quickly throughout the day (“Compare the
Climate and Weather in Da Nang and Paris - Weather Spark,” n.d.)
When selecting a time and location for negotiations, weather conditions should be considered For example, Paris provides a comfortable climate during the summer months (June to September), while the cold temperatures in the winter can adversely affect Vietnamese representatives' health and productivity Similarly, Da Nang's extreme heat and humidity in the summer and potential storms in the milder months make it unsuitable as a negotiation destination.
2 Distance from Da Nang to Paris
Figure 5 Distance from Danang City (Vietnam) to Paris (France)
France is a country located in Western Europe, bordering the Bay of Biscay in the Atlantic Ocean In contrast, Vietnam is a country in Southeast Asia, situated on the eastern part of the Indochinese Peninsula and the South China Sea In specific, the distance from Da Nang, Vietnam, to Paris, France, is approximately 10,500 kilometers (about 6,500 miles) when measured in a straight line This substantial geographical gap between the two cities carries significant implications for a negotiation meeting.
(“Đại Sứ Quán Việt Nam Tại Pháp – Ambassade de La République Socialiste Du Vietnam En France,” n.d.)
Challenges in communication: Communication through phone or video can be disrupted or unstable due to long-distance and network issues.
Travel difficulties: Meeting for business discussions requires significant time and cost, especially when dealing with different time zones.
Differences in time
Project management challenges: Collaborating on projects is complicated due to geographical distances.
Contract execution hurdles: Implementing contracts, including payments, terms, and quality assurance, is challenging due to the geographical gap
To minimize these challenges, Vietnamese businesses need a suitable business strategy and clear travel plans for smooth negotiations.
The difference between the time zone of Vietnam and France:
France: GMT + 1 in winter and GMT + 2 in summer
Vietnam is located in the region 6 hours later than France’s time zone in the winter and 5 hours later in the summer.
2 Holidays and off-peak time:
The French are well known for being particularly devoted to their vacations and public holidays.
Figure 7 Paid Vacation and Paid Holidays, OECD Nations, in working days
With the lowest working hours per week in the world 35 hours/week, France is also the country with the highest number of days off On average, French workers can expect 30 days a year of paid vacation, and on average, the French have up to 150 days without working including two weekends, statutory holidays per year, and numerous other holidays
There are a lot of holidays in France and typically divided into 2 types: religious holidays and national holidays (“French Holidays – Aux Petits Soins, LLC TM, ” n.d.)
Religious holidays (based on the Catholic calendar) o Easter Monday (random day of March or August) o Ascension Day (the 40th day after Easter) o Whit Monday (the 50th day after Easter) o Assumption Day (15th August) o All Saints’ Daya (1st November) o Christmas (25th December)
Important national holidays include New Year's Day (January 1st), May Day (May 1st), WWII Victory Day (May 8th), Bastille Day (France's National Day) on July 14th, and Armistice Day (November 11th).
Non-national holidays o Epiphany (6th January) o Chandeleur (2nd February) o Mother’s Day ( 26th May) o Father’s Day ( 16th June) o World Music Day ( 21th June)
Public holidays in Vietnam are observed by the religious and cultural holidays in the country Particularly, because Vietnam is a country using both lunar and solar calendars, Vietnamese employees have many public paid holidays to celebrate traditional events and meaningful milestones of the country (“The Viet Nam Labour
Lunar calendar holidays o Lunar New Year (1st day of lunar calendar) o Hung King’s Dead Anniversary (10th March of lunar calendar)
Solar calendar holidays o New Year's Day (First day of the solar calendar) o Victory Day (30th April of lunar calendar) o International Labor Day (1st June of the solar calendar) o National day (2nd September of the solar calendar)
According to French laws, the maximum weekly workweek in France is 48 hours, with a 12-week average of 44 hours In general, the weekly minimum rest period is 35 hours, while the daily minimum rest period is 11 hours Therefore, France is a country which is famous for “work less, rest more” and it lets their employees have a lot of off-peak time People in France do not go to work on those days:France is one of the Catholic countries Most of their employees celebrateChristmas and New Year's Eve as a long holiday (also known as winter break) that lasts for 2 weeks On this occasion, members of the family gather and give presents to each other enclosed with best wishes for the next beautiful year (“Working Time in France,” n.d.)
On November 1st, France observes Toussaint (All Saints' Day), a public holiday honoring the departed During the holiday period, businesses, schools, and government offices close People visit cemeteries to pay respects to loved ones by cleaning and adorning graves with flowers and candles Toussaint is part of a larger observance that includes Jour des Morts (All Souls' Day) on November 2nd, during which cemeteries are particularly crowded.
Vietnamese people have a culture of using the Lunar calendar and celebrating the Lunar New Year In the past, people worked hard during the year and saved rice, money, meat… for celebrating the Lunar New Year with their family and relatives. That tradition is conserved until now, and these days, people temporarily put aside their work to enjoy the longest holidays in Vietnam (9-11 days) by decorating their houses, going shopping for cooking, worshipping their past generations, and visiting their relatives…
As we can see, there is a difference between Vietnam's and France’s off-peak time To be more details, Vietnamese employees tend to stop working at the end of the year, from late January to late February of the Solar calendar; meanwhile, French’s non-working time is November or from late December to early January next year. When negotiation between two parties happens, differences in non-working time have to be taken into account.
French labor laws provide robust and well-established safeguards for employees, encompassing matters like employment contracts, parental leave, labor unions, and retirement In France, workers are typically entitled to a 35-hour workweek, along with an above-average minimum wage However, these standards can be subject to variations depending on the industry and are subject to collective bargaining agreements Any work exceeding the standard 35 hours is generally considered overtime, which must be compensated accordingly Additionally, there is a culture and legal framework in place that discourages weekend work, allowing employees the "right to disconnect" and refrain from responding to work-related emails or messages during the weekend, promoting a healthier work-life balance.
Working days are generally from Monday to Friday
Morning working hours: start from 8 am or 9 am and end at 12 am or 12:30 am Afternoon working hours: from 2 pm or 2:30 pm to 6 pm
However, the time frame also depends on where the company is located; for instance, a lengthy lunch break is uncommon in Paris and other major cities Working overtime is extremely uncommon due to employment legislation, as aforementioned
In Vietnam, administrative working hours are the working time of employees in a day, employees only work 8 hours in 1 day and never more than 48 hours in a week, excluding lunch breaks (“Regulations on Working Hours in Vietnam -
In common, Vietnamese administrative working time
In the morning: starting from 7:30 am to 11:30 am
Break at lunchtime: from 11:30 am to 1:30 pm
Afternoon working hours: starting from 1h30am to 5:30 pm
Moreover, Vietnamese mostly work from Monday to Friday and occasionally work overtime on Saturday or Sunday depending on the policies of the agencies In addition, the time is also flexible 30 minutes or 1 hour earlier or later based on the characteristics of the work or the weather conditions of the season.
Although there is a similarity of the working time of both countries which is both working from Monday to Friday, the most suitable time for making an appointment for the French is in the late morning or middle of the afternoon ( 10:30 am or 3:30 pm) In addition, of course, announcing the time 2 weeks in advance is a must because the French always want to arrange the schedule many weeks before the appointment.
4 Cultural effects related to Vietnam and France
4.1 Difference in the notion of time
Table 1 Different in the notion of time
Punctuality: Punctuality is important in
France, particularly in professional settings Being on time for appointments, meetings, and social gatherings is considered a sign of respect
Flexibility: Vietnamese people’s time tends to be more flexible and not likely to be accurate in time It has become one of the signatures of Vietnamese behaviors in working workplace.
Plan meetings and budget expenses
1 Transit process and paperwork information
1.1 From Da Nang city to Ha Noi
According to the differences in climate, the best time for the business to take place is from June to September, so to avoid the off-peak working times for both sides and to be able to negotiate as soon as possible, it is decided that early June is the most suitable time Because there are no direct flights from Da Nang to France, we have to transit through Noi Bai International Airport in Hanoi City After comparing international airlines, we decided to choose Viet Nam Airlines to ensure quality, flight schedules, and affordable prices Since the route is relatively short and will take about
2 hours of flight, it is recommended to fly in the afternoon so that they can have more time to prepare for the next stage, from Hanoi City to Paris.
In addition to preparing tickets (paper or electronic), the delegation's identification documents include identity cards It will also be necessary to get through the interior gate According to the health ministry, a negative test result for COVID-19 must be obtained within 5 days before leaving
1.2 From Hanoi City to Paris, France
After landing at Noi Bai airport, business representatives will have to go through immigration procedures here to continue flying to France The geographical distance from Hanoi to Paris is 9,193.36 km The flight time is about 13 hours, and there is at least one stop As can be seen in the photo above, the total fee for the two- way flight ticket is about 33 million VND.
Figure 8 Round Trip (Vietnam - France)
Source: Google Travel [ CITATION Goo231 \l 1066 ]
1.3 Immigration procedures at Noi Bai Airport:
Note, it is necessary to pay attention to the time and actively carry out exit procedures to be on time to board the plane before it takes off.
1.4 Documents are required for the business trip to France:
Since a business trip to France is a short trip, the most suitable type of visa is a short-term Schengen visa This type of visa allows the user to travel freely within the
26 Schengen countries, including France, for a maximum period of 90 days (3 months) and is valid for 12 months.[ CITATION Sch23 \l 1066 ]
Documents required when applying for this visa:
French Visa Application Form: Complete, print, and sign the form.
To comply with visa regulations, ensure your passport's validity extends at least three months past your intended return from the Schengen Area, including France Additionally, verify that your passport is less than 10 years old.
Previous Visas: If you have ever held a visa to France, the Schengen territory, or another country in the world, provide the embassy/consulate with copies of those visas
Travel Health Insurance: Obtain coverage for medical emergencies in France and other Schengen countries, with a minimum of €30,000.
Cover Letter: Explain clearly and truthfully in this letter why you wish to enter France, what you will be doing here during your permitted stay, and other details regarding your trip
Flight Itinerary: Provide a round-trip flight reservation.
Accommodation Proof: Include a hotel reservation for your entire stay. Civil Status Proof: Submit relevant documents such as marriage or birth certificates.
Financial Means Proof: If you do not have proof of prepaid housing, you must present documentation that you have 120€ in daily cash If, on the other hand, you have already booked your accommodation and do not need to pay anything when you arrive in France, this sum is reduced to 65€ Furthermore, if the applicant has cheaper types of lodging, the fee is reduced to 32.25€ per day.
Trip schedule/plan: o Confirmed hotel reservation in France o Confirmed return flight ticket to France. o Specific itinerary of the trip to France (departure/return date, places to visit, etc.) o Trip insurance is valid at least one day before the date of travel, with compensation over $30,000 In addition, when applying for a visa to France, it is also necessary to provide biometric data (including 10 fingerprints and photos) at the French Embassy or Consulate in Vietnam
Cost of visa to France[ CITATION Fra231 \l 1066 ] :
Type of fees Unit price/total prices
VND/person Consular General Service Fee 867,000 VND/ person
Enterprises planning to travel with Vietnam Airlines or Air France should be aware of the baggage allowances included in the ticket price The following items are permitted for both airlines (Traveloka VN, 2023; Hieu, 2022):
Checked-in baggage: 1 piece (pc) up to 23kg
Hand luggage: 1 piece (pc) and a small handbag The weight of one piece must not exceed 10kg, and the total weight of hand luggage must not exceed
12kg Due to the long business trip of only 5 days, the total baggage of 23kg check-in and 12kg hand-carrying, totaling 35kg, is enough for one person. Therefore, there are no additional baggage charges.
In terms of the information we have found, a total budget estimation was made to calculate the expenses that will be used during this business trip
International flight from Da Nang to Charles de Gaulle Airport
Taxi from CDG to a hotel $50 - $70
Hotel stay in Paris (6 nights) ~$900 - $2,400 Meals and transportation $100 - $150
Transportation to Sochaux $100 - $200 Peugeot Museum entrance fee $15- $20 Meals and transportation $100 - $150
Transportation to Charles de Gaulle Airport
International flight from CDG to Ho Chi Minh City
Domestic flight from Ho Chi Minh City to Da Nang
3 Timeline for this business trip:
Depart from Da Nang International Airport to the International Airlines in Ho Chi Minh City to Charles de Gaulle Airport (CDG)
Arrive at Charles de Gaulle Airport (CDG) and take a taxi to your hotel that the partners have prepared
Check in to your hotel and leave the luggage
Take a walk around the city center and visit some of the famous landmarks, such as the Eiffel Tower, the Louvre Museum, and the Notre Dame Cathedral Have dinner at a traditional French restaurant
Meet with your Peugeot colleagues at their headquarters in Paris.
Discuss the technology transfer process and begin to develop a plan Have lunch with your Peugeot colleagues at a restaurant near their headquarters.
In the afternoon, visit a Peugeot manufacturing plant to learn more about their production process
Have dinner at a restaurant with your Peugeot colleagues
Travel to the city of Sochaux, where Peugeot is headquartered
Visit the Peugeot Museum to learn more about the company's history. Continue to discuss the technology transfer plan with your Peugeot colleagues.
Have lunch with your Peugeot colleagues at a restaurant near the museum.
In the afternoon, visit a Peugeot factory to see how their vehicles are assembled.
Have dinner at a restaurant in Sochaux
Take a tour of The Stellantis Poissy plant located in Poissy, Yvelines (the main operational manufacturer of Peugeot)
Visit a Peugeot research and development center to learn more about their latest technologies
Have lunch with your Peugeot colleagues at a restaurant near the research and development center.
Have dinner at a restaurant in Yvelines
Travel back to Paris (Parent’s company Group PSA located)
Have lunch at the hotel
In the afternoon, review the technology transfer contract again before coming to an end
Have dinner at a Vietnamese restaurant in Paris
Finalize the technology transfer plan and sign the contract
Discuss the post-implementation plan and the follow-up meetings
Farewell dinner with the Peugeot team
Check out of the hotel
Depart from Charles de Gaulle Airport (CDG) to Ho Chi Minh City.From Tan Son Nhat Airport, take the plane to Da Nang International Airport
Cultural factors affecting time
Ethnic cultural barriers
France exhibits a diverse cultural tapestry, with a population primarily descended from Celts, Gauls, and a blend of Germanic (Franks) and Italic (Romans) However, extensive immigration over the last century has significantly influenced its demographics, resulting in a multicultural society White individuals comprise an estimated 85% (51 million) of the population, while North African descendants account for 10% (6 million) Black individuals make up 3.3% (2 million), and Asian individuals represent 1.7% (1 million) of the total French population.
Religions are practiced on a widespread basis in France The French Constitution safeguarded freedom of religion, allowing citizens to practice their religion freely.
Around two-thirds of French people identify as Christian, with about 83% of that number identifying as Roman Catholic and 14% identifying as Protestant. Compared with Christianity, all the other religions in France are effectively minorities. Other religions practiced in France also include Islam, Judaism, Buddhism, Hinduism, and Sikhism among others, making it a multi-confessional country.
Catholicism, in particular, has had a significant role in defining France's religious history and still holds dominance there now France has been referred to as
Once known as "la fille aînée de l'Église" (the eldest daughter of the Church), France has witnessed a significant decline in its Catholic population Historically, the vast majority of French citizens identified as Catholic However, that era has passed, with slightly less than half of the French population now self-identifying as Catholic.
Besides, a large portion of the French population is not actively religious, with church attendance in France ranking among the lowest in the world (Vassoille, 2023)
Figure 9 Religion in France The role of religion
The role of religion in France is a complicated and diverse topic It has also played a significant role in the development and history of France Since the birth of the French nation, Christianity has been the most influential religion in this country, as influenced many aspects of French culture, such as art, architecture, literature, and education Especially for Arts, there are numerous examples of Gothic architecture such as Notre Dame (Paris); and Saint Denis Basilica (Chartres) Meanwhile, a lot of popular epic poetry, romance, and allegory, are literary genres that emerged or developed in France in the periods of the Middle Ages and the Renaissance (I, n.d.)
France is a Romance language Like Italian, Portuguese, Spanish, Romanian, Catalan, and others, it comes from the popular Latin, once used in the Roman Empire. French was recognized as the official language of France in 1539 The official language of France is spoken and taught all around the country However, dialects are common in rural places, where many people preserve their regional language practices by tradition or by choosing to revert to a particular regional dialect on purpose (Posner, 2019)
From this graph, France is a monolingual society since French is the only official language Indeed, about 40% of French people were estimated to reside inEurope in 2015 Within the European Union, French is the second most often spoken mother tongue Approximately one-fifth of Europeans who speak other languages as their first language are also fluent in French Additionally, French is the second foreign language taught in the EU English, German, and French are the three working languages used by all EU institutions
In addition, French is also one of six official languages used in working at the United Nations and its agencies such as UNESCO, WHO, FAO, ILO, UNDP, UNICEF to the African Union; Organization of American States; Association of Caribbean States; Organization of Islamic Conferences; Council of Europe; OECD; NATO; etc.
Today, it is interesting that the French are extremely passionate and proud of their language, and French individuals prefer engaging in the French language. Building with your French counterpart will be facilitated by using basic expressions like "bonjour" (hello) and "parlezvous Anglais" (do you speak English?) They are also aware that their language is difficult so they are ready to switch back to English when they see you have difficulty.
1.4 Social norms in daily communication
In France, social norms in daily communication reflect a balance of formality and informality, politeness, and a certain degree of reserved behavior It can be reflected in communication in daily life:
Greetings: Greeting is a non-negotiable French custom, whether you're picking up a French baguette from the boulangerie or stopping into a littleParisian store for a glance around It is considered very rude not to say hello,goodbye, and merci to the staff If you skip a polite “hello,” the shopkeeper will likely treat you accordingly In more formal settings, especially in professional environments, may involve a handshake, whereas, in casual or social settings, cheek kisses (air kisses on each cheek) are common, though the number of kisses may vary by region.
Respecting Personal Space: While cheek kisses are common, French people generally appreciate personal space during conversations Maintaining an appropriate distance is crucial.
Punctuality: Being on time is generally appreciated in French culture.
Lateness, especially in professional settings, may be viewed as a lack of respect.
Direct Communication Style: French communication can be more direct compared to some other cultures It is common to express opinions openly, although tact and politeness are still essential.
Attempt to speak the French language: “Don’t assume everyone in France
—including Paris—speaks English,” If you’re speaking English, take it slow. Knowing some of France’s phrases can help you make a good impression on the locals.
When engaging in conversations in France, it is considered polite to maintain a low volume Excessive speaking volume can be perceived as rude and is a common indicator of a tourist Unlike in some cultures where boisterous conversations are commonplace, French locals prioritize politeness and avoid disturbing their surroundings.
To mitigate disappointment in declining a request, it is crucial to express gratitude genuinely Children are taught the significance of expressing appreciation, which is often paired with the word "no." Following an incident, an apology is typically offered to acknowledge regret and seek forgiveness By incorporating such responses, one can maintain a positive and respectful demeanor while maintaining their stance.
2 The 10 cultural aspects that affect negotiation
2.1 Negotiating goal: Contract or relationship?
According to Trompenaars, France has a score of 55, which means it favors Universalism Because the links of extraordinary relationships are stronger than any abstract laws, they tend to respond differently to a situation depending on the circumstances and persons involved In other words, its followers see universal principles and responsibilities as reliable sources of moral guidance They frequently follow general norms and seek "the one best way" to handle all problems evenly and equitably (even when friends are involved) They are convinced that their standards are correct, and they strive to modify the views of others to fit theirs (Salacuse, 2008)
In business and during negotiations, it is included
Contracts are highly respected and rarely changed.
Negotiators have a disciplined stance, which can be initially frustrating. Legal aspects are thoroughly considered before negotiations, often with advisors.
Situations are treated uniformly, adhering to general rules.
Negotiations involve professional arguments, leading to quicker processes. Directness is not considered impolite; straightforward communication is common.
2.2 Negotiating attitude: Win-Lose or Win-Win?
According to Hofstede, with a score of 43, France has a Feminine culture.This may be indicated by its famous welfare system, the 35-hour working week, five weeks of holidays per year, and its focus on the quality of life.
Feminine cultures prioritize quality of life, long-term relationships, and compassion They value collaboration, creating harmonious environments, and reducing stress In negotiations, they may adopt a win-win approach, seeking mutual benefits However, they may prioritize logical reasoning over a pure win-win attitude While discussions can be heated, maintaining composure, patience, and persistence is crucial to avoid direct confrontation and preserve diplomatic relations.
In negotiation, it is included
Concern for both their own and the other party's outcomes
Efforts to maintain harmony and reduce conflict during negotiations
2.3 Personal style: Informal or formal?
The French have some very formal rules about manners, etiquette, and personal styles, especially in Business The French put a high value on good grooming and style, and this extends to the workplace The primary negotiation style is cooperative, but people may be unwilling to agree with compromises unless it is their only option to keep the negotiation from getting stuck (Katz, 2006)
In the business context and during negotiation
Good grooming and style are highly valued, extending to the workplace. Formal dress, such as suits, is preferred in business settings.
Organizations may have a hierarchical structure, and proper language and titles are expected.
POLITICAL AND LEGAL DIFFERENCES
French index
The Political Stability Index, developed by the group behind this study, quantifies a country's political health based on key factors: corruption levels, political rights and civil liberties, competitiveness, business environment, and informal economic activity These indicators collectively reflect a nation's political stability and resilience.
For France, the political stability index averaged 0.45 points from 1996 to 2021, with a low of -0.1 points in 2016 and a high of 0.92 points in 2002 In 2021, the index was 0.37 points, which is lower than the world average of -0.07 points From 2014 to
2021, French politics experienced significant changes, as reflected by the political stability index.
Figure 11 Political stability index of France (2014 - 2021)
France's political stability index increased from 2014 to 2021, reaching 0.37 in
Political stability in France witnessed a steep decline in 2015 after the horrifying terrorist attacks in Paris, triggering heightened fear and uncertainty The government's response, characterized by increased security and counter-terrorism measures, raised concerns about civil liberties erosion The year 2016 marked the lowest point with a -0.10 score, followed by a brief recovery in 2017 that was halted by the Yellow Vest protests of 2018 These protests, ignited by a proposed fuel tax increase, evolved into a broader expression of dissatisfaction towards the government and political system.
The protests were often violent, and they led to a period of social unrest and political instability Political stability has gradually stabilized and improved since
2019 In 2021, France ranked 9th in the global rankings for national political stability.
Table 2 Political Stability Index, 2021 - Country rankings
Strikes and protests over social and economic issues have also been common in France in 2023 In January, there were large-scale protests against the government's proposed pension reform In April, there was a presidential election, which was won by Emmanuel Macron but saw a significant increase in support for far-right and far- left candidates In June, Legislative elections, resulted in a hung parliament, making it more difficult for the government to pass legislation Macron's party, La République
En Marche, lost its majority in the National Assembly, and the government will now need to rely on support from other parties to pass legislation This is likely to lead to increased political gridlock and instability In July, Strikes and protests against the government's proposed healthcare reforms would have led to cuts in funding and services The protests were particularly strong among healthcare workers, who were already under strain due to the COVID-19 pandemic The government eventually agreed to withdraw its reform proposal (“Unrest in France Challenges Macron’s
The World Justice Project (WJP) Rule of Law Index is the most comprehensive and reliable measure of the rule of law available.
It is based on eight factors: constraints on government powers, absence of corruption, open government, order and security, fundamental rights, effective regulation, civil justice, and criminal justice The index is widely used by governments, businesses, academics, and civil society organizations to understand the state of the rule of law in different countries and to track progress over time. Moreover, the index covers France and is updated annually, allowing for comparisons to other countries and jurisdictions and for tracking progress over time and provides detailed data on France's performance on each of the eight factors that are used to measure the rule of law, which can be used to identify specific areas where France needs to improve (“WJP Rule of Law Index,” n.d.)
The Rule of Law Index of France from 2015 - 2022 is as below
Figure 12 France's Overall Rule of Law Score Over Time (2015 - 2022)
France's rule of law has been consistently stable over the past seven years, ranging from 0.72 to 0.74, indicating a strong foundation Notably, France's highest score was recorded in 2017-18, at 0.74 However, in 2016, France faced domestic and international challenges, including terrorism, political instability, and a complex social landscape marked by migration, unemployment, and other issues These multifaceted factors impacted French society and its political landscape under President François Hollande's administration, which was nearing the end of its term.
2017, becoming increasingly unpopular and the cabinet experiencing upheaval In terms of foreign affairs, although relations with Germany remained strong and the two countries cooperated closely on several important issues, France's relationship with Russia became turbulent and tense All of this instability significantly eroded public confidence in the government's leadership and in the law's ability to protect people's rights and lives and punish criminals
France's rule of law index has declined for three consecutive years 2019,
2020, and 2021, likely due to disagreements and a loss of confidence in the law caused by economic and political instability during the COVID-19 pandemic and the Russia-Ukraine war However, France is not alone in this trend, as most of the countries studied by the World Justice Project (WJP) have experienced a decline in their rule of law index in recent years
In 2022, while 61% of the countries studied continued to decline in this index for the fifth consecutive year, France was one of a small number of countries where the index increased, returning to 0.73 Specifically, France became the 21st out of 140 countries assessed, up two places from 2021 France's rank in the region (EU + EFTA+ North America) also increased to No 16 However, it is important to note thatFrance is still in the bottom half of the region in terms of its rule of law index, and its overall score is still lower than the regional average This suggests that France still has room for improvement in its national legal system (Rule of Law Index 2022 World Justice Project ®, n.d.)
Figure 13 France Overall Score and Rank, 2022
Corruption is a global phenomenon that impinges on all territories, industries, and actors The World Bank and the World Economic Forum estimate that bribery and misappropriated funds, which are difficult to evaluate, amount to 3.6 trillion dollars every year, representing 5% of the world’s gross domestic product (GDP).
France's Corruption Perception Index (CPI) score has been relatively stable in recent years, fluctuating between 68 and 71 In 2022, France scored 69 on the CPI,ranking 21st out of 180 countries According to this index, France shows a relatively strong level of public sector integrity However, research from the Institute for
Economics & Peace (IEP) suggests some backsliding over the last decade.(“The Link between Corruption and Peace,” 2021)
Based on the 2019 Positive Peace Index, it can be observed that the aspect related to Low Levels of Corruption in France experienced a decline from 2009 to
2018 This indicates that corruption in France may have increased or that the previously concealed corruption has become more noticeable to the public over the last decade.(Institute for Economics and Peace, 2016)
Furthermore, there has been a significant decline in the Well-Functioning Government aspect compared to its state ten years ago Consequently, this signifies an increasing inefficiency in the government, the democratic procedures, and the adherence to the rule of law.
France's stagnation on the CPI and foreign bribery measures is a concern, as it suggests that the country is not making enough progress in fighting corruption This is particularly disappointing given that France has passed several progressive new laws in recent years, such as the Sapin II law, which protects whistleblowers and makes it easier to return ill-gotten gains to the victims of corruption.(France OECD, 2021)
Figure 14 CPI in France between 2012 and 2022
French Politics and Law
as freezing the mobility of assets outside the nation, limitations on the transfer of profits or capital, currency devaluation, and even a refusal to honor previously agreed contractual obligations Transfer risk looms large when the host government enforces policies that restrict both domestic and international capital transfers, as well as payments, production, the movement of people, and technology However, the unpredictability in the political landscape, as described above, can complicate international trade endeavors Traders must conduct a comprehensive risk assessment, taking into account the potential hurdles related to asset mobility, profit transfers, currency fluctuations, and regulatory constraints
France's government, established by its Fifth Republic Constitution, adheres to a semi-presidential framework with democratic principles Executive power is shared between the President and the Government, limiting the president's direct influence The French system comprises three distinct branches: legislative, executive, and judicial, ensuring a separation of powers and a well-balanced governance structure.
With a president and a prime minister, France has a semi-presidential form of government (“Main Executive and Legislative Bodies,” n.d.) o President: The president of France is therefore the most important person in
French politics In addition to leading the Council of Ministers, he selects the Prime Minister The president has the power to seek the prime minister's resignation even if they are not allowed to fire them if they are on the same political party On the prime minister's recommendation, the president selects the secretaries, ministers, and ministers-delegates. o Prime Minister: The Prime Minister leads the government, comprising senior and junior ministers, overseeing the military, and civil service Accountable to Parliament, the administration reflects the majority coalition or party in the Assembly Ministers attend Parliament sessions to address inquiries and discuss laws relevant to their responsibilities (Britannica, 2019)
The National Assembly (Assemblée Nationale) (the upper house) and the Senate (Sénat) (the downer house) are the two chambers that make up the French Parliament, which is the country's legislative branch The Parliament is in charge of enacting laws, discussing and approving spending plans, and monitoring the actions of the government.
According to French law, there is a distinct judicial branch with an independent judiciary that is not directly under the authority of the other two departments of government Although codified law serves as the foundation of France's civil law legal system, case law is heavily considered when making decisions by the courts.
In the Judicial Branch, we have Judicial courts and Administrative courts
2 French law and Legal system
2.1 The Origin of French Law
The French system of law is a Civil Law system French courts will apply the relevant codes and regulations to the parties and facts with little reference to the previous case decisions And that any new decision in a French court will carry little precedential weight When there is a dispute, the judges will lay on a written argument, the result of an investigation, and the judge's process in the court to make the decision
From the beginning, French civil law systems were heavily based on the Code of Law The Code Civil, also known as the Napoleonic Code, was first drafted in
1804, and it established people's rights and obligations as well as the laws governing property, contracts, inheritance, etc (Corso, n.d.)
Nowadays, around 60% of people worldwide live in civil law systems, which are found on every continent Although the civil law system has become increasingly secularized and places greater emphasis on individual freedom, it nevertheless promotes interpersonal harmony (Corso, n.d.)
2.2 The making of the law
Similar to other democracies, the government of the day in France usually proposes laws, which then need to be approved by the National Assembly and the Senate, the two houses of the French Parliament They take effect on the day they are published in the Journal Officiel, or Official Journal after being approved by Parliament, signed into law by the President, and published Statutory documents (décrets and ordinances) become law after being signed by the minister(s) and published in the Journal Officiel (PRACTICE NOTE Law-Making in France, n.d.)
France has a dual system in place regarding its laws One branch of the system is known as droit public or public law This branch defines the principles of operation of the state and public bodies The other branch, known as droit privé, or private law, applies to private individuals and private entities
Public law is a very wide-ranging and distinct branch of French law It applies to the State, local authorities, all public bodies, and administrative and regulatory authorities as well as to any transactions among, with, or involving these entities. Disputes involving officials acting in the course of their employment may be heard in the administrative court Exam administration violations in universities and other public academic institutions, for example, will be brought to justice Moreover, the Administrative Court or the Administrative Appeals Court may receive appeals under the private law system The ultimate decision-maker on the legality of administrative activities is the Supreme Court of Public Law, which is also known as the Conseil d'Etat or Council of State (“Public Law-Paris,” n.d.)
Private law encompasses the regulations governing interactions between individuals, encompassing their personal affairs, commercial dealings, and employment relations It establishes the legal framework for the conduct and resolution of disputes among private parties (Julien, 2022)
The private law may be further divided into o The droit civil (civil law) o The droit penale (criminal law)
Two channels are dealing with criminal offenses o “First-degree court”: Local or regional or department court, where basic civil cases involving individuals are settled (depending on the importance of the case) and organizations called Tribunaux de commerce, which manages matters related to commercial and business law. o “Second-degree court”: Court of Appeal, where appeals are heard In France, there is a basic right of appeal in all cases In exceptional cases, decisions of the Court of Appeal can be challenged at the highest level, the French Supreme Court, on matters of private law. Moreover, the local judge or police court will deal with everyday crimes and minor criminal matters; more serious matters will be referred to the Tribunal Correctional (the criminal law equivalent to the TGI) The most serious criminal offenses, especially murder and rape, will be transferred to the Cour d'Assises, where they will be tried by jury.
3 Conclusion about risks and costs
Business partners become less favorable due to political instability, impacting our negotiating interests This instability is evident in actions such as freezing asset movements within the host country, limiting profit or capital transfers, currency devaluation, and refusal to fulfill previously agreed contractual obligations In this case, France offers a (relatively) stable business environment to businesses.
When host government policies impose restrictions on the domestic and foreign transfers of capital, payments, production, people, and technology, i.e., imposing tariffs or restrictions on import and export, capital repatriation or dividend transfer, etc., the transfer of risk will occur.
Law is inherently a complex subject Enterprises doing business within a country may also have problems with the laws of that country, let alone at present the business must learn and discuss (possibly in the future to comply with) the laws of another new country Businesses should seek legal counsel and conduct thorough due diligence before entering into business agreements in France This can help mitigate risks, ensure legal compliance, and provide a clear understanding of the potential costs associated with doing business in the country Because this is an international technology transfer contract, the choice of law of one country will occur Either the law of one of the two countries in the contract or the law of a third country to be included in the law provisions of the contract governs the contract as well as governs the settlement of disputes.
Law of Viet Nam and Law of France related to the contract
1.1 Contract Formation under Vietnam Law
As defined in Article 385 of Civil Code 91/2015/QH13 dated November 24,
2015 (the Civil Code), “A contract means an agreement between parties about the creation, modification or termination of civil rights and obligations.” As such, a contract means an agreement which gives way to the rights and obligations of the parties.
In principle, the parties are free to decide on the form of the contract The form of a contract can be expressed orally, in writing or by specific acts, except in some cases where the law requires the contract to be expressed in a certain form to ensure public order.
Certain specialized laws may however impose the use of the Vietnamese language
Article 138.4 stipulates: “The language used in a construction contract must be Vietnamese In case such contract involves a foreign party, the language used in the contract must be Vietnamese and other languages as agreed by the parties” As such, the use of the Vietnamese language is mandatory even in case of a construction contract signed between a Vietnamese party and a foreign party.
Article 14.2 that “The language used in a contract signed with an individual customer must be Vietnamese unless otherwise agreed by the parties or otherwise provided by law”.
The Civil Code determines the effective time of the contract based on recognizing the validity of the commitments and agreements of the parties, regardless of the form of the contract Therefore, in principle, it is contracted at the time when the offeror receives the offeree's reply of acceptance The contract is also considered to be entered into when the response time limit expires but the offeree remains silent if the parties agree that silence is the answer to accept the contract Based on the form of the contract, the law also stipulates specifically for each case, for example, for a contract entered into orally, the time of entering into a contract is the time when the parties have agreed on the content of the contract; for a contract entered into in writing, the time of entering into a contract is the time when the last party signs the document (Article 400).
A civil transaction is considered valid when the following conditions are met Transaction participants have civil act capacity
The purpose and content of the transaction do not violate the prohibition of the law, do not violate social ethics
As provided in Article 401 of the Civil Code: “A contract lawfully entered into comes into effect from the time when it is entered into, unless otherwise agreed or otherwise provided by law From the time when a contract comes into effect, the parties shall exercise the rights and perform the obligations to each other as undertaken”.
Article 400.4 of this Code further indicates: “The time when a written contract is entered into is the time when the last party signs the contract or accepts to enter into the contract by another method of acceptance which is expressed in writing”.
As such, the date when an agreement comes into effect, or obligations under the agreement commence, can be different from the date when the agreement is signed The above provision also appears to imply that a contract must be signed to be legally valid The contract duration may be extended under the parties’ agreement or as a consequence of an automatic renewal clause contained in the contract.
(“Contract Formation under Vietnam’s Law at a Glance,” n.d.)
Amendment of a contract means that the parties who have entered into a contract voluntarily will agree to each other to negate (change) several provisions in the content of the signed contract After the contract has been amended, the parties shall perform the contract according to the unmodified parts of the previous contract's contents together with the newly revised contents and jointly deal with other consequences of the contract modification.
Article 421 of the Civil Code provides for the modification of contracts as follows:
The parties may agree to amend the contract.
The contract may be amended according to the provisions of Article 420 of this Code.
1.1.7 Termination of contract Article 422: The Civil Code, the contract terminates when
The contract has been completed;
The individual entering into the contract dies, the legal entity entering into the contract ceases to exist, but the contract must be performed by such individual or legal entity;
The contract is canceled or unilaterally terminated;
Article 423: The Civil Code on contract cancellation
One party has the right to cancel the contract and not have to compensate for damage in the following cases: The other party's breach of the contract is the cancellation condition agreed by the parties; the other party seriously violates the contractual obligations; and other cases prescribed by law
A serious breach is the failure of one party to properly perform an obligation to the extent that the other party fails to achieve the purpose of contracting.
The party canceling the contract must immediately notify the other party of the Cancellation If it does not notify and that silence causes damage, it must compensate.
The contract cannot be performed because the subject matter of the contract no longer exists;
Per Article 420 of the Code, the contract can be terminated in the event of a fundamental change in circumstances and failure of both parties to agree on contract modification (Clause 1).
Other cases prescribed by law;
1.2 The law of technology transfer
A technology transfer contract is a contract that records an agreement between individuals or legal entities to transfer to each other industrial property objects such as know-how, technical knowledge about technology, technical solutions, computer software, design documents, formulas, technical specifications, drawings, technical diagrams The technology transfer can be done through economic contracts, civil contracts, or capital contributions with the value of technology in investment projects. Depending on the object, the content of a technology transfer contract includes the following agreements: technology application results; technology quality; time and place of technology transfer; the scope and degree of secrecy of the technology; technical services, support services, technology consulting; cooperate and provide information on technology; price, etc
1.2.1 Contracting Article 22 Technology Transfer Contracts: “The execution of technology transfer contracts must be in writing or another form considered as written transactions under the provisions of the Civil Code The contract document must be signed and stamped (if any), and signatures and stamps (if any) must be affixed to the pages and appendices of the contract.”
The language used in the technology transfer contract is agreed upon by the parties Technology transfer contracts are entered into and implemented by the provisions of this Law, the Civil Code, the Commercial Law, the Intellectual Property Law, the Competition Law, and other relevant legal regulations."
1.2.2 Content of Technology Law Article 23 Content of Technology Transfer Contracts
Transferred technology objects, products created by the technology, standards,and product quality.
Transfer of ownership rights, transfer of technology usage rights.
Technology transfer methods. o Transfer of technology documents. o Training for technology recipients to master and master the technology within the agreed period. o Send technical consultants to the technology recipient to put the technology into application and operation to achieve the product quality and progress targets as agreed. o Transfer of machinery and equipment with technology o Other methods of transfer shall be agreed upon by the parties. Rights and obligations of the parties (Article 25,26,27,28)
Contract duration, effective date. o Technology transfer contracts that restrict transfer become effective from the date of issuance of the Technology Transfer License, in the case of extension, modification, or supplementation, the extended, modified, or supplemented contract becomes effective from the date the competent state authority issues the Certificate of Registration of the extension, modification, or supplementation of technology transfer. o Definitions, and terms used in the contract (if any). o Technology transfer plan, schedule, and location. oWarranty responsibility for the transferred technology. o Penalties for contract violations. oResponsibilities for contract breaches. o Dispute resolution authority. oOther agreed-upon terms by the parties.
This Law regulates copyright, copyright-related rights, industrial property rights, and rights to plant varieties; and the protection of such rights.
1.3.1 Application Form Article 1: Governing Scope, this Law regulates copyright, copyright-related rights, industrial property rights, and rights to plant varieties; and the protection of such rights.