E-enterprise and the law: Realizing the potential risks

Abstract

In the digital economy, the concept of e-enterprise is not new but keeps constantly developing, which results in a series of challenges for lawmakers: How to regulate this new model of business beneficially, on the one hand, and manage risks thereof effectively, on the other? This chapter aims to study the practice of establishment and development of e-enterprises and the current legal framework regulating e-business. Moreover, the authors point out the legal risks that can arise from this new model and suggest some legal solutions thereof. In doing so, the chapter starts with an in-depth discussion of the definition of e-enterprise in a literature review. Secondly, the chapter addresses the legal risks of e-enterprise in the case of Vietnam, where the model of e-enterprise can be abused to form a bogus company (or shell corporation). Finally, the chapter sketches out some recommendations relating to business law. Current Vietnamese laws need to be reconsidered to regulate this new type of business efficiently.