Legal market in Vietnam
Over the last several decades Vietnam’s legal market has developed significantly. During the 1990s, foreign investment into Vietnam was modest ensuring tight legal competition and pricing. With a flood of foreign investments in the 2000s, competition among law firms surged to meet the demand. Today, Vietnam is home to a large number of law firms, including both local and international firms. The sheer volume of firms alone has made it challenging for consumers to differentiate among them.
For the most part, Vietnam remains a communist country with a centrally controlled economy. This has meant that unlike other countries, law firms in Vietnam remain competitive with regard to pricing . Interestingly enough, the rise in foreign firms into Vietnam has downsized price differences between local and foreign firms. Despite some recent changes to the LOI, most foreign firms are operating under the international law firm model, providing the same or similar services as they do in other countries where they operate.
Through the continuous development of Vietnam’s laws and regulations, the legal market is poised to continue flourishing. Over the coming years the country is expected to further liberalize its economy through the WTO, FTAs and dynamic IP developments. This evolving growth will provide new opportunities for firms to increase the scale and scope of their businesses.
Leading law firms of Vietnam
Top law firms in Vietnam are determined by financial performance, market reputation, kind of services, and lawyer expertise. The metrics we consider include number of lawyers employed, revenue generated, success of firm’s expansion, overall expertise, brands reputation, and the ability to attract and retain top legal talents. Therefore, this list is subjective, but there are many factors that are taken into account when ranking firms.
Andersen
The firm was known as VACO before the rebranding. They are most likely the top firm in Vietnam, although we do not have any current data to verify how they compare to Baker & McKenzie and YKVN. On their English website, the firm states that they employ "197 lawyers… in 230 offices in 41 countries." They have an office in Ho Chi Minh City and one in Hanoi.
YKVN
This company is basically comprised of all the former Baker & McKenzie lawyers in Vietnam. We estimate they have 70 or more lawyers by accounting for all of the partners. Their specialties are 23% Intellectual property, 18% Labor & Employment, 17% Dispute resolution, 11% Corporate M&A, 9% Real Estate, and 22% other. They are our pick for the second best firm in Vietnam.
Baker & McKenzie
This is the top firm in Vietnam until VACO proves it can beat them in terms of revenue and client numbers. Baker & McKenzie also has one of the top IP practices in Asia. They have two offices in Ho Chi Minh City and one in Hanoi.
Rodl & Partner
This is a rapidly growing German firm which focusses on Germany-Vietnam related work. Their parent company Rodl&Partner operates 101 offices in 49 countries worldwide including Frankfurt, Munich, Hamburg, Stuttgart, Cologne, and Dusseldorf.
ZICO Law
They have recently opened an office in Ho Chi Minh City. We got the impression that they were revenue driven, therefore we expect they will grow faster than average.
VILAF
They have six partners and over 40 associates. They are most well-known for financing CRO1 – a hotel development – but they are also known for energy, investment, real estate, tax, competition, and telecommunications.
LNT & Partners
They have over 50 lawyers and staff and they offer full legal services. Most of their team is built around Vietnamese lawyers as opposed to Western lawyers.
SBLaw
They have 16 lawyers and they’re the top firm for employment law. They have also recently built a firm known for their IP practice.
TLH
They specialize in advice related to trading activities.
HBS
One of the main industries they focus on is tourism. We expect them to grow rapidly in the coming years.
Legal services provided by Vietnamese law firms
Vietnamese law firms generally provide services in various practice areas such as corporate law, real estate, dispute resolution and intellectual property law.
Foreign law firms cannot provide legal services in Vietnam and have to collaborate with local law firms to provide corporate and commercial legal services in Vietnam.
Local law firms offer assistance to foreign law firms in due diligence procedures, representing foreign law firms in negotiations, collecting and receiving payments for and the issuance of contracts signed and authenticated by their clients. More often than not, foreign law firms are appointed as local legal advisors alongside Vietnamese firms in major transactions in Vietnam.
Local law firms often work as legal consultants offering legal advice to their clients in legal matters involving their local governments. Local law firms cooperate with and provide legal advice to foreign companies on foreign investment in Vietnam.
In particular, local firms cooperate with foreign law firms and firms from neighboring countries with expertise and experience in the field to represent their clients in negotiations for mergers and acquisitions (M&A) transactions in Vietnam as well as represent clients in matters regarding capital transfers or selling capital contribution, or picking up and transferring projects in Vietnam.
How to find law firm in Vietnam
When it comes to finding a law firm in Vietnam, there are a number of factors to consider. First and foremost, you will want to ensure that any firm you consider has the right level of experience to deal with the legal requirements you seek assistance with. A law firm (or lawyer) that is experienced in family law issues, for example , might not be the best fit to deal with corporate tax filings. You want to look for an established firm with plenty of experience in the field of law you require.
Another important consideration when choosing a law firm is whether the firm has the right specialization to deal with your specific needs. Even firms that have plenty of experience may not have the expertise you need. It is therefore essential that you research before settling on a particular law firm. This research will pay off in helping you find the most suitable legal team to assist you.
Client reviews can also be very helpful when selecting a law firm to assist you with your legal needs. Any reputable firm should have positive feedback from other clients on a range of platforms. Whether it’s on the firm’s website, social media pages or other legal assistance sites, you will want to be able to read about other customer experiences in order to find the firm that best meets your needs.
Challenges for Vietnamese law firms
Besides the usual staid market-moving events that many businesses globally are facing, there are three pressure points to be concerned about for law firms in Vietnam: First, the rules of engagement for foreign law firms in Vietnam are changing, and slowly codifying into laws and regulations primarily in the Foreign Investment Law (2014). What this means is that business must now assess whether their current law firm supports their firm’s vision. For example, if your law firm is a local player with mostly State-owned Enterprises ("SOEs") on its client list, you need to ask yourself if that is what you want. Alternatively, if your law firm looks toward private enterprises in Vietnam, you must decide if you are comfortable leaving out the SOE possibilities. Secondly, the way Vietnamese law firms conduct their business, in terms of business models, as well as business development look and feel, are starting to change. The old-school factory model is expected to be gone within 5 years for most law firms, and need-specific service line/disciplines, focusing companies’ issues are expected to take its place. This just means more emphasis on niche practice groups, and the need to be able to provide non-core facilitative functions (e.g., tax, technology, employment, IP, trade compliance) as needed. Thirdly, you have to deal with the extraordinary successful international law firms in Vietnam. You could pick your legal market share by picking the most expensive law firm, or the most successful law firm in terms of mainstream media articles, but that will now not be enough. You must also consider who is going to be around 5-10 years from now, and are your law firm suits that future.
Prospects for Vietnamese law firms
The opening up of the Vietnamese market has led to an increased demand for legal services as many foreign SMEs enter the market. In the first 6 months of 2015, the total value of FDI was US$5.53 billion, an increase of 10% over the previous year. An increasingly sophisticated legal landscape means that more and more firms are needed to service this market and help these businesses navigate the law.
Potential areas of growth for law firms include the following:
Changes to the current law As the country transitions away from a Communist economy, it is necessary to adapt existing laws to the turbulent changes that will be brought about by opening the market. Law firms who can help the economy transition are deeply valuable.
Foreign investment Wealthy business people across the world want to invest in developing markets and Vietnam is fast becoming one of their more popular investment targets. Especially with regards to manufacturing, which has been a traditional sector for Vietnam, what with its abundance of cheap raw materials and a large labour pool. Law firms that can serve the needs of foreign investors will lead the way.
Construction In response to the growing population and the increasing demand for housing , more construction projects are currently underway than ever before. The need for construction law firms to oversee the process of building, especially in the case of large-scale projects, is huge.
Dispute settlement Dispute settlement law is crucial in any country ripe for development as it promotes a fair and ethical society where contracts are upheld and citizens are given confidence in the legal system. As Vietnam’s growth continues, so too does the requirement for law firms specializing in dispute settlement.
Intellectual property In the up-and-coming market, communication often occurs via the Internet. Therefore the need for intellectual property protection has never been more important. Further to this, companies looking to invest have intellectual property that needs protecting. Firms specializing in this area will be increasingly important to the market.
Corporate law Corporate law firms have been around for a lot longer than most other types of law firm, but the need to invest overseas has brought about the need for this area. Corporate law firms help to set up companies, draft contracts and are generally invaluable to the success of a business.