- within Privacy, Litigation and Mediation & Arbitration topic(s)
1. After more than 20 years working in Vietnam, how do you view
the development of Vietnam at present, compared to the first days
when you set foot in Vietnam? In your opinion, what are the biggest
changes in the legal, business and investment environment in
Vietnam?
OM: I came to Vietnam for the first time on exactly 6 June 1990, I
caught a "xích lô" to see around Hanoi. I
still remember that there was lots of bunkers in Hanoi and an
"after war" city, the war that ended 50 years ago. I was
a giant here back then, I could not catch a cab, and tall buildings
were nowhere to be found.
Now I have houses in both Ho Chi Minh City and Hanoi City, two of
the most dynamic cities in the world. I am no longer one of the few
tall guys, I could catch a taxi easily, and the infrastructure
development is unbelievable. I still remember it like yesterday
when I first practiced law here, foreign investors had to go
through hell to do business here in Vietnam, I was not allowed to
walk side by side Vietnamese woman, the people were very poor and
they used to do business in a family scale, very industrious.
Everything has changed! First it was the accession to the WTO, and
then the free trade agreements, giant investors coming in,
recognition for LGBT, empowerment for women, clear legal framework
for investment. Some of the changes took Germany hundreds of years,
and it took Vietnam only 20 – 30 years. For me personally, I
cannot even think of the biggest changes because there were so my
massive changes. If I have only one thing to say, I would say that
the international integration level of Vietnam is the most
impressive. In 1990, Vietnam was an isolated country with trade
embargo imposed by the U.S – one of the poorest countries on
the planet Earth. As we are talking today, Vietnam is a
middle-income country, one of the most integrated countries with
the most modern free-trade-agreement ever. Vietnam is a poster
child for developing countries.
It is amazing!
2. How do you evaluate Vietnam's socio-economic development
vision as defined in the Resolution of the 13th National Congress
of the Communist Party of Vietnam, especially the goal of becoming
a high-income developed country by 2045?
OM: Vietnam's vision, particularly the goal of becoming a
high-income developed country by 2045, is incredibly ambitious,
clear, and inspiring. It provides a robust, long-term roadmap that
guides policy and instills confidence in both the domestic private
sector and international investors. With the capability of Vietnam
and its people, I believe that Vietnam can achieve this goal! About
the Resolution of the 13th National Congress of the Communist Party
of Vietnam, I see a focus on innovation, science, technology, and
high-quality human resources as the main drivers for growth. I
believe that these focuses are the right way to go. Also, it
signals a strong commitment to moving beyond a low-cost
manufacturing model toward a value-added, knowledge-based economy.
This transformation is crucial for avoiding the middle-income trap
and achieving the 2045 target, establishing Vietnam as a
significant economic player in the Asia-Pacific region.
3. One of Vietnam's important orientations is to develop the
economy along with macroeconomic stability and ensure social
security. From the perspective of an international expert, how do
you assess how Vietnam has balanced these factors?
OM: From my point of view, Vietnam has demonstrated a remarkable
and commendable track record in balancing these factors, especially
when compared to its regional peers. The government has been highly
effective in maintaining low and stable inflation (averaging around
2.8% over the past decade) and managing public debt well below
international comfort levels. The sustained, high GDP growth rate
over many years speaks for itself, showing that stability has not
come at the cost of development. Most notably, the sharp reduction
in poverty and significant improvements in life expectancy and
education demonstrate that economic growth is being coupled with
successful social outcomes. The government's proactive use of
tax and fee reductions to support businesses and individuals during
challenging periods (like the pandemic) further illustrates this
commitment to social security and market resilience.
4. Vietnam is making efforts to attract foreign investors,
especially in the fields of technology and innovation. As a
consultant for many international corporations, what advantages do
you think Vietnam has to attract international investment?
OM: First of all, Vietnam has one of the most impressive workforce
that I have ever seen. Vietnam has a young, dynamic, and
rapidly-growing tech-savvy workforce. The country consistently
produces hundreds of thousands of IT and engineering professionals,
building a strong foundation for sectors like semiconductors, AI,
and software development. Many recent issued laws provide clear,
attractive incentives for high-tech projects, including
preferential corporate income tax rates and tax holidays. This
signals a national-level prioritization of this type of investment.
Last but not least, the digital economy is booming, providing both
a large consumer market and a fertile testing ground for new
technologies and services.
5. You were a key advisor in the implementation of the Vietnam
– EU Free Trade Agreement (EVFTA). How do you assess
Vietnam's international integration process in recent years,
especially after joining new generation free trade agreements such
as EVFTA and CPTPP? In your opinion, what should Vietnam do to
maximize the benefits from these free trade agreements?
OM: Vietnam's international integration level is unmatched. By
joining new-generation FTAs like the EVFTA and CPTPP, Vietnam has
positioned itself at the center of global trade flows. To maximize
the benefits from the said agreements, first thing first,
institutional reform is required. This means that the legal and
regulatory framework must be amended to align with international
standards. Further, in some specific sectors, changes are required.
For example, a world-class trade hub requires modern, efficient
logistics infrastructure (ports, roads, and digital systems) to
reduce trade costs and speed up clearance times.
6. Vietnam has issued important resolutions to bring the country
into a new era, including Resolution 68 on the strong development
of the private economic sector. In your opinion, what turning point
will Resolution 68 create for Vietnam's development process,
especially in the economic field, in the coming time?
OM: Resolution 68 on the development of the private economic sector
marks a profound and historic ideological turning point for
Vietnam's economy. The resolution champions creating a fair,
competitive, and transparent business environment, aiming to
eliminate historical biases favoring State-Owned Enterprises (SOEs)
and certain FDI over domestic private firms. Also, the goal to
develop a number of large, globally competitive private enterprises
by 2030 is crucial. These companies can drive industrial growth,
act as anchors in global value chains, and spearhead science,
technology, and innovation, helping Vietnam emulate the success of
its regional neighbors. Lastly, the commitment to significantly cut
business costs and administrative procedures (e.g., cutting at
least 30% of time and costs) is a direct attack on red tape, making
it easier and faster to do business and unlocking entrepreneurial
energy.
7. Based on the experience of an international expert who has
worked in Vietnam for many years, what recommendations do you have
for Vietnam in continuing to improve its competitiveness, attract
foreign investment and develop sustainably?
OM: I have work with thousands of foreign investors. And the most
valuable assets for them is legal certainty. Vietnam should
continue to simplify legal frameworks, ensure that central
resolutions (like Resolution 68) and international commitments are
consistently and effectively implemented at the local and
provincial levels, and further streamline administrative
procedures. Vietnam is having one-of-a-kind workforce and such an
advantage should be maintained and improved. Vietnam can achieve
such a goal by keep improving its education system. When it comes
to sustainable, it is important to bear in mind that Vietnam is
currently working its way to achieve an ambitious Net Zero by 2050.
This goal is an important investment attraction tool. To achieve
this goal, Vietnam should Prioritize and incentivize FDI in
renewable energy, green manufacturing, and climate-resilient
infrastructure. This not only supports sustainable development but
also meets the increasing ESG (Environmental, Social, and
Governance) requirements of major international investors and
buyers.
8. What motivated you to decide to stay in Vietnam for a long
time? Can you share your feelings when you became the first
foreigner to speak in Vietnamese before the Vietnamese National
Assembly in 2016?
OM: What else can it be! It is the amazing people of Vietnam. I
always tell everybody this, Vietnamese people are the most
pragmatic people ever. They are pragmatic, hardworking, kind,
friendly, humble – you just cannot help it but falling in
love with them. I love to see their developments, I love to work
with them, and I will keep it that way.
As for my speech in front of the Vietnamese National Assembly back
in 2016, I don't think words can describe how I feel. But one
thing for sure, I cried there, on the spot, after one member of the
National Assembly came to congratulate me for my speech. It was
beautiful!
Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
