Critics slate proposed changes to Vietnam law

International lawyers and business leaders have warned that if changes are made to a law on legal services in Vietnam, foreign law firms will not be able to work freely and and investors will be put off.

A number of foreign lawyers wrote to the Vietnamese National Assembly on Oct 24 saying the changes would mean that their local employees would be unable to draft contracts. It is thought that the changes would be particularly damaging for Vietnam at a time of uncertain economic growth.

The Australian and European chambers of commerce has also written to the government in support of the foreign firms.

Frederick Burke, a partner at the Ho Chi Minh City office of the American law firm Baker & McKenzie, said that if the law passes, “it would mean that anybody investing or doing business in Vietnam would have to rely on a much smaller group of law firms, none of which have international networks or presence.”

Overly sensitive

Ngo Thanh Tung, who is among the Vietnamese lawyers pushing for the changes, says that foreign lawyers are being “overly sensitive,” and that the proposed changes are consistent with Vietnam’s commitments as a member of the WTO.

“There was no ‘ganging’ scheme against foreign law firms,” Tung said. “Vietnam’s WTO commitments for legal services as well as the current regulation on operation of international law firms in Vietnam are already far more liberal than most, if not all, other Asian countries.”

Communist Vietnam’s economy was once hot property with investors, but it’s fallen from favour in recent months as the government faces increasing criticism over its faltering banking sector.

The Ministry of Justice has declined to say how many of Vietnam’s 7,300 registered lawyers work for foreign companies.