Requirements and Procedures for Establishing a Foreign Law Firm in Vietnam

Question:

We are a law firm established and currently operating in South Korea. To expand our market, we plan to invest in setting up a law firm in Vietnam. I would like to ask what conditions we need to meet, what procedures we need to follow, and whether our law firm in Vietnam can represent clients in litigation?

Answer:

According to Article 68 of the Law on Lawyers, foreign law firms that are legally established and practicing law in their home country are permitted to operate in Vietnam under the following conditions:

1. A commitment to comply with the Constitution and laws of the Socialist Republic of Vietnam;
2. A commitment to ensure that at least two foreign lawyers, including the branch manager or director of the foreign law firm, are present and practicing in Vietnam for no less than 183 days within a continuous twelve-month period;
3. The branch manager or director of the foreign law firm in Vietnam must have at least two years of continuous legal practice.

Accordingly, the law firm from South Korea can choose one of the following forms of business for establishment in Vietnam, as specified in Clause 1, Article 69 of the Law on Lawyers:

• A foreign-invested limited liability law firm (100% foreign capital),
• A joint-venture law firm,
• A partnership law firm between a foreign law practice and a Vietnamese law firm.

To operate in Vietnam, the foreign law organization must submit a dossier for the establishment of the foreign law firm to the Ministry of Justice as per Article 78 of the Law on Lawyers. Within 60 days of receiving the establishment license, the branch or foreign law firm must register its operation with the Department of Justice in the locality where its headquarters is located, as specified in Article 79 of the Law on Lawyers.

Additionally, your firm should pay particular attention to the following issues regarding the scope of activities of a foreign law firm operating in Vietnam:

1. Foreign law firms in Vietnam are not allowed to send foreign lawyers or Vietnamese lawyers in their organization to participate in litigation as representatives, defenders, or to protect the legitimate rights and interests of clients in Vietnamese courts, nor to perform legal paperwork and notarization services related to Vietnamese law. However, Vietnamese lawyers in the organization are allowed to advise on Vietnamese law (Article 70 of the Law on Lawyers).
2. Foreign law firms in Vietnam are not allowed to: a) Authenticate copies or translations of documents issued by Vietnamese government agencies or organizations; b) Perform procedures related to adoption, marriage, civil status, or Vietnamese nationality; c) Provide notarization, enforcement, and other legal services that, under Vietnamese law, can only be performed by Vietnamese law firms, Vietnamese notary organizations, or Vietnamese enforcement organizations. (Article 31 of Decree 123/2013/ND-CP)