Recently, the Beijing Longan (Guangzhou) Law Firm and the Vietnamese VTN Partner Law Firm successfully held a strategic cooperation agreement signing ceremony and a high-level forum on legal practices for Chinese enterprises going overseas to Vietnam at Level 46, Building A, Vidora Plaza, No. 103 Tiyu West Road, Tianhe District, Guangzhou. The event aimed to provide comprehensive legal support and practical guidance for Chinese enterprises’ investments in Vietnam through in-depth exchanges and cooperation.
Lawyer Li Dingbang
Deputy Director of the Marriage, Family and Wealth Management Department of Longan Guangzhou, and Deputy Director and Secretary-General of the Longan Bay Law, Finance and Tax Integration Research Center
The event officially started at 14:30 in the afternoon, hosted by Lawyer Li Dingbang from the Beijing Longan (Guangzhou) Law Firm. Lawyer Li expressed special thanks in fluent English to the Vietnamese law firm colleagues who came from afar, the guests present, and the administrative staff of the law firm. He also looked ahead to the cross-border legal practices between China and Vietnam after this event. He emphasized that the key to the prosperous development of cross-border law in China and Vietnam lies in the hands of young lawyers in both countries. He welcomed more international partners to come to Longan Guangzhou and establish more, deeper, and more comprehensive international cooperation relations.
Speech at the Event
Lawyer Sha Yuchen
Founding Partner of Longan Guangzhou
After a brief opening speech, Lawyer Sha Yuchen, the founding partner of Longan Guangzhou, delivered a speech on the background and vision of cooperation between the Chinese and Vietnamese law firms. In his speech, Lawyer Sha Yuchen mentioned that with the rapid growth of Chinese enterprises’ investments in Vietnam, the demand for cross-border legal services is becoming increasingly prominent. This cooperation is a continuation of Longan’s internationalization strategy. It is based on the policy benefits of the Vietnamese market and the trend of industrial chain transfer. Enterprises need to rely on legal cooperation to ensure compliance. In recent years, Longan has established branches in Hong Kong, China, ASEAN, and other places, and has established regular exchange mechanisms with Singapore, Malaysia and other countries, forming a legal service network covering Southeast Asia. As an important node of the “Belt and Road” initiative, the compatibility of Vietnam’s legal system with that of China provides a foundation for cooperation. The strategic cooperation between Longan Guangzhou and Vietnamese VTN aims to provide localized legal support for Chinese enterprises and reduce cross-border investment risks.
Signing Ceremony
In a warm atmosphere, the representatives of both sides officially signed the strategic cooperation agreement and took a photo together. This signing ceremony marks a solid step in the cooperation between the Beijing Longan (Guangzhou) Law Firm and the Vietnamese VTN Partner Law Firm in the field of legal services.
Seminar Sharing
At the subsequent “High-Level Forum on Legal Matters for Chinese Enterprises Going Overseas to Vietnam”, experts from both sides provided in-depth analysis of the investment environment, legal risks, and practical strategies in Vietnam.
Nguyen Thanh Nghiep
Vietnam VTN Partner Law Firm
Luu Hoang Hai
Vietnam VTN Partner Law Firm
Luu Hoang Hai and Nguyen Huang Ha from the Vietnamese VTN Partner Law Firm systematically analyzed Vietnam’s foreign investment access policies. They pointed out that Vietnam’s labor cost advantages and tariff benefits in Europe and the United States are very attractive. Manufacturing, new energy, and infrastructure (ports, industrial parks) are priority areas for attracting investment in Vietnam. High-tech enterprises can enjoy the “five exemptions and nine reductions” income tax policy, and investment in special economic zones receives additional subsidies. In addition, the listing thresholds at Hanoi and Ho Chi Minh City stock exchanges are gradually being relaxed, and the restrictions on foreign shareholding ratios are removed, providing multiple financing opportunities for Chinese enterprises. However, legal and cultural differences between the two places remain major challenges. It is hoped that through the cooperation between Longan and VTN, investment services for Chinese enterprises can be smoothly implemented.
Nguyen Huang Ha
Vietnam VTN Partner Law Firm
Mr. Yang, the accompanying translator from the Vietnamese VTN Partner Law Firm
VTN also analyzed in detail the risks such as land ownership, labor compliance, and tax inspections that Chinese enterprises may face during their investments in Vietnam. They shared practical experience. They reminded enterprises to be aware of the special nature of land ownership in Vietnam. When obtaining the right to use land through long-term leasing, attention should be paid to local policy differences. In terms of labor compliance, the proportion of foreign employees should be strictly controlled, and employment contracts and social security contributions should comply with the Vietnamese Labor Law. In terms of tax inspections, the equity structure and profit repatriation routes should be planned in advance to cope with possible transfer pricing and related transaction inspections. It is recommended that Chinese enterprises, in terms of localized operations, balance the Chinese controlling stake and Vietnamese resource integration under a joint venture model, and establish an independent compliance department to handle inspections. VTN also focused on the situation of Vietnam’s capital market, the Ho Chi Minh City Exchange (HOSE) and the Hanoi Exchange (HNX). As of 2024, the total market value is approximately $300 billion, and the securitization rate (total market value / GDP) increased from 38% in 2010 to 58% in 2023. It reached a peak of 93% in 2021.
This strategic cooperation marks a further deepening and expansion of Longan Law Firm’s layout in Southeast Asia. In the future, Longan Guangzhou Law Firm will continue to maintain full communication and in-depth exchanges and cooperation with the Vietnamese VTN Partner Law Firm. It will regularly release country-specific legal guides and hold practical training sessions, providing “zero-time difference” response services for Chinese enterprises. At the same time, Longan Guangzhou will continue to provide professional and efficient cross-border legal solutions to safeguard the global expansion of enterprises.