Where are the key markets and key sectors heading, and what can law firms expect 2010 to deliver? A panel of legal industry pundits predicts Tiger-Year trends and provides a guide to the opportunities and challenges that lie ahead

The following are some views for the legal market in Vietnam for 2010. The full version of "2010: The Year Ahead" with the views across Asia-Pacific can be found at Asian Legal Business.

Vietnam
Dang The Duc, Managing Partner, Indochine Counsel

ð      As the GFC spread, Vietnam was not exempt and the country's economy suffered, with both FDI flow and portfolio investment into the country dropping.

ð      The economic recession also affected the volume of work for law firms in Vietnam, evidenced by a decrease in new projects and deals.

ð      This was especially noticeable for big FDI projects, banking & finance, capital markets, M&A / private equity, and real estate.

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Vietnam was not as seriously affected by the global crisis as other countries due to the characteristics of its economy - largely agriculture-based, and the fact that it is not yet fully integrated into the global economy. The Government estimates that GDP growth will reach 5.2% this year.

In general, the volume of work decreased but there is still enough work for most firms, though they have had to change billing structures to make legal fees more affordable and predictable for clients. For local firms with proven quality, the local fee structure seems to have been to their advantage during the recession. In fact, there remains a relative shortage of Vietnamese lawyers of international quality.

There is more work in certain sectors like healthcare, education, ICT, and especially trading and distribution / retail. (As a part of its WTO commitments, from January 2009 the country allowed 100% foreign-owned companies to participate in distribution / retail activities). Also, infrastructure, mining, energy and oil and gas remain busy as investments in these sectors are still necessary for the country's long-term development.

Vietnam is an emerging market, and the legal market must mature with it as seen in other regional countries like Singapore, Hong Kong, Japan or Korea. With the fast growth of the private sector in Vietnam, the acceleration of state-owned-enterprises equitization, and the prospect of positive economic growth in the long-run, the legal services market should hopefully grow apace. Already the volume of legal work has increased from the 3^rd and 4^th quarters of this year.

Some important laws adopted towards the end of 2009 in the session of the National Assembly included healthcare law, telecom law, natural resources, tax law, and an amended education law.

In the November session, the National Assembly also approved two mega-infrastructure projects: Son La Hydraulic Power Plant and Ninh Thuan Nuclear Power Plant. Laws to be looked at in 2010 include commercial arbitration, enforcement of criminal judgments, food safety law, amendments to credit institutions, VAT and corporate income tax, and the law on land and housing tax.

Consequently, Vietnam will need more lawyers of international calibre who can deliver quality and timely product for clients. The biggest challenge for local firms will be development of a better team of lawyers in tandem with improved practice management. Those firms who have prepared well in terms of training their lawyers and staff and that have improved their management system will enjoy the benefits.