Clear laws, procedures will convince US firms to make long term investments: Freshfields lawyer
An open and predictable investment environment will convince U.S. companies to make long term investments in Vietnam, as opposed to other emerging markets in the Indo-Pacific or even closer to home, said Eric Johnson, a counsel at law firm Freshfields Bruckhaus Deringer in a talk with The Investor on the occasion of President Joe Biden's state visit to Vietnam from September 10-11.
Prime Minister Pham Minh Chinh in his meeting in July with Treasury Secretary Janet Yellen underlined areas that Vietnam and the U.S can boost ties in like green growth, innovation, high technology and supply chains. Minister of Planning and Investment Nguyen Chi Dung once said he wished to see U.S. “eagles” investing more in areas like green energy, digital economy, medical care, and chip production. Are U.S investors interested in these fields in Vietnam?
In my experience, both U.S. companies and U.S. financial investors continue to have a strong interest in many sectors of the Vietnamese economy. As we have seen in recent years, several large U.S. multinationals and their suppliers have moved parts of their supply chain from China to Vietnam. This is a significant move for these companies, so the more the government can do to foster a sense of predictability and efficiency, including, for example, by developing energy and other key infrastructure and streamlining procedures around things like taxation and customs, the more comfortable U.S. companies will be in incorporating Vietnam into their supply chains.
It is also important to note that the U.S. government has little to no ability to directly influence the investment decisions of U.S. companies and U.S. investors in terms of investing in a particular country, other than by legally restricting investment into that country, which is not the case here. This means that the ball is really in Vietnam’s court to continue to develop the type of open and predictable investment environment, including clear laws and legal procedures, that will convince U.S. companies and U.S. investors to make long term investments here, as opposed to in other emerging markets in the Indo-Pacific or even closer to home.
In the green energy sector, investors want to see the government approve a plan to pilot direct power purchase agreements. Are DPPAs critical to the attraction of U.S. investment? Are there any other obstacles in this area?
Unfortunately, there are many other obstacles. The issuance of the Power Development Plan 8 (PDP8) has certainly sparked renewed interest from U.S. and other foreign investors who are very keen to participate in the green transition in Vietnam, but there is still much work to be done on implementing it, such as changing several laws to implement the contents of PDP8.
Also, the lack of a bankable power purchase agreement (PPA) has been, and if it isn’t changed, will continue to be a huge obstacle for U.S. and many other foreign investors in this sector. I would really like to see the government move quickly and seize the opportunity here – there is a huge opportunity for Vietnam that it is there for the taking.
Expanding supply chains, including chips, is a priority in Vietnam's development strategy. Diversifying global supply chains is also part of the Biden administration’s efforts. How do you analyze opportunities for U.S investors in this field in Vietnam?
As I mentioned earlier, I think lots of U.S. companies see major opportunities in Vietnam around supply chains, including for high value-add manufacturing like chips, etc. that the Vietnamese government is supporting. And while the Biden administration has taken certain actions that may discourage U.S. investment into sensitive areas in China, such as chips and quantum computing, U.S. investors will only diversify into a particular country if they feel comfortable with the investment and legal environment of that country, especially when compared to the other available options.
Ted Osius, former U.S. ambassador to Vietnam and now president and CEO of the US-ASEAN Business Council, said they have never been more busy, seeing a huge demand from U.S investors seeking opportunities in Vietnam. As a lawyer and an investment consultant, do you see the interest is rising to that level?
I have been working in Vietnam for about seven years now and I would say that we are fairly busy with new investment projects after a relatively quiet start to 2023, but we have been busier in the past. It should be noted though that our clients typically engage us later in their investment processes, so perhaps the interest at the US-ASEAN Business Council should be read as a leading indicator.
The key point here is that there is a huge opportunity for Vietnam to take advantage of investor interest in the country. But it is crucial to create a predictable investment environment that inspires confidence instead of reinforcing a perception of risk. I am also very glad to hear that Ambassador Osius is staying busy!
What factors are helping Vietnam attract U.S investors and what irks them most about doing business in the country?
Vietnam has great fundamentals – a young and digitally savvy population, a growing middle class, an educated, hard-working labour force, consistent pro-foreign investment government policy, and many others. Vietnam is also in a good position to seize opportunities related to recent shifts in geopolitics. Also, most businesspeople from the U.S., myself included, are consistently impressed by the high entrepreneurial energy that exists in Vietnam.
In terms of what irks investors, I’d say unpredictable bureaucratic procedures and red tape. Most investors understand that sensitive sectors such as banking, energy, etc. are going to be subject to strict regulatory oversight – this is true for all countries. However, it is often unclear how to resolve the complexity of certain procedures and this creates uncertainty and delays. In my experience, most investors are perfectly willing to go through the steps required to obtain regulatory approvals, even if it will be difficult, as long as there is a clear path on how to do that in practice.
At the more routine level, it is not uncommon for basic administrative procedures, which should really be quick and easy, turning into multi-week or multi-month ordeals due to surprise requests from the authorities or other issues that arise in an unpredictable manner. These can usually be worked through, but they unnecessarily take up valuable time and resources, and they contribute to a perception of unpredictability that can turn certain investors off the market.
Do you have any advice for foreign investors and U.S. investors on how to make their businesses a success in Vietnam?
Investing in Vietnam can be hard work, but I think that if you approach an investment in a thoughtful and holistic way that takes into account the peculiarities of the market, that the hard work is usually rewarded.
What do you expect from President Biden’s visit to Vietnam from September 10-11 in terms of trade and investment?
I think such high-level engagement between Vietnam and the U.S. can only be a positive for both countries in terms of trade and investment. I am eager to see what the concrete results of the meeting are, and hope that practical and decisive steps can be taken thereafter to increase the attractiveness of Vietnam for U.S. investors and deepen economic ties between both countries.
- Read More
T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects
Multi-sector conglomerate T&T Group is developing a model eco-urban complex in Ha Tinh province and plans to build a massive 236-hectare urban area in neighboring Nghe An, with an aim to reshape north-central Vietnam's urban landscape.
Investing - Fri, October 17, 2025 | 2:44 pm GMT+7
Toyota plans $359 mln plant expansion in northern Vietnam
Toyota Motor Vietnam (TMV) plans to invest about VND9.46 trillion ($359.2 million) in the first phase of its plant expansion project in Phu Tho province.
Investing - Fri, October 17, 2025 | 2:09 pm GMT+7
PVI Insurance sees 9-month profit before tax more than doubling
PVI Insurance has reaffirmed its position as the No. 1 non-life insurer in Vietnam, with total revenue increasing nearly 1.4 times in the first nine months of 2025 and pre-tax profit more than doubling year-on-year - surpassing its full-year targets for both revenue and profit.
Companies - Fri, October 17, 2025 | 9:08 am GMT+7
Vingroup to develop 4,600ha coastal urban project in northern Vietnam
A consortium of Vingroup (HoSE: VIC) and its real estate arm Vinhomes (HoSE: VHM) will develop a 4,600-hectare coastal urban complex in Ha An ward, Quang Ninh province, following local authorities’ approval of a zoning plan.
Real Estate - Fri, October 17, 2025 | 8:30 am GMT+7
Indonesia resumes int’l carbon trading after 4-year hiatus
Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.
Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7
Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles
Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.
Energy - Thu, October 16, 2025 | 9:04 pm GMT+7
Vietnam to soon raise taxpayers' personal deduction: official
The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.
Finance - Thu, October 16, 2025 | 6:25 pm GMT+7
Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam
The index climbed to 66.5, surpassing pre-tariffs level and reaching its highest in three years – showcasing resilience and adaptability amid global headwinds and evolving U.S. tariff pressures.
Economy - Thu, October 16, 2025 | 4:36 pm GMT+7
Vietnam's stock market watchdog suspends two Grant Thornton auditors
Vietnam's State Securities Commission (SSC) has suspended two auditors from Grant Thornton Vietnam after determining that the 2024 audited financial statements of Saigon Water Infrastructure Corporation (HoSE: SII) failed to meet required standards.
Finance - Thu, October 16, 2025 | 3:35 pm GMT+7
Law No. 56 a major policy breakthrough for Vietnam's stock market development
The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.
Finance - Thu, October 16, 2025 | 2:30 pm GMT+7
WHA Group breaks ground on smart technology industrial zone in central Vietnam
Thailand's WHA Group on Tuesday broke ground on a world-class, modern, and environmentally friendly industrial zone in central Vietnam, namely the WHA Smart Technology Industrial Zone-Thanh Hoa.
Real Estate - Thu, October 16, 2025 | 2:00 pm GMT+7
Vietnam a key partner in Murphy Oil’s global strategy: exec
Vietnam remains a key partner in Murphy Oil’s global business strategy, said Eric Hambly, the U.S. corporation's president and CEO.
Companies - Thu, October 16, 2025 | 12:06 pm GMT+7
VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center
State-owned Vietnam Posts and Telecommunications Group (VNPT) and Qualcomm have officially launched the VNPT-Qualcomm Excellence Center (VQEC), the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.
Companies - Thu, October 16, 2025 | 8:41 am GMT+7
Indonesia enjoys steady growth in nine months
Indonesia's Ministry of Finance on Tuesday announced the country’s 2025 budget performance as of September, reporting that Southeast Asia’s largest economy continued to post steady growth despite global economic uncertainties.
Southeast Asia - Wed, October 15, 2025 | 9:53 pm GMT+7
Malaysia on progressive path towards AI nation status: experts
Malaysia is on a progressive track towards becoming an Artificial Intelligence (AI) nation by 2030, a goal seen as achievable under Budget 2026 - the Malaysian Government’s fiscal and policy framework for 2026.
Southeast Asia - Wed, October 15, 2025 | 9:44 pm GMT+7
Thailand steps up development of semiconductor industry
Thailand’s Board of Investment (BOI) plans to propose a new national semiconductor and advanced electronics policy board to the government, which will spearhead Thailand’s semiconductor development strategy.
Southeast Asia - Wed, October 15, 2025 | 9:40 pm GMT+7




















