How regulatory change is impacting the Vietnam legal market

In Vietnam, numerous regulatory changes and amendments have emerged across various sectors, including telecommunications, media and technology (TMT), data protection, tax, environmental regulations, foreign investment, banking and trade. As a result, there is a significant emphasis on compliance and risk management, with clients particularly focused on the latter. One source points out that "the evolving legal landscape" in Vietnam "will necessitate continuous legal oversight to ensure compliance and mitigate risks." Another interviewee agrees, noting that "shifts in industry regulations, compliance requirements, and legislative changes, along with economic and geopolitical uncertainties, will drive the demand for expert guidance. Additionally, the perspectives of executive, judicial, and legislative authorities on legal issues will shape our approach to managing risks and opportunities." 

This year, in addition to regulatory changes, clients have expressed concerns about global trade, sanctions, and geopolitics as the likelihood of trade disputes and supply chain disruptions increases. According to one source, this situation "will drive the need for legal advisory on risk mitigation, contract renegotiations, and dispute resolution." Another interviewee explains that "economic uncertainty and global market shifts will also require legal expertise to navigate risks in cross-border transactions and supply chain management, ensuring businesses remain resilient in a dynamic environment." 

The local regulatory environment and international political landscape have increasingly made companies and investors cautious and risk averse. However, while deal volumes have not yet returned to their peak post-pandemic levels, there is a sense of optimism for 2025, particularly in the education, industrial real estate, energy and healthcare sectors. One interviewee reported that at the beginning of 2025, foreign investment in Vietnam increased by approximately 40% compared to 2024. This growth comes in the wake of recent changes to foreign direct investment (FDI) regulations. 

Even if deal volumes do not increase, the demand for legal services is expected to rise. As one interviewee observes, "As businesses become more conscious of regulatory compliance, risk management, and the complexities of legal frameworks, the demand for expert legal guidance will continue to grow. This heightened awareness will drive the need for proactive legal strategies to navigate evolving regulations and safeguard business interests."