- After more than 20 years working in Vietnam, how do you view the development of Vietnam at present, compared to the first days when you set foot in Vietnam? In your opinion, what are the biggest changes in the legal, business and investment environment in Vietnam?
OM: I came to Vietnam for the first time on exactly 6 June 1990, I caught a “xích lô” to see around Hanoi. I still remember that there was lots of bunkers in Hanoi and an “after war” city, the war that ended 50 years ago. I was a giant here back then, I could not catch a cab, and tall buildings were nowhere to be found.
Now I have houses in both Ho Chi Minh City and Hanoi City, two of the most dynamic cities in the world. I am no longer one of the few tall guys, I could catch a taxi easily, and the infrastructure development is unbelievable. I still remember it like yesterday when I first practiced law here, foreign investors had to go through hell to do business here in Vietnam, I was not allowed to walk side by side Vietnamese woman, the people were very poor and they used to do business in a family scale, very industrious. Everything has changed! First it was the accession to the WTO, and then the free trade agreements, giant investors coming in, recognition for LGBT, empowerment for women, clear legal framework for investment. Some of the changes took Germany hundreds of years, and it took Vietnam only 20 – 30 years. For me personally, I cannot even think of the biggest changes because there were so my massive changes. If I have only one thing to say, I would say that the international integration level of Vietnam is the most impressive. In 1990, Vietnam was an isolated country with trade embargo imposed by the U.S – one of the poorest countries on the planet Earth. As we are talking today, Vietnam is a middle-income country, one of the most integrated countries with the most modern free-trade-agreement ever. Vietnam is a poster child for developing countries.
It is amazing!
- How do you evaluate Vietnam’s socio-economic development vision as defined in the Resolution of the 13th National Congress of the Communist Party of Vietnam, especially the goal of becoming a high-income developed country by 2045?
OM: Vietnam’s vision, particularly the goal of becoming a high-income developed country by 2045, is incredibly ambitious, clear, and inspiring. It provides a robust, long-term roadmap that guides policy and instills confidence in both the domestic private sector and international investors. With the capability of Vietnam and its people, I believe that Vietnam can achieve this goal! About the Resolution of the 13th National Congress of the Communist Party of Vietnam, I see a focus on innovation, science, technology, and high-quality human resources as the main drivers for growth. I believe that these focuses are the right way to go. Also, it signals a strong commitment to moving beyond a low-cost manufacturing model toward a value-added, knowledge-based economy. This transformation is crucial for avoiding the middle-income trap and achieving the 2045 target, establishing Vietnam as a significant economic player in the Asia-Pacific region.
- One of Vietnam’s important orientations is to develop the economy along with macroeconomic stability and ensure social security. From the perspective of an international expert, how do you assess how Vietnam has balanced these factors?
OM: From my point of view, Vietnam has demonstrated a remarkable and commendable track record in balancing these factors, especially when compared to its regional peers. The government has been highly effective in maintaining low and stable inflation (averaging around 2.8% over the past decade) and managing public debt well below international comfort levels. The sustained, high GDP growth rate over many years speaks for itself, showing that stability has not come at the cost of development. Most notably, the sharp reduction in poverty and significant improvements in life expectancy and education demonstrate that economic growth is being coupled with successful social outcomes. The government’s proactive use of tax and fee reductions to support businesses and individuals during challenging periods (like the pandemic) further illustrates this commitment to social security and market resilience.
- Vietnam is making efforts to attract foreign investors, especially in the fields of technology and innovation. As a consultant for many international corporations, what advantages do you think Vietnam has to attract international investment?
OM: First of all, Vietnam has one of the most impressive workforce that I have ever seen. Vietnam has a young, dynamic, and rapidly-growing tech-savvy workforce. The country consistently produces hundreds of thousands of IT and engineering professionals, building a strong foundation for sectors like semiconductors, AI, and software development. Many recent issued laws provide clear, attractive incentives for high-tech projects, including preferential corporate income tax rates and tax holidays. This signals a national-level prioritization of this type of investment. Last but not least, the digital economy is booming, providing both a large consumer market and a fertile testing ground for new technologies and services.
- You were a key advisor in the implementation of the Vietnam – EU Free Trade Agreement (EVFTA). How do you assess Vietnam’s international integration process in recent years, especially after joining new generation free trade agreements such as EVFTA and CPTPP? In your opinion, what should Vietnam do to maximize the benefits from these free trade agreements?
OM: Vietnam’s international integration level is unmatched. By joining new-generation FTAs like the EVFTA and CPTPP, Vietnam has positioned itself at the center of global trade flows. To maximize the benefits from the said agreements, first thing first, institutional reform is required. This means that the legal and regulatory framework must be amended to align with international standards. Further, in some specific sectors, changes are required. For example, a world-class trade hub requires modern, efficient logistics infrastructure (ports, roads, and digital systems) to reduce trade costs and speed up clearance times.
- Vietnam has issued important resolutions to bring the country into a new era, including Resolution 68 on the strong development of the private economic sector. In your opinion, what turning point will Resolution 68 create for Vietnam’s development process, especially in the economic field, in the coming time?
OM: Resolution 68 on the development of the private economic sector marks a profound and historic ideological turning point for Vietnam’s economy. The resolution champions creating a fair, competitive, and transparent business environment, aiming to eliminate historical biases favoring State-Owned Enterprises (SOEs) and certain FDI over domestic private firms. Also, the goal to develop a number of large, globally competitive private enterprises by 2030 is crucial. These companies can drive industrial growth, act as anchors in global value chains, and spearhead science, technology, and innovation, helping Vietnam emulate the success of its regional neighbors. Lastly, the commitment to significantly cut business costs and administrative procedures (e.g., cutting at least 30% of time and costs) is a direct attack on red tape, making it easier and faster to do business and unlocking entrepreneurial energy.
- Based on the experience of an international expert who has worked in Vietnam for many years, what recommendations do you have for Vietnam in continuing to improve its competitiveness, attract foreign investment and develop sustainably?
OM: I have work with thousands of foreign investors. And the most valuable assets for them is legal certainty. Vietnam should continue to simplify legal frameworks, ensure that central resolutions (like Resolution 68) and international commitments are consistently and effectively implemented at the local and provincial levels, and further streamline administrative procedures. Vietnam is having one-of-a-kind workforce and such an advantage should be maintained and improved. Vietnam can achieve such a goal by keep improving its education system. When it comes to sustainable, it is important to bear in mind that Vietnam is currently working its way to achieve an ambitious Net Zero by 2050. This goal is an important investment attraction tool. To achieve this goal, Vietnam should Prioritize and incentivize FDI in renewable energy, green manufacturing, and climate-resilient infrastructure. This not only supports sustainable development but also meets the increasing ESG (Environmental, Social, and Governance) requirements of major international investors and buyers.
- What motivated you to decide to stay in Vietnam for a long time? Can you share your feelings when you became the first foreigner to speak in Vietnamese before the Vietnamese National Assembly in 2016?
OM: What else can it be! It is the amazing people of Vietnam. I always tell everybody this, Vietnamese people are the most pragmatic people ever. They are pragmatic, hardworking, kind, friendly, humble – you just cannot help it but falling in love with them. I love to see their developments, I love to work with them, and I will keep it that way.
As for my speech in front of the Vietnamese National Assembly back in 2016, I don’t think words can describe how I feel. But one thing for sure, I cried there, on the spot, after one member of the National Assembly came to congratulate me for my speech. It was beautiful!
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Please do not hesitate to contact Dr. Oliver Massmann at [email protected] if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
