James Pham is an arbitrator with TRACENT and Managing Partner at VSE Lawyers. In this interview with Asia Law Portal, he reflects on his career helping to solve legal disputes in Vietnam’s diverse and dynamic economy.
You are an arbitrator with TRACENT and Managing Partner at VSE Lawyers. Tell us about these roles.
At the Ho Chi Minh City Commercial Arbitration Centre (TRACENT), my primary responsibilities entail collecting information, delving into the intricacies of disputes, and facilitating fair dialogue between parties. This necessitates my commitment to uphold confidentiality to prevent conflicts of interest, thereby adhering to the utmost standards of professional conduct and ensuring the integrity of the arbitration proceedings.
Regarding my role as the managing partner at VSE Lawyers, this is a reputable law firm established since the beginning of 2023, with the mission to become a trusted legal consultancy partner for clients in various fields, including investment, business, commerce, civil matters, intellectual property, licensing, dispute resolution, and more. With the motto of “Bring International Matters to Local Expertise”, together with our team of lawyers and legal experts who are highly responsible and possess deep knowledge, our goal is to provide high-quality legal services and always be ready to support our clients to the best of our abilities.
Which industry sectors does your practice primarily focus on?
I earned a bachelor’s degree in Commercial Law from Hanoi Law University which undoubtedly oriented me to be involved in the sector of corporate law as a whole and M&A in particular. Throughout my career, I have experienced many years of consulting and assisting clients on major corporate deals and transactions. These were all truly invaluable experiences for me as I was stimulated to transcend the legal territory to comprehend the business demands and each deal’s economic feasibility.
Legal Advice for Renewable energy projects is another highlight in my legal portfolio. The interest in renewable energy is majorly rooted from my experience at Shire Oak International, a developer and financier of large-scale renewable energy projects in emerging economies. Joining those rooftop solar or wind power projects has cemented my expertise and motivated me to delve more into domestic and international green policies.
Tell us about some of the most memorable deals or transactions you have worked on.
With many years of hands-on professional legal experience, I am fortunate to successfully guide and assist clients on major corporate deals and transactions. For example, at the time I worked for a Bae, Kim and Lee – a Korean Tier-1 Law Firm in Korea. During my term of office, I advised on the private placement deal between KEB Hana and the Bank for Investment and Development of Vietnam (BIDV) and previously conducted key legal due diligence work for the acquisition of various prominent Vietnamese real estate firms by Korean financial institutions and companies. Additionally, I managed complex post-merger legal processes for a Consumer Finance company and Korean Investors.
In the present, VSE LAWYERS support various international and Vietnamese clients to carry out various new investment and M&A transactions in Vietnam.
Tell us about your work in arbitration and its importance for companies doing business in Vietnam.
I joined the Ho Chi Minh City Commercial Arbitration Centre (TRACENT) at the beginning of 2024. My main task here primarily revolves around resolving commercial disputes between businesses while ensuring independence, objectivity, impartiality, and compliance with legal regulations.
From my perspective, the practice of applying commercial arbitration mechanisms in resolving disputes presents some advantages to companies. Through arbitration, disputes are resolved with confidentiality unless otherwise agreed upon by the parties, which thus preserves business secrets and maintaining credibility. Further, arbitration allows for flexibility and expedited proceedings, saving time and effort for the involved parties. More importantly, amidst the ever-expanding landscape of global integration, businesses are increasingly international in scope. As a result, the necessity for dispute resolution through arbitration transcends geographical boundaries, affording parties the freedom to select arbitrators regardless of geographic constraints. Hence, I assume that the existence of commercial arbitration and businesses intertwined and mutually complement each other.
Tell us about your previous experience as an in-house lawyer.
Before establishing VSE Lawyers, I had spent around 3 years working as a head of the legal department at Shire Oak International, a developer and financier of large-scale renewable energy projects in developing countries and emerging economies.
As the Head of Legal of Shire Oak International, I was in charge of new-built, operating and M&A in rooftop solar projects. This position exposed me to a wide range of legal matters including legal permissibility of different business models in relation to rooftop solar; financial lease classification; tax implications; approaches on “right of access” in lease/DPPA/license to occupy contracts… I was required to provide comprehensive, practical legal advice to the management board and support the investment team in presenting and answering to (offshore) investors’ legal due diligence as well. At Shire Oak, I could promote my expertise beyond Vietnam since my team also supported the development of renewable energy investment in other emerging markets such as Indonesia, Thailand, South Africa…
What should businesses keep most in mind when doing business in Vietnam?
In Vietnam, the “rule of law” is an overarching principle which ensures that Vietnamese are governed by laws and act in accordance with the state’s law. Therefore, for companies who want to practice in Vietnam, it is optimal to have a comprehensive grasp of the domestic legal regulations particularly regarding corporate, tax, labour, environmental protection, and follow them accordingly.
Notably, each field may require a specific set of regulations governing businesses in that sector. Thus, I recommend that foreign investors consult with professional law firms before entering the Vietnamese market to ensure their rights are protected and to avoid any legal infractions from the outset. Moreover, Vietnamese policies offer numerous economic incentives to encourage investment from foreign companies. It is hence crucial to stay informed about new regulations to maximize your benefits and opportunities.
What are some of the most interesting current opportunities for foreign investors in Vietnam?
Vietnam boasts a diverse and dynamic economy, with multiple sectors offering attractive investment opportunities with various incentive for foreign investors. Vietnam has experienced impressive economic growth over the past few decades, averaging around 6-7% GDP growth per year and this sustained growth has transformed Vietnam into one of the fastest growing economies in Southeast Asia. In addition, with a population of nearly 100 million, Vietnam represents a large and growing consumer market. The country has a young, increasingly affluent population that is driving domestic demand across sectors. Therefore, it is favorable for companies seeking opportunities especially in manufacturing, retail, technology and expansion to consider Vietnamese market as their next investment destination.
Another sector in Vietnam has observed a growing emphasis is the development of renewable energy and the transition to new energy sources in Vietnam. Recently, the Vietnamese Government is constantly updating and promulgating regulations on mechanisms and policies to promote the development of renewable energy in Vietnam to reach the commitment of “Net-zero” in 2050. These new legal provisions are anticipated to include a variety of incentives for foreign businesses interested in investing in this sector.
