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Vietnam Law
Doing Business in Vietnam? We’ve Got You Covered
Legal support for companies and individuals doing business in Vietnam.
Contact UsShifting Manufacturing to Vietnam
The US-China trade war and the COVID-19 pandemic have reinforced the importance of a diversified supply chain for many businesses. As a result, many of our clients from around the world are shifting manufacturing from China to Vietnam.
Harris Sliwoski has a long history with Vietnam; we drafted our first Vietnam manufacturing contract more than a decade ago and have maintained a physical presence in Ho Chi Minh City for nearly as long.
This shift predated the current US-China trade war, and early movers were quick to establish operations in Vietnam. Over the past 10 years, Vietnam has attracted significant foreign investment through ongoing economic reforms, new free trade agreements, a young and increasingly urbanized population, political stability, and inexpensive labor costs.
Harris Sliwoski has been helping companies navigate their legal matters in Vietnam for two decades, and we have had the same Vietnamese business specialist on staff for nearly that long. Our Vietnam legal work has mostly involved drafting manufacturing contracts, registering trademarks and protecting intellectual property, conducting due diligence on Vietnamese companies, and handling mergers and acquisitions (M&A) deals.
Vietnamese Manufacturing
In 2022, Vietnam’s manufacturing output was $101.22 billion, a 12.3% increase from 2021. This is part of an average annual growth rate of 12% from 2010 to 2022, which is higher than the Asia-Pacific region’s average of 4.1%. In 2022, manufacturing contributed 24.8% to Vietnam’s GDP, and the country has set a goal of 30% by 2030. In 2023, Vietnam received a record $36.6 billion in foreign direct investment (FDI), which was a 32.1% increase from the previous year. Put simply, Vietnam is booming, and its manufacturing is leading the way.Vietnam produces a wide range of products across various industries. Some of the key products manufactured in Vietnam include:
Electronics and Electrical Equipment:
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- Mobile phones and accessories
- Computers and electronic components
- Household appliances
Textiles and Garments:
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- Clothing and apparel
- Fabrics and textiles
- Footwear and leather goods
Automobile and Motorcycle Parts:
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- Engine components
- Tires and tubes
- Vehicle assembly parts
Furniture and Wood Products:
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- Wooden furniture
- Plywood and veneer
- Wooden handicrafts
Agricultural Products:
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- Processed foods
- Seafood (fish, shrimp, etc.)
- Coffee, tea, and spices
Machinery and Equipment:
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- Industrial machinery
- Agricultural machinery
- Construction equipment
Plastic and Rubber Products:
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- Plastic household goods
- Rubber tires and products
- Industrial plastic components
Chemicals and Pharmaceuticals:
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- Basic chemicals
- Fertilizers
- Medicines and health supplements
Footwear:
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- Sports shoes
- Casual shoes
- Specialized footwear (e.g., safety shoes)
Steel and Metal Products:
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- Steel bars and rods
- Metal structures
- Hardware and tools
These diverse manufacturing capabilities make Vietnam an attractive destination for foreign direct investment and an important player in global supply chains.
At the same time, Vietnam continues to present challenges to investors and business operators. Foreign and Vietnamese business owners agree the country would benefit from improving intellectual property rights protection and simplifying legal procedures and tax codes, as well as streamlining the bureaucratic process related to government decision making.
Establishing manufacturing facilities and a logistics infrastructure are complicated processes, and missteps can cost millions. Our deep knowledge of local laws and business and regulatory environment allows us to help our clients identify the most appropriate manufacturing model and operational framework for them in Vietnam.
Protecting Your Company and Your Product When Manufacturing in Vietnam
Vietnam’s growing manufacturing sector offers attractive opportunities for foreign companies, but navigating its legal complexities is crucial for success. Our experienced international manufacturing lawyers can guide you through every step of the process, from setting up operations to protecting your intellectual property.
How We Can Help
When it comes to helping foreign companies that do their own manufacturing in Vietnam or contract manufacturing there, we typically assist with the following:
One of the first things our international manufacturing lawyers do when working with a company having products made in Vietnam is to establish the contracts and IP registrations needed to protect our client’s intellectual property and other rights. Our Vietnam attorneys typically use the following manufacturing-related agreements and IP registrations:
- Vietnam NNN Agreement. This agreement protects the confidentiality of your products and prevents your Vietnamese manufacturer from competing with you or circumventing you by going directly to your customers (non-disclosure, non-compete, and non-circumvent). These agreements are usually simple but must be done correctly to work in Vietnam.
- Vietnam Mold/Tooling Protection Agreement. This agreement ensures that the molds/tooling you have made belong to you and cannot be used to make products for anyone else. This agreement prevents your Vietnam manufacturer from keeping your molds/tooling or using them to compete with you if you move your production.
- Product Ownership Agreement. This agreement clarifies that the product you are co-developing or having made belongs to you. This prevents the manufacturer from claiming ownership of the IP rights and registering a patent related to it in Vietnam or in other countries.
- Vietnam Product Development Agreement. This agreement specifies the terms of your product development relationship, including ownership, development costs, milestones, and IP rights. It ensures clear responsibilities and contributions from both parties.
- Vietnam Manufacturing Agreement. Also called a Product Sourcing or OEM Agreement, this agreement clarifies all aspects of your relationship with your Vietnamese manufacturer. It should address quality, timeliness, IP ownership, mold/tooling ownership, non-compete/non-circumvent/non-disclosure clauses, sub-suppliers, and liquidated damages for breaches.
- Vietnam Trademarks. Because Vietnam is a “first to file” trademark country, it is important (and relatively inexpensive) that you secure trademarks for your brand name and logo to prevent others from stopping your product from leaving Vietnam. It also usually makes sense to register your trademarks in the countries where you will sell your product.
- Vietnam Patents. If your product is innovative or distinctive, consider securing a Vietnam invention or design patent to protect against copying and prevent others from registering a patent on your product.
The Harris Sliwoski Advantage
Our goal as lawyers is to maximize value and protection for our clients while minimizing costs. This involves choosing the right agreements and registrations at the right times and ensuring everything is done correctly.
We understand the unique challenges and opportunities of manufacturing in Vietnam. Let us help you navigate the legal landscape and achieve your business goals.
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Corey T., CEO Thinc Cubed, LLC
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Dan Pak Hospital Supply Chain Executive
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Matt Hurt, COO Cannabis Nation
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Joseph Axelrod, General Counsel Irwin Naturals
When we started the process of building a ‘seed to sale’ cannabis company in Oregon, we saw the need for expert legal counsel. The cannabis sector is fraught with potential peril at every turn, and we wanted the best legal advice we could find. After talking to several firms and individuals, we feel extremely fortunate to have chosen Harris Sliwoski as our legal counsel.
Tony Theiss, CEO and Co-Founder Redbarn Cannabis
We use Harris Sliwoski on all our international legal matters, including on our international litigation matters. We have over the last few years been involved in a couple big international legal disputes and Harris Sliwoski’s international dispute resolution team provided us with expert legal assistance on both matters. They were always very careful to explain to us what they were doing and why and what their actions would likely cost us in legal fees. Most importantly, we did extremely well on both cases and I have no doubt Harris Sliwoski was a big factor in that.
Kevin English, CEO We Are Camp
We have used Harris Sliwoski for legal help related to our international manufacturing. The lawyers with whom I worked had extensive familiarity with the international legal issues involved in our various projects and offered us key insights. I particularly appreciated how they always quickly and efficiently do what they say they will do and always within their cost estimates.
Andrea Barona Valladolid, Senior Legal Counsel Fairphone