Insufficient Corporate Lawyers for International Economic Disputes

Vietnamese companies encountering repeated international trade disputes in recent years include Vietnam Airlines, and basa catfish exporters to the United States, and similar issues were faced in Mr Buu Huy’s detainment in Belgium. Vietnam’s experience in international courts has been mostly negative. Both subjective and objective reasons led to these proceedings, but limited observance of international law by Vietnamese firms is a core factor. Vietnam Airlines’ compensation to an Italian agent was clear proof. When the court sent a writ to Vietnam Airlines, the carrier did not send a representative to the court, because it thought it was right and the claimant could not win. However, the carrier definitely lost when the court took a compulsory measure.

This is a clear lesson for other Vietnamese companies penetrating the global market. Nonetheless, the losses of Vietnamese companies in international disputes are also related to the weak roles played by Vietnamese lawyers, especially economic solicitors. According to experts, Vietnam’s legal community cannot meet the demands of the country’s international integration process because of the limited number of lawyers and low quality of training.

 

Hanoi now has more than 1,300 barristers, including 36 doctors and 50 masters. However, according to Lawyer Pham Hong Hai, chief of Hanoi Bar Association, only 5 per cent of lawyers can work in the WTO environment. At the national level, Vietnam is home to more than 4,000 lawyers, but only a few of them have the capability to follow economic proceedings. The percentage is much lower than the above rate in Hanoi.

Previously, a lawyer had to be equipped with a good knowledge of laws, society, professionalism, career ethics and social relationships. In the current integration period, in addition to the above requirements, each lawyer must also be proficient at foreign languages and computer use. Language is now a barrier to most Vietnamese lawyer’s careers. This is a barrier to studying international law; thus, barristers can provide little help to local firms in case of international trade disputes.

 

The losses of Vietnamese companies in following legal proceedings against foreigners prompted Vietnam to review its position, the roles of the law, and the demand for solicitors, as it is penetrating deeper into the world business market.

 

Vietnamese firms faced a series of international lawsuits, and they usually lost. The losses were not only direct economic hits, but also narrowed approaches to new opportunities in importing markets. It may be time to review the lawyer force, especially economic barristers, and the training at law schools.