Oliver Massmann is a lawyer in Vietnam who was interviewed about his law firm Duane Morris being elected the best first tier law office in M&A in Vietnam. He identifies some key ingredients to their success including focusing on their expertise, providing quality work, maintaining existing client relationships, and establishing relationships which is important in Vietnamese business culture. Massmann also discusses the opportunities and challenges of the EU-Vietnam Free Trade Agreement for Vietnam, and how Germany supports Vietnam's legal and economic development through cooperation and can serve as a role model.

1. Lawyer in Vietnam Oliver Massmann - Interview by German News
on his successful election as Leading Lawyer Legal 500
Q1: Duane Morris was elected the best first tier law office in M&A in Vietnam.
Congratulations Mr. Massmann. What is your key to success in a country like Vietnam?
A: Law has never been an easy business, and this is especially so today. Every managing
partner would love to have a magic formula for success. For more than 20 years working here
and advising many multi-national companies as they explore investment and business
opportunities in Vietnam, I have identified some ingredients that contribute to our success in
a country like Vietnam.
First, we focus on what we do well, try to improve on those areas of expertise and use this
strength to growth our client base around our expertise.
Secondly, we recognize that "quality work" is the most important for a law firm. Clients are
increasingly demanding and it is our responsibility to provide them with our best products.
Thirdly, we are aware that 80% of the business development potential of a law firm comes
from existing clients, only 20% of the potential rests in the remainder of the marketplace.
Clients are potential sources of repeat business, therefore, we have found an effective tool for
developing clients as sources of repeat and referral business. To maintain our existing clients,
we don't just make greater efforts to "deeply understand" our clients, we actually find ways to
“live” with them. Clients value lawyers and law firms who know how to communicate and
are sensitive to their needs and concerns.
Fourthly, relationships are key as with most other Asian countries, establishing and
maintaining relationships is at the heart of doing business in Vietnam. Decisions made by
Vietnamese partners can be influenced by the strength of relationships. It is therefore
important to invest the time and effort to build trust and a rapport with your proposed
Vietnamese partner.
Q2: Germany is the biggest trade partner of Vietnam in the EU.
However, trade balance is negative for Germany.
How can Germany increase exports to Vietnam?
A: Germany’s principal exports to Vietnam are machinery, motor vehicles, equipment and
chemical products. Vietnam has set its sights on becoming an industrialized country by 2020.
This means the country will need more sophisticated production facilities, which is likely to
translate into increased demand for machinery made in Germany.
German food and drink exporters see Viet Nam as an ideal export destination and an
increasingly important market. In terms of absolute export value, milk products, baking
seeds, malt and potato products were the top four product categories. In the future, exports
might increase further as Viet Nam still cannot produce all of what it needs. Milk, for
example, is in high demand in Viet Nam, while there is an oversupply of milk products in
Germany.
Does Vietnam have potential to increase trade relations ?
Yes.
In recent years, Vietnam – Germany trade relationship has developed actively. According to
the statistics of General Department of Vietnam Customs, up to the 4th quarter of 2014,
Vietnam’s export value to Germany has achieved US$ 3.7 billion.

2. In future, German cooperation development will help Vietnam achieve more sustainable
economic growth and enhance its competitiveness in the future 2015 ASEAN economic area.
Currently, Germany and Vietnam are focusing their cooperation on vocational training, the
environment (biodiversity and coastal protection) and energy (energy efficiency and
renewable). In addition, Ho Chi Minh City as the major economic center is the location of
many of more than 300 German companies currently operating in Vietnam.
Germany is not only a direct bilateral trade partner of Vietnam but also one of Vietnam’s few
strategic partners. Germany is also the gateway for Vietnamese products to be exported to
European markets. The Vietnam-EU Free Trade Agreement (FTA) will create favorable
conditions for Vietnam's products to enter German market as well as other countries in the
EU.
Q3: The FTA between Europe and Vietnam - the increase of Vietnam's integration with
the global economy. What are the opportunities and dangers for Vietnam? How can
legal compliance be ensured ("informal conventions")?
A: The FTA will open up numerous opportunities for Vietnam, especially exports which are
expected to profit from tax reductions. At present, the EU is imposing high taxes on
Vietnam’s main exports to the market, including footwear, textiles and garments, and
seafood. Reductions on tax rates for most of the products under the FTA framework will give
Vietnam an advantage over its rivals in the EU markets.
The FTA will eradicate almost all trade barriers between the EU and Vietnam. For instance,
99 percent of all tariffs will be eliminated over the next decade. Within this different
transition periods will be implemented to ease Vietnam into an increasingly liberalized
economy.
The FTA will also allow EU companies to bid for Vietnamese public contracts with bodies
such as local ministries, state-owned enterprises, public hospitals and the most lucrative
contracts in Hanoi and Ho Chi Minh City. Furthermore, the Vietnamese market will be more
open to EU service operators.
While it would be difficult to deny the potential benefits FTAs may bring, the adverse effects
of FTAs may be equally enormous, especially for developing countries like Vietnam.
Technical barriers related to epidemiology and hygiene as well as animal and plant
quarantines as challenges for Vietnamese goods entering the EU market. Product origins will
be another obstacle for Vietnamese businesses. Recently, Vietnamese food exports were
found to violate EU hygiene requirements on at least two occasions. The EU maintains
discretionary power to ban the import of products if there are more than five violations in any
given year.
To coincide with the EU’s tax reduction move, Vietnam will also have to cut taxes on
imported goods. And how Vietnamese businesses can survive and compete with similar items
imported from the EU remains an open question.
Q4: Rising income inequality and corruption. Investment climate can be affected in
spite of economic growth.
How important are the German-Vietnamese relations for the socio- economic
development of Vietnam? How can Germany be a role model for Vietnam?
A: In 2015, Vietnam and Germany are celebrating the 40th anniversary of the establishment
of diplomatic relations.
In October 2011, Federal Chancellor Angela Merkel and Prime Minister Dung signed the so-
called Hanoi Declaration, establishing a Strategic Partnership between Germany and Vietnam

3. that is designed to strengthen political, economic and cultural relations and development
cooperation.
Germany supports the reform of Vietnam’s legal system and to this end is conducting the so-
called German-Vietnamese rule-of-law dialogue, which addresses a number of issues
including advice on legislative proposals in Vietnam; further development of the country’s
legal system; further training for judges, public prosecutors, lawyers and notaries; advice on
implementing international conventions and regulations; reform of civil law, civil procedure
law, labour, trade union and social law; further development of criminal and criminal
procedure law, of commercial law and of constitutional jurisdiction; and promoting human
rights and legal aid.
Many countries would love to import Germany’s role model. To be sure, Germany has its
strengths: world-renowned companies, low unemployment, and an excellent credit rating,
good infrastructure and education system. Germany supports Vietnam in education training,
telecom development and transport infrastructure, e.g, investment in the Vietnam-Germany
University to turn it into an exemplary role model in education cooperation (through the
German Agency for International Cooperation (GIZ)) and construction of five bridges and
four schools in the southern province of Soc Trang (through Schmitz Stiffung Foundation).
Vietnam is implementing a pilot plan to teach German in several universities in the country.
Germany is 22nd out of 101 countries and regions investing in Vietnam with 232 effective
projects and the total registered capital of US$ 1.25 billion. About 250 German enterprises,
such as Siemens, Euro Auto BMW, Schaeffler, Deutsche Bank Adidas, PUMA, BOSCH,
B.Braun, Bayer, Mercedes-Benz, BASF, Fresenius just to name a few, are operating
successfully and effectively in Vietnam.
Q5: Has the Investment Law introduced in 2014 shown success? What are the
determinants that German investors should take into consideration?
A: The new Law on Investment was adopted by the Vietnam’s National Assembly in
November 26, 2014 and took effect as from 1st July 2015.
This statute aims to reduce administrative bureaucracy, protect the rights and interests of the
investors, shareholders and business members, and meanwhile to improve the management of
foreign investment, which will hopefully create a new wave of foreign investment into
Vietnam.
Many German businesses have expanded their operations into Vietnam, as German FDI into
Vietnam has increased considerably from USD 56.2 million in 2008 to USD 169 million in
2014. German companies rank 15th among foreign investors in Vietnam. And the
determinants that German investors should take into consideration to invest in Vietnam
including business environment, market potential, quality of infrastructure (transportation,
power, telecommunication and IT), and skilled workforce.
Q6: How did you as a German manage to integrate into the Vietnamese culture? Which
values of the Vietnamese have you incorporated during your time in Vietnam?
A: Many European countries are on opposite side of culture when compared with Vietnam.
The first gap in communication between foreign business person and Vietnamese is the
language. That’s why my first step was to study Vietnamese, go to the park, market, cafe and
teashops to observe how people talk to each other; how men behave with women; and how
children behave with their parents, etc.
Ignoring the culture is one of the biggest mistakes that a manager can make; however, in
reality this happens quite often. Many foreign companies operating in Vietnam are facing a

4. human crisis because of culture are improperly understood and respected. As a foreigner
manager, I need to understand the status such things as age, title and background of the
people I am working with. It is very important to establish a good relationship with a
colleague or client. In Vietnamese society, if people don’t trust you they will not do business
with you. They only agree to co-operate if they think that you are reliable, honest or
hardworking.
During my time in Vietnam, I recognize that the Vietnamese seems to have a great love for
knowledge and learning. People associated with knowledge and learning have always been
highly respected.
To the Vietnamese, a good name is better than any material possession in this world. By
securing a good name, you can get admiration from your fellow and partners.
***
Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if
you have any questions or want to know more details on the above. Oliver Massmann is the
General Director of Duane Morris Vietnam LLC.