By Lawyer Nguyen Nhu Hai – UniLaw LLC

MID-SIZE LAW FIRM PARTNER SALARY IN VIETNAM

Lessons from Professional Practice Disputes: The Case of HQ Notary Office

To understand the complexities of partner compensation and profit sharing within professional organizations in Vietnam, we must look at a significant case involving the HQ Notary Office. While this case involves a notary office, the legal principles regarding the rights of capital contributors and the distribution of profits are directly applicable to any law firm in Hanoi or law firm in Ho Chi Minh City organized as a partnership or a professional liability company.

In this dispute, a member identified as Mrs. H sued the heads of the HQ Notary Office, Mr. D and Mr. T2. Mrs. H alleged that the office had suffered a business loss of 189,000,000 VND in 2014. She claimed that this loss was not a result of market conditions, but rather because Mr. D and Mr. T2 had arbitrarily increased their own salaries, thereby siphoning off potential profits that should have been distributed to her as a capital contributor.

However, the court’s investigation revealed a different story. The evidence, including meeting minutes and resolutions regarding salary structures and payment schedules, showed that Mrs. H had been a consistent participant in these meetings. Not only was she present, but her signature was found on the very resolutions and payroll documents she was now challenging.

The Court’s Decision: The court applied Article 140 of the 2005 Law on Enterprises (which governed the rights of capital contributors at the time) and Article 19 of the Charter of the HQ Notary Office. The judgment concluded that there was no basis to accept Mrs. H’s request for profit sharing for 2014. Since she had actively participated in and consented to the salary increases and management decisions that led to the office’s financial state, she could not later claim those decisions were unauthorized or damaging to her rights.

This case serves as a stern warning for any lawyer in Hanoi or partner in an international law firm in Vietnam: your signature on internal management resolutions is binding. For firm owners, it emphasizes the importance of transparent corporate governance and documented consent to protect against future compensation claims.

The Regulatory Framework for Lawyer Remuneration and Salary

The financial relationship between a lawyer and their firm—or their client—is strictly governed by the Law on Lawyers. This is a critical consideration for those determining the mid-size law firm partner salary in Vietnam. The law distinguishes between “remuneration” (thù lao) received for services and “salary” (tiền lương) received under a labor contract.

Điều 55. Thù lao của luật sư

1. Thù lao được tính theo các phương thức sau đây:

a) Giờ làm việc của luật sư;

b) Vụ, việc với mức thù lao trọn gói;

c) Vụ, việc với mức thù lao tính theo tỷ lệ phần trăm của giá ngạch vụ kiện hoặc giá trị hợp đồng, giá trị dự án;

d) Hợp đồng dài hạn với mức thù lao cố định.

Interpretation: This article outlines the four standard ways lawyers in Vietnam can bill for their work. Whether you are charging by the hour or taking a percentage of a large M&A deal, the law recognizes these as valid commercial arrangements between a legal professional and their client.

Điều 56. Thù lao, chi phí trong trường hợp luật sư cung cấp dịch vụ pháp lý theo hợp đồng dịch vụ pháp lý

1. Mức thù lao được thoả thuận trong hợp đồng dịch vụ pháp lý; đối với vụ án hình sự mà luật sư tham gia tố tụng thì mức thù lao không được vượt quá mức trần thù lao do Chính phủ quy định.

2. Tiền tàu xe, lưu trú và các chi phí hợp lý khác cho việc thực hiện dịch vụ pháp lý do các bên thoả thuận trong hợp đồng dịch vụ pháp lý.

Interpretation: While partners in a law firm in Vietnam have freedom to negotiate fees with corporate clients, criminal defense work is subject to a government-imposed cap. This ensures that legal defense remains accessible while standardizing the minimum professional fees for state-requested cases.

Partner Compensation: Labor Contract vs. Profit Sharing

In a mid-size firm, many “Salaried Partners” operate under a labor contract, while “Equity Partners” rely on profit sharing. The Law on Lawyers provides specific guidance for those practicing as individuals under labor contracts, which often forms the baseline for partner-level base salaries.

Điều 58. Tiền lương theo hợp đồng lao động của luật sư hành nghề với tư cách cá nhân

Luật sư hành nghề với tư cách cá nhân làm việc cho cơ quan, tổ chức theo hợp đồng lao động được nhận tiền lương theo thoả thuận trong hợp đồng lao động. Việc thoả thuận, chi trả tiền lương được thực hiện theo quy định của pháp luật về lao động.

Interpretation: This confirms that if a lawyer is hired as an employee, their compensation is treated as a standard salary subject to the Labor Code. This includes protections for minimum wage, overtime, and social insurance, which differ from the risk-based profit distribution of an equity partner.

Điều 59. Giải quyết tranh chấp về thù lao, chi phí, tiền lương theo hợp đồng lao động

1. Việc giải quyết tranh chấp có liên quan đến thù lao và chi phí của luật sư được thực hiện theo quy định của pháp luật về dân sự.

2. Việc giải quyết tranh chấp về tiền lương của luật sư hành nghề với tư cách cá nhân làm việc cho cơ quan, tổ chức theo hợp đồng lao động được thực hiện theo quy định của pháp luật về lao động.

Interpretation: This is a vital distinction for law firms in Vietnam. If a partner sues for their share of firm profits (remuneration), it is a civil/commercial matter. If a salaried lawyer sues for unpaid wages, it is a labor dispute, which carries different procedural requirements and potentially heavier penalties for the firm.

Defining “Mid-Size” in the Vietnamese Legal Market

While the term “mid-size” is a market descriptor, Vietnamese regulations provide various capital and revenue indicators that help classify the scale of a business. These metrics often influence the “basic salary” levels used by firms to structure their internal pay scales.

According to supplementary data on business classification, companies (including professional service providers in category 12 “Other production and business fields”) can determine their base salary levels (mức lương cơ bản) by meeting specific capital and profit targets:

Nhóm ngành, lĩnh vực sản xuất, kinh doanh khác:

– Mức 1: Vốn tối thiểu 150 tỷ đồng; Doanh thu 300 tỷ đồng; Lợi nhuận 70 tỷ đồng.

– Mức 2: Vốn tối thiểu 100 tỷ đồng; Doanh thu 200 tỷ đồng; Lợi nhuận 30 tỷ đồng.

– Mức 3: Vốn tối thiểu 50 tỷ đồng; Doanh thu 150 tỷ đồng; Lợi nhuận 15 tỷ đồng.

Interpretation: These state-issued indicators provide a benchmark for what constitutes a large-scale vs. medium-scale operation in Vietnam. A law firm reaching a profit of 15 billion VND (Mức 3) would likely be considered a significant mid-size player in the local market.

For an international law firm in Vietnam, the scale is often determined by the number of foreign lawyers present. Vietnamese law mandates a minimum physical presence for foreign lawyer organizations.

Điều 68. Sửa đổi bổ sung Luật Luật sư:

151. Cam kết và bảo đảm có ít nhất hai luật sư nước ngoài, kể cả Trưởng chi nhánh, Giám đốc công ty luật nước ngoài có mặt và hành nghề tại Việt Nam từ 183 ngày trở lên trong khoảng thời gian liên tục mười hai tháng.

Interpretation: This regulation ensures that foreign firms are not just “shell” entities. They must have at least two senior foreign lawyers (who are often the high-earning partners) living and working in Vietnam for most of the year.

Structure and Management of Foreign Law Firms

The salary of a partner in an international law firm in Vietnam is also tied to the firm’s legal structure. Vietnam’s WTO commitments and the Law on Lawyers allow for several forms of commercial presence.,

Foreign lawyers organizations are permitted to establish commercial presence in Viet Nam in the following forms:

• Branches of foreign lawyers organizations;
• Subsidiaries of foreign lawyers organizations;
• Foreign law firms;
• Partnerships between foreign lawyers organizations and Viet Nam’s law partnerships.

Interpretation: The form of the firm dictates how profits flow back to the parent organization or are shared among local partners. A “Partnership” between a foreign and local firm (liên doanh) often involves a complex profit-sharing agreement that defines the mid-size law firm partner salary in Vietnam for the Vietnamese members.

Regarding the leadership of these entities:

Điều 72. Công ty luật nước ngoài

2. Giám đốc công ty luật nước ngoài là luật sư nước ngoài hoặc luật sư Việt Nam.

Interpretation: This allows a lawyer in Hanoi with sufficient experience to lead an international firm’s local office. Such a position typically commands the highest salary bracket in the local market, blending a high base pay with equity-like performance bonuses.

Capital Contributions and the Risks of Withdrawal

A “Partner” is fundamentally a member who contributes capital. In Vietnam, once you contribute capital to a firm, your ability to “withdraw” that money is strictly limited by law. This is a common source of litigation when a partner decides to leave a firm and wants their investment back.,,

Điều 50. Luật Doanh nghiệp (Nghĩa vụ của thành viên):

2. Không được rút vốn đã góp ra khỏi công ty dưới mọi hình thức, trừ trường hợp quy định tại các Điều 51, 52, 53 và 68 của Luật này.

Interpretation: You cannot simply treat your capital contribution as a bank deposit. If the firm is losing money, you cannot demand your original investment back just because you are unhappy. You must follow the legal routes of selling your share or requesting a formal redemption.

In the case of Mr. T vs. Company D, Mr. T contributed 3 billion VND (30%) to the firm. When the company began to suffer losses and bank debts, Mr. T demanded the company return his 3 billion VND capital contribution.

The court ruled against Mr. T, stating that there is no provision in the Law on Enterprises or the Firm’s Charter that allows a member to demand their capital back simply because the business is performing poorly. This underscores that a partner’s financial outcome is tied to the firm’s success or failure—the “salary” of an equity partner can technically be zero or negative (in terms of liability) if the firm is in debt.

Điều 50. Luật Doanh nghiệp:

“Góp đủ, đúng hạn số vốn đã cam kết, chịu trách nhiệm về các khoản nợ và nghĩa vụ tài sản khác của công ty trong phạm vi số vốn đã góp vào công ty”.

Interpretation: This defines the “limited liability” aspect. A partner’s risk is limited to their investment, but they are absolutely obligated to pay that full investment to cover firm debts.

Tax and Social Insurance Obligations for Partners

Compensation for partners in an international law firm in Vietnam is not just about the gross amount; it is heavily influenced by the tax and insurance regime. For foreign partners, their global income and presence in Vietnam (the 183-day rule) determine their tax residency.,

Điều 77. Quyền và nghĩa vụ của luật sư nước ngoài

2. Luật sư nước ngoài có các nghĩa vụ sau đây:

a) Nộp thuế thu nhập cá nhân theo quy định của pháp luật;

b) Tuân theo các nguyên tắc hành nghề luật sư, nghĩa vụ của luật sư theo quy định của Luật này; Quy tắc đạo đức và ứng xử nghề nghiệp luật sư;

c) Có mặt thường xuyên tại Việt Nam.

Interpretation: High-earning foreign partners are legally required to fulfill Vietnamese personal income tax obligations. The “frequent presence” requirement mentioned in point (c) is what often triggers tax residency status.

Furthermore, firms must navigate the complex social insurance (BHXH) landscape. Based on historical consultations by Unilaw, even international organizations must adjust their contributions based on new Vietnamese laws. For instance, in 2017, the contribution rates were standardized.

Consultation Note (ICRAF Case): The total social insurance contribution rate was clarified as 32% of the salary, with the employer (the firm) paying 21.5% and the employee (the lawyer) paying 10.5%.

Interpretation: For a mid-size firm, these “hidden” costs add a 21.5% premium on top of every salaried lawyer’s paycheck. For partners who are also employees (salaried partners), this must be factored into the total compensation package.

Management Liability: When Partners Cause Losses

A partner’s salary can be legally docked or withheld if they are found liable for damages caused to the firm through mismanagement. A notable case involves Mr. Kakazu S, who was the General Director of a transportation company.,

In this case, a shareholder (Mr. H1) sued the Director (Mr. Kakazu S), alleging that his decision to dismiss an employee (Mrs. V) was illegal and resulted in the company having to pay massive compensation. Mr. H1 demanded that the Director personally reimburse the company for this loss, which exceeded 280 million VND, plus other damages related to the liquidation of taxi assets without board approval.,

While the court ultimately found that the Director’s actions were within his authority (following a Supreme Court override), the litigation itself resulted in the Director’s salary being suspended for three years (from April 2017 to April 2020), totaling over 300 million VND in unpaid wages.,

Khoản 4 Điều 116 Luật Doanh nghiệp năm 2005 (Tham chiếu):

“Giám đốc hoặc Tổng giám đốc phải điều hành công việc kinh doanh hằng ngày của công ty theo đúng quy định của pháp luật, Điều lệ công ty, hợp đồng lao động ký với công ty và quyết định của Hội đồng quản trị. Nếu điều hành trái với quy định này mà gây thiệt hại cho công ty thì Giám đốc hoặc Tổng giám đốc phải chịu trách nhiệm trước pháp luật và phải bồi thường thiệt hại cho công ty”.

Interpretation: This creates a direct legal link between a partner’s management performance and their personal wealth. If a partner in a law firm in Ho Chi Minh City makes a “grossly negligent” decision, they aren’t just losing their bonus; they may be legally required to pay the firm back from their own pocket.

Billing Methods and Partner Performance

The “salary” of a partner in a competitive mid-size law firm is often a reflection of their “billables.” Vietnamese law recognizes the flexibility needed for these commercial arrangements.

As per Article 55, partners can be compensated based on:

• Hourly rates: Common in an international law firm in Vietnam for complex cross-border work.
• Fixed fees (Trọn gói): Often used for standard licensing or incorporation services.
• Contingency/Percentage fees: Frequently used in high-stakes commercial litigation or debt recovery.

Disputes over these fees are handled under civil law:

Điều 59. Giải quyết tranh chấp…

1. Việc giải quyết tranh chấp có liên quan đến thù lao và chi phí của luật sư được thực hiện theo quy định của pháp luật về dân sự.

Interpretation: If a client refuses to pay a partner’s bill, the firm must sue the client in a civil court. The success of this litigation directly impacts the partner’s year-end profit distribution.

Professional Indemnity Insurance: A Mandatory Cost

A partner’s net income is also affected by mandatory professional costs. Unlike a regular employee, a practicing lawyer in a firm must be insured.

Điều 49. Luật sư hành nghề với tư cách cá nhân (Sửa đổi):

94. Trường hợp hợp đồng lao động có thỏa thuận thì luật sư hành nghề với tư cách cá nhân phải mua bảo hiểm trách nhiệm cho hoạt động hành nghề của mình theo quy định của pháp luật về kinh doanh bảo hiểm.

For law firms (organizations):

Điều 73. Quyền, nghĩa vụ của chi nhánh, công ty luật nước ngoài:

196. d) Mua bảo hiểm trách nhiệm nghề nghiệp cho các luật sư hành nghề tại Việt Nam theo quy định của pháp luật về kinh doanh bảo hiểm.

Interpretation: A firm cannot legally operate or pay its partners without first securing professional indemnity insurance. This protects the firm’s assets (and the partners’ distributions) from being wiped out by a single malpractice claim.

Fines and Penalties Affecting Law Firm Revenue

The profitability of a firm—and thus partner salaries—can be eroded by administrative fines if the partners fail to maintain strict compliance with the Law on Lawyers.,

Decree 82/2020/ND-CP (derived from source fines list):

• Fine of 7,000,000 to 10,000,000 VND: For providing legal services to entities other than the firm the lawyer has signed a labor contract with.
• Fine of 15,000,000 to 20,000,000 VND: For allowing a person who is not a lawyer of the firm to practice law in the name of the organization.
• Fine of 30,000,000 to 40,000,000 VND: For providing legal services to clients with conflicting interests in the same case.

Interpretation: Professional ethics aren’t just moral guidelines; they are financial liabilities. A partner who brings in a high-paying client but ignores a conflict of interest can cost the firm tens of millions in fines and millions more in lost reputation and potential lawsuits.

Conclusion: Navigating the Market in 2024 and Beyond

While the actual figures for mid-size law firm partner salary in Vietnam are not explicitly mandated by the state, the regulatory framework ensures that compensation is tied to capital contribution, contractual agreement, and professional compliance.,

Whether you are at a local law firm in Ho Chi Minh City or a prestigious international law firm in Vietnam, the lessons are clear:

1. Consent is final: Your participation in internal management and salary resolutions prevents later claims for “unfair” distribution.
2. Capital is locked: Do not expect a quick return of your capital contribution if you leave; you must sell your shares or find a legal buyer.,
3. Compliance is profit: Avoiding conflicts of interest and maintaining proper registration protects the firm’s bottom line from administrative penalties.
4. Tax and Insurance are unavoidable: 32% social insurance and progressive personal income tax must be calculated into any “gross” partner salary offer.

Unilaw continues to provide comprehensive support for both local and foreign lawyers navigating the complexities of firm establishment, partner agreements, and internal dispute resolution in Vietnam. Understanding these legal pillars is the first step toward a successful and sustainable career in the Vietnamese legal market.

Note: The specific market salary figures mentioned in the title analysis are based on common industry estimates and should be independently verified as firm-specific data is proprietary.