Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 39

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 39
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or a change in the economic, political and legal environment of Vietnam may adversely affect our business, financial condition and results
of operations.

Any downturn in Vietnam’s economy, or a
change in the economic, political and legal policies in Vietnam could adversely affect our business and financial condition. Vietnam’s
economy differs from the economies of many countries in such respects as governmental involvement, level of development, growth rate,
allocation of resources and inflation rate. Prior to the 1990s, Vietnam’s economy was largely a planned economy. Since about 1987,
increasing emphasis has been placed on the utilization of market forces in the development of the economy. Although state owned enterprises
still account for a substantial portion of Vietnam’s industrial output, the Vietnamese government in general is reducing the level
of direct control that it exercises over the economy through state plans and other measures. It is our understanding that there is an
increasing level of freedom and autonomy in areas such as resource allocation, production and management and a gradual shift in emphasis
to a market economy and enterprise reform.

Although the Vietnamese government has made progress
in economic reform and development of its legal landscape, there remain inherent uncertainties and inconsistencies in the interpretation,
implementation and enforcement of laws and government policies. Many of the reforms are unprecedented and experimentative, and may be
subject to revision, change or abolition, depending upon the outcome of these experiments. There can be no assurance that the Vietnamese
government will continue to pursue policies of economic reform or that any reforms will be successful or the impetus to reform will continue.
If any of the changes adversely affect us or our business, or we are unable to capitalize on the economic, political, or legal reform
measures of the Vietnamese government, our business, financial condition and results of operations could be adversely affected.

Uncertainties regarding the interpretation
and enforcement of Vietnam laws, rules and regulations, which could change at any time, could limit the legal protections available to
us

The legal system of Vietnam differs from most
common law jurisdictions, in that it is a system in which decided legal cases have little precedential value. The laws and regulations
are subject to broad and varying interpretations by government officials and courts. For vague regulations, the courts of Vietnam have
the power to read implied terms into contracts, adding a further layer of uncertainty. As a result, government officials and courts often
express different views from lawyers’ on the legality, validity and effect of a particular legal document. In addition, the views
of governmental authority