On the afternoon of June 29, 2024, in Ho Chi Minh City, within the framework of the 2024 Executive Training Program organized by the Ho Chi Minh City Branch of the Vietnam Chamber of Commerce and Industry (VCCI HCM), the Vietnam International Arbitration Centre (VIAC), in cooperation with VCCI HCM, held a seminar titled “Sharing on Effective Legal Governance Models in Businesses.” The seminar aimed to facilitate exchange and sharing between CEOs of law firms and the business management community. It attracted over 100 participants, including CEO course trainees, lawyers, legal officers, and representatives of businesses interested in legal governance issues.
Mr. Chau Viet Bac, Deputy Secretary General of the Vietnam International Arbitration Centre (VIAC), shared insights on the importance of managers identifying the unique characteristics of their businesses to develop strategies and choose a legal governance model suited to their organization’s needs and capabilities. He further noted that this exchange seminar is a testament to the increasingly effective collaboration between VIAC and VCCI, aimed at providing closer support to businesses, especially managers, in legal matters and legal governance systems.
Mr. Le Thanh Kinh – Director of Le Nguyen Law Firm and VIAC Arbitrator
Moving into the second part of the program about specific models, Mr. Le Thanh Kinh, Director of Le Nguyen Law Firm and VIAC Arbitrator, shared insights on the legal governance approach of assigning legal tasks to non-specialized in-house personnel or outsourcing legal services to an external law firm. With the in-house multitasking model, managers do not establish a separate legal department but rather assign legal tasks to non-specialized staff from other departments. According to Mr. Kinh, this model is often found in small companies where the cost of setting up a dedicated legal department is prohibitive, and managers assess that the likelihood of complex legal risks is low, allowing them to leverage existing internal resources for legal roles. However, he noted that managers should consider the effectiveness of task handling, as personnel from other departments may lack specialized legal skills, and coordinating from a leadership perspective may be challenging when ensuring continuity and quality of work. Regarding the option of outsourcing to an external law firm, he highlighted that, with the advantages of highly skilled personnel and objectivity in handling tasks, this approach allows leaders to focus more on business operations. However, since the external firm is not under direct management, timely response to urgent matters, deep understanding of the organization’s operations and culture, and service costs—dependent on the complexity of the case or the law firm’s reputation—are factors that make managers hesitant to engage external lawyers. The speaker concluded that choosing between using non-specialized in-house personnel or outsourcing legal services depends on several factors, including the company’s size, budget, type, and complexity of legal issues faced.
Mr. Tran Duy Canh – Managing Partner at Dentons Luat Viet and VIAC Arbitrator
During his share about the second model, Mr. Tran Duy Canh, Managing Partner at Dentons Luat Viet and VIAC Arbitrator, provided in-depth insights into the establishment and operation of a dedicated legal department within a business. The legal department plays a vital role in safeguarding the company's rights and ensuring legal compliance. With benefits such as clear cost control over legal matters for managers and the ability to quickly address issues, leaders considering whether to set up an internal legal team still need to weigh factors like the high initial costs of establishing the department, complex management, and limitations in specialization within the company. A careful comparison of the pros and cons is necessary to ensure this legal system’s efficiency and sustainability. Once the decision is made to establish an in-house legal department, challenges arise regarding how to manage, operate, and evaluate its performance, especially given the unique nature of the legal field. To address these challenges, practical suggestions include learning from leading companies, applying best management practices, and integrating the legal department into the company’s unified and overall business strategy set by management. Reflecting on the current landscape, the expert believes the future of legal departments is boundless, especially in the era of technological advancement, where integrating technology into workflows is both feasible and highly anticipated. Additionally, there is a growing need to develop specialized training for staff assuming these roles within the organization.
Ms. Hoang Nguyen Ha Quyen – Managing Partner at LNT & Partners, VIAC Arbitrator, and VMC Mediator
Drawing from her extensive experience in corporate consulting, Ms. Hoang Nguyen Ha Quyen, Managing Partner at LNT & Partners, VIAC Arbitrator, and VMC Mediator, discussed the hybrid model that combines an in-house legal team with external legal services from specialized law firms. Delving into the day-to-day tasks handled by in-house legal staff, Ms. Quyen outlined how the scale of this department varies across businesses. For complex cases and tasks that demand higher expertise than what in-house legal staff typically possess, companies often require the intervention and support of external law firms. She presented common scenarios where businesses adopt a hybrid approach, such as large contracts, activities involving foreign elements, high-risk areas of legal violation, and fields under stringent legal requirements like M&A, counterfeit issues, competition law, brand risks, and international law. Alternatively, businesses may turn to external legal services when facing a heavy workload, particularly with large-scale projects that surpass the internal team’s capacity. She further explained why larger businesses often favor this approach, as it can be more cost-effective than hiring full-time specialists. This method also suits companies dealing with infrequent legal issues or those undertaking investment projects in other legal jurisdictions, where partnering with local law firms enables managers to gain more practical and tailored solutions.
Following the speakers' experience-sharing sessions, a lively discussion took place, moderated by Mr. Nguyen Doan Thong, Head of VCCI Bureau for Employers’ Activities, and Mr. Chau Viet Bac, Deputy Secretary General of VIAC, joined by three experts: Mr. Le Thanh Kinh, Director of Lê Nguyễn Law Firm and VIAC Arbitrator; Mr. Tran Duy Canh, Managing Partner at Dentons Luat Viet and VIAC Arbitrator; and Ms. Hoang Nguyen Ha Quyen, Managing Partner at LNT & Partners, VIAC Arbitrator, and VMC Mediator, along with all the delegates present in the hall. Numerous questions were raised about in-house legal management and the best practices for addressing legal issues from an expert’s perspective, with many solutions and detailed recommendations provided by the speakers. At the close of the seminar, representatives from the training program extended tokens of appreciation to the experts, fostering a warm and collegial atmosphere.
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