When operating in Vietnam, 100% foreign-owned enterprises must navigate a complex and constantly changing legal system. Is an outsourced legal department truly a safe, cost-effective, and efficient solution? How can businesses ensure legal compliance while optimizing operational costs from the very beginning?
When entering or expanding in the Vietnamese market, many foreign-invested enterprises focus heavily on market development, human resources, and products, while unintentionally overlooking legal compliance. However, even a minor mistake in contracts, taxation, labor matters, or licensing can lead to disputes, administrative penalties, or even suspension of operations.
An outsourced legal department allows enterprises to operate without maintaining an in-house legal team while still being supported by experienced lawyers on an ongoing basis. This model not only helps resolve legal issues when they arise but also plays a crucial role in preventing legal risks from the outset.
Many foreign investors have experienced situations where their business was suddenly inspected despite stable operations, or long-term disputes arose from a poorly drafted contract clause. Common risks include:
Failure to promptly update new regulations on investment, taxation, labor, and transfer pricing
Commercial contracts drafted under foreign standards that do not comply with Vietnamese law
Errors in managing foreign employees, work permits, and internal labor regulations
Lack of legal strategy when dealing with authorities or local partners
These risks may not appear immediately, but once they occur, the costs of resolution can be substantial, directly affecting reputation and business plans.
Many FDI enterprises consider hiring in-house legal counsel, but this model has notable limitations. Salary, insurance, and training costs are high, while the scope of expertise is often limited. One in-house lawyer may find it difficult to deeply cover investment, tax, labor, M&A, and dispute resolution simultaneously.
In contrast, an outsourced legal department enables enterprises to access a multidisciplinary legal team that responds flexibly to actual needs, without incurring high fixed personnel costs.
With extensive experience supporting foreign-owned enterprises in Vietnam, DEDICA Law has developed an outsourced legal department model focused on both legal risk prevention and effective risk handling.
Outsourced legal services go beyond answering legal questions. DEDICA acts as a “corporate legal counsel,” deeply involved in business operations, including:
Ongoing legal advice on investment, corporate matters, taxation, and labor
Drafting and reviewing commercial contracts and bilingual internal agreements
Supporting procedures with authorities: license amendments, investment reporting
Legal strategy consulting for expansion, restructuring, and M&A
Early legal risk warnings and preventive solutions
Enterprises no longer need to wait until problems arise to seek legal advice—they always have a legal partner guiding and supporting them from the beginning.
Compared to self-handling or hiring lawyers on a case-by-case basis, an outsourced legal department offers clear advantages:
Cost efficiency: service-based fees without fixed personnel expenses
Risk reduction: regular legal reviews help avoid unnecessary violations
Greater business confidence: decisions are made on a solid legal foundation
International expertise: lawyers experienced with FDI enterprises and foreign investor perspectives
Especially as Vietnam tightens regulations on taxation, investment, and foreign labor, an outsourced legal department acts as a “legal shield” protecting businesses from constant regulatory changes.
At later stages, many enterprises realize that preventive legal costs are far lower than dispute resolution costs. If you are operating a 100% foreign-owned enterprise or planning to invest in Vietnam, now is the right time to build a solid legal strategy from the start.
Are you facing a similar situation?
Contact DEDICA Law for tailored legal solutions.
📞 Hotline: (+84) 39 969 0012 (WhatsApp, WeChat & Zalo available)
🕒 Working hours: Monday – Friday (8:30 – 18:00)
Contact us now for a free initial consultation with our professional legal team.
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