As businesses expand and operations become more complex, legal issues are no longer occasional concerns—they become part of daily decision-making. Contracts, labor compliance, licensing, regulatory reporting, data protection, and dispute prevention all require continuous legal attention. However, not every business is ready or able to maintain a full in-house legal team.
This is why the concept of an outsourced legal department has become increasingly popular, especially among foreign-invested enterprises (FDI companies) operating in Vietnam. Instead of hiring an in-house lawyer or relying on ad-hoc legal advice, businesses engage a law firm to provide ongoing legal support on a long-term basis.
This article explains what an outsourced legal department is, how it works, and which businesses should consider using this model.
An outsourced legal department is a legal service model in which a law firm acts as a company’s external legal team, providing continuous legal advice and support under a monthly or annual retainer arrangement.
Rather than responding only when legal problems arise, the law firm becomes familiar with the company’s operations, business model, and risk profile. This allows legal issues to be identified early and addressed proactively.
In practice, an outsourced legal department performs many of the same functions as an internal legal team—without the costs associated with recruitment, salaries, training, and employee benefits.
Under an outsourced legal department arrangement, legal support is provided on an ongoing basis and tailored to the client’s actual needs.
Typical support includes:
Day-to-day legal advice for management and operational teams
Drafting, reviewing, and negotiating contracts
Guidance on labor and employment compliance
Corporate governance and licensing compliance
Regulatory advice related to daily operations
Legal updates affecting the business
Support during inspections, audits, or disputes
Because the legal team works with the company continuously, advice is practical, consistent, and aligned with business objectives rather than isolated legal opinions.
Many businesses rely on traditional legal services, where lawyers are consulted only when a dispute arises or a specific issue needs resolution. While this approach may seem cost-effective in the short term, it often creates higher risks in the long run.
Legal issues such as invalid contracts, improper labor termination, missing licenses, or unreported changes typically develop over time. When discovered late, these issues are more expensive and difficult to fix.
An outsourced legal department shifts the focus from reactive problem-solving to proactive risk prevention, which is particularly important in a regulatory environment like Vietnam.
Although the scope can be customized, outsourced legal departments commonly support businesses in the following areas:
Ensuring compliance with Enterprise Registration Certificates (ERC), Investment Registration Certificates (IRC), and corporate governance requirements. This includes advice on capital contribution, changes in shareholders, legal representatives, and internal resolutions.
Reviewing and drafting commercial contracts, assessing legal risks in transactions, supporting negotiations, and ensuring that contracts are enforceable and aligned with current law. Bilingual contract support is especially important for foreign-invested companies.
Advising on employment contracts, internal labor regulations, salary structures, disciplinary actions, and termination procedures. For foreign employees, this includes work permits, visas, and residence cards.
Providing legal guidance on day-to-day operational issues, compliance with industry-specific regulations, and responding to inquiries or inspections from authorities.
Monitoring legal changes and advising how new regulations affect business operations, helping companies update internal processes before compliance risks arise.
An outsourced legal department is not limited to large corporations. In practice, it is particularly suitable for the following types of businesses:
FDI companies in Vietnam face additional legal requirements related to investment, foreign ownership, reporting obligations, and conditional business lines. Language barriers and differences in legal culture further increase compliance risks.
An outsourced legal department helps FDI companies navigate Vietnamese regulations confidently, communicate effectively with local authorities, and reduce legal exposure.
Many SMEs require regular legal support but cannot justify the cost of hiring a full-time in-house lawyer. As a result, legal issues are often handled by accounting or HR teams without legal training.
An outsourced legal department provides SMEs with access to experienced lawyers at a predictable cost, allowing them to manage risks effectively while focusing on growth.
Rapid expansion often creates legal blind spots. New contracts, new hires, new business lines, and new regulatory requirements appear quickly.
For fast-growing companies, an outsourced legal department ensures that legal compliance keeps pace with business development, preventing small issues from becoming major obstacles.
Many companies operate successfully without an internal legal department—but this does not eliminate legal risk. Instead, it often delays risk detection.
An outsourced legal department fills this gap by providing centralized legal oversight and consistent advice, without changing the company’s internal structure.
One of the main advantages is cost efficiency. Businesses avoid the long-term costs of in-house legal staff while still receiving professional support.
Another key benefit is proactive risk management. Legal risks are identified early, reducing the likelihood of disputes, penalties, or operational disruptions.
Businesses also benefit from business-oriented legal advice. Because the legal team understands the company’s operations, advice is practical and aligned with commercial goals.
Finally, predictable legal costs allow businesses to budget more effectively, eliminating unexpected legal expenses.
DEDICA offers ongoing legal consultancy services designed to act as an outsourced legal department for businesses operating in Vietnam, particularly foreign-invested enterprises.
DEDICA’s services typically include:
Continuous legal advice for daily operations
Regular legal compliance reviews and risk assessments
Contract drafting and review
Labor, corporate, and regulatory compliance support
Legal updates relevant to the client’s industry
DEDICA’s approach is practical, proactive, and long-term, focusing on preventing legal risks rather than reacting to them after they occur.
An outsourced legal department is a smart and flexible solution for businesses that need regular legal support but do not require a full-time in-house legal team. It combines professional expertise, proactive risk management, and predictable costs into one comprehensive service.
For businesses operating in Vietnam—especially foreign-invested enterprises—this model provides a strong legal foundation for sustainable growth and compliance.
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