What is Legal Affairs? Understanding the Concept and Role.

Legislation is an important term in many fields, from state management to business operations and social life. Many people may have heard of it but don't really understand it.What is Legal/Legislation/Law?, and its role in the Vietnamese context. This article will analyze in detail the concept, functions, and significance of legal compliance, especially in the business and management environment in Vietnam.

Understanding the correct concept of "pháp chế" (legal framework/legality)

The term "pháp chế" originates from Chinese, with "pháp" meaning law, and "chế" meaning system, rule, or method. Simply understood, "pháp chế" refers to a system of strict, widespread, and unified adherence to the law. It encompasses the drafting, promulgation, organization of implementation, and supervision of compliance with legal regulations.

In the Vietnamese legal system, the rule of law is not only compliance but also a fundamental operating principle of the state and society. Article 8 of the 2013 Constitution stipulates: "The State is organized and operates under the Constitution and law, manages society by the Constitution and law, and implements the principle of democratic centralism." This affirms the supreme role of law in all activities, from the highest level of the state to every citizen.

Legislation in State Management

For state agencies, the rule of law is reflected in the requirement that all activities must be conducted according to the correct authority, procedures, and formalities prescribed by law. Administrative decisions and legal norms issued must be consistent with the Constitution and current laws. For example, when the Ministry of Finance issues circulars guiding tax regulations, it must ensure compliance with the Corporate Income Tax Law, the Value Added Tax Law, and must not create regulations that contradict these laws.

Furthermore, legislation also requires state agencies to regularly inspect and supervise the implementation of laws. For example, the Government Inspectorate is responsible for inspecting the compliance with laws by ministries, sectors, and localities, in order to promptly detect and handle violations.

Corporate Legal Affairs

In the business environment in Vietnam, legal is an indispensable department, especially for large enterprises and multinational corporations. The legal department of a company is responsible for ensuring that all business, investment, labor, and contractual activities comply with legal frameworks.

For example, FPT Corporation has its own legal department, responsible for providing legal advice on mergers and acquisitions (M&A), managing contracts with partners, resolving labor disputes, and ensuring compliance with regulations on competition and personal data protection (such as Decree 13/2023/ND-CP on personal data protection). A real estate company like Vinhomes needs a legal department to review the legality of projects, construction permits, and sales contracts with customers, to avoid legal risks that could cause hundreds of billions of VND in damages.

Functions and roles of legal affairs

The legal framework is not just an abstract concept; it also has specific functions and roles, bringing many practical benefits to society and businesses.

Ensuring the rule of law

This is the core role of legislation. It ensures that laws are respected and strictly enforced. When the law is upheld, it creates a stable, fair, and transparent environment, encouraging investment and economic development. A typical example is the clear regulation of intellectual property, which helps businesses like Viettel or VNPT protect their inventions and brands, promoting innovation. Without strong legislation, copyright infringement, counterfeit goods, and imitation products would become rampant, causing serious damage to the economy.

Prevention and limitation of legal risks

For businesses, the legal department's function of preventing legal risks is extremely important. Legal specialists will review draft contracts, internal procedures, and business policies to identify and eliminate provisions that could be detrimental or violate the law.

For example, a bank like Vietcombank needs a legal department to review credit agreements and mortgage contracts to ensure they comply with the Law on Credit Institutions and the Civil Code, thereby avoiding disputes arising from unclear or illegal terms. Such disputes could lead to prolonged lawsuits lasting years and damages amounting to tens of billions of Vietnamese dong. According to statistics from the Supreme People's Court, disputes over economic contracts account for a significant proportion of civil cases.

Dispute resolution and protection of legitimate rights

When disputes arise, the legal department plays a crucial role in advising, representing, or assisting the business in resolving disputes through negotiation, mediation, or litigation in court/arbitration. For example, in a lawsuit between two businesses over a commercial contract, the legal team will gather evidence, analyze relevant legal provisions (such as the Civil Code, Commercial Law), and build a legal strategy to best protect the company's interests.

Business consulting and support

The legal department also provides in-depth legal consulting services to the board of directors and other departments within the company. These consultations may relate to the establishment of branches, mergers of subsidiaries, stock issuance, and compliance with environmental, labor, and advertising regulations. For example, a pharmaceutical company needs legal advice to ensure strict compliance with Ministry of Health regulations regarding the production, distribution, and advertising of drugs.

Legal Framework in Vietnam: Unique Characteristics

The legal system is being perfected

The Vietnamese legal system has made great strides but is still in the process of being perfected. This places high demands on legal specialists, who must constantly update their knowledge and promptly grasp newly issued legal documents, especially in new areas such as the digital economy and AI technology. For example, the introduction of decrees on digital identification and electronic transactions directly impacts many professions.

The role of legal affairs in state-owned corporations

In Vietnam, state corporations and general companies such as EVN, PVN, and Viettel all have very strong legal departments. These departments not only perform advisory and control functions but also participate in policy-making, commenting on draft legal documents related to their industries. This demonstrates the interaction between corporate legal affairs and the legislative process.

Current state of legal human resources

The demand for high-quality legal personnel in Vietnam is increasing. Leading law schools like Hanoi Law University and Ho Chi Minh City University of Law train thousands of law graduates each year, but to become a good legal specialist, additional practical experience and in-depth knowledge of the company's industry are needed. The average salary for a legal specialist with 3-5 years of experience in Hanoi or Ho Chi Minh City can range from 15-30 million VND/month, depending on the size and type of enterprise.

Conclusion

Legality is not just a dry concept, but a solid foundation for the sustainable development of a nation and the success of every organization and business. UnderstandingWhat is legal (department/affairs)?and promoting its role is a prerequisite for building a law-abiding society and a transparent and effective business environment in Vietnam.

--- Please consult an attorney for specific legal advice regarding your case.