The top 8 most prominent issues in Vietnam's legal consulting market today

As the market continues to grow and public awareness increases, clients using legal services are becoming more knowledgeable about their rights. One of the key rules that arises in cases of conflict of interest is that lawyers or law firms must decline to offer services to clients in such situations. This mandatory rule ensures that lawyers cannot serve a client, even if that client urgently seeks legal advice.

As a result, legal organizations are increasingly organizing client and case data in electronic systems, allowing for easier checking of potential conflicts of interest.

Unlike other markets, the competition among lawyers and legal organizations is subject to strict regulations. Lawyers must maintain ethical standards and adhere to rules prohibiting certain actions, such as comparing professional abilities, regional discrimination, or distinguishing the work of one law firm from another. Encouraging clients to file complaints or accuse other lawyers is also considered a violation of professional ethics.

Moreover, lawyers and legal firms face significant restrictions when it comes to advertising their services. They are not allowed to directly or indirectly solicit clients at legal institutions, detention centers, government agencies, or other public organizations. This is why legal services are often unavailable where they are needed most, and firms must rely on more formal and strategic methods of communication and investment to grow.

Currently, there is a significant shortage of talented and qualified lawyers to meet the demands of global integration into Vietnam. For example, there are very few lawyers in Vietnam with strong foreign language skills. These lawyers are not only essential for serving clients but also for gaining legal knowledge and experience from around the world.

As Vietnam attracts more foreign investment, there is an increasing challenge in the legal sector due to the lack of lawyers with expertise and in-depth knowledge of commercial and international investment law. As a result, legal professionals in Vietnam are still insufficient in both quality and quantity to meet the growing needs of the economy. Businesses and investors require more law firms and lawyers in Vietnam who can handle legal matters both abroad and on the international stage.

“If you believe that you cannot be an honest lawyer, then choose to be an honest person, don’t become a lawyer.” – a timeless reminder from Abraham Lincoln for all legal professionals.

The ethical rules and professional conduct that lawyers must follow are essential for any law firm or practitioner. Nowadays, both legal forums and clients are increasingly condemning lawyers who fail to fulfill their professional duties. As such, the quality of lawyers must improve in the ethical aspects of the profession, avoiding false promises to attract clients, which can damage their reputation and violate legal ethics. Lawyers must focus on improving their legal application, elevating both their personal and professional standards, and helping society better understand the true nature of legal work.

Lawyers and legal organizations always dedicate time to various activities aimed at supporting society and helping those in difficult circumstances. This is not just a matter of compassion, but also a professional duty. Lawyers also participate in providing free legal aid to the poor and other eligible groups, as stipulated by law and the regulations of the Vietnam Bar Federation.

Currently, this initiative is increasingly promoted by lawyers, contributing to the growing trust and respect of the community and society for the legal profession.

The legal profession is often viewed by the Vietnamese public as one that is noble and humanitarian, but also expensive. However, at its core, the legal profession, especially legal consulting, is a service-based industry. Lawyers must meet the expectations and satisfy clients for them to continue using the service and compensating the lawyer. Therefore, legal consulting organizations must be more dynamic and professional to attract clients.

Competition goes beyond offering attractive service fees; clients are becoming more demanding, expecting more from their lawyers. For example, clients expect high-quality service with quick turnaround times, adherence to agreements, willingness to work outside regular hours, and handling complex cases to meet their needs. At the same time, legal organizations actively engage in professional and community activities to promote and enhance their reputation and the image of their lawyers.

Previously, the legal consulting market in Vietnam was primarily focused on traditional fields such as civil law, family law, labor law, business, and commercial law. However, with economic integration and Vietnam's development alongside the global economy, other fields have seen a rise in the number of lawyers. Notably, sectors like finance, securities, tax, intellectual property, and investment have grown significantly. As of July 2020, over 14,375 lawyers were active in more than 2,000 law firms (according to the Vietnam Lawyers Magazine).

However, legal consulting remains bound by strict regulations set forth in the Lawyer’s Law and the Code of Ethics and Professional Conduct for lawyers. This results in a natural filtering process within the legal consulting market.

The market-based system, where both parties benefit and transactions are mutually agreeable, is often difficult to apply in the legal consulting sector. For example, clients may wish to pay lawyers based on the outcome of a case or upon successful transactions, but such fee structures are not allowed for legal services in Vietnam.

According to the law, lawyers are only permitted to charge fees through methods such as hourly rates, flat fees, or percentages of contract value or long-term agreements with fixed fees. Additionally, the ethical code for lawyers prohibits guaranteeing the outcome of a case as a basis for calculating fees. This results in certain services being provided by entities other than law firms, which then compete in the legal consulting market.