Raising Quality of Legal Support for SMEs

7:39:08 AM | 12/26/2022

The Ministry of Justice recently held a workshop in Hanoi to collect opinions on the draft project of “Raising quality and effect of legal support for businesses in the 2021-2030 period” to submit to the Prime Minister, and received various contributions and suggestions for better legal support for small and medium-sized enterprises (SMEs).

Currently, legal support for enterprises has seemingly not been given due attention. There are still some difficulties and obstacles in both regulations and practices, as well as budget and personnel apparatus.

More than 97% of enterprises in Vietnam are small and medium in size, with more than 62% being classified micro in size. They typically have limited resources and often make business investments without a risk-prevention solution. Most only care about direct business/production costs and lack proper care for indirect costs such as legal service and legal team. As legal advice delivered by legal service organizations is not as high as expected, SMEs often face very high risks when a dispute arises.

The objective of the Project "Improving quality and effect of legal support for businesses in 2021-2030", is first of all, to raise the quality and effect of law information and dissemination and provide legal support for businesses in the coming period. According to experts, there is a need to study and supplement evaluation and monitoring criteria for legal support for businesses so that legal support agencies and organizations have tools for effective advice based on specific indicators, ensure the most efficient and effective use of resources, and accurately measure effective activities to further promote them or make necessary adjustments.

Surveying and classifying businesses by region and locality to provide legal advice and provide what they really need, the draft project determined the focus of legal advice and resources for business support.

At the workshop, panelists said that the current system of legal documents on business is varied, complicated and unstable. Enterprises and legal advisors face difficulties in action. The Government and central authorities are suggested to issue specific regulations on legal support programs for businesses of specific economic fields, sectors or branches.

Authorities and relevant agencies need to improve the quality and effect of communications on laws on legal support for businesses. Localities need to further improve the professional quality of legal consultants for businesses.

Lawyer Nguyen Duy Lam said the draft project was developed specifically and in detail, inherited from the results of interdisciplinary legal assistance programs for businesses in 2010-2014 and in 2015-2020, and at the same time associated with an interdisciplinary legal support program for SMEs in 2021-2025.

Also at the workshop, a representative of the Business Development Department under the Ministry of Planning and Investment put forth proposals for better legal support for SMEs in the coming time. The representative suggested the Program Management Board:

First, research and supplement evaluation and monitoring criteria for legal support for businesses so that legal support agencies and organizations have tools for effective advice based on specific indicators, ensure the most efficient and effective use of resources, accurately measure effective activities to further promote them or make necessary adjustments.

Second, survey and classify businesses by region and locality to pick up their needs to provide legal advice and provide what they really need. The draft project determined the focus of legal advice and resources for business support.

Third, actively develop and implement activities to regularly update legal knowledge for enterprises and legal support staff; strengthen digital transformation in legal support for businesses.

Fourth, strengthen leadership and management of law support agencies, especially in legal aid law enforcement and monitoring. The government closely manages legal aid agencies and their activities, intensifies inspection, control and assessment of quality of legal aid for legal aid providers throughout the country.

Fifth, study mechanisms for higher quality of legal aid in terms of funding, regime and working apparatus for legal advisors; conduct research and renovations to increase the participation of qualified and reputable law enforcement bodies and legal consultants in legal aid through various forms; and promote all social resources for legal support.

In addition, experts also emphasized the need to study solutions for better working performance of legal consultants; spread legal consultancy by legal advisors and engage companies and legal service organizations in this effort.

By H.T, Vietnam Business Forum