You can declare columns/variables as varchar2(n CHAR) and varchar2(n byte).
n CHAR means the variable will hold n characters. In multi byte character sets you don't always know how many bytes you want to store, but you do want to garantee the storage of a certain amount of characters.
n bytes means simply the number of bytes you want to store.
varchar is deprecated. Do not use it. What is the difference between varchar and varchar2?