For the past 30 years, Vietnam has proved it’s worth by being one of the fastest growing economies within Asia. With its young population and quickly growing wealth that’s brought the economy out of poverty and into a lower middle income market, Vietnam has attracted many business’ attention. The main opportunity and advantage with Vietnam is the access to a huge pool of people under the age of thirty, representing both potential customers and employees for many businesses.
The most attractive part of this growing economy is the fact that while there’s a basic infrastructure, some industries are yet fully utilised, making it a fantastic opportunity for foreign companies.
Challenges of Doing Business in Vietnam
While Vietnam may be an enticing country for businesses to expand into it isn’t without its difficulties. The key of these challenges are with payroll and local legislation.
Whether it’s many or just a few headcounts, the challenge with international payroll and business management is that there’s no universal standard. With each country having their own legislative and cultural nuances, it gets hard to manage across the board. This problem isn’t unique to small establishing firms. In a study by EY found that 85% of multinationals are keen to improve their payroll practices.
International payroll especially is one of those things that can take up a lot of waking hours to get right. It is one of the foundations in running a business and requires practitioners to be familiar and well rooted in local rules and regulations. Non-compliance of the voluntary or involuntary kind, can especially be a major issue in developing areas like Vietnam, where the companies can stand to lose the most. In our recent article, we talk more in-depth about the 3 most common areas of non-compliance in Vietnam.
Key Legislation to Know When Doing Business
Voted as Asia’s best HR outsourcing partner, Links is dedicated in helping HR professionals make a difference by helping them focus on high value strategic propositions. By taking on the tedious and extensive administrative work like payroll, recruitment and more, our HR outsourcing services help take on part of the HR responsibilities from HR professionals across Asia.
As part of our ongoing efforts to assist businesses and HR leaders, we recently launched the Vietnam Legislation page. This Vietnam legislation summary is a new edition in a series of country legislation glossary. Aside from Vietnam, we also have feature pages for Hong Kong, Shanghai, and Australian legislation. In these legislative summaries, we’ve consolidated key information relevant for anyone looking to start and run a business in the local market, easily accessible in one place.
Managing a business in Vietnam? Enhance your strategy by leveraging the benefits of having on-ground professionals manage and process your payroll. Connect with one of our HR outsourcing representatives to see how we may help you make a difference today!
What to expect from the Links Legislative Summaries?
- Key country legislation on company registration, work permits, minimum wage, statutory benefits and many more;
- Layout with easy navigation;
- Useful governmental links and sources for additional information.
Here’s other resources on managing a business in Vietnam
Looking for an HR payroll outsourcing service partner? Links International is an industry leader in innovative HR outsourcing, offering services from payroll outsourcing, visa application,Employer of Record (EOR)/ PEO to recruitment and more. Start streamlining your HR function with Links HR outsourcing services.