Many business ventures fail in Vietnam not because there’s no market for them there, but because they try to handle too many operations themselves. When investing in a risky new market, the urge to control every aspect of the business is understandable. But you can’t just transplant what has worked for you in other markets. Your whole approach to taxes, marketing and managing labour may need to be overhauled. It’s often too much for any business trying to stay lean and profitable.
The alternative is to control only the essentials, i.e. the quality of your products or service, and outsource what you can of the rest. Trusting others with critical business operations can be scary, but it is often a surer path to success. Here are five operations worth outsourcing that you need to know to help your business venture succeed in Vietnam.
1. IT and Software Development
Practically every business today depends on computers and the internet to some degree, yet these remain imperfect tools. They’re prone to errors and vulnerable to hackers, and businesses hit by either can be forced to shut down operations for hours or more. IT experts command high salaries, yet they may only provide critical support a handful of times each year. But by outsourcing IT support, you pay only when you need it.
It’s cheaper than hiring and easier than becoming an expert yourself, especially in Vietnam. The country has a large pool of computer-savvy talent working for specialist IT support firms. There are also agencies that help you develop custom software and apps to use within your business. This is valuable when you need features that off-the-shelf software doesn’t offer. It also guarantees you ongoing support and no subscription fee increases or changes to terms.
2. Accounting Services
Most businesses in your home country probably outsource this already, even if they’re just a one-person operation. Accounting in Vietnam is no easier, and like any country, it has its own rules and standards when it comes to bookkeeping, managing payroll and producing financial reports. Outsourcing this function to a local professional can save you a lot of headaches, along with potentially quite a lot of money.
Improper accounting, even if it’s accidental, may lead to audits or investigations by the authorities. If they conclude that wrongdoing has occurred, you can face steep fines or other severe penalties that will impact your business. Mistakes are a lot less likely in the hands of a qualified expert who knows what they’re doing. And because you’ll only need their services a few times a year at most, outsourcing makes a lot of sense.
3. Tax Compliance
Every year, more foreign and local businesses are outsourcing their tax compliance to specialist services. Because their everyday business is handling taxes, these providers are a lot more adept at handling changes in the most important factors related to corporate income tax in Vietnam: tax rates, incentives & deductions. Businesses which only deal with their own taxes once per year often find themselves struggling to keep on top of changing rules and requirements.
However, these firms are not simply tax advisors. They perform the administrative tasks associated with tax compliance, like preparing documents and checking figures to prevent fraud. Like accountants, they provide peace of mind for business managers, who can rest assured they will not face consequences from the tax authorities over errors or non-compliance. Many of the tasks associated with tax compliance can now be automated, too, making outsourcing more affordable than in the past.
4. Digital Marketing
The way people discover new businesses has changed. Rather than learning about them on TV or in print, people now find them online, on websites they visit or in search results. On the surface, this sounds like it should make marketing easier; anybody can create a website or TikTok video in just a few hours. But in reality, it means you’re now competing with many more businesses for attention.
Core marketing skills like creating headlines that hook people and crafting stories that resonate with them are more important than ever. Most people aren’t great at them, and creating eye-catching ads and producing content takes a lot of time, which is why many businesses prefer to outsource these tasks to those with proven skills in them. Hiring a good digital marketing agency can make a huge difference to a business’s revenues, almost overnight.
5. Customer Support Services
English proficiency in Vietnam is strong, and the country has seen significant recent investment in its internet and telecommunications infrastructure. That’s why it’s becoming a popular choice for companies looking to outsource their customer support. This means using third-party agents to answer live chat messages, email tickets and phone calls from customers. They may also manage any social media support pages that your business is running. They’ll answer queries and pass along customer feedback.
The big advantage of outsourcing customer support is cost. Because living costs and wages in countries like Vietnam, the Philippines and India are much lower, they allow businesses to offer round-the-clock support to their customers without the impact on their profits that home-based support would have. Fielding customer queries can also be very time-consuming, so by outsourcing, you free up your attention to focus on improving what you sell.
Conclusion
There is almost no business in the world that handles every operation on its own. However, the specific areas they outsource may vary based on the country they are based in and what they have access to. So, while there are many more business operations that can be outsourced, businesses in Vietnam would be wise to at least start with the ones listed above.
Accounting and tax compliance are especially important, since the rules in Vietnam are complex and mistakes can have severe consequences. Plus, by modernising tax administration and filing financial reports for you, they take some of the most tiresome business tasks off your plate. The other suggestions, like IT and customer support, are areas the country’s population are highly skilled in. If you’re doing business there, it’s smart to use them to your advantage.
