INVESTMENT IN VIETNAM

REQUIRED COMPLIANCE PROCEDURES

MANAGE REQUIRED BUSINESS RECORDS

Business records management is a mandatory requirement to manage and comply with the business’s compliance procedures required by the competent state agency as well as facilitating effective and stable business administration.

Why should you keep good business records?

• Maximize all the expenses you claim and reduce your tax obligations
• Will help out, should you be investigated by local competent state agencies
• Makes it quicker to prepare your accounts at year-end
• Gives you the information you need to run your business and help it grow
• Helps you plan for tax payments
• Helps identify the strengths and weaknesses in your business
• Helps manage changes and improvements in your business
• Will help you plan to meet financial commitments such as paying creditors or employees
• Makes it easier to get a loan or sell your business
• Avoids over/under tax payments
• Helps identify if your business is liable for paying VAT to the tax department
• Makes it easier to distribute profits to shareholders as dividends or for partnerships where both profits and losses have to be shared

How does VIVA help you in keeping good business records?

• VIVA creates a business records system in form of standard folders
• VIVA knows how to transfer, guide you to collect and store daily documents
• Based on these documents, the parties coordinate to prepare and submit compliance reports to tax authorities, insurance agencies, banks and partners
• You collect and store the compliance reports submitted to government agencies
• VIVA coordinates with you to review, evaluate, complete each type of document and scans into e-files monthly, quarterly and annually to save on computers

MANAGE EMPLOYMENT RELATIONS

Relations between employees and company in signing and implementation of labor contracts

• Calculate salaries, allowances, bonuses, incentives and other payments
• Calculate salary for new and resigned employees
• Implement changes/adjustments (if any)
• Reconcile/confirm payroll with client
• Make salary payments to employees, distribute online pay slips to employees and paper slip for workers
• Respond to employees’ questions

Relations between company and Insurances and Labor agencies in reporting and payments

• Make and submit monthly SHUI increase/decrease reports
• Get employees’ SI booklet finalized/closed
• Register for new/adjusted SI documents, HI cards for employees
• Make and submit SHUI benefit reports sick, maternity, labor accidents, occupational diseases, death
• Make payment of SHUI benefits to employees
• Reconcile SHUI data with the social insurance agency
• Make payment of SHUI to the social insurance agency
• Register and follow up the status on SHUI declaring software/electronic signature.

Relations between company and Tax Department in reporting, payments and annual settlement

• Register PIT codes for new employees and their dependents (if any)
• Declare and submit monthly PIT reports
• Explain employees’ questions related to PIT
• Make payment of PIT amount to the tax authorities
• Register and follow up the status of PIT declaring software/electronic signature

ACCOUNTING – AUDITING

Under Article 15 of Decree No. 17/2012/ND- CP dated March 13, 2012, guiding the implementation of the Independent Auditing Law, the following entities are required to have their annual financial statements audited:

• Foreign-invested businesses
• Credit institutions incorporated and operating under the Law on Credit Institutions, including foreign bank branches in Vietnam
• Financial institutions and insurance businesses
• Public companies, issuers and securities traders
• Other businesses and organizations subjected to audits in accordance with relevant laws
• Audits are also conducted at the request of customers, partners in bidding and business cooperation, etc

What are the benefits of the audit of financial statements?

• Satisfying and complying with requirements of state authorities
• Assisting in identifying risks and ineffectiveness in operation and usage of resources
• Creating confidence for information users, including tax authorities, banks, partners, investors, etc. For example, with audited financial statements with an unqualified opinion, a business can be categorized as a highly credited customer and entitled to more preferential credit services and significantly reduced interest
• Completing the business valuation documents and the business credit documents

BUSINESS CONTRACTS AND IMPORTANT TRANSACTIONS

• Knowing your customer and due diligence
• Preparing and implementing of business contracts
• Managing deals

 

Read more:

1. Investment in Vietnam: Market entry procedures
2. Investment in Vietnam: Restructuring – Acquiring and Selling a company
3. Investment in Vietnam: New Laws and Regulations
4. Investment in Vietnam: Managing the required compliances for a company
5. Investment in Vietnam: Managing the required compliances for an foreign employee