Business Process Outsourcing in Vietnam – Optimize Your Activities and Increase Profits

There are several business processes that are important, yet do not belong to your core business operations. How to optimize these activities and increase your company’s performance in Vietnam? In this article, we have listed reasons why you should consider business process outsourcing in Vietnam. What is business process outsourcing? Business process outsourcing (BPO) means that […]

There are several business processes that are important, yet do not belong to your core business operations. How to optimize these activities and increase your company’s performance in Vietnam? In this article, we have listed reasons why you should consider business process outsourcing in Vietnam.

What is business process outsourcing?

Business process outsourcing (BPO) means that you delegate your non-core business activities to a third-party service provider. Some of these services include:

  • Accounting and payroll
  • Due diligence
  • Staff augmentation

Types of business process outsourcing

Business process outsourcing can be divided into three major categories:

  • Onshore outsourcing – you outsource services to an outside service provider that is in the same country as you. For example, when your company is situated in Vietnam and you outsource your non-core activities to Emerhub.
  • Nearshore outsourcing – contracting services to people in neighboring countries. For example, when your business is located in China and you outsource non-core services to Vietnam where labor costs are lower.
  • Offshore outsourcing – you outsource services to other countries. For example, when your company is in the United States and you outsource certain services to Vietnam.

4 ways BPO can improve your business

#1 Saves money on your overhead expenses

Firstly, if you outsource services that are not part of your main activities to another entity, you can reduce your costs significantly.

For example, when you use a professional payroll service you don’t spend your money on pricey accounting software or hiring respective employees to do the job. Same goes for accounting and tax reporting, and with many other non-core operations.

#2 Allows you to be more productive

Secondly, outsourcing non-core activities to an outside service provider enables you to focus on your main activities. By setting aside time-consuming repetitive operations you enhance the quality of your service since you invest more time in improving your business rather than completing tasks that can be outsourced.

This is essential since competition is getting stronger in every industry. Thus, the optimization of your activities lets you focus more on your core business and keep the highest level of productivity.

#3 Gives you better results in non-core activities

Thirdly, many starting businesses cannot afford to hire in-house specialists to complete these necessary tasks.

Doing business successfully means that you cannot only concentrate on certain procedures, i.e your core activity. Your success relies heavily upon the quality of other business processes inside your organization as well. For example, in order to be a sustainable business, you need have your accounting and tax reporting in order.

Business process outsourcing, recently also known as business process management (BPM), enables you to get better results in these activities without too much hassle and worry from your side.

#4 Enables you to expand to new markets faster

Fourthly, when entering a new market the timeframe of the company formation can be quite long, especially for emerging markets such as Indonesia, Vietnam, or the Philippines. The acquisition of all the relevant documents, permits, and licenses can take 3-6 months, depending on your business classification.

Business process outsourcing, however, enables you to start your business activities instantly. With staff augmentation you can employ people, undername import allows you to start importing immediately, and accounting and tax reporting services ensure that everything complies with the laws.

Additionally, business process outsourcing frees you from having to get to know the local hiring market, its costs, risks, and conditions too deeply. That will all be the BPO service provider’s concern.

Business process outsourcing in Vietnam

Vietnam is a country that has undergone a remarkable transformation in the past few decades. In addition to the openness of the market and regulatory changes that attract foreign direct investment, Vietnam has become a destination for outsourcing different types of business processes as well.

In the Global Services Location Index by Kearney, Vietnam ranked 11th in 2016 in offshore business services in terms of people skills and availability, business environment, and financial attractiveness.

Low labor costs

Despite the stable economic growth, minimum wages in Vietnam still remain relatively low. For example, minimum wages in Vietnam are half of what they are in the neighboring giant China.

Besides becoming a lower-cost alternative for manufacturing companies, Vietnam has also emerged as an outsourcing destination for back-office services like accounting and payroll.

Young and growing workforce

The median age in Vietnam is 30.8 years, according to Worldometers. Nielsen estimates that 60% of Vietnamese are under 35.

Vietnam invests around a fifth of its finances in education. This is more than many other markets with a similar level of development do. This means that besides being relatively young, the workforce in Vietnam is skilled as well.

According to the research of World Economic Forum in 2015, Vietnam was in the top 10 out of 124 countries with the most engineering graduates. Thus, Vietnam is becoming a new technological outsourcing hotspot in Asia. Giants like Samsung, LG, and Google have already moved some of their operations to Vietnam.

In addition to good professional skills, proficiency in English is getting better every year, too. According to the EF English Proficiency Index in 2016, Vietnam ranks 31st with moderate proficiency out of 72 countries in comparison in terms of English-speaking skills.

Nevertheless, Vietnam is not the perfect destination for English-dependent processes which you should outsource to the Philippines instead.

However, for many BPO services in Vietnam the level of English is not critical since the service is handled by Emerhub’s managers.

Find more reasons to invest in Vietnam in our previous article.

BPO to Emerhub

Emerhub offers several services in Vietnam such as:


What we do

Accounting and tax reportingWe take care of everything related to accounting and tax reporting, from setting up accounts to submitting your financial statements.
Due diligenceWe collect and review all the relevant information regarding your future business deals.
Payroll managementWe calculate salaries and make payments on your behalf.
Undername importWe import your products to Vietnam using our licenses.
Staff augmentationAs your employer of record in Vietnam, we will find you a person or a team that will work full time for you.

business process outsourcing to Vietnam

For more information, read our previous article about 9 non-core activities you should outsource when expanding to new markets.
Contact us via [email protected] or fill in the form below to further discuss how we can help to reduce your costs and improve your business.

Since 2011, Emerhub has helped over 500 companies of all sizes enter Southeast Asian markets.

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