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According to World Bank Doing Business 2020 Report, companies in Vietnam, on average, spend 237 hours per year for tax compliance and 147 hours for social security contribution. Small and medium-sized enterprises (“SMEs”), which account for more than 90% of businesses, experience headaches with many compliance-related issues:
Cost vs Benefit Small size entities find it inefficient to employ competent personel at wide range of backgrounds: tax, accounting and labor compliance… to take care small number of transactions.
Frequent changes in legislation Training cost is also headache matter for small size entity. Staff turnover may waste company resource in training.
Business risks Fine and penalty may be imposed upon non-compliance due to incompetent or inexperience personnel. Recently, authorities publicize non-compliance which may damage company’s reputation.
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