Start A BPO Business In Vietnam Without Opening An Entity

Employer of Record, Hiring & Employment, Operations, Trending, VNBG

Start A BPO Business In Vietnam – What You Need To Know

What is BPO business?

BPO stands for Business Process Outsourcing, it is a business practice in which an organization hires an outside service provider to complete a critical business task. Payroll, accounting processes, for example, are candidates for BPO because they are performed the same or similar from company to company.

Because these commodity processes do not generally distinguish one organization from another, enterprise executives frequently determine that having their own staff perform them adds little value. Indeed, businesses believe that outsourcing these processes to a company that specializes in these processes will yield better results.

Businesses use business process outsourcing for two types of tasks: back-office functions and front-office functions.
Accounting, information technology (IT) services, human resources (HR), quality assurance, and payment processing are examples of back-office functions, also known as internal business functions.
Customer service, marketing, and sales are examples of front-office functions.

Outsourcing an entire functional area, such as the HR department, to a single vendor, is one example of a BPO contract (this service can also be called EOR/PEO service). Specific processes within a functional area are also frequently outsourced by organizations. For example, a company may outsource its customer service task to a BPO company that runs a Call Center. Therefore the BPO company will provide customer care to the company’s clients on its behalf.
A tax, accounting, payroll service company, EOR/PEO company, Call Center, outsourcing IT company are all different forms of a BPO business.

Vietnam Business Gateway — Business Process Outsourcing in Vietnam

Why start a BPO business in Vietnam

The most important reason why Vietnam is becoming a rising star in the BPO industry is its human resource.
Vietnam’s labor force is at its peak. With a young population that is mostly in the labor age, Vietnam provides a large human resource at a very competitive cost when compared to neighboring countries.

Opening a company to do BPO business in Vietnam

In Vietnam, there is no such thing as a BPO business license; instead, a company must apply for a license on the specific type of service it provides, such as tax/accounting, staffing, and human resource, or call center service, and so on. The majority of these business lines are conditional.

For example, to open a tax/accounting service company, the founders must obtain appropriate licenses recognized by the Government of Vietnam.
If you want to start a human resource outsourcing company, you must first obtain separate approval from the Ministry of Labor and have a USD 23,000 savings account (unaccessible capital).
Similarly, call center services are not covered by Vietnam’s WTO commitment and thus do not guarantee registration success.

Start a BPO business in Vietnam without opening a company

Because opening a company for BPO business in Vietnam is quite complicated, it would be preferable if one could still start a BPO business without registering an entity. This is possible if using another local BPO company as your outsourcing partner, to be specifically an EOR/PEO company.

EOR (Employer of Record) or PEO (Professional Employment Organization) is a form of BPO where the HR management part is outsourced to a local company. In brief, a BPO business owner can recruit and manage his own team in Vietnam to provide services to his clients overseas and hire a local EOR/PEO company in Vietnam to process the Admin/HR part to retain the team. The local EOR/PEO company will process monthly payroll, checking attendance, arrange workplace/location and another office/work supplies.

Using EOR/PEO service is a perfect alternative to registering a company just for hiring. When it comes to hiring employees in Vietnam, establishing a subsidiary or branch office is not always the best option because it can be a time-consuming and costly process. Hiring through a Professional Employer Organization (PEO) or Employer of Record (EOR) is a faster and often more effective option – especially when launching a new business in a foreign country (Vietnam).

VNBG’s solution for remote BPO business

You recruit your people, we hire them on your behalf

VNBG, as your PEO partner in Vietnam, assists your BPO business in hiring employees without the need to establish a legal entity. Our PEO service manages all human resources, benefits, payroll, and tax needs for your employees, while your headquarters teams only need to focus on your business goals.

Best PEO service in Vietnam – VNBG

VNBG serves a large number of clients, including both multinational companies and local Vietnamese clients. VNBG secures labor contracts in bilingual mode and ensures full legal and tax compliance in all aspects of employment setup and management. The extensive network of local consultants at VNBG enables us to provide a localized experience, assisting companies not only to start a business in Vietnam but also to thrive in Vietnamese business culture.
VNBG offers workforce solutions that enable clients to interact with HR and payroll departments while remaining in a remote location. For new companies that have found their own local specialists in Vietnam, HR support issues can be offloaded to their all-purpose system.
VNBG promotes quick onboarding and recruitment solutions as the legal employer in charge of hiring and workforce management.
VNBG’s extensive capacities and local networks make us a strong partner for your Vietnam expansion. Our Employer of Record (EOR) service demonstrates the expertise of our team, which is capable of securing not only the necessary arrangements for hiring staff but also of maintaining them compliantly and cost-effectively when compared to establishing an entity in Vietnam.
Our PEO service advantages: VNBG offers multiple and flexible charging schemes which help optimize our partner’s budget. We have solutions to help our partners maintain the most competitive prices in the market. PEO services with no deposit, at a flat rate or percentage rates, are all available with VNBG’s PEO and EOR’s service. VNBG has been proven to be the most preferable PEO partner in the Vietnam market for many international PEO companies.

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If your company wants to expand into Vietnam, VNBG can be the PEO partner that best meets your needs at the most affordable price. Fill out the form below, and our consultant will contact you as soon as possible with the best quotes.