Legal basis:

• Accounting Law 2015
• Investment Law 2020
• Tax Administration Law 2019
• Enterprise Law 2020 and the amended and supplemented Enterprise Law 2025
• Decree No. 126/2020/ND-CP providing guidance on the 2019 Tax Administration Law, amended and supplemented by Decree No. 91/2022/ND-CP
• Decree No. 132/2020/ND-CP on regulations regarding tax management for enterprises with related-party transactions, amended and supplemented by Decree No. 20/2025/ND-CP
• Circular No. 80/2021/TT-BTC, amended and supplemented by Circular No. 94/2025/TT-BTC
• Vietnamese Accounting Standards (VAS)
• International investment treaties to which Vietnam is a party (WTO, CPTPP, EVFTA, etc.)

Vietnam is an attractive investment market. However, foreign-invested enterprises (FDI) are constantly confronted with two major challenges: focusing on their core business and complying with complex local legal requirements. Alongside the opportunities, there are significant challenges in operations and regulatory compliance, particularly in accounting and taxation. The consideration between establishing an in-house accounting department or outsourcing this function to professional accounting service providers is a crucial strategic decision.

1. Enhancing legal compliance and risk management

The Vietnamese Accounting Standards (VAS) system and the tax regulations in Vietnam differ fundamentally in many respects from the international standards (IFRS, US GAAP) applied by the parent company. These differences, together with the frequency of changes and the complexity of local legal documents (such as the Tax Administration Law and the Accounting Law), create significant compliance risks for investors. Moreover, even if in-house accountants are proficient in foreign languages, they may still make errors when applying regulations on invoices and documentation according to local rules, and are likely to encounter difficulties in dealing with local authorities to some extent.

Engaging professional outsourced accounting services ensures that financial statements, tax filings, and other administrative procedures are executed with the highest accuracy and in full compliance with applicable regulations. Furthermore, these service providers possess specialized experience in handling sensitive matters such as Transfer Pricing, a field of particular interest to the Vietnamese tax authorities, thereby helping FDI enterprises minimize the risks of tax reassessments and administrative penalties.

2. Optimizing operational costs

Many investors assume that outsourcing is more expensive than payroll costs; however, when considering total operational expenditure, the outsourcing solution provides superior economic efficiency. FDI enterprises can eliminate substantial investments in recruitment, specialized training, senior personnel management costs, and associated benefits for an in-house accounting team, such as chief accountants and tax specialists.

Instead of maintaining a fixed internal structure with expenses for accounting software, computers, office space, and increasingly high salaries and benefits, the enterprise only needs to pay a fixed and transparent service fee. This not only optimizes cash flow but also allows the company to allocate capital more effectively to assets and operations that directly generate core profits.

3. Access to specialized expertise

Specialized accounting service firms typically assemble teams of highly qualified and licensed professionals in accounting, auditing, and tax advisory. These teams gain experience handling diverse cases across various industries and scales. Serving different types of FDI enterprises (manufacturing, trading, services), they provide comprehensive insights and expertise in managing complex situations, such as VAT refunds, investment capital management, and reporting to the parent company.

This provides a strategic advantage for FDI enterprises: they not only receive routine operational services but also benefit from in-depth advisory on complex issues such as direct investment capital management, VAT refund procedures, and compliant financial structuring. External expert teams can identify and address financial and tax risks at an early stage, which in-house accountants may sometimes overlook due to familiarity with daily processes. Accessing such specialized expertise would be difficult and costly if relying solely on internal resources.

4. Focusing resources on core business activities

Maintaining an in-house accounting department often consumes significant time and senior management resources on routine administrative and compliance tasks, which do not directly create a competitive advantage. According to strategic management principles, the valuable resources of the Board of Directors and management team should be allocated primarily to activities that generate added value and drive revenue growth, such as product research and development, market expansion, and the establishment of strategic partnerships.

When an FDI enterprise transfers the burden of accounting, tax management, and legal compliance to a professional outsourced service provider, it not only ensures that financial reporting requirements are handled promptly and with complete accuracy, but also unlocks the potential of internal management. This enables the leadership to maintain strategic focus on core business objectives, avoiding distraction from the complexity and continual changes of local administrative procedures and tax regulations, thereby enhancing the organization’s overall performance and strategic decision-making capacity.

5. Ensuring confidentiality and continuity

In a volatile business environment, disruptions in financial functions due to personnel changes or internal incidents constitute a significant risk. An outsourced accounting provider ensures continuity of financial operations, as they maintain contingency processes and a team of substitute professionals readily available.

Furthermore, professional service firms apply international standards for information and data security and bear high legal responsibility for the integrity and confidentiality of financial records. This allows the leadership to confidently focus fully on planning and executing business strategy, rather than being distracted by administrative tasks and operational risks.

In conclusion, for foreign investors, outsourcing the responsibility for accounting and tax management to an external partner is not merely an administrative management solution, but also a strategic decision aimed at protecting assets, ensuring strict compliance with Vietnamese law, and optimizing long-term business performance.

6. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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