subject: A Quick Glance At The Increase In Operational Costs For Companies Doing Business In Vietnam [print this page] Labor laws have always had an imposing significance on business expansions. Job security, amenities, perks and termination conditions have been given precedence to help maintain a balance and ensure smooth operations. International business expansion is a part of the natural thought process for businesses after gaining success locally. Opening an office in another country may entail the transfer of employees to live and work in a foreign land. And with this comes the necessity to be aware of the laws of the foreign land.
Increase in Minimum Wage in Vietnam
For those looking to expand their business in Vietnam must be aware of the fact that there is to be an increase in the minimum wages by 33%, thus increasing the rise in expenses for businesses. Vietnam has proposed to raise the minimum monthly wage by about 33% leading to higher operational costs for companies doing business in Vietnam.
The proposal aims to increase the minimum wage range from the current $67-$96 per month to $89- $125 per month. The proposal is due to be implemented in March 2013 but if the sluggish economic climate persists the government may further delay the minimum wage hike to September 2013.
The Vietnamese government proposed the hike after it found out that the current minimum wages to cover only 60% of the cost of living. The majority of local Vietnamese companies has supported the hike.
Planning with an expert
Poor planning can derail your outsourcing venture. When you are looking at an international business expansion, you may not be fully in sync with local business regulations and laws. Hence, a reliable partner to assist in your global outsourcing venture can be beneficial. Many entrepreneurs do their homework before setting out on this mission, however, reading materials and acquiring content regarding the new countrys regulations may not be adequate.
You would need a specialist with local expertise that can ensure that your international expansion operations are devoid of any obvious hurdles and risks. These expert service providers have first-hand experience of the prevailing environments and can advise whether the chosen destination is conducive for business expansion. They can also provide complete assistance in other areas of your business like eu vat rules, international accounting, etc.
