Why do we have to undertake background check before recruitment?

  Recruitment is the process of screening and recruiting qualified people to meet a job in an organization in general and in particular business. Recruitment plays a very important role in business development. Effective recruitment will provide businesses with a team of skilled, active, creative employees and provide human resources in accordance with the business performance of the business. Only when doing well the recruitment stage can we do well in the next stages. Therefore, businesses need to recruit the right people right the first time as well as arrange them in an important position.

Most of the information that enterprise has is provided by the employee and there is no verification of the information. And if the enterprise only relies on the information provided by the employee, it is likely that the employee is dishonest, or causes mistakes and avoid responsibility. To recruit “right employee, right job”, enterprise needs to check the applicant’s background.

Checking employee's background is to create trust between enterprise and employee. The background check includes: Verify Identification; Verify at home; Verify qualifications and certificates; Verify employment history at old jobs; Verify criminal records in Vietnam.

Verification of the background helps to know personal information, origin, hometown, criminal status of the employee. Thereby, background check will minimize commercial risks; preventing fraud and internal theft better; increase security of data and documents in the enterprise. In particular, for important positions in the enterprise, the confidentiality of enterprise document information is extremely necessary.

Verifying employment history at past jobs is to understand working process and the reason for job termination; obtain an objective view of the necessary competencies, skills and work experience. From there, enterprise could save time in searching for suitable employees as well as saving labor training costs.

In addition, background check improves business efficiency, developes a team of integrity to meet the business requirements of the enterprise. Because recruiting well means finding out people to perform the job with the capabilities and qualities to complete the assigned work, then effective recruitment helps the enterprise perform well its business goal and improve profitability.

Currently, the situation of fraud, diploma trading, or dishonesty in recruitment, many enterprises cannot control and verify all the information that employees provide. Enterprises need to check applicant's background when recruiting to prevent fraud, internal theft; increasing security of data and documents in enterprises; decrease recruitment time and training costs. Besides, creating trust between businesses and employees; increase employee productivity and product quality as well as increase business profits.  It is suggested to consult with professional background check service company with proven track record in Vietnam to help with the local service.

Read More

The Wave of New Technology Companies Wants to Choose Vietnam as The Destination

  After the wave of technology companies pouring capital into Vietnam 10 years ago, there seems to be a wave of new technology companies wanting to choose Vietnam as their destination.

Last weekend, LG (Korea) went to Dong Nai to seek investment opportunities in items related to digital transformation and building smart cities in this province. According to representatives of LG, the Group is cooperating with a number of major corporations in the world to produce and supply 4.0 technology to deploy large smart city projects for some countries around the world.

Dong Nai is implementing smart city project, so LG Group wants to participate in some categories, such as smart industrial parks, smart transportation, smart health care, smart factories, smart logistics... Funding to implement a smart city is about 15,000 - 20,000 billion VND.

Even as LG, after making its mark with the production complex of electronics, home electronics in Hai Phong (including 3 factories LG Electronics, LG Display, LG Innotek), at the end of last year, also set the ambition to make Da Nang become the Group's information technology research and development (R&D) center in Vietnam. And now, although the information is not very specific, there is also a new investment direction.

The fact that Vietnam is promoting digital transformation has also attracted special attention from Taiwanese businesses. According to PwC's research has just been published, the importance of Vietnam for Taiwanese businesses has increased from 18% in 2018 to 24% by the end of 2020 and ranked 4th, after the US, Japan and China.

According to Taiwanese PwC, the fact that the Vietnamese Government is actively focusing on promoting digital transformation will almost be a free 'preferential' policy for all foreign businesses to invest in Vietnam. Because, the impact of digital transformation not only helps reduce production costs, but also promotes efficiency and business performance here.

About 2 weeks ago, the leaders of Bac Giang province had a meeting to discuss with departments and branches to push up the clearance progress of Quang Chau Industrial Park (Viet Yen, Bac Giang). This industrial park has a total area of 426 hectares, but currently only 336 hectares have been cleared ground, the remaining 90 hectares have not.

Under the direction of the Vice Chairman of Bac Giang Provincial People's Committee, the People's Committee of Viet Yen district must focus highly on the work of site clearance for the remaining area, ensure early handover to the investor, even consider this is the top priority task.

It is easy to understand why Bac Giang province is so impatient. Provincial leaders want to soon hand over the entire premises of this project so that they can "welcome strategic investors". The details have not been disclosed, but it is most likely related to the Foxconn Group's investment expansion project that is about to be deployed in this industrial park. And most likely, this is the project that has been mentioned for a long time - 270 million USD, producing smart TV for a famous brand.

Meanwhile, Luxshare Group, after investing in building a factory in Van Trung Industrial Park, is also implementing another project in this industrial park, with an investment of 190 million USD. According to Luxshare-ICT Van Trung General Director, this new factory specializes in manufacturing all kinds of wireless headsets (bluetooth), smartwatches and bluetooth speakers.

In addition to the factories in Bac Giang, Luxshare is also in the process of expanding its investment in a factory in Nghe An. Meanwhile, Wistron Group has invested 273 million USD project in Ha Nam, while Pegatron Group has invested 2 projects 500 million USD in Hai Phong.

Looking at this angle, it seems that there is a next wave of investment in the high-tech sector pouring into Vietnam. In a report titled "Rising Star: The Role of Vietnam in Transforming Supply Chains in Asia", according to Economist Intelligence Unit (EIU), Vietnam is still an interesting option for manufacturing operations and those looking to diversify supply chains in Asia.

According to the EIU, high-tech manufacturers will continue to receive incentives for many years to come and that is an advantage, so that along with other advantages, for example joining many trade agreements, Vietnam will become "a very convenient alternative name for a part of Chinese production".

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

Market entery into Vietnam market through merger and acquisition

  Over the past 10 years, Vietnam has always been one of the leading M&A destinations in Southeast Asia. Many international investors have chosen Vietnam as their place of business destination to set up company and apply for investment registration certificate under direct investment or acquiring shares or capital contributions through M&A.

M&A activities enable international businesses to take advantage of the existing business platforms of Vietnamese businesses to continue making investments. This helps international investors to timely grasp the changing trend of technology, legal policies, and facilities to do business, instead of rebuilding from scratch, it will take more time and effort.

Recently, the M&A market in Vietnam has been active and attractive to many investors around the world, especially in the retail and financial sectors. Many international investors have undertaken significant M&A deals in Vietnam over the years and achieved significant profits in their business.

There are many reasons for investors to choose Vietnam as a place to do business, but some of the main factors that make Vietnam attractive are political stability and its economic growth, despite the effects of the Covid-19 epidemic. In addition, with a population of 100 million people, this is considered a large consumption market, along with an abundant and high-quality labour source.

Currently, with the trend of moving production out of China, many investors have chosen Vietnam as the location of setting up company for manufacturing facilities. Rebuilding factories from scratch also makes investors time consuming and costly, therefore taking advantage of Vietnamese factories will help investors not to interrupt their production, and operate the business in a best way.

However, to be able to perform M&A activities in Vietnam, foreign businesses need to understand the Vietnamese market and partners before performing M&A. This will help investors understand the partners' strengths and weaknesses, and outline a suitable business path after implementing M&A. In addition, to avoid unnecessary risks relating to the transaction and to the business itself, investors need to find a reputable and experienced professional consulting company that could help with market research, background check, management criminal record check, business certificate verification, corporate and individual reputation to build up confidence in doing M&A deal in Vietnam.

Read More

UKVFTA- the cooperation between Vietnam and UK

  On December 29th, 2020, representatives of Vietnam and the United Kingdom signed the free trade agreement negotiation between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA) in London, United Kingdom. It would open up opportunities for flow of goods and that investors from UK to make investment in Vietnam through setting up company, and manufacturing facilities.

After December 31st, 2020, the Vietnam – EU free trade agreement (EVFTA) will no longer apply to the UK due to Brexit, so the implementation of the signing of a free trade agreement between the two countries is essential to sustaining and developing economic cooperation. The UKVFTA is expected to help reduce import duties on goods from the UK to Vietnam and vice versa. In addition, the commitments in the Agreement will help develop trade and investment between the two countries in the coming time.

In recent years, the UK is a major trading partner of Vietnam in Europe, the import-export turnover between the two countries has increased significantly, especially products of seafood, garments, wood products, agricultural products etc. Besides opportunities to promote exports, improve business investment environment, expand commodity supply, the UKVFTA also poses certain challenges in meeting the quality of goods to qualify for pressure tax incentives in the Agreement.

In order to make the most of the economic effects from the UKVFTA, there are UK investors to invest and produce products that meet the quality and demand conditions for the UK market is essential for Vietnam. Besides, in addition, the advantages of British investors such as finance, pharmaceuticals, chemicals…will benefit Vietnam. Investing in Vietnam in this industries will enable investors to take advantage of highly skilled labor, perfect facilities as well as investment attraction policies in Vietnam to bring the best benefits for investors. On that basis, Vietnam also learn the operations, management and experience from British investors, thereby helping to develop the domestic market. In addition, Vietnam also needs to import raw materials for UK manufacturing industries such as textile materials and leather to ensure compliance with the rules of origin in order to make the best use of incentives from the Agreement.

With the negotiation of the Agreement, this is a new beginning for the economic relationship between the two countries Vietnam and the UK during a period of many difficulties due to epidemics and economic crisis. In addition, this is a step towards further developing the diplomatic, cultural and educational relationship between the two countries in the future.

Read More

Da Nang invests in expanding the Biotechnology Center

  August 12, 2020, People's Committee Office of Da Nang city said that the Chairman of Da Nang City People's Committee issued Decision No. 2686/QD-UBND approving the project “Expanding and upgrading Danang Biotechnology Center for research and development South Central Region”.

Expanding and upgrading Danang Biotechnology Center into a biotechnology research and development (R&D) center to serve socio-economic development in the South Central region, on the basis of Strong enough material-technical and human resources and a specific operating mechanism ensure the capacity of the hub of all parties: science, technology, enterprises, farmers - forestry farmers - fishermen.

Thereby, the center is able to attract investment to contribute to the development of value chain segments to develop the advantages of the South Central Region (high-tech agriculture, marine biotechnology, medicinal herbs ...), take an active part in the conservation and development of biological resources, environmental protection and sustainable development of the sub-region and the country. The investment content includes: building 3-storey biotechnology research and application laboratory; 3-storey probiotic laboratory block; 3-storey general applied research block; experimental pilot workshop cluster; animal test area; greenhouses, net houses; experimental garden; field - experimental forest and procurement of machinery and equipment.

The total capital of the project is 651.7 billion VND, from the central budget, the local budget capital and the socialization capital. The Department of Science and Technology of Da Nang city is an agency assigned to lead, organize and manage the implementation in the period 2020-2030.

Since the end of the 20th century, biotechnology has turned from a science to a high-tech economic and technical branch of many countries around the world. For our country, biotechnology plays an important role in contributing to food security, structural transformation and sustainable development of the industrial and rural economy; providing basic and essential products for public health care; protecting living environment, serving socio-economic development.

Da Nang's investment in expanding the Biotechnology Center with the goal of implementing the role of a meeting point of science, technology, enterprises and farmers - forestry farmers - fishermen has confirmed the role of biotechnology in the present era as well as showing the development orientation of the economic structure of the city. This is a development opportunity for businesses operating in the biotechnology industry in Da Nang in particular and Vietnam in general, creating momentum for attracting foreign investors to set up company taking advantage of local resources.

Read More

Risk Management: A Vital Element When Doing Business

  Risk management is a vital element when doing business but so far, not many enterprises concern about it.

According to a recent survey with 522 companies, there are only 43 companies, accounting for about 8%, have the independent risk management department in their business. More noteworthy, the majority of these 43 companies operating in the banking and financial sector, which has nothing new to risk management. In fact, not all banks have independent and effective risk management departments. The negative problems related to the banking system in recent times somewhat showed the picture about the risk management of this sector.

Risk is understood as any events and situations that could harmful to the ability to achieve the business objectives of the enterprise. Risk management is organized in a formal way and is conducted continuously to identify, control and report the risks that may affect the achievement of the business objectives of the enterprise.

So why businesses are not interested in risk management? Part of this problem stems from the awareness of the leaders. In order to build and operate the risk management system in the enterprise, it needs the commitment of the senior leaders. If senior leaders do not aware of this problem, the administration process will be difficult to achieve the desired effectiveness.

Recently, there are many theories and systems of risk management but small and medium enterprises should be cautious when apply because system and theory are just general and they should be adjusted when applying to each business.

In order to form the culture of risk management, the leaders must along with the employees to implement it regularly and for each project. In theory, the risk management process is carried out in 5 steps: identify risk; evaluate its impact; determine the likelihood; action and measures; monitoring and evaluation.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

How to conduct research in Vietnam from official media source?

  The media is an effective source for us to search necessary information for learning, business activities or for daily life. However, with the development of the Internet, communication has a stronger influence and is the leading tool that we often use to find information. Besides the benefits that the media brings, the media might be abused to pose many risks for users. Therefore, how to find official information in the media source is a topic of concern for many people, whom wish to search i.e. reputation of business partners, record of business owners, shareholders, key officers or management personnel, public information of company or individual, actual business operation of company, government policies, regulatory matters…

It is increasingly important to check sources of information, especially on the internet and using social media. Any individual joining a media network, social network can post any contents and share information, even if the information may be false. In fact, images and videos can also be plagiarized, mislabeled, or fabricated to convey information. Meanwhile, when users do not have time to learn and verify the source of false information and the fact that this information is not censored, it can spread quickly in the mass media.

Therefore, to avoid accessing or searching for fake news, users should not rely on all the information on social networks. Accordingly, users should check trusted news websites or government websites. In addition, users can check the author, title or name of the agency or organization that wrote or published information and articles. Users will then have an initial assessment of whether they are eligible to post and can trust what they have posted.

Further, before sharing a post on social network platforms, users should check if it is reliable and authentic information. However, on social network, it is not easy for users to authenticate information within a short period of time. The best way is that users should get direct information from contacting an agency or expert in this field or refer to reports and content of a reputable news site.

In addition, users should rely on organizations that specialize in field in which the user is looking for information. For examples, if the a person is having health problems and wish to consult the instructions or recommendations on where to go for medical treatment, the user should call a medical facility for guidance and advice from experts or visit the website of the Ministry of Health for the most official and reliable information. Or a foreigners whom wish to find government policy or information for travel and entry for immigration during Covid-19 pandemic time, he/she can contact or visit the website of the relevant Vietnam Immigration Department.

One problem today is that fake channels are trying to design the interface to have a similar look like official websites and insert characters that if not alerted users can easily confuse. Therefore, users should carefully check the website address from which they get information.

In conclusion, it is important for media users to watch out for official and stay away from fake news when searching for information.  In addition to being vigilant and looking for official sources to get information, users can contact information search consulting company in Vietnam for effective solutions.

Read More