From accounting to customs clearance: Essential local professional support network for Taiwanese businesses setting up factories

Why are local professional services more important than you think?

For many Taiwanese businesses, the primary challenges in setting up factories in Vietnam or Southeast Asia are often considered to be land, manpower, and supply chain. However, what truly determines whether a company can operate "legally, smoothly, and sustainably" is often local compliance .

Especially in the areas of accounting, taxation , and customs management , due to the involvement of government regulations, local differences, and international transactions, companies without the assistance of local professional consultants can easily fall into the predicament of "having complete documents but not being compliant," ultimately facing fines, delays, or even losing the trust of international clients.

Accounting services: the first line of defense for financial and tax compliance

Differences in local accounting rules

While Vietnam's Accounting System (VAS) and Taiwan's both adopt the double-entry bookkeeping principle, there are subtle differences in the processing of vouchers and journal entries, for example:

• Each transaction must have a complete voucher and relevant documents (invoice, contract, bank payment voucher), and the primary language must be Vietnamese . If the original documents are in Chinese or English, they may still need to be translated into Vietnamese to obtain approval from the tax authorities or banks.

📌 Case Study: Language Barriers to Overseas Payments

Based on our experience with transactions through our Vietnam subsidiary, we sign contracts in both Chinese and English with overseas suppliers and make payments through banks. However, during the payment process, the banks require a Vietnamese version of the contract; otherwise, it cannot serve as proof of payment. If this is not prepared beforehand and a translator is hired at the last minute, it may lead to payment delays, affecting the supplier's shipments and reputation.

👉Reminder : When handling cross-border transactions in Vietnam, it is best to prepare a contract in Chinese/English/Vietnamese versions from the beginning, or at least allow time for translation, to avoid delays in the payment process.

Legal services: the cornerstone of protecting corporate rights

Besides finance and taxation, legal issues are also risks that are often overlooked during the establishment period:

• Company establishment : Foreign-invested enterprises need to obtain both an "Investment Registration Certificate" and an "Enterprise Registration Certificate" at the same time, and the document formats and procedures are cumbersome.
• Contract validity : If a contract is written only in English or Chinese, the local court may not recognize it, putting the party at a disadvantage in litigation.
• Labor laws stipulate that employment contracts, working hours, and dismissal regulations all have legally prescribed formats and procedures. Failure to comply may result in labor disputes or fines.

👉 Local lawyers can assist in reviewing contracts and ensuring their legality, avoiding situations where "documents are valid in Taiwan but are ruled invalid in Vietnam".

Customs services: Ensuring uninterrupted supply chains

Customs authorities in different regions have different enforcement standards.

Although the customs authorities across Vietnam follow the same set of laws, in practice, customs officials in different regions may interpret the requirement of "account consistency" differently.

Enterprises manage raw materials and finished products using part numbers in their ERP systems, but they must classify them according to HS codes when declaring goods to customs. Since there is not a one-to-one relationship between ERP part numbers and HS codes , the same part number may correspond to multiple uses or different consumption ratios, which may cause discrepancies between customs records and physical inventory records .

One of our clients encountered the following situation during a customs audit: the local customs accepted the company's reasonable explanation and supplementary information regarding the discrepancies between the customs accounts and the physical accounts, but during the Hanoi customs re-inspection, they demanded a stricter "item-by-item data matching," ultimately determining that the accounts were inconsistent and imposing a penalty.

👉Implication : This type of situation illustrates that the problem is not that the company intentionally underreports, but rather that there is a discrepancy between the part number logic of the ERP system and customs inspection standards . Without the assistance of a local customs consultant to prepare explanatory documents and supporting evidence, companies are easily judged to be in violation due to these details.

Conclusion: Compliance requires local intelligence

Setting up factories across borders is not just about "building factories and finding employees," but about maintaining legality and consistency under the scrutiny of tax authorities and customs at different levels and in different regions.

• In terms of finance and taxation : contract language, journal entries, and electronic invoice standards must all comply with the requirements of Vietnamese accounting and banking.
• Customs aspects : Differences between ERP and HS-code, inconsistent local inspection standards, and potential risks of central re-inspection all require reinforcement through local consultants.

💡The most important takeaway : Compliance is not a cost, but a fundamental condition and safeguard for multinational operations. The earlier you establish a local compliance system, the more you can avoid pitfalls and focus on business growth.