Employees and staff members are among the most crucial factors determining a company’s success. To select talented candidates suitable for each position, we begin with the process of conducting background checks. So how do you conduct background checks before hiring? How can you accurately assess and identify the most promising candidates? The following article by KMC will provide detailed guidance and answers.
What is an Employee Background Check?
The background check process is carried out before recruitment and is an essential part of the hiring process. This procedure helps collect necessary information to make informed hiring decisions.
It allows businesses and employers to verify the qualifications of candidates, assess their suitability for the position, and minimize potential risks associated with hiring mistakes.
A comprehensive background check typically covers the following areas:
- Job-related abilities and competencies
- Personality traits and cultural fit
- Educational background and work experience
- Potential red flags such as criminal records
Why Are Background Checks a Key Factor in Recruitment?
For business managers—especially those of FDI companies in Vietnam—conducting background checks plays an extremely important role. It is also a method that enables businesses and corporations to find talents who can contribute to effective company and brand development.
In addition, background checks before hiring help eliminate risks such as:
- Corporate security risks: 47% of internal security incidents in Vietnam stem from employees with unclear backgrounds (Vietnam Corporate Security Report 2024).
- Legal risks: Violations of personal data collection & processing regulations may result in fines of up to 5% of total revenue in Vietnam under Decree No. 13/2023/NĐ-CP.
- Brand reputation risks: 92% of Japanese companies consider reputational damage to be more serious than financial loss in the event of HR-related incidents.
Fast & Accurate Employee Background Check Guide
While background check procedures may vary slightly from company to company, a professional and accurate process typically includes the following steps:
1.Degree and Certificate Verification
Verifying a candidate’s degrees and certificates is the first step in filtering suitable applicants. In Vietnam, a standard process includes:
- Step 1: Collect notarized copies of degrees and transcripts
- Step 2: Verify directly with the educational institution via official documents (with the candidate’s written consent)
- Step 3: Check validity via the Ministry of Education and Training portal (moet.gov.vn)
Legal note: Only verify qualifications relevant to the job. Asking for unrelated degrees may be considered discriminatory.
2. Criminal Background Check
This is also an essential step in evaluating candidates. However, it must be conducted legally.
Key considerations:
- The candidate submits Judicial Record Certificate No. 2 (valid for 6 months)
- The company is NOT allowed to directly request information from the police
- For sensitive positions (finance, security), clearly state the requirement in the labor contract and internal regulations
Notable statistic: About 3.5% of candidate profiles in Vietnam show irregularities in criminal records uncovered through professional screening.
3. Reference Checks with Former Supervisors
For large companies, especially FDI enterprises, reference checks are an indispensable part of background screening.
A standard international reference check process includes:
- Obtain written consent from the candidate before contacting referees
- Prepare a standardized questionnaire (7–10 questions focusing on competencies and attitude)
- Contact at least two referees (one of whom must be a former direct manager)
- Record (with consent) or document the conversation for legal purposes
4. Social Media Screening
Candidate activity on social media can influence the employer’s decision. As a recruiter, it is advisable to briefly review the candidate’s public online presence.
Basic screening guidelines:
- Only view publicly available information (public profile)
- Do not request personal account passwords
- Do not use sensitive personal data (religion, political views, sexual orientation) as evaluation criteria
Insight from Japanese companies: 78% of Japanese companies in Vietnam use social media to assess cultural fit, yet only 35% have clear internal regulations for such checks.
5. Credit Checks (Applicable for Finance Positions)
For positions involving financial responsibilities, employers should conduct additional credit checks as follows:
- Clearly disclose in the job description & labor contract
- Obtain explicit written consent from the candidate
- Use the services of the National Credit Information Center of Vietnam (CIC) via an authorized partner
Common Mistakes FDI Companies Make in Background Checks
Alarmingly, over 62% of foreign-invested enterprises in Vietnam do not have a background check process that complies with Vietnamese Labor Law. Common mistakes include:
- Mistake 1: Applying the parent company’s background check process without modification → violates Article 21 of the Personal Data Protection Law on sensitive data collection.
- Mistake 2: Failing to retain candidates’ written consent → lacks legal basis during inspections.
- Mistake 3: Using check results to discriminate → serious violation of Article 8, Labor Code 2019.
KMC – Comprehensive Solutions for HR Risk Management
Background checks are just one link in a comprehensive HR risk management system. To proactively respond to all legal challenges, FDI enterprises should:
- Develop an internal background check policy approved by executive leadership and the legal department
- Train HR staff on the latest Vietnamese labor laws
- Establish a mechanism for regular legal updates
For long-established businesses operating in the Vietnamese market, this process is often well implemented. However, many newly established enterprises still face difficulties in conducting background checks and building a professional, effective recruitment process.
Understanding this challenge, KMC has been offering professional consulting packages for businesses—not only in tax and finance but also in human resources.
With a team of experienced lawyers and experts who stay up to date with Vietnamese regulations, KMC supports enterprises in building comprehensive HR risk management solutions right from the recruitment stage. We offer consulting and assistance in designing legally compliant and standard background check procedures.
KMC – A Trusted Partner for FDI and Japanese Companies in Vietnam on the Journey Toward Digital Transformation & Full Legal Compliance.
For professional, dedicated, and comprehensive consultation, please contact our hotline: +84 91 988 9331.
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