In the context of globalization and the explosion of technology, remote work is no longer a strange concept for most businesses. According to an employee survey by Anphabe since 2022, after the COVID-19 event, the shift to the “remote” model seems to have been a turning point for most enterprises, not only in Vietnam but also worldwide.
In particular, for FDI enterprises in Vietnam, the adoption of this model opens up opportunities for global talent competition and operational cost optimization.
What is Remote Work? A Simple Definition for Modern Businesses
Remote work (Remote Work/Teamwork) is a labor model that does not require employees to be physically present in the office, allowing them to complete their tasks via internet connection from home, a café, or flexible workspaces. The core element is the use of digital tools to communicate, manage progress, and ensure transparency.
Nearly 90% of businesses were forced to allow and operate this “remote” model during 2021 and 2022. Today, this model still exists in some companies due to changing job requirements, creating more favorable conditions for employees while also reducing certain HR costs that businesses have to bear.
Causes and Benefits for FDI Enterprises & Employees
Key Factors Driving the Trend
The breakthrough development of technology: Most users today rely on various platforms such as Slack, Zoom, Microsoft Teams, Notion, and Google Meet to solve the challenge of multinational communication. The high applicability of these platforms has made interaction between individual users easier than ever. Moreover, if the user is an enterprise, these platforms also provide additional features to support the company’s operational purposes.
Impact of the COVID-19 pandemic: It became the catalyst that forced businesses to test and recognize the effectiveness of this model. To manage work during the pandemic, most companies had no choice but to implement “remote” options for their employees. Meetings also had to be held using technology platforms instead of in-person gatherings. Although not entirely new, the pandemic seemed to change user habits to adapt, while also creating opportunities for tech companies to continuously develop new features to meet user demand.
Undeniable Benefits
For FDI enterprises:
- Saving office rental costs: Instead of renting a large enough space to provide comfortable workplaces for employees, businesses choosing the “remote” model can significantly reduce rental expenses.
- Easier recruitment through technology platforms: Hiring potential candidates across countries becomes simpler. Allowing fully remote or hybrid (remote and on-site) work also helps reduce HR costs when hiring foreign employees. If a foreign employee is required to relocate and work in Vietnam, the company may have to cover housing and travel expenses for that employee.
- Increased productivity by reducing commuting time is also an important factor that enterprises consider when adopting this model.
For employees:
- Breaking space–time barriers and managing personal work proactively: Enhances self-discipline and allows employees to complete tasks on their own initiative. It motivates employees and enables them to work in more comfortable and familiar environments, which can improve productivity.
- Reduced stress and better work-life balance thanks to flexible work locations.
- Opportunities to work for multinational corporations even while living in suburban or remote areas.
Challenges and Solutions for FDI Enterprises Implementing Remote Work
While remote work brings many advantages, this model also poses several challenges that require FDI enterprises to prepare carefully:
4 Key Risks to Manage
- Sense of Isolation: According to recruitment surveys, remote work often makes employees feel isolated due to a lack of direct interaction and communication. Similarly, in business meetings with clients or partners, face-to-face interaction plays a crucial role in fostering effective collaboration.
- Difficulty in Performance Management: To allow employees to work remotely, HR departments as well as company leadership need to establish effective remote work plans. Without proper tools for measurement, enterprises risk unfair evaluations due to the absence of standardized performance metrics.
- Data Security Risks: Access from multiple personal devices increases the likelihood of information leakage. This requires IT departments to establish strict security policies and control measures. Creating a robust data protection framework is essential when employees are permitted to work from home.
- Cultural Conflicts: This is particularly relevant for Japanese enterprises, where direct communication and collective spirit are highly valued.
Expert Strategies from KMC
To optimize this model, enterprises should:
- Develop flexible benefit policies that combine remote and in-office work, with particular emphasis on employee engagement through regular activities. Explore our strategic benefits design solutions here.
- Implement clear Collective Labor Agreements outlining employee rights and obligations under remote work, ensuring compliance with both Vietnamese and international labor laws. Learn about our standardized agreement development process here.
- Invest in AI-powered HR management systems to track KPIs transparently and detect early signs of employee burnout.
Outlook in Vietnam and Practical Actions for Businesses
According to a report by the Ministry of Information & Communications, more than half of FDI enterprises in Vietnam have adopted partial remote work since 2023. However, to maximize the potential of this model, it is necessary to:
- Adjust corporate culture: Japanese corporations can adopt a hybrid model to balance tradition with flexibility.
- Provide digital work skills training for both management and employees.
- Collaborate with advisory firms experienced in multinational labor laws, such as KMC, to minimize legal risks.
Remote work has become the new standard in the competition for talent. For FDI enterprises—particularly Japanese corporations operating in Vietnam—proactively building a legal framework and a well-structured HR strategy is no longer an option but a matter of survival.
KMC is ready to accompany your business in optimizing this model through our Human Resources & Payroll Advisory Solutions, tailored specifically for the Vietnamese market.
