Sending payments to international partners, freelancers, or vendors in Vietnam can be smooth and efficient if you avoid the common pitfalls. Vietnam’s banking system has its own quirks, and failing to navigate them properly can lead to delays, lost funds, or frustrated beneficiaries.
Here’s a breakdown of the 7 most common mistakes to avoid and what to do instead.
1. Overlooking Modern Payment Solutions
The Mistake:
Many businesses still rely solely on traditional wire transfers or direct bank-to-bank payments without considering modern alternatives. This can lead to higher fees, slower processing, and reduced transparency.
What to Do Instead:
Explore and compare platforms like Tazapay, Wise (formerly TransferWise), Payoneer, Revolut Business, and Airwallex. These services often offer faster transactions, competitive FX rates, and lower fees than traditional banks.
Why Tazapay Stands Out:
- Built-in KYC/AML compliance support
- Fast local settlements to Vietnamese bank accounts
- Broad support for global and local payment methods
Tip:
Platforms like Tazapay offer local payout rails in Vietnam resulting in quicker delivery and lower transaction costs than SWIFT transfers.
2. Overlooking FX Rate Visibility
The Mistake:
Many businesses forget to check the actual exchange rate applied to a transfer, which can quietly affect the payout amount — especially when rates fluctuate.
What to Do Instead:
Use providers that offer real-time rates and clearly display conversion values before you confirm a transaction.
How Tazapay Helps:
Tazapay shows the real-time FX rate upfront before you approve a payment — so you know how much will reach the beneficiary, without second-guessing post-transfer deductions.
Tip:
For regular payouts, monitor FX trends over time and aim to book when rates are favourable — every bit adds up.
3. Entering Incorrect Beneficiary Details
The Mistake:
Cross-border payment failures often stem from errors in beneficiary details. This is especially true in Vietnam, where strict formatting rules and name conventions apply.
What to Do Instead:
Double-check these key elements:
- Full Legal Name: Vietnamese names often include multiple given names. Banks require exact matches, including correct spelling and accents.
- Correct SWIFT/BIC Codes: Always verify the international bank codes.
- Account Number Format: For example, Techcombank requires 14-digit account numbers. Incorrect digits will cause delays.
How Tazapay Helps:
Tazapay provides built-in beneficiary verification during the payment setup process. This reduces human error and ensures details meet local bank standards.
Tip:
Always copy and paste details from verified sources and never rely on manual entry.
4. Not Complying with Vietnamese Banking Regulations
The Mistake:
Missing purpose codes or required documents can result in payments being held or rejected.
What to Do Instead:
Understand the local compliance requirements:
- Many banks request a remittance purpose, like “freelance work” or “invoice payment.”
- Business payments might require an invoice or signed contract.
How Tazapay Helps:
Tazapay collects necessary compliance documentation as part of its payment workflow, helping you stay on the right side of local regulations.
Tip:
Work with providers that offer automated local compliance checks.
5. Overlooking Compliance-Driven Delays in Large Payouts
The Mistake:
When sending business-critical or higher-value payouts to Vietnam, it's common for transactions to be flagged for additional checks — especially if the accompanying documentation is missing or incomplete. These delays often stem from compliance requirements, not just the payment size.
What to Do Instead:
Work with a provider that understands Vietnam’s local regulatory landscape and integrates compliance workflows directly into the payment process. This minimizes the risk of holds or rejections, even for more substantial transactions.
How Tazapay Helps:
Tazapay handles compliance requirements — such as payment purpose tagging, document collection, and bank-specific formatting — within its platform. This reduces back-and-forth, manual intervention, and payout failures that typically arise from incomplete submissions.
Tip:
Even if the payout isn’t time-sensitive, resolving compliance issues after the fact can lead to significant delays. Tazapay’s built-in compliance checks ensure smoother processing from the start.
6. Overlooking Timing and Local Holidays
The Mistake:
Sending payments near Vietnamese public holidays or weekends and expecting quick processing.
What to Do Instead:
Be aware of banking schedules:
- Vietnamese banks are closed on weekends
- Public holidays like Tet (Lunar New Year) can affect banking for several days (Tet 2025 is Jan 25 – Feb 2)
Tip:
Use a Vietnam holiday calendar and aim to send payments a few days in advance of deadlines.
7. Not Having Payment Records for Resolution
The Mistake:
When something goes wrong — like a delay or name mismatch — not having a transaction trail can slow down resolution or compliance audits.
What to Do Instead:
Keep a clear log of each payment's status, beneficiary details, and attached documentation, especially for cross-border transactions.
How Tazapay Helps:
Tazapay automatically stores transaction histories and supporting documents for each payout. This makes follow-ups and reconciliations simpler for finance teams.
Tip:
If your team manages many payouts, a searchable transaction dashboard like Tazapay’s can save hours of digging through emails and spreadsheets.
Conclusion
Avoiding these 7 mistakes will save you time, money, and frustration when sending payouts to Vietnam. By using the right payment tools, verifying beneficiary details, staying compliant with regulations, and planning ahead, you can build stronger relationships and ensure smooth, reliable transactions every time.
Tazapay simplifies cross-border payments to Vietnam with local payout rails, compliance support, and real-time FX visibility.
Ready to streamline your Vietnam payouts? Learn how Tazapay can help.
