Since July 1, 2025, when Binh Duong was officially merged into Ho Chi Minh City, the region’s economic and administrative landscape has entered a new chapter.

Changes in management structures, policies, and the business environment not only impact government operations but also create significant pressure on businesses operating in the area.

“Administrative restructuring” has therefore become a strategic move, one that opens the door to optimizing systems while also posing risks if businesses fail to adapt on time.

OPPORTUNITIES AND RISKS

5 REASONS BUSINESSES FAIL WITHOUT STRONG INTERNAL CONTROL

Following an administrative restructuring, businesses may face not only operational disruption risks but also a weakened internal control system. These two risks often occur sequentially, creating a “governance gap” that makes organizations more prone to errors, fraud, and legal violations if not identified and addressed promptly. Below are five common causes leading to weak internal control systems:

1. Design or operational flaws in controls.
Controls that are poorly designed or improperly executed create loopholes, allowing errors and fraud to occur.

2. Human error and governance risks.
Even well-designed controls can fail if employees do not comply with procedures, or if governance lacks transparency and independent oversight mechanisms.

3. Insufficient training and awareness.
Employees without adequate guidance are more likely to violate processes—especially in rapidly changing environments.

4. Outdated technology and processes.
Failure to update systems, infrastructure, and control mechanisms leaves businesses unable to meet new operational demands.

5. Failure to keep pace with regulations and standards.
Failing to update laws, accounting standards, and ESG requirements can lead to legal violations and reputational damage.

Don’t miss the opportunity to strengthen your internal control capabilities and mitigate risks while embracing modern governance solutions at the international-standard training program:

“Building a Strong Governance System: Internal Control – Risk Management – ESG in the Transformation Era” co-hosted by WTC Binh Duong New City & Deloitte Vietnam. This program will help you:

• Understand common risks and challenges businesses face.
• Master modern governance solutions suited for the current transformation context.
• Strengthen your ability to prevent and respond to risks.

REGISTER NOW – LIMITED SLOTS AVAILABLE

Date: October 9–10, 2025
Venue: Binh Duong Convention & Exhibition Center (BCEC) – B11, Hung Vuong Street, Binh Duong Ward, Ho Chi Minh City.
Contact: Ms. Thuy – +84 938 414 437 – thuy.btt@becamex.com.vn