Changing new address: What businesses need to do to avoid making a mistake

From July 1, the conversion of administrative boundaries to 2 levels poses a large amount of work, requiring careful preparation from businesses to avoid risks and system disruptions in operation.

Changing administrative addresses will have a big impact on the operations of agencies, organizations and businesses - Illustration photo: HP

From July 1, the conversion from 3-level administrative boundaries to 2-level will create a huge amount of work for all relevant parties, from state management agencies, local authorities to businesses, especially technical systems and services that use maps and addresses.

This process requires careful preparation to avoid risks, errors and operational disruptions.

Identify 6 challenges

According to Mr. On Nhu Binh, co-founder and CEO of EMDDI Joint Stock Company (a transportation platform for companies such as Xanh SM, Taxi Group, Lado, etc.), changing administrative addresses will create significant impacts on the operations of many businesses.

In particular, industries such as e-commerce, transportation (including taxis, ride-hailing, delivery, logistics) and real estate will be greatly affected.

Meanwhile, businesses in other industries, especially those using management software at the ward/commune level, will need more time to synchronously implement these changes.

Mr. Binh predicts that during the transformation process, organizations will face six major groups of challenges.

First, the workload is large and there is a risk of errors and penalties. It is important to distinguish between "using addresses in daily operations" and "requiring conversion and storage of addresses according to new administrative units".

Without a specific plan and anticipation of emerging situations, organizations are prone to system disruption, errors, and possible penalties according to regulations.

Second, the risk of using third-party map APIs. Currently, many map API providers have not yet confirmed their ability to fully support new administrative addresses. Some have opened a pilot but the accuracy has not been confirmed.

Therefore, applications using 3rd party map APIs need to anticipate risks if the address is incorrect.

Third, it is difficult for users to identify the equivalent addresses between the old and new ones. The conversion can cause confusion. For example, Mr. Binh gave an example: Previously, it was easy to distinguish "5 Quang Trung (Hoan Kiem)" from "5 Quang Trung (Ha Dong)", but in the 2-level address system, the lack of district information can easily cause confusion in communication, delivery, and travel.

Fourth, standardize address data. Conversion is only effective when the input data is standardized. If addresses are entered randomly, not in a standard format, or are handwritten inconsistently, the processing and conversion process becomes complicated and costly.

Fifth, the requirement for invoices according to the new address. Current regulations require invoices to be issued according to the new administrative address. Meanwhile, some operating systems may still use the old address. Therefore, businesses need to review, update information and work with tax authorities for specific instructions to avoid errors in declaration and invoice issuance.

Sixth, hidden costs during the transition. From updating software systems, adjusting APIs, modifying signage, reprinting invoices, contracts... all incur costs. These costs can be significant, especially for businesses with large operations or many address data touchpoints.

Store old and new addresses in parallel

To minimize the costs from the above risks, Mr. Binh suggested some solutions that organizations can refer to. First of all, it is necessary to plan for data conversion in a controlled manner, including checking, comparing and testing steps before officially implementing.

Storing both the old and new addresses simultaneously at the beginning is also a way to ensure uninterrupted operations. In addition, systems should support displaying both address formats, or at least provide the option for users to know the corresponding new address.

This will help users gradually get used to the new address and limit confusion. In particular, updating invoices to the new address requires close coordination with the tax authorities to ensure compliance with regulations and avoid legal risks.

Finally, Mr. Binh said that at present, if the Government can promote the standardization and synchronous implementation of postal codes (Zip Postal Code) for 2-level administrative addresses, this will be an optimal fundamental solution.

This not only helps to synchronize the systems between the parties (maps, transport, administration and trade), but also saves a lot of resources in the future if there are any other changes.

HONG PHUC

Source: https://tuoitre.vn/doi-dia-chi-moi-viec-doanh-nghiep-can-lam-de-tranh-sai-mot-li-di-mot-dam-20250702121709135.htm