Country Guide
Employer of Record in Vietnam (EOR in Vietnam)
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Hire Globally, Pay Locally, Expand Effortlessly
We act as your Employer of Record in Vietnam. This nation, rapidly expanding economy and strategic location in Southeast Asia offer lucrative opportunities for global businesses. However, entering the Vietnamese market requires navigating complex labor laws and tax regulations. An Employer of Record (EOR) in Vietnam can simplify this process by acting as your local partner to ensure a smooth market entry and ongoing compliance with all necessary regulations.
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Choosing Between an Employer of Record and Company Incorporation in Vietnam
While setting up a subsidiary in Vietnam is an option, using an Employer of Record provides several advantages:
- Speed – The process of setting up in Vietnam is faster with an Employer of Record like INS Global, enabling you to begin operations and hire staff much sooner. Company incorporation can take several months, whereas an Employer of Record can have your team operational within weeks or even days.
- Compliance – Both Employer of Records and subsidiaries must adhere to Vietnamese tax laws and labor regulations. Employer of Records bring specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
- Cost – For smaller teams or temporary needs, EOR services can be more cost-effective than establishing a subsidiary, as they help you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, Employer of Records provide efficient integration into multi-country payroll systems.
- Control – While incorporation offers complete control over HR, finances, and operations, Employer of Records provide similar control over your workforce while reducing administrative responsibilities and liability.
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
The Advantages of a Vietnamese Employer of Record On Your Business
Efficient Setup
An Employer of Record simplifies the process of entering the Vietnamese market by managing intricate tax systems and labor laws, ensuring compliance from the outset.
Consistent Compliance Management
Navigating Vietnam’s regulatory environment can be challenging, but Employer of Records have the expertise to ensure your business complies with local tax laws, labor regulations, and social security contributions.
Minimized Risk and Liability
As your legal employer in Vietnam, an EOR mitigates the risks associated with employment regulations, ensuring full compliance.
Cost Planning and Management
Employer of Record services are often more cost-effective than setting up a local subsidiary, especially for smaller teams or temporary projects, helping you avoid initial incorporation costs and ongoing administrative burdens.
The Ability to Focus on Core Business Objectives
By outsourcing HR tasks such as recruitment, payroll processing, and tax management to your Employer of Record, you can concentrate on your core business activities.
How an Employer of Record in Vietnam Operates in 3 Steps
1
Comprehensive Planning & Needs Assessment
Partnering with an Employer of Record in Vietnam, such as INS Global, begins with a thorough assessment of your business objectives. This involves understanding the required number of employees, their specific roles, and your desired timeline for expanding into Vietnam. The Employer of Record then customizes its services to align with your specific requirements, ensuring a seamless integration into the market.
2
Streamlined Setup, Recruitment & Onboarding
Whether you are forming a new team in Vietnam or transferring existing staff, an EOR manages all necessary legal processes. This includes handling visas, work permits, payroll, and contract management, ensuring full compliance with Vietnamese labor laws. Acting as your legal employer in Vietnam, the Employer of Record saves you the time and expense of establishing a local entity.
3
Ongoing Management & Compliance Assurance
Once your employees are operational in Vietnam, an Employer of Record oversees ongoing HR and payroll functions. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security contributions. The Employer of Record acts as the HR liaison between you and your Vietnamese team, handling administrative tasks and addressing employee concerns, allowing you to focus on business growth.
5 Essential Factors for Selecting the Best Employer of Record in Vietnam
Choosing the right Employer of Record in Vietnam is crucial for successful market entry. Consider these 5 key factors:
- Experience and Track Record – Look for an Employer of Record in Vietnam with a proven track record and a strong industry reputation, such as INS Global. Client testimonials and industry awards can indicate reliability.
- Comprehensive Service Offerings – Ensure the Employer of Record in Vietnam offers all necessary services or can customize their offerings to meet your needs. This may include visa and work permit support, payroll processing, tax compliance, and navigating Vietnam’s tax and labor regulations.
- Scalability – Choose an Employer of Record in Vietnam that can scale its services as your business grows. They should be able to manage an increasing workforce and evolving business needs.
- Clear Communication and Transparency – Opt for an Employer of Record in Vietnam known for clear and consistent communication. They should keep you informed about regulatory updates, impending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to vital information.
Transparent Cost Structure – Compare the pricing models of various Employer of Record providers in Vietnam. Ensure their fees are transparent and competitive, with no hidden costs. Third-party advice can help you get the best value for your Employer of Record in Vietnam.
INS GUIDES
Check Our Labor Law Guide
Vietnam Labor Law
Employment Contracts
Contracts must be in Vietnamese or English and outline employment terms including salary, benefits, working hours, termination clauses, and minimum wage requirements. An Employer of Record in Vietnam ensures your contracts comply with local labor laws.
Working Hours
Probation periods in Vietnam typically last up to 2 months. An Employer of Record can help set up probation periods that comply with local laws while allowing you to assess new employees.
Standard work hours in Vietnam are usually 48 hours per week with limits on overtime. Employer of Record services assist in tracking work hours and ensuring compliance with overtime regulations.
Types Of Leave
Paid Leave
Employees in Vietnam are entitled to various types of paid leave including public holidays, annual leave, sick leave, and maternity leave. An Employer of Record manages leave requests and ensures proper compensation according to Vietnamese labor laws.
Health Insurance and Social Security
Both employers and employees contribute to health insurance and social security schemes. Your Employer of Record handles these contributions as part of the payroll process.
Severance Pay
Severance pay is required in certain situations such as termination without cause. An Employer of Record guides you through severance pay practices and calculations to ensure compliance with local laws.
Navigating these complexities in-house can be challenging and time-consuming. Partnering with an EOR in Vietnam ensures your business remains compliant with labor laws, protecting you from potential risks and allowing you to focus on growth.
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Frequently Asked Questions
faqs
An Employer of Record helps small businesses by managing complex HR and compliance tasks, allowing them to enter the Vietnamese market without the need for a local entity.
An Employer of Record can quickly scale its services to accommodate an increasing workforce, ensuring all HR and compliance needs are met as your business grows.
An Employer of Record manages payroll processing, ensuring timely and accurate salary payments, handling tax deductions, and managing social security contributions.
Employer of Records have local experts who stay updated on regulatory changes, managing all compliance aspects to ensure your business adheres to Vietnamese labor laws.
Yes, an Employer of Record can facilitate remote work setups, ensuring compliance with local employment regulations and managing all HR and payroll functions for remote employees.
An Employer of Record manages the entire onboarding process, from job offers to orientation, ensuring all procedures comply with Vietnamese labor laws.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.