Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
Vietnam is a rapidly expanding country that’s usually tipped to be the next big target market for companies worldwide. Since the 1980’s its economy has opened, and many companies now seek to enter Vietnam to make the most of the massive opportunities it presents.
As a safe and simple way to offer compliance assured HR functions for employees in an overseas target market, a PEO in Vietnam or Professional Employer Organization gives companies a way to hire and manage employees in less than 48h. INS Global’s PEO in Vietnam is a professional third-party supplier of expert global mobility services.
An Employer of Record in Vietnam offers employment outsourcing solutions to take care of HR and administrative responsibilities and streamline the global expansion process. INS Global is a provider of third-party EOR in Vietnam solutions to companies looking to improve and accelerate their international mobility.
While the growth has been impressive, regulatory and administrative hurdles still exist and pose a significant difficulty for prospective businesses. That is why many turn to local PEOs to aid their market entry and give themselves a sense of assurance regarding regulatory compliance.
A PEO allows you access to a team of legal experts specialized in your target market, meaning you’re covered from day one from any potential regulatory problems
By using a PEO service, you massively reduce your initial setup time and costs, allowing you far more freedom to approach operations in Vietnam in the way you see fit
Receive support and guidance 24/7 from your single point of contact who’s only ever a phone call or email away wherever you are in the world
Company Incorporation in a new market can take months, but a PEO requires only a few days to begin operations
PEOs offer HR support for whatever you need, including payroll, recruitment, tax compliance, contractor management, etc.
Establishing a new company in a foreign market can be a seriously troublesome prospect. More than a hassle, the potential delays and costs come at a time when you need to be thinking first and foremost about your success.
A PEO in Vietnam allows you to get your employees started in a matter of days, so you don’t have to spend months understanding complex and unfamiliar local business and labor regulations.
The Advantage in Figures
| PEO/EOR | Company Incorporation | ||
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Price |
80% Less Expensive |
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Market Entry |
2-5 Days |
6 Months |
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Employee Turnover |
Decrease by 14% |
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Recommendation |
98% of the Current PEO Clients |
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Administrative Fees |
Saves an Average of $450 |
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Costly Payroll and Compliance Fines |
Help Avoid |
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Company Growth Rate |
7 – 9% |
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ROI |
27% |
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Closed During Pandemic |
-58% |
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Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
INS Global’s PEO/EOR solution gives you access to vital HR services in 4 simple steps:
PEOs are often seen as identical to EORs (Employer of Record). Typically in many countries, the two function identically, but there may be some differences in the services they offer.
In Vietnam, INS offers the full range of services available to both as your global PEO and EOR services partner.
Labor law in Vietnam is regulated by the Labor Code, which was amended in 2021. It includes most of the regulations regarding the treatment of employees, and employers face harsh penalties if they are found to be infringing these regulations.
Employment contracts in Vietnam must be written to avoid costly labor disputes or the possibility of problems down the line. Locals must be paid in Vietnamese Dong, while non-Vietnamese can be paid in foreign currencies.
Contracts can be for definite or indefinite periods. A fixed period contract can be up to 36 months. Contracts with foreigners can be up to 24 months due to visa restrictions.
Probation periods in Vietnam can be quite long, depending on the situation. The longest available option is 180 days.
Vietnam has a minimum wage, with the amounts set depending on the region.
A working week should consist of no more than 48 hours or 8 hours per day.
Overtime should be no more than 4 hours per day or 40 per month. Employers may petition for a temporary extension to the maximum amount of overtime in the case of an emergency with 15 days’ notice.
Overtime is paid at 1.5x standard salary for extra hours, 2x standard salary for additional hours on the weekend, or 3x standard salary for hours during a public holiday or paid annual leave.
Employees in Vietnam are eligible for a minimum of 14 days paid annual leave and 11 public holidays. Employers are expected to make additional arrangements in cases where public holidays fall on a weekend.
Foreign employees also gain two days of paid leave for their country’s traditional New Year and National Day.
Employees who have paid less than 15 years of premiums in the Social Insurance Fund are entitled to 30 days of paid sick leave.
Sick leave is paid at 75% standard rate by the Social Fund, not by the employer. The amount of sick leave rises to 40 days if the employee has paid between 15-30 years of premiums, and 60 days for 30+ years of payment.
Employees in hazardous jobs or specific regions may be entitled to more sick leave.
Maternity leave allowance is 6 months in Vietnam, paid at 100% standard salary by the Social Fund.
New mothers are also eligible for a payment of 2 months’ full salary after giving birth.
Paid Paternity leave is 5 days.
High-quality PEO services can be provided for a simple monthly fee based on a percentage of the wage of the co-employed workers. This fee would include every aspect of necessary HR functions, from bs management to compliance assurance.
Yes, EORs in Vietnam give you a safe and legal way to hire new employees or transfer existing ones there. Whether you are functioning in the market continuously or temporarily, this is a rapid option ideal for guaranteeing employment for your employees that complies with every aspect of the local labor law.
Vietnam requires companies to meet all aspects of wage and payroll requirements as laid out in the Labor Code. This includes providing at least a minimum wage (which differs according to the 4 regions of the country) and being responsible for all deductions and accurate payments of tax and social security contributions on behalf of your employees.
Tax rates in Vietnam vary from 5-35% based on salary. In addition to taxes, all residents are expected to pay social security (covering sickness, maternity, workplace accidents, and retirement), health insurance, and unemployment insurance
As of 2022, employers in Vietnam have to contribute up to 22% of the equivalent of their employees’ salary towards employer contributions for social, health, and employment insurance.
Employees in Vietnam expect to receive an annual lunar new year/Tet bonus (thưởng tết). While this isn’t compulsory it’s highly recommended, and functions as a 13th–month bonus found in other countries.
Recruitment in Vietnam may be relatively inexpensive, but there are a few things to consider. Due to linguistic differences, it can be helpful to hire local intermediaries. In addition, thanks to the country’s rapid development and rise on the global stage, companies may find it best to offer competitive employment packages to secure the best talent.
Even if there may be some variations in labor laws among the many cities and prefectures in Vietnam, an EOR may manage hiring and employment procedures on your behalf wherever you require workers.
We also offer the choice to have every step of the hiring process taken care of on your behalf, from creating the job description to concluding the contract.
Contracts in Vietnam may only be changed with the mutual agreement of employer and employee.
INS Global offers PEO and EOR services according to your needs, meaning you can employ as many or as few workers in the country as you like.
Contract termination can be done unilaterally in Vietnam, but requires a long notice period of up to 120 days for indefinite contracts or contracts of over 1 year unless there is a provable reason for immediate termination.
Severance payments in Vietnam typically amount to a minimum of half a month’s salary for every year of service. However, the exact amount may depend on the employee’s standard salary and seniority.
Companies being opened in Vietnam do need to show evidence of a physical address, however remote work is a legitimate option for employees.
During the pandemic, remote working became much more popular in Vietnam. That being said, rates of remote work still remain relatively low due to a desire to work communally and many workers having inadequate facilities at home.
Absolutely, we can provide a full–service Vietnamese RPO (Recruitment Process Outsourcing) to also boost the speed and efficiency of the way you hire locally.
Local employees get 11 days of paid public holidays per year, with foreign employees receiving an extra day for their country’s national day.
The Labor Code, which was adopted in 2019, lays out the majority of acts and regulations concerning an employee’s rights. Other individual acts of government may set or adjust smaller issues.
While Vietnam has developed quickly in recent times, potential problems still exist for employers. Bribery and corruption are still seen as problems that can arise during workplace disputes. In addition, the complex system of language and law in the country can make it hard to keep track of changes to employment law.
Yes, we provide solutions to simplify the way you hire both Vietnamese citizens and foreign workers. Foreign workers based in Vietnam may be eligible for a number of different rights, so we ensure you are always covered no matter what.
Along with expert local knowledge of best practices and local benchmarks, employees can benefit from a constantly updated and consistent understanding of employment regulations in Vietnam. This means an employee can always feel confident knowing that their rights and interests are being upheld.
Employers in Vietnam have legal obligations to ensure that employees have a safe and healthy workspace free from discrimination or abuse. Jobs involving hazardous work must be carried out according to strict regulations, typically involving better employee protections than those in less dangerous occupations.
There are over 20 different types of visas that foreigners can apply for when going to Vietnam. These range in stay length from 30 days to 5 years, and each includes a number of restrictions on the type of activity the holder can perform.
The most common type of documentation held is the Work Permit (WP) which allows the holder to perform a variety of functions for up to 2 years.
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