Hire remote employees easily and compliantly via our Employer of Record (EOR) service in Vietnam
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With over 150+ countries covered, we can help you expand your business globally with your Employer of Record (EOR) needs.
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We guarantee 100% compliance with local labor laws and regulations through our network of local experts in every country.
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We offer fully customizable solutions to fit your business needs, whether you need to hire one employee or a whole team.
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Vietnam's dynamic economic landscape and growing international presence have made it an attractive destination for global businesses. As companies seek to expand their operations into this vibrant market, they often encounter complex regulatory and administrative challenges. This is where an Employer of Record (EOR) comes into play, offering a streamlined solution for businesses looking to establish a presence in Vietnam without the need to set up a legal entity.
An Employer of Record is a third-party organization that takes on the responsibility of formally employing staff on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity, effectively navigating the complexities of local labor laws, tax regulations, and compliance requirements.
When a company decides to use an EOR service in Vietnam, the process typically unfolds as follows:
The client company identifies the employees they wish to hire in Vietnam.
The EOR becomes the legal employer of these individuals, handling all formal employment responsibilities.
The EOR manages payroll, tax withholding, benefits administration, and ensures compliance with Vietnamese labor laws.
The client company maintains control over the day-to-day work and responsibilities of the employees.
The EOR acts as a liaison between the client company and local authorities, ensuring all legal and regulatory requirements are met.
Employing an EOR service in Vietnam offers several advantages for businesses:
Rapid Market Entry: Companies can quickly establish a presence in Vietnam without the need to set up a legal entity, significantly reducing time-to-market.
Compliance Assurance: EORs are well-versed in Vietnamese labor laws and regulations, ensuring full compliance and mitigating legal risks.
Cost-Effective: By eliminating the need for a local entity, companies can save on setup and maintenance costs associated with establishing a foreign subsidiary.
Flexibility: EORs offer scalability, allowing businesses to easily adjust their workforce in response to market demands.
Local Expertise: EORs provide valuable insights into local business practices, cultural nuances, and market conditions.
Risk Mitigation: The EOR assumes many of the legal and financial risks associated with employment, providing a layer of protection for the client company.
Focus on Core Business: By outsourcing HR and administrative tasks, companies can concentrate on their core business activities and strategic goals.
In the context of Vietnam's rapidly evolving economy and complex regulatory environment, an EOR service can be an invaluable asset for companies looking to tap into this promising market. It offers a balance of compliance, efficiency, and flexibility that can significantly ease the challenges of international expansion.
Vietnam's employment landscape is a dynamic blend of tradition and modernity, shaped by a young, ambitious workforce and a rapidly evolving economy. The country's labor market is characterized by a shift from agriculture to manufacturing and services, with a growing emphasis on skills development to meet the demands of an increasingly globalized economy.
Vietnam's labor laws aim to protect workers' rights while fostering economic growth. Key aspects include:
These laws are regularly updated to align with international standards and address emerging workplace issues.
Understanding Vietnamese work culture is crucial for successful employment relationships:
Employers should be mindful of these cultural nuances to foster a positive work environment.
Direct hiring in Vietnam can present several challenges:
These challenges underscore the importance of thorough preparation and local support when engaging in direct hiring in Vietnam.
Book a call with our EOR experts to learn more about how we can help you in Vietnam.
Vietnam's dynamic economy and growing industries make it an attractive destination for businesses looking to expand their operations. Employer of Record (EOR) services play a crucial role in facilitating this expansion by simplifying the process of hiring and managing employees in the country.
EOR services in Vietnam function as intermediaries between foreign companies and local employees. They handle various aspects of employment, ensuring compliance with Vietnamese labor laws and regulations. Here's how EOR services typically work in Vietnam:
The EOR provider maintains a legal entity in Vietnam, which serves as the official employer for the workers hired on behalf of foreign companies. This arrangement allows businesses to operate in Vietnam without establishing their own legal entity.
When a company wants to hire employees in Vietnam, the EOR handles the recruitment process, including job postings, candidate screening, and interviews. Once suitable candidates are selected, the EOR manages the onboarding process, ensuring all necessary paperwork is completed in accordance with local regulations.
EOR services take care of payroll processing, ensuring employees are paid accurately and on time. They also handle tax withholdings, social insurance contributions, and other mandatory deductions. Additionally, EORs administer employee benefits, such as health insurance and paid time off, in compliance with Vietnamese labor laws.
One of the primary advantages of using an EOR in Vietnam is their expertise in local labor laws and regulations. They ensure that all employment practices, including contracts, working hours, and termination procedures, adhere to Vietnamese legal requirements.
For foreign employees, EOR services assist in obtaining necessary work permits and visas. They navigate the complex bureaucratic processes, liaising with relevant government departments to ensure all documentation is in order.
EORs provide ongoing HR support, addressing employee queries, managing performance evaluations, and handling any workplace issues that may arise. They also keep companies informed about changes in local labor laws and regulations.
When employment relationships end, EOR services manage the termination process, ensuring it complies with Vietnamese labor laws. This includes calculating final pay, managing severance packages, and completing necessary paperwork.
By leveraging EOR services in Vietnam, companies can quickly establish a presence in the country without the complexities of setting up a local entity. This approach allows businesses to focus on their core operations while the EOR handles the intricacies of employment and compliance in Vietnam's unique business environment.
Vietnam's payroll and tax system is a complex structure that involves various contributions and deductions for both employers and employees. This system is designed to support social welfare programs, healthcare, and unemployment benefits while ensuring fair taxation. Understanding these regulations is crucial for businesses operating in Vietnam to maintain compliance and manage their workforce effectively.
Employers in Vietnam are responsible for withholding Personal Income Tax (PIT) from their employees' salaries. This tax follows a progressive rate structure, ranging from 5% to 35%. It's important to note that employers must not only withhold this tax but also declare and pay it to the tax authorities on a monthly basis. The deadline for this payment is the 20th day of the following month. Additionally, employers are tasked with conducting annual PIT finalization for their employees.
Employers play a significant role in contributing to the social security system on behalf of their employees. These contributions are divided into three main categories:
These contributions are crucial for maintaining a comprehensive social security net for employees in Vietnam.
For employees who are members of a trade union, employers are required to withhold a 1% trade union fee from their salaries. This fee is then remitted to the appropriate trade union organization.
Employees in Vietnam are required to contribute 8% of their monthly salary to the social insurance fund. This contribution covers a wide range of benefits, including pensions, sickness, maternity leave, occupational accidents, diseases, and death benefits.
To ensure adequate health coverage, employees must contribute 1.5% of their monthly salary towards health insurance.
Employees are also responsible for contributing 1% of their monthly salary to the unemployment insurance fund, providing a safety net in case of job loss.
The Vietnamese tax system provides a monthly personal allowance deduction of VND 11 million (approximately USD 478) for each taxpayer. This deduction helps to reduce the overall tax burden on individuals.
Employees with dependents can benefit from an additional monthly deduction of VND 4.4 million (approximately USD 174) for each qualifying dependent. This can include a spouse, children, or parents, provided they meet specific criteria set by the tax authorities.
The tax system in Vietnam also encourages charitable giving by allowing deductions for donations made to approved charities and humanitarian organizations.
Understanding these various contributions and deductions is essential for both employers and employees in Vietnam. For employers, it ensures compliance with local regulations and accurate payroll management. For employees, it provides clarity on their take-home pay and the benefits they're entitled to. As Vietnam's economy continues to grow and evolve, staying informed about these payroll and tax regulations will remain crucial for businesses operating in the country.
Understand what the employment costs are that you have to consider when hiring Vietnam
Vietnam offers a comprehensive set of employee benefits, both mandatory and optional, designed to support workers and enhance their overall well-being. As an Employer of Record (EOR), Rivermate manages these benefits, ensuring compliance with local regulations while also helping companies offer competitive packages to attract and retain top talent. Let's explore the various benefits available in Vietnam.
In Vietnam, employers are required to provide the following benefits:
To remain competitive and attract top talent, many employers in Vietnam offer additional benefits beyond the mandatory requirements:
By offering a mix of mandatory and optional benefits, employers in Vietnam can create attractive compensation packages that support employee satisfaction and retention. As an EOR, Rivermate ensures that companies comply with local regulations while also helping them implement competitive benefit strategies tailored to the Vietnamese market.
The process of termination and offboarding in Vietnam is a crucial aspect of employment relationships, governed by specific legal requirements and best practices. Understanding these procedures is essential for both employers and employees to ensure a smooth transition and compliance with local labor laws.
In Vietnam, the Labor Code (No. 45/2019/QH14) outlines the legal framework for employment termination. Employers can lawfully end employment contracts for various reasons, including:
When terminating an employee, employers must adhere to specific notice periods:
Employees with at least one year of service are entitled to severance pay upon termination. The calculation is based on the employee's salary and years of service, typically half a month's salary for each year worked.
The offboarding process involves several steps to ensure a smooth transition:
By following these guidelines, companies can navigate the termination and offboarding process in Vietnam effectively, maintaining compliance with local regulations and fostering positive relationships with departing employees.
Vietnam's vibrant economy and growing job market have made it an attractive destination for foreign workers. However, navigating the visa and work permit requirements can be complex. Here's a concise overview of what foreign workers need to know about working legally in Vietnam.
Foreign nationals intending to work in Vietnam typically need to obtain a business visa (also known as a DN visa) before entering the country. The process usually involves:
Business visas are generally valid for 1-12 months and can be single or multiple entry.
Once in Vietnam, foreign workers must obtain a work permit. The main steps include:
Work permits are typically valid for up to two years and can be renewed.
Some categories of workers may be exempt from work permit requirements, including:
However, these exemptions are subject to specific conditions and time limits.
Vietnam has been working to streamline its work permit process in recent years. Some notable changes include:
It's important to note that regulations can change, and the process can vary depending on the specific circumstances of the worker and employer. Working with a knowledgeable local partner or legal advisor can help ensure compliance with all necessary requirements.
Rivermate stands out as an exceptional choice for Employer of Record (EOR) services in Vietnam, offering a unique human-centric approach that goes beyond mere platform provision. Our full-service solution ensures we're with you every step of the way, acting as your global HR department. We even offer recruitment services to further support your growth.
Here's why Rivermate is the ideal partner for your EOR needs in Vietnam:
At Rivermate, you're not just a number. We understand that smaller businesses often get overlooked by larger players in the industry. That's where we come in. We're dedicated to helping you grow, providing the personalized attention and support you need to thrive in the Vietnamese market.
HR and payroll are fundamentally human-centric operations. That's why we prioritize real human interactions over AI chatbots and automated emails. Our team consists of real people who genuinely care about your success. We're available 24/7/365, ready to assist you with any queries or concerns you may have.
Our motto is "Think global, act local." With local experts in over 135 countries, including Vietnam, we're well-equipped to help you navigate the complexities of local labor laws and regulations. We serve as your local partner, no matter where your business takes you.
We understand that every business has unique needs. That's why we offer 100% flexibility in our services. Whether you need extra clauses in a contract or want to implement a specific payment method for your employees, we're here to accommodate your requirements. Our adaptability ensures that you receive a tailored solution that perfectly fits your business model.
By choosing Rivermate, you're not just getting an EOR service; you're gaining a dedicated partner invested in your success. From handling complex compliance issues to managing payroll and benefits, we take care of the intricate details so you can focus on growing your business in Vietnam.
In conclusion, Rivermate offers a unique blend of personal attention, human expertise, global reach, and unmatched flexibility. We're more than just an EOR service provider; we're your committed partner in navigating the Vietnamese market and beyond. With Rivermate, you'll have the support and resources you need to succeed in your global expansion efforts.
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