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Employer of Record Vietnam
Hire staff and expand your business in Vietnam with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Vietnam designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Vietnam. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Vietnam takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Vietnam
A Brief Guide to Vietnam
With a captivating blend of bustling cities, serene landscapes, and rich cultural heritage, Vietnam is a vibrant and dynamic Southeast Asian country. Evolving at a rapid pace, Vietnam merges tradition with modernity, holding promise for businesses seeking to grow internationally.
Category | Information |
Location | Southeast Asia |
Capital City | Hanoi |
Official Language | Vietnamese |
Area | 331,212 sq km |
Population | Approximately 100 million |
Currency | Vietnamese dong |
Major Cities | Hanoi, Ho Chi Minh City, Da Nang |
GDP | $1.3 trillion (PPP, 2022 est.) |
Major Industries | Textiles, Food processing, Tourism, Electronics |
Business Culture
Business Culture in Vietnam
In Vietnam, relationships are the cornerstone of business dealings. Respect for hierarchy and seniority is emphasized, and decisions are usually made by the highest-ranking person. Punctuality is highly valued, and business meetings often commence with small talk, serving to establish rapport before diving into the matter at hand. Business cards are exchanged using both hands, and it’s considered polite to examine the card carefully before tucking it away.
Payroll and Taxes
Payroll and Taxes in Vietnam
Although not legally required, it is customary for employees in Vietnam to receive a 13th month salary payment. The exact amount and timing will depend on the employment contract, but a months pay at the time of Lunar New Year is common.
Employee Taxation
In Vietnam, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (VND) | Tax Rate |
0 – 60 million | 5% |
60 million – 120 million | 10% |
120 million – 216 million | 15% |
216 million – 384 million | 20% |
384 million – 624 million | 25% |
624 million – 960 million | 30% |
Over 960 million | 35% |
Employer Taxation
Employers in Vietnam are also responsible for various employer costs, which may include:
Fund Type | Contribution |
Social insurance | 17.5% |
Health Insurance | 3% |
Unemployment Insurance | 1% |
Pension and Healthcare
Vietnam Pensions
The Vietnamese pension system operates under the guidance of the Vietnam Social Security (VSS) agency, and it primarily consists of a mandatory scheme for all employees. Funded through contributions from both employees and employers, the rates vary depending on the work nature and the worker’s income level. The state pension age is gradually increasing and is set to reach 62 for men and 60 for women by 2028.
Healthcare in Vietnam
Vietnam operates under a mixed healthcare system, including both public and private entities. The public healthcare system, funded by taxes and government subsidies, is accessible to all citizens but can vary in quality between urban and rural areas. Urban centers often have better-resourced facilities and staff, whereas rural areas might face challenges like staff shortages and outdated equipment.
The private healthcare system is growing rapidly and offers high-quality care, usually for those who can afford the higher costs. Many expats and wealthier citizens opt for private healthcare due to its modern facilities, English-speaking staff, and shorter waiting times.
Employment Law
Employment Law in Vietnam
Relevant Legislation: The labor regulations in Vietnam are primarily governed by the Labour Code 2019 and the Law on Social Insurance 2014. These legislations outline the key rules on various aspects of employment, such as contracts, working hours, leave, and termination procedures.
Employment Contracts: Employment contracts in Vietnam can be indefinite or for a fixed term. They must be in writing and should contain key terms like wages, work hours, job description, and workplace location.
Working Hours: A standard working week in Vietnam is 48 hours spread over six days. The Labour Code stipulates an 8-hour workday.
Leave: Employees are entitled to 12 days of annual leave. Additionally, employees receive paid sick leave and maternity leave, with the duration varying based on specific circumstances.
Overtime: Overtime is capped at 50% of normal working days in a month and 200 hours per year. Employees working overtime are entitled to an increased wage of 150-200% on weekdays and 200-300% on holidays and weekends.
Termination: Both employees and employers can initiate contract termination. Valid reasons for termination include poor performance, disciplinary reasons, and changes in operational requirements. A proper procedure, including a notice period and specified reasons, needs to be followed.
Notice: Employers must provide a notice period before termination, with the duration varying based on the contract type – 3 days for contracts under 1 month, 30 days for contracts from 1-12 months, and 45 days for indefinite contracts.
Severance Pay: Severance pay is required for employees whose contracts are terminated, and who have at least 12 months of service. The amount typically equals half a month’s salary for each year of service.
IMMIGRATION
Work Permits in Vietnam
The Vietnam Immigration Department under the Ministry of Public Security administers the immigration system in Vietnam. This institution handles all matters related to visas, residence permits, and naturalization procedures.
In terms of entry and work visas, Vietnam classifies these into several categories.
- DN-Business visa: Aimed at foreign entrepreneurs who wish to conduct short-term business and investment activities in Vietnam.
- LD1 and LD2 work visas: The LD1 visa is intended for foreign workers who contribute to the country, possessing expertise or technical skills that Vietnam needs. The LD2 visa caters to seasonal workers or those who engage in short-term work.
Before applying for either of these work visas, an employer in Vietnam must first apply for a work permit for the prospective employee with the Ministry of Labour, Invalids and Social Affairs. The employer must demonstrate that there is a need for foreign workers and that the nature of the work to be done meets the conditions for foreign employment.
For long-term stays, there are also temporary and permanent residence cards. Temporary residence cards can be issued to foreign workers with a valid work permit and are valid from two to five years. Permanent residence cards are rare and are generally issued to individuals who have been living and working in Vietnam for a considerable period or who have made significant contributions to the country’s development.
Public Holidays
Vietnam Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
Vietnamese New Year (Tet) | Variable (Late Jan to Mid Feb) |
Reunification Day | April 30 |
Labour Day | May 1 |
National Day | September 2 |
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The Benefits
Vietnam Employer of Record Benefits
When you choose Agility EOR to expand in Vietnam, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Vietnam so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Vietnamese authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Vietnam payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.