Vietnam

Employer of Record (EOR) in Vietnam

Employer of Record (EOR) in Vietnam

Discover seamless hiring in Vietnam with Employer of Record (EOR) service. We handle all HR, payroll, and compliance requirements, allowing your business to expand into Vietnam without the need for a local entity.

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Expand business globally without setup business entity

Manage payrolls & talents, local compliance and grow together using AYP’s Employer Of Record (EOR) service 

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What is an Employer of Record (EOR), and How Does it Work?

An Employer of Record (EOR) in Vietnam is a service that enables businesses to hire and manage employees in Vietnam without needing to establish a local legal entity. With AYP Group’s EOR Vietnam solution, we become the official employer for your staff, handling all legal and administrative responsibilities. This includes managing payroll, taxes, benefits, and compliance with Vietnamese labor laws.

By leveraging AYP Group’s EOR services in Vietnam, your company can seamlessly enter the Vietnamese market, while we take care of the complexities of employment.

What are the Advantages of Using an EOR?

  1. Accelerated Market Entry

    AYP Group’s EOR Vietnam solution allows your business to quickly establish a presence in Vietnam without the lengthy setup procedures. This facilitates a swift start to operations and hiring.

  2. Cost Efficiency

    Avoid the substantial expenses of setting up a local entity, such as legal, administrative, and HR costs. The EOR model provides a more cost-effective solution, allowing you to allocate resources more strategically.

  3. Regulatory Compliance

    Navigating Vietnam’s labor laws and regulations can be intricate. AYP Group ensures full compliance with all local employment laws, shielding your business from potential legal risks.

  4. Administrative Management

    AYP Group takes care of all HR-related functions, including payroll processing and benefits administration, enabling your internal team to focus on core business activities.

  5. Scalability

    Easily adjust your workforce in Vietnam according to your business needs without the constraints of managing a local entity. This flexibility is vital for companies looking to enter or expand in the Vietnamese market.

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How Does an EOR Ensure Compliance? What Are the Compliance Issues to Take Note Of?

AYP Group’s EOR Vietnam solution ensures compliance by:

  1. Employment Contracts

    We draft and manage employment contracts that adhere to Vietnamese labor laws, covering compensation, termination, and employee rights.

  2. Tax and Social Security Contributions

    AYP Group handles all payroll-related taxes and contributions, ensuring compliance with Vietnam’s tax laws and social security requirements.

  3. Employee Benefits

    We ensure that your employees receive all legally mandated benefits, such as leave entitlements and social security contributions, in accordance with Vietnamese regulations.

  4. Documentation and Reporting

    AYP Group maintains thorough documentation and provides regular reports to ensure transparency and adherence to local regulations.

Key compliance issues include:

  • Ensuring employment contracts are compliant with Vietnamese labor laws.
  • Adhering to local tax and social security regulations.
  • Staying updated with changes in labor laws and regulations.

What Are the Costs Associated with Using an EOR?

The costs of utilizing an EOR in Vietnam generally involve:

  1. Monthly Service Fees

    AYP Group charges a monthly fee based on the number of employees managed, covering employment, compliance, and administrative functions.

  2. Payroll Expenses

    Includes employee salaries, bonuses, statutory deductions, and contributions such as to the Vietnam Social Security Fund.

  3. Setup Costs

    Initial fees related to the onboarding of new employees, including contract preparation and compliance checks.

  4. Forex Mark-up and Bank Charges

    Managing international payroll involves forex mark-ups to address exchange rate fluctuations, ensuring accurate salary payments. Combined with applicable bank charges, these costs are integral to smooth payroll operations.

How Does the Process of Using an EOR Work? What is the Timeline to Onboard an Employee?

AYP Group’s EOR Vietnam service streamlines the process:

  1. Initial Consultation

    We start with a consultation to understand your hiring needs and business objectives in Vietnam.

  2. Customized Proposal

    AYP Group provides a tailored proposal detailing the scope of services, costs, and timelines.

  3. Agreement and Onboarding

    After finalizing the agreement, we initiate the onboarding process, including contract preparation, payroll setup, and compliance checks.

  4. Employee Onboarding

    AYP Group manages all aspects of onboarding, from executing employment contracts to enrolling employees in benefits programs.

The typical timeline to onboard an employee in Vietnam through our EOR service is 1 to 3 weeks, depending on specific requirements and complexity.

How Does an EOR Manage Employee Benefits and Payroll?

AYP Group’s EOR Vietnam service meticulously handles employee benefits and payroll:

  1. Payroll Management

    We ensure timely and accurate payroll processing, including salary disbursement, tax deductions, and contributions to the Vietnam Social Security Fund.

  2. Employee Benefits Administration

    AYP Group manages statutory benefits such as health insurance, leave entitlements, and retirement contributions, ensuring compliance with Vietnamese laws.

  3. Benefits Optimization

    We continuously review and enhance benefits packages to ensure they are competitive and compliant with local regulations.

What is the Process of EOR in Vietnam for Foreign Employees

AYP Group’s Employer of Record (EOR) in Vietnam service simplifies the hiring and management of foreign employees:

  1. Needs Assessment

    We begin by assessing your business needs to determine the most suitable work permit in Vietnam, such as the Work Permit or Investor Visa.

  2. Work Permit Application

    AYP Group manages the entire application process for the work permit in Vietnam, ensuring full compliance with Vietnamese immigration regulations and timely approval.

  3. Employment and Onboarding

    We draft compliant employment contracts according to Vietnamese labor laws and handle the onboarding process, including payroll setup and benefits administration.

  4. Ongoing Compliance

    AYP Group ensures continuous adherence to local labor laws, manages any HR-related issues, and handles the renewal of work permits in Vietnam as needed.

  5. Offboarding

    When an employee’s term ends, we manage the exit process, including work permit cancellations and final payroll processing, ensuring all legal obligations are met.

This process allows your company to efficiently hire and manage foreign talent in Vietnam without establishing a local entity, leveraging AYP Group’s EOR Vietnam services for seamless and compliant operations.

How to Get Started with EOR?

Getting started with AYP Group’s EOR Vietnam solution is straightforward:

  1. Contact Us

    Reach out to our team for an initial consultation to discuss how our EOR services in Vietnam can support your business expansion.

  2. Assessment and Proposal

    We will evaluate your needs and provide a customized proposal, including detailed pricing and service offerings.

  3. Agreement and Implementation

    Upon agreement, we will initiate the onboarding process, taking over all employment-related functions to ensure a smooth transition.

  4. Ongoing Support

    AYP Group continues to provide ongoing HR, compliance, and payroll management support, ensuring your business operates seamlessly in Vietnam.

Use Case: How Employer of Record (EOR) helps company to expand without an entity in Vietnam

A UK-based technology firm aimed to expand its operations into Vietnam to leverage the burgeoning tech industry. Rather than setting up a local entity, which would have involved significant time and financial investment, they chose AYP Group’s EOR Vietnam solution.

Challenges:

  • Immediate need to enter the Vietnamese market to capitalize on new opportunities.
  • Navigating the complexities of local employment regulations.
  • Establishing a local HR infrastructure would have been resource-intensive.

Solution:

AYP Group provided a comprehensive EOR solution, including:

  • Rapid Onboarding

    Efficient setup of employment contracts and payroll management.

  • Compliance Management

    Handling all local tax and labor law compliance.

  • Employee Benefits

    Management of statutory benefits such as social security and health insurance.

Outcome:

The company successfully hired and onboarded employees in Vietnam within weeks, allowing them to commence operations promptly. They avoided the expenses and complications of establishing a local entity while maintaining full compliance with all regulatory requirements. AYP Group’s EOR solution facilitated a smooth market entry, providing the agility needed to expand in a new region.

With AYP Group’s Employer of Record solution in Vietnam, businesses can expand operations without the need for a local entity, ensuring compliance, cost-efficiency, and a seamless transition into new markets. Contact us today to learn how our EOR Vietnam services can support your business growth.

 

FAQs

What is Employer of Record Vietnam?
An Employer of Record (EOR) in Vietnam simplifies the hiring process by assuming all legal and administrative responsibilities for your employees. This enables businesses to recruit and manage talent in Vietnam without needing to establish a local entity, making it easier to expand and operate in the region. By using an EOR in Vietnam, companies can focus on their core operations while ensuring full compliance with local labor laws.
The cost of hiring employees through an Employer of Record (EOR) in Vietnam typically ranges from USD 250 to USD 600 per employee per month. This fee includes HR administration, payroll processing, compliance management, and benefits administration. By partnering with an EOR in Vietnam, businesses gain access to local expertise that ensures seamless operations and adherence to local regulations.
Choosing an Employer of Record (EOR) in Vietnam allows your business to enter new markets and expand with minimal hassle. An EOR in Vietnam handles HR administration, legal compliance, and employee management, ensuring that your business remains compliant with local laws. This allows you to focus on driving business growth while the EOR manages the complexities of hiring and managing employees in Vietnam.
Several companies offer Employer of Record (EOR) services in Vietnam, including AYP. AYP provides comprehensive EOR solutions, assisting companies in hiring, managing, and paying employees while ensuring full compliance with Vietnamese regulations. With transparent pricing and no hidden fees, AYP offers a reliable solution for businesses looking to expand into Vietnam.

The process of hiring employees in Vietnam through AYP’s Employer of Record (EOR) services involves several streamlined steps:

  1. Requirement Analysis: AYP conducts an in-depth analysis of your hiring needs to understand your specific requirements.
  2. Cost Simulation: AYP provides a cost simulation to give you a clear understanding of the total cost of hiring in Vietnam.
  3. Work Permit Application: If needed, AYP handles the application process for work permits to ensure compliance with Vietnamese regulations.
  4. Contract Preparation: AYP prepares employment contracts that align with Vietnamese labor laws.
  5. Benefits Enrollment: AYP enrolls employees in the necessary benefits programs, ensuring they receive all mandatory entitlements.
  6. Employee Onboarding: AYP sends a welcome email and facilitates a smooth onboarding process, ensuring new hires are ready to start their roles effectively.

This comprehensive process allows businesses to onboard employees in Vietnam quickly and compliantly, with AYP managing all administrative and legal aspects.

Hire compliantly in the Vietnam with no hidden cost

Local labor compliance, payroll management, onboarding, and expert advisory — all in one service

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