Employer of Record (EOR) Vietnam

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.

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.

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.