How using an Employer of Record in Vietnam can improve your business

Learn about an employer of record is and how you can use it to improve or expand your business.


Recruiting new employees can be challenging, even more so when you’re trying to recruit in a foreign market.
The recruitment and management of new employees can always be a challenge, especially when you are new in a foreign market. How to make the process easier so that you could focus on delivering results? In this article, we have brought out some of the key advantages of using an Employer of Record in Vietnam.

What is an Employer of Record

An Employer of Record is a service provider who can hire and manage employees on your behalf. The scope of services provided by an Employer of Record includes recruiting and hiring talent, management of payroll, and filing taxes for employees.

An EOR service offers solutions for companies operating in multiple countries, providing them with flexibility and cost savings. By utilizing an EOR service, businesses can streamline their operations while adhering to local labor laws and ensuring effective employee management.

Watch this video to learn more about the Employer of Record services:

Benefits of using an Employer of Record in Vietnam

Global expansion of business

If you plan on hiring staff on your own, then you have to first register your business in Vietnam which is a tedious process and can take up to a month. This applies to hiring local and foreign employees. As an Employer of Record can hire staff on your behalf, you don’t have to worry about company registration. Your EOR company recruits employees so you can start your business activities immediately. The Employer of Record in Vietnam can also hire candidates that you have already selected. It’s a simple and convenient way to build your remote staff in Vietnam.

You have the option to transfer employees to your company after incorporation or continue using the services of your Employer of Record.

Compliance with local laws

It is difficult for foreign employers to keep up with changes to employment policies. New companies entering the Vietnamese market often struggle with applying for the numerous labor and business regulations including labor law, tax law, and SHUI (Social, Health, Unemployment Insurance) law, which applies to employers in Vietnam.

The same policies and regulations apply to all employers, both local and foreign. However, foreigners often make the mistake of thinking that they are exempt from local policies. Employer of Record has expertise in labor and business regulations and ensures that the processes within the company are compliant with local laws so you don’t have to worry about policy changes and compliance.

Assessment of the market before setting up a company

Setting up a company in Vietnam can add extra cost to your business therefore, testing the Vietnamese market before investing and establishing your business would be a smart move.

Using an Employer of Record in Vietnam allows you to hire employees who can test the market for you. Full-time employees hired through an Employer of Record can conduct market research, find potential distributors, or sell your products.

Employers of record allow you to create relationships with clientele, customers, and partners before you set up your own legal entity.

Sourcing the best candidates

Foreign investors are not much aware of the local workforce which makes it difficult to find the right candidates. An Employer of Record in Vietnam is already familiar with the local market and knows how to find and shortlist the perfect candidates for you. Your EOR assists you through every step of the hiring process and beyond.

Workspace availability

By using an Employer of Record in Vietnam like Emerhub, you don’t need to think about renting an office space for your remote staff. We provide your employees with workspaces and any tools they may need so they can effectively perform their duties.

Why use an Employer of Record in Vietnam?

Vietnam is one of the fastest-growing economies in the world. Investing in the country is a good move if you want to do business or expand your operations abroad. With an Employer of Record in Vietnam, you can do this without establishing a legal presence in the country.

The employment pool in Vietnam is also attractive for several reasons including the ones we discuss below.

Young and educated workforce

Vietnam is home to a young and educated workforce. According to the world bank, the literacy rate in Vietnam is 96%, with the country having a large number of universities and training schools that produce talented graduates each year.

Many Vietnamese are fluent in English and have technical skills in the field of IT, engineering, and finance. They are also known for being hardworking and adaptable to learning new skills.

Low labor costs

Vietnam has a talent pool in IT, sales, and marketing with a low minimum wage compared to other ASEAN countries. This makes it an attractive market for companies to hire their employees from Vietnam.

Minimum wage rate in select Asian countries:*

Country**The monthly minimum wage in 2023
ChinaUSD 383
IndonesiaUSD 327
MalaysiaUSD 351
TaiwanUSD 883
VietnamUSD 199
*Figures reported in Trading Economics
**Figures converted to USD using rates at the time of writing

Emerhub as your Employer of Record

Emerhub offers Employer of Record services to businesses looking to expand in Vietnam without going through the hassle and adding the extra cost of setting up an entity. Emerhub’s EOR services handle your HR and payroll tasks including payroll processing, insurance registration, and employee onboarding and offboarding. You can easily employ highly skilled individuals in Vietnam without setting up a company. If you’re looking to hire employees in Vietnam, talk to an Emerhub consultant today for assistance.

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