Learn How Staff Augmentation in Vietnam Can Improve Your Business

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 staff augmentation in Vietnam. What is […]

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 staff augmentation in Vietnam.

What is staff augmentation

In short, staff augmentation is an outsourcing strategy for hiring people or a team. Instead of recruiting employees yourself, you delegate this task to an outside service provider such as Emerhub.

By using staff augmentation, you are exempt from finding suitable candidates, interviewing and shortlisting, and later from dealing with payroll matters. Thus, staff augmentation can be a more time-saving and cost-effective option than recruiting yourself.

Watch our staff augmentation team explain the essence of staff augmentation in this brief video:

However, in addition to the already mentioned perks, using staff augmentation in Vietnam also has some other advantages to companies looking to expand into new markets. We have listed them in the following sections.

4 main benefits of staff augmentation

#1 Enter new markets faster

Depending on the business classification and your planned activities, the process of incorporation in Vietnam can take up to 3 months.

If you plan to hire foreign employees, also note that foreign nationals who want to work in Vietnam need to have work permits. The application for use of foreign labor can be sent in subsequent to your company registration, but you can hire the foreign national 15 days after the submission of the application.

However, with staff augmentation, you don’t have to worry about these time frames. This service allows you to recruit staff and to start with your business activities immediately. Simple and convenient.  

Once your company is up and running you can transfer the outsourced employees to your own payroll or continue using our service.

#2 Test the market before setting up a company

Although there are no set minimum capital requirements in Vietnam, you may still need to inject a certain amount of capital. How to make sure that the demand for your products or services in the Vietnamese market will be sufficient before making the initial investment?

Staff augmentation will help you out with this one. In addition to enabling a faster market entry, it is also a good way to first test the market you are thinking of entering since it is possible without setting up a company.

You can hire full-time employees who will:

  • conduct market research
  • sell your products
  • find potential distributors

After you have made certain that Vietnam is a suitable market for you, you can establish your own legal entity. By the time your company is established, you will already have a clientele and partners in Vietnam on account of staff augmentation.

#3 No need to understand local compliance requirements

Emerging markets, such as Vietnam, are known for the tendency to change their regulations quite often. That can sometimes make maintaining compliance with the local manpower laws a bit difficult since you may not be aware of the changes.

Thinking that you don’t have to comply with the local requirements if you have not been informed about them or simply don’t understand them is among 7 common mistakes foreign investors tend to make when entering Vietnam.

However, staff augmentation service eliminates this risk since everything will be handled by a team of professionals who have the knowledge and experience in the field.

#4 Find the most competent candidates

As a foreign investor, especially when new in the market, it is often difficult to find a reliable workforce with sufficient skills. Using a staff augmentation service, however, guarantees you that the process of selection will be done thoroughly and only the best candidates with relevant expertise will be shortlisted.

Why use staff augmentation in Vietnam?

Staff augmentation allows you to hire employees in Vietnam without actually having any legal presence in the country. In other words, we will hire employees on our payroll and everything concerning the process – recruitment, accounting, payroll – will be completely handled by Emerhub.

However, there are also some other reasons why outsourcing employees in Vietnam might be a beneficial idea.

Young and educated workforce

Currently, there are nearly 95 million people living in Vietnam. Their median age is 30.8 years, according to Worldometers. Furthermore, Nielsen has estimated that around 57 million of the population is under the age of 35. Thus, Vietnam is a good source of a young and viable workforce.

Vietnam is also getting closer to an international learning environment. The government invests around a fifth of its expenditure in education. This is more than other emerging markets with a similar level of development contribute.

Additionally, the English language skills of the Vietnamese are improving as well, according to the EF English Proficiency Index. In 2016, Vietnam ranked as 31st with a moderate proficiency among 72 other countries in terms of English-speaking skill. Comparing to 2011 when Vietnam landed in the 38th position, the improvement has been persistent.

Low labor costs

Despite the stable GDP growth rate, averaging 6,46% a year since 2000 according to the World Bank, Vietnam is still a country with a relatively low minimum wage. Here are some examples of the current minimum wages, according to Trading Economics:

Country

Monthly minimum wage in 2017*

China

$351,78

Indonesia

$253,16

Malaysia

$238,52

Vietnam

$165

*All wages are converted to USD considering the current rates

If you are still not sure whether Vietnam is the right destination for your business activities, here are 11 other reasons why should consider investing in one of the fastest-growing economies in the world.  

More incentives to use staff augmentation in Vietnam

Bonus #1: hire pre-selected candidates

Staff augmentation does not necessarily mean that the whole process of recruitment from the announcement of a vacant position to interviews and shortlisting has to be carried out. We can also hire candidates that you have already selected, making the process of your market entry even quicker.

Bonus #2: working space availability

When using Emerhub’s staff augmentation services in Vietnam, you don’t have to worry about finding and renting office space for your outsourced personnel either. We can also provide work desks for your employees if required. 

Other services you can outsource to Emerhub

Business process outsourcing in Vietnam

In addition to staff recruitment, there are other business processes that do not belong to your company’s core activities, yet are crucial parts of a successful business. However, these processes can be outsourced to a professional service provider. By doing that, you can focus on your main objective and enhance your productivity.

Some of our services in Vietnam are:

Service

What we do

Accounting and tax reporting

We take care of everything related to accounting and tax reporting, from setting up accounts to submitting your financial statements.

Due diligence

We collect and review all the relevant information regarding your future business dealings.

Payroll management

We calculate salaries and make payments on your behalf.

Importer of record

We import your products to Vietnam using our licenses.

Staff augmentation

As your employer of record in Vietnam, we will find you a person or a team that will work full time for you.


Staff augmentation is a part of Emerhub’s 
outsourced operations model which is the fastest way to enter new markets. This model allows you to operate as if you would already have a fully functioning company in Vietnam and among other things do the following:

  • Hire employees
  • Import products to Vietnam without obtaining any import licenses
  • Find distributors
  • Issue invoices
  • Earn revenue

staff augmentation in Vietnam

If you have any other specific questions on the subject or you would like to get started with your expansion to Vietnam, feel free to contact us by filling in the form below or dropping us an email at [email protected].

Since 2011, Emerhub has helped over 500 companies of all sizes enter Southeast Asian markets.

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