Located in Southeast Asia, Vietnam is a populous country that values building relationships in business. Expanding into Vietnam is a great way to push the global boundaries of your company and create...
Read MoreLocated in Southeast Asia, Vietnam is a populous country that values building relationships in business. Expanding into Vietnam is a great way to push the global boundaries of your company and create new partnerships that can improve your bottom line. However, you need to consider many payroll factors when you're expanding, such as how to set up your Vietnam payroll, all your different payroll options, and whether you should outsource.
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Located in Southeast Asia, Vietnam is a populous country that values building relationships in business. Expanding into Vietnam is a great way to push the global boundaries of your company and create new partnerships that can improve your bottom line. However, you need to consider many payroll factors when you’re expanding, such as how to set up your Vietnam payroll, all your different payroll options, and whether you should outsource.
Globalization Partners can change how you do business in Vietnam through our Employer of Record solution. Instead of spending weeks or months establishing a subsidiary, you can trust us to help you get started in a few days using our established Vietnam subsidiary. We’ll run your payroll, help you hire employees, and ensure that you stay compliant.
As an employer, you need to worry about both corporate taxes and understanding what your employees owe. Vietnam has a Statutory Social Insurance policy that applies to entities, enterprises, and organizations with employees under indefinite-term labor contracts or definite-term contracts that extend three months or longer. Employers contribute 23% of their payroll to this insurance, while employees contribute 10.5%.
You have four different Vietnam payroll options to choose from depending on your company’s size, goals, and more:
Before you decide to set up your Vietnam payroll, you need to establish a subsidiary in the country. Without a subsidiary, you can’t operate legally in the country, which means you can’t hire employees, offer benefits, or pay any workers. Globalization Partners can take this necessity out of the equation. When you work with us, you won’t have to set up a subsidiary, and you can get started working in a few days.
Before you hire employees and add them to your payroll, you should draft a strong, written employment contract that includes entitlement and termination terms. Probation periods are common in Vietnam, but they can’t exceed 60 days for highly technical or specialized work and 30 days for all other types of work. Terminating an employee is a complicated process, and you’ll need the right legal grounds to terminate a contract.
If you’re planning an expansion to Vietnam, let Globalization Partners help you set up your Vietnam payroll. Contact us today to learn more.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
