Employer of Record (EOR) in Vietnam is a service that partners with a business to help the business expand into the country, hire employees, and manage and pay the company’s employees – all through a single EOR provider. However, the employees do not work for the EOR provider, but for the company that uses the EOR service. This article clarifies the role of an EOR and how it can benefit your business when it comes to expanding your workforce into Vietnam.
Typically, the Employer of Record services in Vietnam include tasks such as HR and legal compliance, employment laws, risk management, and employee payroll and benefits. Business owners that hire an EOR provider have absolute rights to supervise and manage their employees but they do not have to be involved in tasks that are associated with the employment.
An Employer of Record in Vietnam can be extremely advantageous for businesses that would like to expand into Vietnam from abroad. In this article, we break down the benefits of EOR so you can make use of them when you are planning the next step of your business expansion journey.
How an Employer of Record Ensures Seamless Business Expansion to Vietnam
1. Complying with Immigration Policies
The Vietnamese immigration rules and regulations are changing constantly due to increasing foreign investments in Vietnam.
Therefore, the government is putting in efforts to make Vietnam as business-friendly as possible.
On the other hand, with the growing arrivals of foreigners, immigration authorities have also elevated their scrutiny on different visas, work permits, and business activities.
As a result, although the immigration process has been simplified to ease the business environment, the constant shift of laws makes compliance hugely challenging for foreign investors. And, any non-compliances will bring forth severe consequences that can be damaging to the businesses and the employees.
Many businesses then opt for EOR in Vietnam to eliminate the potential legal complications when they expand to Vietnam.
With EOR, employees hired can work legally on a foreign project in Vietnam. The foreign company does not have to deal with the employee’s payroll, work permit, and visa matters as well.
2. Local Company Setup is Not Necessary
Foreigners can set up an entirely new local company for their expansion. However, this alternative is costly and time-consuming. Plus, you will need to hire an experienced accounting and legal team to ensure compliance. Not to mention, the hiring of an in-house professional team will cause your expenses to add up quickly.
While setting up a new company in Vietnam has its fair share of benefits, many foreign companies utilize EOR as a better option.
An EOR already has a legal structure set up in Vietnam that can help handle all your employment matters such as payroll, benefits, and recruitment, with full compliance.
3. Using Local Payroll
The Employer of Record in Vietnam enables foreign business owners to run payroll under local regulations and standards. This makes the process so much simpler as remote payroll from overseas to Vietnam is not permitted in most cases.
With EOR, foreign companies expanding in Vietnam can run a local payroll with accuracy in terms of withholding and tax rules. It is also a cost-effective way for foreign companies to rapidly and efficiently hire employees in Vietnam from abroad.
Cekindo as Your Employer of Record
Cekindo is the leading provider of Employer of Record in Vietnam. We help businesses like yours that wish to expand your operations in Vietnam, manage local regulations and compliance, hire candidates of choice, onboard new employees, and handle HR payroll and matters.
Establishing a brand new company in Vietnam to engage a small team is expensive, time-consuming, and complex. Therefore, Cekindo now makes it painless and easy for your business expansion with our Employer of Record solution in Vietnam.
If you would like to discuss how we can provide a seamless business expansion to Vietnam, contact us via the form below.