Remote Work vs Distributed Workforce: What is the best for your business in Vietnam?

Getting the right people through the recruitment process in Vietnam is key. Remote or distributed workforce that suits your business?

Why & How Foreign Companies should Recruit in Vietnam

Technological transformations and globalisation are setting new benchmarks for working professionals to adapt, embrace new skills and ensure a growing focus on learning, making it imperative for individuals to enhance their skills and knowledge. With over 55 million workforce, Vietnam is host to a young and hardworking population that can help foreign investors to gain competitive advantage.

Find Out about Cekindo’s Recruitment Services in Ho Chi Minh City

With the government backing along with a vast, young and enthusiastic workforce, Vietnam could serve to be a promising recruitment ground for foreign companies.

How Should Foreign Companies Hire Vietnamese Workforce?

In order to prevent the covid-19 virus from spreading, corporations are resorting to work from home models. A survey shows that 75% of companies have already implemented, or plan to implement universal “work from home” policies. Moreover, 38% of those companies expect these changes to be long-term or permanent.

The pandemic has forced companies to reconsider the difference between remote and distributed work. Distributed workforce entails every individual of a team to engage in their work mentally from wherever they are and deliver the task assigned to them. However, remote working refers to an individual team member working remotely while others work from a designated workplace.

One of the major challenges faced in remote working is that workers don’t have access to the same context, information, and social opportunities as on-site colleagues, hence distributed workforce seems to be a more practical option for corporations. While a company may still have a physical office, employees have the free will to operate from anywhere in the world, on a full or part-time basis.

Related: 10 Questions to Ask Before Hiring Foreign Workers in Vietnam

Regardless of an employee’s location, a company’s workforce works in a blended schedule, that enables clear channels of communication and highly-effective collaboration. Few tech companies like Automattic, having more than 1150 employees in 72 countries and Slack, with a net worth of over US$ 3 Billion and 8 million daily active users, have shown it is possible to successfully manage a company with a completely distributed workforce. Additionally, distributed workforce is much more cost and time effective than a conventional workforce, saving on operating costs including rent along with having a strategic time management system.

Since, the distributed workforce model is not bound to any geographical boundaries, foreign companies can leverage Vietnamese workforce for handling their company’s managerial and technical tasks.

How does the process start?

For a foreign company to hire Vietnamese workforce, understanding the types of recruitment options available is very crucial to start with the hiring process. Majorly there are two options to start recruitment in Vietnam. Companies can either do the hiring in-house or outsource the task to a third party. Either way, each of the recruitment process usually go through the following steps:

  • Launching a job vacancy
  • Reviewing all the requirements
  • Shortlisting the candidates
  • Providing the recommendations to the end user.

The recruitment and management of employees is challenging when the employer is a foreigner. As per IRS reports, 40 percent of businesses face payroll fines due to incorrect or insufficient knowledge of payroll compliances.

With years of experience in the Vietnamese job market, Cekindo provides comprehensive recruitment services and helps companies to hire their ideal candidate without going through the tedious process of recruitment themselves.

Another way for foreign enterprises to take benefit of the Vietnamese labor market is through hiring an Employer of Record. An EOR allows international companies to hire Vietnamese employees indirectly without having to go through the legal nuances of recruitment.

You can choose Cekindo as your EOR provider in Vietnam. Our experienced consultants handle all Statutory compliances and make sure all your resources are managed effectively while you focus on your core business functions.

It’s extremely beneficial for companies who want to enter the Vietnamese market quickly as it doesn’t need your company to be already registered.

Post-Recruitment aspects like payroll management could also prove to be taxing for some organisations as it requires resources with a specific skill set. A third party payroll and recruitment provider such as Cekindo can help foreign companies who are not well versed with the payroll requirements and laws of Vietnam. All aspects of payroll and post-recruitment processes including working hour and overtime calculations, leave and allowance benefits as well as insurance and employment contracts will be handled in compliance with local laws and legislations by our experts at Cekindo.

To know more about how Cekindo’s recruitment solutions can help you make the hiring process easier in Vietnam, please fill out the form below or talk to an expert on our chatbot.

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Verified by:​

Hien Le

Hien is a Manager of the Human Resources Department at our office in Vietnam. She has more than 15 years of experience in all spectrums of Human Resources including Global Mobility and Office Management.