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As one of the fastest-growing telecommunications and information technology hubs of Southeast Asia, companies look to Vietnam for business expansion today.
We understand the pivotal role that the right talent plays in the success of your business. Our approach to recruitment is tailored to meet the unique needs of each client, ensuring a perfect match between your organisation and our global talent pool.
Innovare Vietnam, a dynamic arm of the Innovare Group, empowers seamless business expansion into Vietnam's flourishing market. Leveraging our comprehensive Employer of Record (EOR) services, we ensure your venture's smooth adaptation to the local business environment. Our deep-rooted expertise and unwavering commitment to compliance pave the way for your success in Vietnam.
Innovare helps you navigate Vietnam's excessive bureaucracy.
Worry-free compliance and licensing requirements for relevant sectors.
Fast-track the time-consuming setting up of business in Vietnam.
Let Innovare handle Vietnam's cumbersome tax filings for you.
In Vietnam, a written employment contract outlining key terms must be provided to new hires within three months of their start date. This contract fosters transparency by clearly defining:
The payroll cycle in Vietnam is monthly for full-time employees and is paid on the last working day or as agreed within the employment contract. Standard workweeks are 48 hours, with overtime capped at 40 hours per month. Timely tax filings are crucial, with specific deadlines for both hardcopy and electronic submissions.
Vietnam operates a progressive income tax system for residents and a flat rate for non-residents. All income derived from work performed in Vietnam is subject to taxation, regardless of payment location.
Vietnamese employees enjoy statutory leave benefits that promote work-life balance and employee satisfaction. These include:
Vietnam's social security system provides financial security for employees in retirement, disability, unemployment, and death. Mandatory contributions are made monthly by both employers and employees, based on a percentage of salary capped at a set amount.
Early termination before expiry of fixed term or indefinite term contract is not allowed unless due to grievous misconduct. Employer has to get consent from Employee with notice period to be observed. Bilateral agreement on compensation amount is required to avoid dispute. Vietnam adheres to a termination process requiring adherence to designated notice periods.
Notice Period
Payment in lieu of notice is not allowed unless it is mutual agreement between Employer and Employee.
Employee:
Severance Payment
Vietnamese labour law requires employers to pay severance to legally terminated employees who had been regularly working for the employer for 12 months or more. The severance allowance is equal to one half of one month's wage for each year of employment. Applicable with conditions that:
If Employer and Employee participated UI during the whole working period, Employer is not required to pay for Severance Allowance. Instead, Employee may claim his/her Unemployment Allowance from UI Fund provided that such claim is qualified under UI scheme. Otherwise, Employer will need to pay for such allowance or any shortfall, if applicable.
Vietnam boasts a rapidly growing economy, fueled by a young and skilled workforce, increasing domestic consumption, and a robust manufacturing sector.
Vietnam's strategic position in Southeast Asia makes it a gateway to the region, offering access to a vast and developing market for trade and investment.
The Vietnamese government actively encourages foreign investment through competitive tax rates, the establishment of economic zones, and streamlined business registration processes.
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