Benefits To Outsource HR in Vietnam
Vietnam, a quickly developing nation, is becoming a hotbed for talented employees.
From developers to marketers and more, the employee pool in Vietnam has a lot to offer. For example, hiring a developer in Vietnam is 90% cheaper than in the U.S. and 30% cheaper than in India.
Additionally, the talent level and literacy rates in Vietnam match or better those in other developing nations. The country has a young and dynamic growing workforce with a median age of 30.5 years, a relatively young population compared to China’s median age of 37.4 years. Vietnamese employees are often praised for being hard-working and skillful.
Additionally, the government supports the increase in labor productivity and labor improvement is one of their three pillars for achieving a new growth model for the country, alongside growth quality and increased competitiveness.
Why Outsource your HR in Vietnam?
As mentioned, the talent market in Vietnam is quickly developing and ripe for employees. Cost is just one reason to hire employees in Vietnam. Additionally, the talent of employees in Vietnam should be a reason why to hire in Vietnam, but why not just set up your own HR department in Vietnam if you have employees there?
If you were to set up your own HR department, then you would have to set up your own entity for the HR team to work through. Setting up an entity in Vietnam may not be in your interest or business plans. Additionally, setup and if you must, takedown, of the entity can be time-consuming. With outsourcing your HR through employee leasing you can skip the company set up and launch straight into your Vietnam projects.
This allows you to focus on growing your company. When you are fully invested and confident you want to set up an entity in Vietnam, at that time you can build your HR team and have your leased employees transferred to your legal company in Vietnam. In the meantime, with HR outsourcing in Vietnam, you can focus on growing your bottom line in the country.
Another key reason to outsource your HR in Vietnam is to ensure you are in full compliance with local labor laws and regulations. The labor market in Vietnam is complex and it is best practice to outsource to those in the know. If you hire an HR department you will have to be sure that the rules and regulations are being followed completely. When you are outsourcing your HR, the PEO provider you work with will ensure you are in compliance and up-to-date on the latest local laws and regulations.
How to Hire Employees in Vietnam Without a Legal Entity
If you choose to use a PEO when hiring employees in Vietnam the process is simple. You find your employee or the PEO provider can assist with finding a suitable employee. Then work with the PEO to set up the start date, benefit details, and payment terms. The PEO will hire your employee legally in Vietnam, while you manage the employee directly.
For more information on HR outsourcing in Vietnam through a PEO provider, read NNRoad’s Vietnam guide here.