Vietnam is rapidly emerging as a major hub for tech talent, with its thriving IT sector attracting multinational companies from around the world. If your company is looking to tap into this valuable resource, handling Vietnam’s labour market can seem daunting—especially if you’re unfamiliar with the complexities of setting up a legal entity abroad.
However, Employer of Record (EOR) services offer an efficient solution that simplifies hiring, allowing your business to focus on finding the right talent while leaving compliance and administrative tasks to experts.
Why Hire Tech Talent in Vietnam?
Vietnam’s tech industry has seen remarkable growth over the past decade, positioning the country as a key destination for IT recruitment. Several factors make Vietnam an attractive option for companies looking to hire skilled tech professionals. Firstly, the country’s strong emphasis on education in high-demand fields like software development, artificial intelligence, and cybersecurity has produced a well-trained workforce ready to meet the needs of global tech companies. Vietnam’s universities and technical institutes are known for producing graduates who are not only skilled in the latest technologies but also adept at problem-solving and innovation.
Moreover, the competitive labour costs in Vietnam make it a highly appealing option for companies looking to build or expand their tech teams. Compared to other Southeast Asian markets, Vietnam offers a combination of lower wage expectations and high-quality skills, providing exceptional value for businesses. This balance of affordability and expertise has made Vietnam an attractive destination for multinational companies, particularly in the software outsourcing and IT services sectors.
In addition to its cost advantage, Vietnam’s growing infrastructure and commitment to digital transformation make it a future-focused location for tech development. Companies that establish a presence in Vietnam can take advantage of the country’s burgeoning tech ecosystem while accessing a talent pool that is well-positioned to support cutting-edge innovations. From start-ups to established enterprises, the country offers opportunities for businesses to scale operations while keeping costs under control.
Why Utilise Employer of Record (EOR) Services?
While Vietnam’s tech sector offers tremendous opportunities, entering the market isn’t without its challenges. Establishing a legal entity in Vietnam can be a lengthy and complex process, often requiring significant investments in time, money, and resources. Businesses must navigate local labour laws, undergo intricate registration processes, and manage the risk of non-compliance with Vietnam’s constantly evolving regulations. For companies looking to hire tech talent quickly, these barriers can delay expansion and increase operational risk.
This is where Employer of Record (EOR) services come into play. An EOR acts as the legal employer of your staff in Vietnam, taking on the administrative burden of managing payroll, benefits, and compliance with local laws. By partnering with an EOR, your company can avoid the time-consuming process of setting up a local entity while ensuring that all employment activities remain fully compliant with Vietnamese labour laws. The EOR handles the complexities of HR management, allowing your business to focus on core operations and strategic growth.
Moreover, using an EOR provides greater flexibility and speed for companies looking to hire in Vietnam’s competitive tech market. Without the need to establish a legal entity, you can onboard top tech talent quickly, remaining agile in fast-moving markets. Additionally, EOR services reduce overhead costs by eliminating the need for a permanent legal structure, enabling businesses to scale their operations as needed, without the administrative burden.
How to Hire Vietnamese Tech Talent with EOR
Hiring through an EOR in Vietnam is a streamlined process designed to help your company access top tech talent while staying compliant with local laws. The first step is to evaluate potential EOR providers, ensuring that they have a strong understanding of Vietnamese employment regulations and experience in managing payroll and HR services in the tech sector. Look for an EOR with a global reach, data security standards that meet international norms, and a proven track record of handling Vietnamese employment.
Once you’ve selected the right EOR, the process of hiring begins with the onboarding of employees in full compliance with Vietnam’s labour laws. The EOR will draft employment contracts that align with local regulations, ensuring your new hires receive the necessary benefits, such as healthcare and pension contributions, while adhering to Vietnamese standards for working hours, leave entitlements, and severance. This compliance is crucial for minimising legal risks and maintaining good employee relations.
The EOR also manages payroll, tax filings, and social security contributions, ensuring that your employees are paid on time and that all taxes are accurately reported and filed with the relevant Vietnamese authorities. This hands-off approach allows you to integrate Vietnamese tech talent into your global workforce without the administrative burden of running local payroll or managing tax regulations on your own.
As your business grows, EOR services provide ongoing support for workforce management, making it easier to scale your team in Vietnam while maintaining operational efficiency. Whether you’re expanding rapidly or adjusting to changing market conditions, an EOR offers the flexibility to adapt to your company’s needs, ensuring that your workforce remains aligned with your global operations.
Take the Next Step with EOR Services
Unlocking Vietnam’s tech talent is easier than ever with the support of Employer of Record services from High Five. By partnering with High Five, you gain access to local expertise, streamlined hiring processes, and comprehensive compliance support, allowing you to focus on your business’s growth.
Whether you’re looking to hire top tech professionals or expand your global presence, High Five can help you achieve your goals while minimising risk and reducing overhead. Click the link to find out more: Employer of Record Service.
Source:
Inspius. Tech Hiring Trends – Vietnam Tech Talents Remain Highly Sought After Locally and Globally in 2023. https://inspius.com/insights/vietnam-tech-hiring-trends-high-demand-2023/
