Employee Leasing / Outstaffing in Vietnam
Vietnam has one of the fastest-growing economies and markets in Southeast Asia and offers many great opportunities for businesses. If you want to develop your business in Vietnam, one of the fastest and easiest ways is through employee leasing. With our employee leasing service, you can lead a local team in Vietnam without having to establish a legal entity in the country. Vietnam offers a young and skilled labor force, capable of working in various sectors.
With our help, you can easily explore your business potential in Vietnam and Southeast Asia without the need to worry about administrative issues or local regulations. Thanks to our flexible services, you can easily enter and exit the Vietnamese market.
No matter what sector your business falls in, with our support, you can quickly achieve good results in Vietnam.
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- Advantages of Employee Leasing in Vietnam
- Employee Leasing Services Offered by FMC Group
- Advantages of the Vietnamese Market
- Recruitment in Vietnam
- Minimum Wage and Payroll
- Social Contributions and Taxes
- Working Hours and Overtime
- Vacation Days
- Parental Leave and Sick Leave
- Notice Period
Advantages of Employee Leasing in Vietnam
- Outstaffing to Vietnam through employee leasing ensures an easy and fast market entry, not only to the Vietnamese market, but also the markets of all member countries of the Association of Southeast Asian Nations (ASEAN): Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Laos, Myanmar, and Cambodia;
- Through employee leasing, you can take full control of a local team in Vietnam and establish your own growth strategy;
- Employee leasing allows you to have easy access to the Vietnamese workforce and to delegate the tedious recruitment process to our team;
- Not having to worry about administrative procedures or local regulations will allow you to fully focus on business decisions and optimize your results;
- Finally, employee leasing ensures a quick integration of employees within your company’s culture.
Employee Leasing Services Offered by FMC Group
- We search for and select the best candidates that match your needs;
- We negotiate and conclude employment contracts with your best interests in mind;
- We pay social security contributions and taxes following Vietnamese law, and we ensure your payroll accounting is professionally managed according to international standards;
- We check all expenses and allowances and pay them to employees after your approval;
- We monitor leave entitlements for your employees;
- We negotiate and implement private health insurance for your employees if needed;
- We maintain continuous and regular contact with you regarding employee management.
Management and Reporting Flow of Employee Leasing Services
Advantages of the Vietnamese Market
- Vietnam has a strategic location, close to several major markets, such as China and Singapore, and very close to all the main trade routes that go through the South China Sea.
- Vietnam has one of the fastest-growing economies in Southeast Asia and has maintained steady growth for over two decades. Since 2000, the country has constantly recorded annual GDP growth of more than 5% and, even during the COVID-19 pandemic in 2020, Vietnam recorded a 2.9% growth.
- Vietnam has signed Free Trade Agreements with ASEAN countries as well as with the EU. The country also has trade agreements with the United States, South Korea, Australia, New Zealand, India, and Japan, among other countries.
- Vietnam has the 15th largest population in the world, with more than 98 million individuals. The country has a large consumer market, marked by the emergence of a middle class. The Vietnamese population is also very young, with a median age of 32.5 years, and has a low unemployment rate of 2.27%.
- Vietnam has all the necessary infrastructure for investments, including three main large ports and three main international airports, located strategically in the north, center, and south of the country. Vietnam is also connected from north to south by a network of highways and a 1,700 km railway.
- You can visit Vietnam Foreign Investment Agency to discover more about Vietnam’s surprising investment opportunities.
Recruitment in Vietnam
Minimum Wage and Payroll
- The minimum wage in Vietnam ranges between VND 3,070,000 (<EUR 122) and VND 4,420,000 (<EUR 176), depending on the region.
- Salaries are paid monthly on the last working day of the month or as agreed upon in the contract.
- While it is not legally required, a 13th salary bonus is a common practice in Vietnam. It is usually paid at the Lunar New Year (late January or early February) or the end of the year.
Social Contributions and Taxes
|Labor, Accident, and Occupational Disease Fund||0.50%|
|Retirement and Death Gratuity Fund||14.00%|
|Sickness and Maternity Fund||3.00%|
|Sickness and Maternity Fund||8.00%|
|Employee Income Tax|
|Up to VND 5,000,000 monthly||5.00%|
|Between VND 5,000,001 and VND 10,000,000||10.00%|
|Between VND 10,000,001 and VND 18,000,000||15.00%|
|Between VND 18,000,001 and VND 32,000,000||20.00%|
|Between VND 32,000,001 and VND 52,000,000||25.00%|
|Between VND 52,000,001 and VND 80,000,000||30.00%|
|From VND 80,000,001||35.00%|
Working Hours and Overtime
- The legal working hours limit in Vietnam is 48 hours per week, usually divided into 8 hours per day. A full day of rest per week is mandatory.
- Overtime payment is compulsory. It is calculated based on 150% of the hourly rate on weekdays, 200% on weekly days off, and 300% on public holidays.
- Overtime cannot exceed 50% of the total working hours. It also cannot exceed 30 hours per month and 200 hours per year.
- Employees in Vietnam have the right to 12 paid vacation days per year. This number increases by one day for every five years of service.
- Vietnam celebrates six public holidays (11 days):
- New Year’s Day: January 1st (1 day);
- Lunar New Year (Têt Holiday): Late January or early February (5 days);
- Hung King’s Festival: Mid-April (1 day);
- Reunification Day: April 30 (1 day);
- Labor Day: May 1st (1 day);
- Independence Day: September 2nd (2 days).
Parental Leave and Sick Leave
- Female employees in Vietnam who have contributed to social security for at least 3 months are entitled to 6 months of paid maternity leave, including 2 weeks before the child’s birth. Social security covers the employee’s full salary during this period. Maternity leave can be increased to 7 months for complicated or multiple births.
- Male employees who contributed to social security for at least 3 months are entitled to 5 days of paid paternity leave. Social security covers the employee’s salary during this period.
- Employees are entitled to a paid sick leave for up to 30 days per year. During their sick leave, employees receive 75% of their salary, paid by social security. The leave can be extended in exceptional cases through a review. Employees have to provide a medical certificate within 48 hours of the first day of their sick leave. The sick leave duration increases to a maximum of 40 days per year for employees who contributed to social security between 15 and 30 years, and to 60 days for employees who contributed for more than 30 years.
- The notice period for resigning employees is 3 days if the contract is fixed-term under 12 months, 30 days if the contract is fixed-term from 12 to 36 months, and 45 days if the contract is indefinite.
Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.