Why use an employer of record in Vietnam?

What is an employer of record

An employer of record is a service provider who can hire and manage employees on your behalf. The scope of services provided by an employer of record includes recruiting and hiring, management of payroll, and filing taxes for employees.

Main benefits of using an employer of record

Enter new markets faster

If you plan on hiring staff through your own company, you must register your business in Vietnam first. Depending on your business classification and planned activities, this process can take up to a month. This applies to hiring local and foreign employees.

To hire foreign employees, you will need to apply for the use of foreign labor. You can send this application along with your company registration, but you can only hire foreigners 15 days after submission.

Because an employer of service can hire staff on your behalf, you don’t have to worry about your company registration and application for use of foreign labor. Your employer of service will recruit employees for you so you can start your business activities immediately. The employer of record can also hire candidates that you have already selected. It’s a simple and convenient way to build your remote staff in Vietnam.

You have the option to transfer employees to your company after incorporation, or you can continue to use the services of your employer of record.

Test the market before setting up a company

There are no minimum capital requirements in Vietnam, but setting up a company can still be costly. Testing the Vietnamese market before investing and establishing your business would be a smart move.

Using an employer of record will allow you to hire employees who can test the market for you. Full-time employees hired through an employer of record can conduct market research, find potential distributors, or sell your products.?

Employers of record allow you to create relationships with clientele, customers, and partners before you set up your own legal entity.

No need to understand local compliance requirements

There is a tendency for emerging markets like Vietnam to change policies and regulations often. As such, it can be difficult for foreign employers to keep up with changes to employment policies.

The same policies and regulations apply to all employers, both local and foreign. However, foreigners often make the mistake of thinking that they are exempt from local policies. Employers of record have a lot of knowledge and experience in managing staff so you won’t have to worry about policy changes and compliance.

Working space availability

By using an employer of record like Emerhub, you won’t need to think about renting an office space for your remote staff. We will provide your employees with workspaces and any tools they may need so they can effectively perform their duties.

Young and educated workforce

Vietnam is home to a young and educated workforce. Worldometer reports that the median age in this country is 32.5 years old and the World Bank states that 70% of the population is under 35 years old.

The Vietnamese government greatly values education and allots about 20% of its finances to education. Additionally, in 2019, the EF English Proficiency Index (EF EPI) ranked Vietnam 10th out of 25 Asian countries in terms of skills in the English language. The EF EPI also notes moderate English skills in Hanoi and Ho Chi Minh.

Source: https://recruitgo.com/resources/blog/how-using-an-employer-of-record-in-vietnam-can-improve-your-business