What Is Global Workforce Planning for SMEs?

It is the process of structuring international hiring to ensure compliance, cost control, and scalable growth.

Why Is Workforce Planning Critical When Hiring in Asia?

Because each country applies distinct labour, payroll, and tax rules that increase compliance risk.

How Does Eos Reduce Hiring Risk in ASEAN Markets?

By providing local HR, payroll, legal, and entity management expertise in each country.

Can Eos Support Hiring Without a Local Entity?

Yes. Eos offers EOR solutions across multiple Asian markets.

Does Eos Provide Regional or Country-Specific Support?

Both. Eos combines country-level expertise with a unified regional framework.

When Should SMEs Engage Eos for Workforce Planning?

Before making your first overseas hire or expanding into a new jurisdiction. Speak to our team to assess risk, confirm the right hiring model, and plan your Asia expansion with confidence.

What should companies prioritise when evaluating global payroll providers?

Compliance coverage, accountability, and scalability should take priority over software features alone.

Is payroll software enough for international expansion?

Payroll software supports calculations but does not replace local employment and compliance responsibility.

How does Eos help evaluate payroll providers?

With local presence across 27+ countries and partnerships like Hightekers, Eos combines legal expertise, automation, and cultural understanding to assess payroll risk and suitability.

Can Eos manage payroll across multiple regions?

Yes. Eos supports multi-country payroll delivery through a unified framework, reducing fragmentation and oversight gaps.

Does Eos support payroll for companies without local entities?

Yes. Through EOR-backed payroll, Eos enables compliant hiring without entity setup. Learn more about Eos's global PEO and EOR services.

Can Eos support payroll transitions as companies scale?

Yes. Eos supports entity setup, payroll migration, and long-term compliance planning as expansion matures. Speak with an Eos Global Expansion consultant today.

What is EOR-backed payroll for startups?

It is a payroll model where an Employer of Record legally employs staff abroad, handling payroll and compliance on behalf of the startup.

Is EOR-backed payroll suitable for early-stage companies?

Yes. It is commonly used by startups without local entities or internal payroll teams.

How does Eos support startups using EOR-backed payroll?

With local presence across 27+ countries and partnerships like Hightekers, Eos combines legal expertise, automation, and cultural understanding to support compliant growth.

Can startups hire across multiple countries using EOR-backed payroll?

Yes. Eos supports multi-country hiring through a single EOR framework, integrated with our Multi-Country Payroll & Accounting services.

Does Eos handle statutory payroll obligations?

Eos works with in-country specialists to manage statutory filings, reporting, and regulatory updates.

Can startups transition from EOR-backed payroll to local payroll later?

Yes. Eos supports entity setup and payroll migration as startups scale.

What is the difference between cross-border hiring and local hiring?

Cross-border hiring involves employment, payroll, and compliance requirements in the worker's country, rather than operating under a single domestic framework.

How can Eos support cross-border hiring without local entities?

Through Employer of Record models that enable compliant hiring without entity formation.

Which countries does Eos support for cross-border hiring?

Eos supports cross-border hiring across 27+ countries through local presence and partnerships such as Hightekers.

How does Eos manage payroll and employment compliance for cross-border teams?

Eos manages multi-country payroll and accounting by combining local legal expertise, automation, and cultural understanding to ensure compliance across jurisdictions.

When should businesses consider EOR models for cross-border hiring?

When speed, compliance certainty, or market testing are priorities during international expansion. Learn more about Eos's global EOR and PEO services.

What is the main difference between EOR payroll and self-managed global payroll?

EOR payroll transfers employment and payroll compliance to a local legal employer, while self-managed payroll keeps full responsibility with your company.

When should companies choose EOR payroll?

When speed to hire, compliance certainty, and flexibility are more important than long-term in-country infrastructure.

How does Eos deliver EOR payroll across multiple countries?

Eos delivers EOR payroll through local expertise and operational oversight, supported by partnerships such as Hightekers across 27+ countries.

How does Eos manage multi-country payroll reporting and compliance obligations?

Eos manages multi-country payroll and accounting by combining legal expertise, automation, and cultural understanding to support compliant payroll delivery.

Where can I learn more about Eos's EOR payroll and expansion support?

Speak with an Eos Global Expansion consultant for practical guidance, or learn more about Eos's global PEO and EOR services.

What is an Employer of Record in South Korea?

An Employer of Record in South Korea is a local company that becomes the legal employer of your staff, handling contracts, payroll, tax, social insurance, and compliance. You manage work, performance, and day-to-day direction; the EOR carries the legal employment risk.

When should we use EOR in South Korea instead of setting up a local entity?

EOR South Korea works best when: You are testing market demand or building an early team, You need to hire within weeks to support a project or client, Internal resources for payroll, HR, and compliance are limited, You want a bridge solution while entity setup is in progress. If you plan long-term, large-scale operations or need local licensing, an entity may be more appropriate. Eos plans the shift from EOR to entity so contracts, benefits, and tax treatment remain consistent.

How fast can we start hiring through Eos EOR services in South Korea?

Once we have agreed commercial terms and role details, hiring can normally begin within 1-2 weeks subject to: Completion of KYC and onboarding checks, Signed service agreement, Finalised package and contract terms for each hire. Immigration cases for expatriates may take longer depending on visa type and documentation.

How are payroll, tax, and social insurance handled for South Korea EOR employees?

Eos: Calculates gross-to-net pay including overtime, allowances, and bonuses, Withholds national income tax and local resident tax monthly and files with the National Tax Service, Registers and contributes to the four major social insurances on your behalf, Manages year-end tax adjustments, tax certificates, and payroll records. You receive a monthly payroll summary and one consolidated invoice for employer costs plus Eos's fee.

What are the main compliance risks when hiring in South Korea?

Key risk areas include: Mis-designed working time and overtime practices, Incorrect annual leave and holiday entitlements, Under-funded social insurance or late contributions, Poorly documented performance issues and dismissals, Wrongful dismissal claims due to lack of just cause and procedure. Eos focuses on prevention: correct contracts, compliant policies, clean payroll, and well-documented processes.

Can Eos support visas and work permits in South Korea?

Yes. Where permitted, we coordinate with immigration specialists to support appropriate work visa routes for expatriate hires, aligning job descriptions, salary levels, and documentation with visa requirements. We also manage the employment side (contract, payroll, social insurance) once the visa is approved.

How much do EOR service providers in South Korea typically cost?

Pricing usually reflects: Number and level of employees, Complexity of benefits (pensions, allowances, bonuses), Extra services such as recruitment support or immigration assistance. Eos provides clear cost breakdowns - base salary, employer on-costs, and our fee - so your finance team can model scenarios accurately.

What are the biggest compliance risks when hiring in ASEAN?

Incorrect payroll calculations, non-localised contracts, misclassification, and late tax filings are the most common issues. These lead to penalties, disputes, or licence exposure.

Do foreign companies need a local entity to hire in Malaysia, Indonesia, or Vietnam?

No. EOR allows you to hire legally without an entity. A local entity is only required for long-term operations or regulated sectors.

How does EOR reduce compliance risk?

The EOR becomes the legal employer, ensuring compliant contracts, payroll, tax filings, and statutory benefits while your company directs work.

What payroll rules differ the most across ASEAN?

Payroll frequency, overtime caps, social security contributions, and public holidays vary significantly between Malaysia, Indonesia, Vietnam, and the Philippines.

How can HR, finance, and legal teams maintain consistent compliance across multiple ASEAN countries?

Centralise governance but rely on local expertise or an EOR/PEO partner for country-specific execution. This prevents misalignment between global and local practices.

Can Eos support both EOR and future entity setup?

Yes. Eos supports EOR during early expansion and manages entity setup when your headcount grows.

What Is EOR Hiring and Why Is It Important in 2026?

EOR hiring is where a third party becomes the legal employer in a country while you manage day-to-day work. It is important in 2026 because it allows fast, compliant entry into new markets without the delay and cost of setting up entities.

Which ASEAN Country Should We Choose First for EOR Hiring?

It depends on your needs. Malaysia suits regional and professional roles, Vietnam and Indonesia are strong for tech and digital, and the Philippines excels in CX and shared services. Eos can review your role mix and suggest a phased entry plan.

How Does Eos Keep Our Company Compliant Across Multiple Countries?

Eos manages local contracts, payroll, tax withholding, and statutory benefits in each country. Our team monitors legal changes and updates documentation, so your HR and legal teams can focus on strategy and governance rather than local paperwork.

When Does It Make Sense To Move From EOR to Our Own Entity?

It makes sense when headcount, revenue, or regulatory requirements justify fixed local overhead. Eos helps you model break-even points and manages the transition so employees experience minimal disruption.

What Ongoing Support Does Eos Provide After Employees Are Onboarded?

We support you beyond contract signing, handling monthly payroll, statutory filings, contract updates, and day-to-day HR queries from both managers and employees. Your team also has direct access to senior Eos professionals for guidance on performance issues, policy changes, and future headcount planning in each country.

How Quickly Can We Start EOR Hiring With Eos?

Once terms and role details are agreed, Eos can usually onboard employees in one to two weeks in many ASEAN markets. You receive a clear timeline from contract issue to first payroll to plan start dates accurately. Speak with Eos Global Expansion specialist today

What Is An Employer Of Record (EOR), And How Does It Ensure Compliance?

An Employer of Record is a third party that becomes the legal employer of your staff in a country, while you direct their day-to-day work. A compliant EOR manages contracts, payroll, taxes, benefits, and statutory processes in line with local law, and keeps documentation ready for audits or disputes.

How Often Does Eos Recommend Reviewing EOR Compliance?

Eos recommends at least an annual review, with additional check-ins after major legal changes, acquisitions, or new market entries. Many clients integrate this checklist into their year-end audits and workforce planning cycles so HR, finance, and legal stay aligned.

Does Using An EOR Eliminate Permanent Establishment (PE) Risk Or Fines?

No. An EOR can reduce some risks, but it does not remove PE risk entirely. Tax and legal authorities look at the substance of your activities, so you still need advice on where decision-making, contracts, and revenue generation sit in your group.

How Does Eos Monitor Labour Law Changes And Evolving Regulations?

Eos combines in-country legal partners, specialist HR and payroll teams, and continuous monitoring of official guidance to track regulatory changes. We translate developments into clear actions for your contracts, payroll, and policies, and explain what they mean for cost and risk.

Vietnam Statutory Updates 2025

Table of Contents

Here are Vietnam’s statutory updates for 2025.

Effective March 2026

Vietnam to Raise Monthly Personal Income Tax Deductions

The Government of Vietnam has proposed an increase in monthly personal income tax (PIT) deductions, set to take effect from March 2026, to better reflect economic conditions and rising living expenses.

Key Points:

The standard deduction for taxpayers will increase from VND 11 million to VND 15 million per month.
The deduction for each dependent will rise from VND 4.4 million to VND 6 million per month.
The adjustment aims to ease the tax burden on low- and middle-income earners and account for inflation since the last revision in 2020.
The changes are included in a draft amendment to Vietnam’s Personal Income Tax Law, currently undergoing public consultation.
If approved, the new deductions will apply to taxable income starting March 2026.

Source: Government of Vietnam

Effective January 2026

Vietnam Raises Minimum Monthly and Hourly Wages Across All Regions

The Government of Vietnam has issued Decree No. 293/2025/ND-CP, signed by Deputy Prime Minister Ho Duc Phoc on 10 November 2025, to revise the minimum wage rates for employees working under labour contracts. The new wage levels will take effect from 1 January 2026.

Key Updates:

The updated decree sets out both minimum monthly and hourly wages by region, replacing previous rates.
New minimum monthly wages:
- Region I: VND 5,310,000
- Region II: VND 4,730,000
- Region III: VND 4,140,000
- Region IV: VND 3,700,000
New minimum hourly wages:
- Region I: VND 25,500
- Region II: VND 22,700
- Region III: VND 20,000
- Region IV: VND 17,800
These wages apply to employees working under labour contracts in accordance with the Labour Code.
The list of provinces and cities in each region is defined in the Appendix of the decree.
Employers are advised to review payroll structures and employment contracts to ensure full compliance from 1 January 2026.

Source: Government of Vietnam

Effective August 2025

New Visa Exemption for Strategic Foreign Contributors

Vietnam has implemented a special visa waiver for foreign nationals identified as contributing to the nation’s socio-economic progress.

Key Details:

Eligible applicants include individuals endorsed by Vietnamese authorities, such as recognised business leaders, specialists in science or technology, diplomats, and those involved in cultural or economic activities.
The visa exemption allows holders to stay up to 90 days per visit, with the waiver valid for a maximum period of five years and permitting multiple entries.
Requests for exemption must be submitted through designated government agencies or approved organisations.
The Immigration Department manages the scheme and retains discretion to cancel waivers if individuals no longer meet the criteria.
Application procedures and documentation requirements are subject to further official clarification.

Source: Fragomen

Vietnam New Decree 219 Introduces Major Reforms to Foreign Labour Management

Vietnam has issued Decree 219/2025/ND-CP, which replaces Decree 152 and takes effect immediately. It introduces comprehensive reforms to simplify and modernise the employment of foreign workers in Vietnam.

Key Details:

New Assignment Category Introduced:

- Allows secondment from overseas entities without requiring prior 12-month employment (unlike the intra-corporate transferee category).

Updated Qualification Requirements:

- Executive Directors: Now require 3 years of relevant experience.
- Experts: Requirement lowered to 2 years; only 1 year for strategic sectors.
- Technical Workers: Experience requirements eased to 2–3 years (down from 3–5).

Expanded Work Permit (WP) Exemptions:

- - Foreign nationals in science, technology, digital transformation, and priority sectors may now be exempt from WP requirements with confirmation from ministries.

Short-Term Work Extended:

- Eligible roles may now work up to 90 days/year (previously limited to 30 days/trip, 3 trips/year).

Integrated WP Application Process:

- Labour demand approvals are now embedded in the WP application process, reducing processing time.

Simplified Requirements:

- Labour contracts are no longer required at point of WP submission.
- Recruitment notice postings and criminal record checks are streamlined.
- Biannual foreign labour usage reports abolished.
- Notifications for multi-province work are now only required in the base province.

Administrative Oversight Shifted:

- The Ministry of Home Affairs (MOHA) now oversees most WP-related matters, replacing the Ministry of Labour, Invalids and Social Affairs (MOLISA), except for government agencies or ministerial-level bodies.

Source: Lexology

Effective July 2025

Vietnam Reassigns Oversight of Foreign Workers to Ministry of Home Affairs

Vietnam’s government has transferred responsibility for overseeing foreign workers from the Ministry of Labour, Invalids and Social Affairs to the Ministry of Home Affairs.

Key Details:

The Ministry of Home Affairs will now manage all matters related to foreign national employment.
From 1 July 2025, provincial People’s Committees will issue work permits, approve job positions, and grant or deny expert exemptions
The reform aims to speed up approvals, reduce bureaucracy, and decentralize administrative responsibilities.
Further implementation details are expected from the Ministry of Home Affairs in due course.

Source: Fragomen

Vietnam to Require E-ID for All Administrative Procedures

Vietnam mandated the use of electronic identification (e‑ID) accounts on the VNeID platform (Levels 1 and 2) for both individuals and organisations to access all online and offline administrative services.

Key Details:

Applies to both Vietnamese nationals and eligible foreigners (those holding valid temporary or permanent residence cards).
Deadline: All legacy accounts via the National Public Service Portal will expire on 30 June 2025, after which only VNeID-based e‑ID accounts will be accepted
The requirement covers all administrative transactions across government services.
Individuals must register for a VNeID e-ID account (Level 1 via app or Level 2 via in-person biometric verification) to remain compliant.

Source: Fragomen

Vietnam Replaces Personal Tax Codes with Citizen ID Numbers

Vietnam’s Ministry of Finance has announced a major update to personal income tax (PIT) administration under Circular 86/2024/TT-BTC. This change is designed to simplify compliance and improve data accuracy for both individuals and businesses.

Key Details:

From 1 July 2025, 12-digit citizen ID numbers will replace personal tax codes for Vietnamese citizens.
The update applies to individuals with taxable income, dependents under the PIT Law, and entities with obligations to the state budget.
Tax authorities will integrate tax data with the National Population Database to streamline processes and eliminate duplicate records.
The reform aims to reduce administrative steps and enhance compliance for employers and employees.

Source: ASL Law

Vietnam Implements Mandatory Semi‑Annual Report on Foreign Nationals

Employers sponsoring foreign employees in Vietnam must comply with the following new reporting requirement under directives from the Department of Home Affairs.

Key Details:

Deadline: First semi‑annual report due 5 July 2025
Coverage Period: Foreign nationals working in Vietnam from 15 December 2024 to 14 June 2025
Document Submission: A signed and sealed report must be submitted to the local Department of Home Affairs.
Exemptions: Foreign nationals with pending work permit applications do not need to be included.
Non-compliance: Late filings may result in fines and delays in future work permit or labour demand applications.

Source: Fragomen

Vietnam to Require Social Insurance Contributions from Probation Period

Under the revised Social Insurance Law 2024, employees on probation contracts will be subject to compulsory social insurance (SI) contributions if the contract involves paid work, salary, and employer supervision.

Key Details:

Applies to contracts of one month or longer, including probation contracts with employment-like terms
Employers are advised to begin SI contributions from the start of the probation period to ensure compliance
Non-compliance may lead to arrears or penalties by the Social Insurance Agency

Source: APFL & Partners

Vietnam to Issue Digital ID Accounts to Foreign Nationals

Vietnam will begin issuing digital identification (VNeID) accounts to foreign nationals residing in the country, as part of its initiative to build a secure, people-centered digital ecosystem.

Key Details:

VNeID accounts will be available to foreigners starting 1 July 2025.
The digital ID system aims to enhance access to public services and streamline administrative procedures.
The VNeID platform prioritises legal frameworks, data integrity, cybersecurity, digital infrastructure, and human resources.
Integration with 12 major banks allows for ID verification through VNeID, with user consent required for data sharing.

Source: Tuoi Tre News

Effective March 2025

Vietnam Transfers Foreign Worker Management to Ministry of Home Affairs

Vietnam has restructured its government agencies, shifting foreign labor management responsibilities from the Ministry of Labor, Invalids, and Social Affairs (MOLISA) to the Ministry of Home Affairs (MHA) under Decree No. 25/2025/NĐ-CP.

Key Details:

MHA now oversees legal regulations on employment and foreign worker management.
Labor market data and employment service regulations will also fall under MHA.
Additional transition details at the provincial level are expected in the coming months.

This change is part of Vietnam’s broader administrative reforms to streamline government functions.

Source: BAL

Author

eosadmin

Eos Global Expansion is the one-stop shop for global expansion and provides global HR services. Hire staff quickly & compliantly, without the cost, delays, or resource drain of setting up a foreign subsidiary.

Reviewer

Chris Alderson MBE

Chris Alderson is a seasoned CEO with over 25 years of experience, holding an honours degree from Durham University. As the founder and CEO of various multinational corporations across sectors such as Manufacturing, Research & Development, Engineering, Consulting, Professional Services, and Human Resources, Chris has established a significant presence in the industry. He has served as an advisor to the British, Irish, and Japanese governments, contributing his expertise to international trade missions, particularly focusing on global expansion and international relations. His distinguished service to the industry was recognised with an MBE (Member of the Order of the British Empire) awarded by Her Majesty Queen Elizabeth II.

Vietnam Statutory Updates 2025

Effective March 2026

Vietnam to Raise Monthly Personal Income Tax Deductions

Effective January 2026

Vietnam Raises Minimum Monthly and Hourly Wages Across All Regions

Effective August 2025

New Visa Exemption for Strategic Foreign Contributors

Vietnam New Decree 219 Introduces Major Reforms to Foreign Labour Management

Effective July 2025

Vietnam Reassigns Oversight of Foreign Workers to Ministry of Home Affairs

Vietnam to Require E-ID for All Administrative Procedures

Vietnam Replaces Personal Tax Codes with Citizen ID Numbers

Vietnam Implements Mandatory Semi‑Annual Report on Foreign Nationals

Vietnam to Require Social Insurance Contributions from Probation Period

Effective March 2025

Vietnam Transfers Foreign Worker Management to Ministry of Home Affairs

Author

eosadmin

Reviewer

Chris Alderson MBE

Share:

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Country Coverage

Tags:

statutory update, vietnam

Latest News

China Work Permit Salary Requirements Tightened for Category A and B in 2026

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Vietnam Statutory Updates 2025

Effective March 2026

Vietnam to Raise Monthly Personal Income Tax Deductions

Effective January 2026

Vietnam Raises Minimum Monthly and Hourly Wages Across All Regions

Effective August 2025

New Visa Exemption for Strategic Foreign Contributors

Vietnam New Decree 219 Introduces Major Reforms to Foreign Labour Management

Effective July 2025

Vietnam Reassigns Oversight of Foreign Workers to Ministry of Home Affairs

Vietnam to Require E-ID for All Administrative Procedures

Vietnam Replaces Personal Tax Codes with Citizen ID Numbers

Vietnam Implements Mandatory Semi‑Annual Report on Foreign Nationals

Vietnam to Require Social Insurance Contributions from Probation Period

Effective March 2025

Vietnam Transfers Foreign Worker Management to Ministry of Home Affairs

Author

eosadmin

Reviewer

Chris Alderson MBE

Share:

Categories:

Country Coverage

Tags:

statutory update, vietnam

Latest News

China Work Permit Salary Requirements Tightened for Category A and B in 2026

EOR Payroll vs Self-Managed Global Payroll: What’s the Difference?

What Is Cross-Border Hiring and How Does It Benefit Businesses?

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