Eos Global Expansion

Why Vietnam: The Benefits and Complexities of Expanding Your Business

If you’re looking to expand your business globally, Vietnam is a country worth considering.  With its strategic location, growing economy, and low cost of living, Vietnam is becoming an increasingly attractive destination for companies looking to set up a presence in Asia.  

As an Employer of Record (EOR) with many years of experience operating in Vietnam, Eos Global Expansion can help you navigate the complexities of doing business in Vietnam.

Here are some of the benefits and challenges you need to know about.

Benefits of Doing Business in Vietnam

  1. Cost of Labor: The cost of labor in Vietnam is considerably lower than in many other Asian countries.  The average monthly salary in Vietnam is around USD200, making it an attractive option for companies looking to lower their labor costs.   Additionally, Vietnam’s labor laws are generally favorable to employers, making it easier to hire and manage employees.
  2. Growing Economy: Vietnam has one of the fastest-growing economies in the world, with a GDP growth rate of around 6-7% in recent years.  This growth has been driven by a rise in exports, manufacturing, and foreign investment.  As a result, Vietnam has become a hub for business opportunities, particularly in the tech industry.
  3. Strategic Location: Vietnam’s location in Southeast Asia makes it an ideal gateway to other markets in the region. With access to major ports and airports, businesses in Vietnam can easily connect with other countries in the region and beyond.

Challenges of Doing Business in Vietnam

  1. Income Tax: The tax system in Vietnam can be complex and confusing, particularly for foreign companies.  The corporate income tax rate is currently 20%, but there are various exemptions and incentives available.  Eos Global Expansion can help you navigate the tax system and ensure compliance with local regulations.
  2. Employee Hiring: Although Vietnam’s labor laws are favorable to employers, there are still some complexities when it comes to hiring employees.  Companies must comply with a range of regulations related to hiring, including work permits, labor contracts, and social insurance contributions.  Eos Global Expansion can help you navigate these regulations and ensure compliance.
  3. Employee Terminations: Terminating employees in Vietnam can also be complex, with a range of regulations and procedures to follow.  Again Eos Global Expansion can help you manage the termination process and ensure compliance with local laws and regulations.

Entering Vietnam can be a complex process, but with the right guidance, it can be a rewarding and profitable venture.  As an EOR company, Eos Global Expansion can help you navigate the complexities of doing business in Vietnam and ensure compliance with local regulations.  

Contact us today to learn more about our services and how we can help you expand your business in Vietnam and beyond.

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.

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