🟠 Understanding HR Administrative Services in Vietnam
FDI companies must comply with Vietnam’s labor and tax framework, covering:
Labor Contracts
Regulated by the Labor Code on terms, hours, and termination
Work Permits
Required for most expatriates, valid up to 2 years under Decree 152/2020/ND-CP.
Social, Health & Unemployment Insurance
Mandatory for contracts from 1 months (per the 2024 amendment).
Payroll & PIT
Monthly tax declarations with progressive rates up to 35%.
Streamlined HR support ensures full compliance while enabling sustainable business expansion.
Entering Vietnam’s market offers immense potential, but FDI firms particularly foreign owners and CFOs face steep HR administrative hurdles that can inflate costs and stall operations.
🟠 Frequent Labor Law Changes
Ongoing Labor Code updates, including the 2021 amendments, drain weeks of internal resources and risk penalties of up to VND 150 million, slowing business expansion.
🟠 Complex Administrative Procedures
Consume substantial management time, create compliance bottlenecks, and delay critical approvals, ultimately hindering daily operations and business growth.
🟠 CRisk of Penalties and Tax Issues
Non-compliance with PIT or social insurance can trigger audits and fines over 20% of unpaid amounts, eroding profits and investor confidence.
🟠 Delayed Recruitment and High Costs
Finding bilingual talent amid a skilled labor shortage inflates expenses by 20–30% and slows market entry for foreign-led teams.
🟠 Lack of Bilingual HR Support
Without local expertise, cross-language communication often causes reporting errors and adds compliance challenges for foreign managers.
Our Services & Solutions
Vina TPT all-in-one approachmfrom market entry setup to ongoing compliance minimizes risks and optimizes efficiency, ensuring you focus on sustainable growth
Personnel Management & Procedure Execution
Employment contracts prepared and registered in line with labor regulations, including probation and internal rules. Compliance is safeguarded, risks minimized, and hiring efficiency improved with 40% faster onboarding.
Work Permit & Procedures for Foreign Nationals
Work permits, visas, and TRCs handled in compliance with Decree 152/2020/ND-CP. Faster processing reduces deployment time by 50% and enables seamless expatriate transfers.
Personal Income Tax Registration & Declaration
End-to-end PIT compliance for local and expatriate staff, covering tax IDs, filings, and withholdings. Services prevent penalties, reduce audit costs by 25%, and connect seamlessly with transfer pricing and VAT declarations.
Consultation & Social Insurance Registration
Comprehensive support for SI, HI, and UI obligations, from registration to payouts. Ensures compliance, prevents costly penalties, and strengthens employee trust.
🔵 Frequently Asked Questions
What are the tax compliance requirements for FDI in Vietnam?
FDI enterprises must file monthly VAT/PIT (by the 20th) and quarterly CIT (by the 30th), with annual finalizations by March 31. Rates include 20% CIT (preferential 10-17% for incentives) and PIT up to 35%.
How long does it take to set up a company in Vietnam?
For FDI, expect 2-4 months: 15 days for Investment Registration Certificate (IRC), 3-5 days for Enterprise Registration Certificate (ERC), plus post-setup steps like seal carving and tax ID. VINA TPT streamlines this to under 60 days.
Do foreign companies need a local accountant in Vietnam?
Yes. Law on Accounting mandates a Chief Accountant for VAS compliance, handling dual reporting (VAS locally, IFRS for groups). Outsourcing to locals like us avoids penalties and ensures accuracy.
What social insurance applies to foreign workers?
Mandatory for employment contracts of one month or longer: social insurance contributions are 9.5% by the employee and 20.5% by the employer, calculated based on the salary subject to social insurance. Benefits include sickness allowance and a one-time social insurance lump-sum payment upon leaving Vietnam.
How does VINA TPT handle work permits?
We manage full applications/renewals, ensuring 100% approval rates under Decree 152/2020/ND-CP.
Schedule a 30-minutes call
with our consultant and get solutions for your
business in Vietnam.
CONTACT US
VINA TPT COMPANY LIMITED
Tax Identification Number: 0315968958
THE CLASSLIB COMPANY LIMITED
Tax Identification Number: 0313916707
Tel: +8428 730 40 790 | Email: infor@vinatpt.com
Office: 5th Floor, More Building, 83B Hoang Sa Street, Tan Dinh Ward, Ho Chi Minh City, Vietnam