In this issue of Vietnam Briefing Magazine, we attempt to clarify HR and payroll processes in Vietnam. We first take you through the current trends affecting the HR landscape and then we delve into the process of hiring and paying your employees. We next look at what specific obligations an employer has to their employees. Additionally, we guide you through the often complex system of visas, work permits, and temporary residence cards. Finally, we highlight the benefits of outsourcing your payroll to a “pan-Asia” vendor.
In a newly released circular, the Vietnam government has expanded the reach of the Foreign Contractor Tax (FCT). The FCT Circular 103/2014/TT-BTC, issued by the Ministry of Finance, replaces the previous FCT Circular 60/2012. Circular 103 will become effective on October 1, 2014.
At the most recent meeting of the Ayeyawadi – Chao Phraya – Mekong Economic Cooperation Strategy (ACMECS) organization, tourism officials from Vietnam, Laos, Cambodia, Thailand, and Myanmar agreed on the need to urge their respective governments to ease travel restrictions and push forward on the implementation of a single visa policy for all of the countries. The meeting was held at this year’s International Travel Expo in Ho Chi Minh City (HCMC).
The Vietnam Automobile Manufacturers’ Association (VAMA) has announced that August was the 17th consecutive month of auto sales growth within the country. The month saw a 59 percent year on year increase, with total sales of 12,562 units. Total sales for 2014 are now forecast to be 130,000 units, representing an 18 percent growth year on year.
Once a company has gone through all the legal procedures required for the establishment of their business in Vietnam, the next big hurdle is the process of actually hiring the staff that will be needed and dealing with the associated payroll obligations. Hiring, and the associated legal obligations that go along with it, can be a confusing process. It is therefore strongly recommended that businesses take a careful look at all relevant regulation and engage a professional where appropriate to ensure proper compliance with all laws.