Labor cost in Vietnam, as well as other Asia countries, is different from other Weston countries. If you intend to expand your business in this country, take time to do research before coming up with any HR strategies. So, let’s see what information we can provide for your business!
Vietnam workforce statement
According to the report on labor and employment in the 2nd quarter of 2020, the Vietnamese labor force dropped significantly. Female workers are more affected than male workers during Covid-19 epidemic.
The demand for the skilled labor force is increasing in many fields. Jobs that used to be performed by workers are now done by technology. It is forecast that employment demand for architects, engineers, mathematicians and computer experts will be in demand.
Vietnam average monthly wages
According to the report, an employee in Vietnam typically earns around 17,200,000 VND per month. Salaries range from 4,360,000 VND (lowest average) up to 76,900,000 VND (highest average, although the maximum salary is higher).
This is the average monthly salary including the payment and other benefits. Salaries vary differences between different careers and gender. In common, male employees in Vietnam earn 11% more than their female counterparts on average across almost all sectors.
It’s predicted that the average minimum wage will continue rising. This is the result of the high-value manufacturing and service-based transition.
Rate of taxation
The tax rates are based on the employee’s income. The scale of the progressive tax rates on each portion of income is as follows:
- Up to 5 million VND: 5%.
- 5 million to 10 million VND: 10%
- 10 million to 18 million VND: 15%
- 18 million to 32 million VND: 20%.
- 32 million to 52 million VND: 25%.
- 52 million to 80 million VND: 30%.
- 80 million VND: 35%.
Employers are required to ensure the benefit for the employees besides their salary/wages. The employee benefits usually include:
- Social insurance.
- Heal insurance
- Unemployment insurance
- Minimum paid holiday entitlement and Entitlement to paid time off (paid sick leave)
- Personal protective equipment.
- Training and skills improvement.
Note-worthy strategy tips
Determine the HR requirements
To build a matching team, you should determine the new jobs and roles required to secure the future of the company. Each position needs employees to undertake different responsibilities. Thus, ensure their expertise that they can accommodate the company’s growth.
Strategy a long-term plan
The main point of a long-term plan is getting rid of job-hopping. One of the most common ways to keep staff to stay longer is to offer him more benefits or a higher salary. However, money is not the only reason and certainly not a long-term guarantee. It is essential that businesses should find other ways to build employee loyalty. Aside from increasing the salary, building a good working environment is an effective and affordable way to try.
Erase the differences of working culture
Workplace culture in Vietnam is unlike other countries. Thus, it’ll be a big problem if the manager can not erase the gap. Look for a detailed report beforehand to ensure you control it well.
Hire a local HR agency
No matter how much you research, you can’t get the insight as thoroughly as the local people. Select an HR agency that has a devoted hiring process beyond the headhunt steps. A good HR agency can provide you with a matching recruitment strategy that perfectly fits your business development.
How can HR4C help?
With an ethical recruitment team in Vietnam, HR4C will provide you the most tactical recruitment solutions for corporations. Understanding the labor market and local insight, we ensure to assist you in building a strong & matching team in the quickest way. Our services are not narrow in talent hunting but beyond the scope of services you engaged. It can be mentioned human tactic consulting and nourishing the candidates since they were in the university that meets the diverse needs of Vietnamese and international clients
Ready to start the best team? Let’s work together!