Vietnam Outsourcing

Outsource to Vietnam: Hiring Software Engineers in Vietnam

Grow your technology team with confidence by tapping into Vietnam's thriving talent pool through Hyperion360. Our Global Staffing & Team Extension Services ensure seamless, efficient, and cost-effective international expansion and outsourcing.

Already found qualified software engineers or other talent to work with in Vietnam? Hyperion360 can be your Employer of Record (EOR) in Vietnam. Hyperion360 helps you pay your team members anywhere in the world. If we don't have a local entity in a particular country we have a vast network of payroll partners who can help allowing you to hire top talent almost anywhere in the world. Need help finding software engineers? Contact us.

The Hyperion360 Talent Score for Vietnam is determined by evaluating and averaging several key factors that influence the attractiveness and viability of hiring software engineers in the country. These factors are assessed on a scale from 1 to 10, where 10 represents the highest performance or most favorable conditions.

Hiring Software Engineers in Vietnam

Key Facts About Hiring Software Engineers in Vietnam

• Large Talent Pool: Vietnam offers a substantial pool of skilled software developers. As of 2021, there were over 430,000 IT professionals in the country, with a significant number of graduates entering the tech industry each year.
• Cost-Effective: The cost of hiring software engineers in Vietnam is highly competitive compared to other countries, making it a cost-effective destination for tech talent.
• Quality of Work: Vietnam has heavily invested in its IT sector, resulting in a growing number of highly skilled and reliable software developers.
• Time Zone: Vietnam’s time zone (GMT+7) allows for convenient collaboration with teams in the Asia-Pacific region and even Europe.
• Language: While Vietnamese is the official language, English proficiency among IT professionals is steadily improving, facilitating smoother communication.
• Ease of Doing Business: Vietnam is ranked 70th in ease of doing business, with continuous improvements in the regulatory environment for businesses.
• Innovative Tech Scene: Vietnam has a burgeoning startup ecosystem and tech scene, supported by government initiatives and private investments.
• Software Market Revenue: The Vietnamese software market has shown robust growth, generating substantial revenue and expanding rapidly.
• Number of IT Companies: Vietnam hosts thousands of IT companies, from small startups to large multinational corporations.
• Internet Infrastructure: Vietnam boasts a well-developed internet infrastructure with a high penetration rate. Major cities like Hanoi, Ho Chi Minh City, and Da Nang have robust broadband connectivity, supporting the needs of tech companies and remote work.
• Universities and Education: Vietnam’s top universities, such as Vietnam National University, Hanoi (VNU), Ho Chi Minh City University of Technology, and Hanoi University of Science and Technology (HUST), offer highly regarded computer science and engineering programs. These institutions are known for their rigorous curriculum, research output, and strong ties with the tech industry, producing graduates who are well-prepared for the demands of the global IT market.

Benefits of Hiring Software Engineers in Vietnam

• Exceptional Technical Proficiency: Vietnamese software engineers are renowned for their technical skills and problem-solving abilities, proficient in programming languages like Java, C#, C++, JavaScript, and Python.
• Culture of Innovation and Creativity: Vietnam’s dynamic startup culture fosters innovation and creativity, contributing significantly to the tech advancements in the region.
• Cost-Effective Talent: Hiring software engineers in Vietnam offers excellent value due to the combination of advanced technical education, competitive costs, and a strong work ethic.
• Flexible Hiring Options: Hyperion360 provides various hiring options, including direct hiring through us or establishing a foreign entity in Vietnam with the assistance of our legal partners.
• Thriving Tech Scene: Vietnam’s tech ecosystem is filled with innovative startups and seasoned professionals, creating a fertile ground for collaboration and growth.

Benefits of Outsourcing to Vietnam

Vietnam is one of Asia’s fastest-growing economies, offering numerous advantages:

• A Robust Market: Vietnam’s diverse economy includes strong sectors in manufacturing, services, and technology, contributing to rapid economic growth.
• Strategic Trade Access: As a member of ASEAN , Vietnam offers access to key Southeast Asian markets and benefits from regional trade agreements.
• Advanced Infrastructure: Vietnam has well-developed infrastructure, including extensive road networks, railways, and ports, supporting efficient business operations.

Common Pitfalls of Hiring Software Engineers in Vietnam

While Vietnam offers many benefits, there are some challenges:

• Complex Regulatory Environment: Navigating Vietnam’s regulatory environment can be challenging. Hyperion360 can help mitigate these risks by managing all legal and compliance aspects.
• Cultural Differences: Understanding and adapting to Vietnamese business culture is crucial. Hyperion360’s expertise ensures smooth cultural integration and effective communication.
• Talent Competition: The demand for skilled engineers in Vietnam is high, leading to competition. Hyperion360’s extensive network and staffing solutions help you secure top talent quickly and efficiently.
• Infrastructure Challenges: While improving, certain areas in Vietnam may face infrastructure challenges. Hyperion360 provides solutions to manage and mitigate these issues effectively.

Hyperion360’s tailored solutions address these challenges, enabling you to successfully hire and manage software engineers in Vietnam with confidence and ease.

Business Etiquette in Vietnam

Understanding cultural nuances is vital for successful business interactions in Vietnam. Here’s a detailed guide to help you navigate these intricacies effectively:

Greetings

• Handshakes: A firm handshake combined with a slight bow is a common greeting. It is polite to greet the most senior person first.
• Business Cards: Exchange business cards with both hands and take a moment to read the card before putting it away.

Communication Style

• Indirect Communication: Vietnamese people often communicate indirectly to avoid confrontation. Understanding subtle cues is important.
• Respect and Politeness: Showing respect and maintaining politeness is crucial in all interactions.

Timekeeping and Punctuality

• Punctuality: Punctuality is highly valued. Arriving on time for meetings is a sign of respect and professionalism.
• Networking: Small talk is common at the beginning of meetings to build rapport and trust.

Value on Relationships

• Personal Connections: Building strong personal relationships is essential. Trust and rapport are crucial for successful business dealings.
• Hierarchical Structure: Business structures are often hierarchical. Respect for seniority and titles is important.

Business Meetings

• Small Talk: Meetings often start with informal conversation to build relationships.
• Networking Focus: Use meetings to strengthen relationships as well as discuss business matters.

By understanding and respecting these cultural nuances, you can foster better relationships and ensure successful business interactions in Vietnam. Hyperion360’s tailored solutions help you navigate these cultural intricacies with ease, enabling seamless integration and collaboration with your Vietnamese team.

Employment Agreements

In Vietnam, while not mandatory, written employment agreements are strongly recommended to outline key conditions clearly. Essential elements to include are:

• Remuneration: Specify salary and any additional compensation.
• Job Description: Outline roles, responsibilities, and expectations.
• Working Hours: Define standard working hours and any flexibility.
• Place of Work: Mention the primary workplace and any remote work possibilities.
• Probationary Period: State the duration and conditions of the probation.
• Contract Type: Indicate whether the contract is fixed-term or indefinite-term.
• Company Policies: Include relevant workplace policies and guidelines.
• Travel and Transfers: Detail the conditions and possibilities for travel or relocation.

Some terms are automatically recognized under Vietnamese law, such as:

• The minimum wage
• Annual leave entitlement and vacation bonus
• 13th-month salary
• Social Security payment requirements
• Benefits provided by collective bargaining agreements

Probationary Periods in Vietnam

The maximum probationary period in Vietnam is 60 days for most positions, and up to 180 days for managerial roles. This allows employers to assess the suitability of the software engineer within a defined timeframe.

Vietnam Payroll Laws

Tax Due Date

Individual taxes in Vietnam are due by March 31, following the calendar year for the tax period.

Payroll Cycle

The payroll cycle in Vietnam is generally monthly.

Working Hours

Standard working hours are eight hours per day and 48 hours per week.

Minimum Wage and Salaries

As of May 1, 2024, the minimum wage in Vietnam varies by region, with the highest being VND 4,680,000 per month in urban areas like Ho Chi Minh City and Hanoi.

Bonus Payments

Vietnamese labor law requires a 13th-month salary, typically paid before the Lunar New Year. Employees may also receive performance-based bonuses.

Overtime

Overtime is compensated at 150% of the regular hourly wage on weekdays, 200% on weekends, and 300% on public holidays. Overtime should not exceed 50% of the normal working hours in a day, up to 60 hours in a month, and a total of 200 overtime hours per year.

Taxes and Social Security in Vietnam

Tax Thresholds in Vietnam

In Vietnam, individuals are considered tax residents if they stay in the country for more than 183 days in a calendar year. Tax residents are subject to tax on their worldwide income.

As of 2024, the Vietnamese income tax brackets are as follows:

• Up to 5,000,000 VND annually: 5.00%
• 5,000,001 VND – 10,000,000 VND annually: 250,000 + 10.00% on excess
• 10,000,001 VND – 18,000,000 VND annually: 750,000 + 15.00% on excess
• 18,000,001 VND – 32,000,000 VND annually: 1,950,000 + 20.00% on excess
• 32,000,001 VND – 52,000,000 VND annually: 4,750,000 + 25.00% on excess
• 52,000,001 VND – 80,000,000 VND annually: 9,750,000 + 30.00% on excess
• 80,000,001 VND and above annually: 18,150,000 + 35.00% on excess

Corporate Tax Rate in Vietnam

As of 2024, the corporate tax rate in Vietnam is:

• General Corporate Income: 20%

Social Security Rates in Vietnam

In 2024, the social security rates for employees and employers are as follows:

Employer Payroll Contributions in Vietnam

Employers in Vietnam are responsible for several additional payroll contributions, which include:

• Social Insurance (Labor, Accident, and Occupational Disease Fund): 0.50% of the employee’s salary (applied on income up to 36,000,000 VND monthly)
• Social Insurance (Retirement & Death Gratuity Fund): 14.00% of the employee’s salary (applied on income up to 36,000,000 VND monthly)
• Social Insurance (Sickness & Maternity Fund): 3.00% of the employee’s salary (applied on income up to 36,000,000 VND monthly)
• Health Insurance: 3.00% of the employee’s salary (applied on income up to 36,000,000 VND monthly)
• Unemployment Insurance: 1.00% of the employee’s salary (applied on income up to 93,600,000 VND monthly)
• Trade Union Fee: 2.00% of the employee’s salary (applied on income up to 36,000,000 VND monthly)
• Total Employment Cost: 21.50%

Employee Payroll Contributions in Vietnam

Employees in Vietnam also contribute to their social security as follows:

• Social Insurance: 8.00% of their salary
• Health Insurance: 1.50% of their salary
• Unemployment Insurance: 1.00% of their salary (the maximum salary for Unemployment insurance is 93,600,000 VND)
• Total Employee Cost: 10.50%

*Both local and foreign workers in Vietnam need to contribute to the Social Insurance Programme, according to the employer and employee contributions above.

Health Insurance in Vietnam

Vietnam offers a public healthcare system, but many opt for private health insurance to access higher-quality services and shorter wait times. The public system provides basic healthcare services, while private insurance offers enhanced coverage and facilities.

Pension in Vietnam

Vietnam’s pension system requires employees to meet certain eligibility criteria for old-age retirement benefits:

• Women: Must be at least 55 years old with a minimum of 20 years of contributions.
• Men: Must be at least 60 years old with a minimum of 20 years of contributions.

The pension amount is calculated based on the employee’s average salary and years of contributions.

Paid Time Off in Vietnam

Annual Paid Leave

Vietnamese labor law guarantees employees annual paid leave of 12 days, increasing with the length of service as follows:

• Up to 5 years: 12 days
• 5-10 years: 14 days
• Over 10 years: 16 days

Employees receive their usual monthly salary during leave periods.

Parental and Maternity Leave

• Maternity Leave: 6 months of paid leave, which can be extended without pay.
• Paternity Leave: 5-14 days of paid leave, depending on circumstances.

Sick Leave

Employees are entitled to paid sick leave, covered by social insurance, with the duration depending on the type of illness and years of service.

Regional and National Holidays

Vietnam observes several national holidays, including:

• New Year’s Day (January 1)
• Lunar New Year (Tết Nguyên Đán, varying dates)
• Reunification Day (April 30)
• International Labor Day (May 1)
• National Day (September 2)

There are also numerous other public holidays and observances throughout the year.

Employment Benefits in Vietnam

The Vietnam Social Security (VSS) administers the country’s government benefits programs, which include old-age pensions, disability benefits, illness and injury benefits, and parental leave. The VSS collects contributions from employers and employees to maintain these social security benefits.

Termination and Notice Period in Vietnam

Employers must provide notice of termination as follows:

• Notice Period: 45 days for indefinite-term contracts, 30 days for fixed-term contracts, and 3 working days for seasonal contracts or contracts for less than 12 months. Employers may opt to provide pay in lieu of notice.

For resignations, the notice period is generally 30 days.

Upon termination without cause, the employer must pay severance equivalent to half a month’s salary for each year of service.

Understanding these aspects of employment benefits in Vietnam helps you navigate the complexities of hiring and managing staff. With Hyperion360, you can ensure compliance with local regulations while optimizing your global staffing strategy. Enhance your workforce with top Vietnamese talent today!

Work-from-Home Arrangements and Remote Work in Vietnam

In response to the growing trend of remote work, Vietnam has implemented regulations to support flexible working arrangements:

• Legal Framework: Vietnamese labor laws allow for remote work arrangements, provided that both the employer and employee agree to the terms. The Labor Code includes provisions for remote work.
• Work Environment: Employers are responsible for ensuring that remote employees have a suitable work environment and necessary equipment.
• Health and Safety: Employers must ensure that remote workers adhere to health and safety standards, including ergonomics and regular breaks.
• Communication: Clear communication channels and regular check-ins are essential for remote work arrangements.

With Hyperion360 you don’t have to worry about compliance with local regulations for your Vietnamese team.

How Hyperion360 Can Help You Hire Software Engineers in Vietnam

Navigating the complexities of hiring and managing software engineers in Vietnam can be challenging, but Hyperion360 simplifies the process with our comprehensive global staffing services. When you partner with Hyperion360, you pay us directly, and we take on all the legal and compliance risks, managing every aspect of HR, benefits, payroll, and local taxes.

Our Services Include:

• Assuming Legal and Compliance Risk: Hyperion360 hires the software engineers directly, eliminating the legal risks of complying with Vietnamese law for your company.
• Managing HR Functions: We handle all HR-related tasks, from recruitment and onboarding to managing paid leave and termination, ensuring a smooth and efficient process.
• Administering Benefits: Hyperion360 oversees employee benefits, including health insurance, retirement plans, and other statutory benefits, ensuring your workforce is well-supported and highly engaged.
• Efficient Payroll Management: Our services include managing payroll cycles, payroll taxes, and bonus payments seamlessly. We handle all payroll processing, ensuring accuracy and timely payments for your software engineers.
• Handling Local Taxes: The monthly fee you pay us for software engineers is inclusive of local payroll taxes, benefits, legal, HR, accounting, etc. so you can focus on your core business operations.

Benefits of Partnering with Hyperion360:

• Access to Top Talent: Leverage our network to access a pool of highly skilled software engineers in Vietnam, ensuring you hire the best talent for your needs.
• Streamlined Processes: Our integrated approach simplifies the hiring and management process, reducing administrative burdens and allowing you to focus on strategic business goals.
• Cost-Effective Solutions: By managing HR, benefits, payroll, and compliance, we help you save time and resources, offering a cost-effective solution for expanding your team in Vietnam.
• Comprehensive Support: From recruitment to ongoing management, Hyperion360 provides full support to ensure your Vietnamese workforce is effectively managed and aligned with your business objectives.

With Hyperion360, you can confidently expand your tech team in Vietnam, leveraging our expertise to overcome common pitfalls and maximize the benefits of hiring skilled software engineers in this dynamic market.

Ready to hire software engineers in Vietnam? Contact us to learn more about how Hyperion360 can support your global staffing needs.

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