Vietnam's food trade industry is one of the most dynamic sectors in the country. Fueled by an expanding middle class, rising disposable incomes, and shifting consumer preferences, the increasing demand for high-quality food products is undeniable. From bustling markets in Ho Chi Minh City to modern supermarkets in other major cities, the opportunity for both […]
Vietnam's food trade industry is one of the most dynamic sectors in the country. Fueled by an expanding middle class, rising disposable incomes, and shifting consumer preferences, the increasing demand for high-quality food products is undeniable. From bustling markets in Ho Chi Minh City to modern supermarkets in other major cities, the opportunity for both […]
When the pandemic hit hard, it forced many companies to work from their homes, especially in Singapore. Many companies are shifting to remote operations and hiring from the global talent pool. Even working remotely in Singapore allows flexibility for the employees, but the companies are experiencing growing pains with this transition. In this article, we will give you information on why remote teams often fail and ways to avoid the problems. Let’s keep reading!
Reasons The Remote Working Teams Fail and Ways to Avoid The Problems
Usually, working remotely allows for increased flexibility and better work-life balance for employees. The technology, such as video conferencing software, collaboration platforms, and cloud services keep people connected, allow them to have meetings and complete projects from anywhere and anytime.
Nonetheless, there is a blurred line between work and home life, and there is also the downside of relying on technological advances, such as bad internet connection or the connection disruption in the middle of video conferencing, and so on.
There are other factors that made the remote teams fail, but gladly speaking there are also ways to avoid them. What are these? Let’s find out how to have a successful remote working team in Singapore!
1. Adapting to the Remote Setup
The problem here is working remotely in Singapore is new for everyone.
It means that having remote working arrangements is also new for many workers. Unfortunately, some find it difficult to transition to a remote setup and the ability to work alone or non-office environment is also a skill that not everyone has.
The performance of employees who are unable to adapt will suffer, because a team is only as strong as its weakest member. If one or more of your employees are having problems, it will affect everyone else in the team.
Here is the solution, make sure communication is easy for everyone.
Provide your remote team with tools for communication. Make sure your employees have the tools necessary for effective communication, such as apps for messaging. Also, make sure it has all the features that your team will need. For instance, get an application which is available on multiple platforms. It is easier for everyone to jump into a conversation even when they are away from their desks.
Start the discussion, you can also be the one to initiate conversations within the team. You can do this by raising a question in a group chat to get everyone to share their thoughts. In addition, you can share your own experiences, because it will encourage others to share their insights or similar experiences.
2. Collaboration is a Key Aspect of Remote Teams
The problems is employees do not collaborate
The remote teams will fail if its members do not collaborate and work with each other. It is common in teams spread across different time zones. It is indeed difficult to collaborate with people who are not online when you are.
The solution is to set schedules to encourage collaboration.
You can set common hours for remote employees. A remote setup limits spontaneous collaboration. Unlike the traditional working at office, you cannot just walk up to a colleague to start a discussion.
The remote work version of this is sending a message or just asking a co-worker to jump into a call. You can set specific hours where everyone in the team must be online. In addition, having regular meetings will allow your team members to update each other.
3. Procedures for Remote Working
The problem is not following procedures will cause remote teams to fail.
Employees may quickly forget that they are at work when the environment is not at the office. This will lead employees failing to follow processes and rules. Remote teams fail when its members are not doing things correctly. It is especially troubling if your processes affect other employees.
The solution is improving your onboarding process.
You need to have a proper onboarding process to avoid this problem. When welcoming a new employee, you have to explain the procedures clearly. You must also note the importance of each step.
Keeping an eye on new employees will help you to have a benchmark on how well the onboarding process is working. In addition, having a document that employees can use as a reference will help them keep procedures in mind.
4. Personal Boundaries When Working Remotely
The problem here is remote teams fail when employees experience burn out
So, it is important for employees working from home to set the boundaries. Living and working in the same place can lead to overlaps in working and personal hours. It is very usual among remote workers to experience burnout.
Getting burned out will lead to lower productivity and lower quality of work. It also has negative effects on your employees’ health.
The solution is promoting work-life balance
You have to make sure your employees are not working too much and always remind your remote team to take time for themselves. Find out if employees are working way more than the required hours.
You can have one-on-one discussions with your remote employees to see how they are going. Also have a chat with employees who are overworking themselves.
5. Managing Remote Employees Effectively
The problem is supervisors micromanage remote employees.
The reason why remote teams fail may also come from management. Micromanaging has no place in a company, remote or otherwise.
Micromanaging will affect your employees negatively and the remote workers will find it very annoying to have their leader constantly hovering. For others, it could lead to working non-stop and getting burned out.
The solution is trust your remote employees.
You can trust your employees that they will do their jobs and complete tasks as necessary. If they fail to meet deadlines or turn in low quality work, that’s when you can step in and discuss how they can do better.
If you are wondering why your remote team has failed, it might be because of one of the reasons above. Nonetheless, you should not worry too much because now you know how to avoid them and make working remotely in Singapore is going smoothly.
In conclusion, you should pay attention to your remote working team and fix it quickly if you find the problems within the team. Every problem can be solved if you can determine what is going on between you and your team, then after that you can have the solution for them.
Coming to employment law in Vietnam, the Labor Code 2019, passed by the 8th session of the 14th National Assembly on November 20, 2019, takes effect from January 1, 2021, with many new contents related to the interests of employees.
This Code defines labor standards; rights, obligations and responsibilities of employees, employers, grassroots representative organizations, employers' representative organizations in labor relations and other relevant relations directly to labor relations; State management of labor.
Objectives: Employees, apprentices, apprentices and workers without labor relations; the employer; foreign workers working in Vietnam; Other agencies, organizations and individuals directly related to the labor relation.
This Code has extended the applicable object of the person working without labor relations.
Here are some new contents specified in the Labor Code 2019:
Only 2 types of labor contracts are available in the employment law in Vietnam 2021
In order to protect the legal rights of employees, to limit the employer's evasion of responsibility, not to pay social insurance for employees in the form of entering into seasonal labor contracts (or pretending to sign a contract. services, job contract instead of seasonal labor contract) ... Article 20 of the Labor Code 2021 has removed the content of a seasonal labor contract or a job with a term of less than 12 months, only remaining 2 types of contract: indefinite term and fixed term labor contract. In which, an indefinite term labor contract is a contract in which the two parties do not specify the term and the time of termination of the validity of the contract.
Definite-term labor contract: a contract in which the two parties determine the term and the time of termination of the validity of the contract within a period not exceeding 36 months from the effective date of the contract.
When the labor contract defines the expiration period but the employee continues to work:
Within 30 days after the labor contract expires, the two parties must sign a new labor contract; Pending the signing of a new labor contract, the rights, obligations and interests of both parties will be performed according to the signed contract;
If the 30-day period expires from the expiration of the labor contract but the two parties fail to sign a new labor contract, the signed fixed-term labor contract becomes an indefinite-term labor contract;
In case the two parties sign a new labor contract, which is a fixed-term labor contract, only one more time is allowed, then, if the employee continues to work, an unspecified labor contract must be signed. time limit.
Particularly for the elderly employee, Clause 1, Article 149 of the Labor Code 2021 stipulates that the employer has agreed to repeatedly enter into a fixed-term labor contract with the elderly instead of an extension. Term of labor contract or signing new labor contract as before.
It is possible to contract either electronically or verbally
In accordance with the development of digital science and technology, along with the conclusion of written and verbal labor contracts, the Labor Code 2019 has added the form of entering into labor contracts through electronic convenience. Clause 1, Article 14 of this Code stipulates that: A labor contract is entered into via electronic means in the form of a data message in accordance with the law on electronic transactions as valid as an equal labor contract.
At the same time, Clause 2 Article 14 of the Labor Code 2021 stipulates that the two parties may enter into a verbal labor contract for contracts with a term of less than 1 month, except for the case specified in Clause 2, Article 18, Point a Clause 1 Article 145 and Clause 1 Article 162 of this Code, instead of entering into verbal labor contracts applicable to temporary jobs with a term of less than 3 months as prescribed by the Labor Code 2012 years ago.
Additional provisions on probationary period
Regarding to manager's job, Clause 1 Article 25 of the Labor Code 2021 stipulates that the probationary period must not exceed 180 days for the job of an enterprise manager in accordance with the Law on Enterprises and the Law on Management. and using state capital to invest in production and business in enterprises.
For labor contracts with a term of less than 1 month, Clauses 1 and 3, Article 24 of this Code stipulates that the employer and the employee can agree on the probationary content stated in the labor contract or the probation agreement agreement by entering into a probationary contract; Probation is not applied to employees who enter into labor contracts with a term of less than 1 month.
In addition, the Labor Code 2021 adds 4 cases where the employee is entitled to postponement of the labor contract. Specifically, Clause 1 of Article 30 adds cases of postponement of the labor contract, including:
(1) the employee fulfills the obligation to join the Militia and Self-Defense Force;
(2) the employee is appointed as an enterprise manager of a one-member limited liability company with 100% of the charter capital held by the State;
(3) the employee is authorized to exercise the rights and obligations of the representative of the State owner with respect to the State capital in the enterprise;
(4) employees are authorized to exercise the rights and responsibilities of an enterprise for the capital of a business invested in another enterprise.
The employee is allowed to unilaterally terminate the contract without any reason
According to the employment law in Vietnam, Article 35 of the Labor Code 2021 stipulates that the employee has the right to unilaterally terminate the labor contract without stating the reason, but must notify the employer in advance:
At least 45 days if working work under an indefinite term labor contract;
At least 30 days if working under a fixed-term labor contract with a term of between 12 months and 36 months;
At least 3 working days if working under a fixed-term labor contract with a term of less than 12 months.
In some cases, the employee has the right to unilaterally terminate the contract without prior notice, such as:
Not being arranged according to the right job, working place or not guaranteed working conditions as agreed;
Not being paid in full or on time;
Being mistreated, beaten, or verbally abused by the employer, or behavior affecting health, dignity or honor;
Forced labor;
Being sexually harassed at work;
The pregnant female employee must quit her job;
Retirement due, unless the parties agree otherwise;
The employer provides dishonest information that affects the performance of the labor contract.
The Code also stipulates two cases where the employer has the right to unilaterally terminate the contract without prior notice: Clause 3, Article 37 of the 2021 Labor Code stipulates that the employer has the right to unilaterally terminate the labor contract without prior notice in 2 cases:
The employee is not present at the workplace within 15 days from the expiration of the period of temporary suspension of the labor contract;
The employee voluntarily quit his job without having a plausible reason for 5 or more consecutive working days.
Increase the retirement age according to the roadmap in the employment law in vietnam
Also according to this Code, the retirement age of employees will increase according to the roadmap from 2021. Accordingly, Article 169 of the Code stipulates that the retirement age of employees in normal working conditions will be adjusted according to the roadmap until they reach 62 for male workers by 2028, and 60 years old for female employees by 2035.
From 2021, the retirement age of the employee under normal working conditions is 60 years and 3 months for men; full 55 years and 4 months for women. After that, each year, it increases by 3 months for male workers; 4 months for female employees.
For an employee with a working capacity decrease; working in heavy, hazardous, dangerous or extremely heavy, hazardous or dangerous occupations or jobs or working in areas with extremely difficult socio-economic conditions may retire before the retirement age, but no earlier than 5 years.
Adjustment of benefits for vacation and overtime hours
To the employment law in Vietnam, Article 107 of the Labor Code 2021 stipulates that the employee's overtime hours must not exceed 50% of the normal working hours in a day; if applying weekly working hours, the total number of normal working hours and overtime hours must not exceed 12 hours / day; no more than 40 hours / month; not exceeding 200 hours / year, except in some special cases, working overtime not exceeding 300 hours / year.
Thus, the Labor Code 2021 provides for an increase in the number of overtime hours in a month to no more than 40 hours. Keep the number of overtime hours in the year unchanged at no more than 200 hours / year, except for some special cases where the overtime work does not exceed 300 hours / year as prescribed in the 2012 Labor Code.
In the employment law in Vietnam, Article 112 of the Labor Code 2021 stipulates that, employees are entitled to take leave from work and enjoy their full salary in the following holidays and New Year: 1 day New Year (January 1 of the calendar); Lunar New Year 5 days; Victory Day 1 day (April 30 of solar calendar); International Labor Day 1 day (May 1 of solar calendar); Day of Hung Vuong's death anniversary 1 day (March 10th of lunar calendar). National Day is increased to 2 days (September 2 of solar calendar and 1 day immediately before or after, can be September 1 or September 3 depending on each year).
In the case of taking separate leave with full salary, in the past, according to Clause 1 Article 116 of the Labor Code 2012, an employee is entitled to take separate leave but still enjoy full salary in the following cases: Getting married; Married children: 1 day off; natural father, natural mother, father-in-law, mother-in-law or father-in-law, mother-in-law dies; wife dies or husband dies; Child's death: 3 days off.
Now, in Clause 1, Article 115 of the Labor Code 2019, the employee is entitled to take a separate leave but still enjoy the full salary and must notify the employer in the following cases: Marriage takes 3 days off; natural children, adopted children get married: take 1 day off; natural father, natural mother, adoptive father, adoptive mother; natural father, natural mother, adoptive father, adoptive mother of the husband or wife; wife or husband; natural children, adopted children die: 3 days off.
Thus, the Labor Code 2021 has added that employees are allowed to take separate leave to enjoy full salary in case an adoptive child gets married and takes 1 day off and in case the adoptive father and adoptive mother die 3 days off.
For the payment if the annual leave has not been completed, the Labor Code 2021 states that only 2 cases are paid: job loss and job severance. This Code abolishes the regulation that employees who are working "for other reasons but have not taken annual leave or have not taken all annual leave days off, they will be paid in cash for the unpaid days" as stated in Clause 1, Article 114 of the Labor Code 2012.
So, those are a cutting - edge overview on employment law in Vietnam update. Please do not hesitate to contact us if you're coming across any obstacles in your investment process into Vietnam, we are always willing to give you a helping hand with comprehensive commitment!
Currently, the labour market in Vietnam has basically met the general requirements of the economy. However, the Covid - 19 put a large change to the general HR activities in Vietnam resulted in a chain of difficulties in doing business in the market. So, here are 5 biggest challenges of doing business in Vietnam for foreign business related to HR activities:
1. Low proportion of labors with vocational and skills training putting challenges of doing business in Vietnam
As of 2019, according to the General Statistics Office, in the whole country, the number of people with vocational training and skills (with elementary qualifications or higher) accounts for only 22.8% of the total workforce. The proportion of workers without degrees / training certificates in FDI enterprises accounts for nearly 80% of employees and this proportion has almost unchanged from 2011 up to now.
This number is still very low compared to the current socio-economic development requirements and also lower than the target set. Moreover, the labor force training structure still has many irrationalities. The number of workers with professional secondary education and technical workers is too insufficient compared to the requirements. This number mainly concentrated in big cities and urban areas.
In general, the knowledge workforce in Vietnam is still poor in both quantity and quality compared to the world and the region. The group of science and technology workers has not met the requirements of deploying new technology, lacks the goals of industrialization and modernization. The group of business management workers in the private sector has little opportunity to be trained, so they have little knowledge about the market and market mechanism, while the demand for this type of labor is becoming increasingly scarce and fierce by market pressure, competition and integration. Vietnam has a serious shortage of high-tech and high-level service workers, especially in finance, auditing, law and mostly industry. FDI enterprises are in desperate need of high quality human resources in Vietnam right now.
3. Indiscipline labour is one of the challenges of doing business in Vietnam regarding to HR activities
Most of Vietnam's current labor force has not yet been trained in industrial labor discipline. Most of the labours come from rural areas, still carry the "heavy and slow" working style of small farm agriculture, and are arbitrary in terms of time and behavior. Employees lack teamwork capacity, are unable to cooperate and bear risks, are afraid to promote personal initiatives and share work experience. Most of the FDI enterprises have to spend a lot of time just to retrain the style of workers before recruiting to work officially.
4. Covid - 19 make labour management struggled
One of the important reasons that FDI enterprises choose Vietnam as the destination when moving factories from China is an abundant human resource with high skills that can meet the requirements of this business.
However, with a huge number of employees, to both train and build a skilled workforce, develop a long-distance development and ensure smooth production and business activities between departments in the factory. not a small challenge for human resource management in companies.
According to the General Statistics Office report, as of December 2020, there were 32.1 million people aged 15 years adversely affected by the pandemic, including job loss, job leave, and rotating leave. , reduce working hours, reduce income ... 2021 is also a time when businesses are undergoing many changes and spend most of their time and budget on training and developing core staff, engaging and building a corporate culture, bringing technology applications into corporate management to be more proactive and find new growth opportunities in this challenging Covid-19 period.
As for the management work in factories, factories of multinational companies where the total human resources are hundreds of thousands of employees, working in conveyor belts, different groups, groups, in blocks. Office and factory block, obviously, there will be difficulties, limitations and lack of heterogeneity in communication and internal communication leading to ineffectiveness at work.
5. HR restructuring during Covid - 19
Article 36.10 of the 2012 Labor Code (valid tillJanuary one, 2021, once it'll get replaced by the new 2019 Labor Code) permits employers to terminate the labor contracts of staff within the case of layoffs/redundancy thanks to“restructuring, changes in technology, or economic reasons.” Decree No. 05/2015/ND-CP of the govt. dated January 12, 2015, as amended on United Nations Day, 2018, more defines economic reasons to incorporate depression or recession. Thus, it might be argued that if the COVID-19 pandemic has led to a recession (which presently is true in Vietnam), then terminations via layoffs would be excusable.
However, below Vietnam’s labor law, if 2 or a lot of staff square measure created redundant, the leader should formulate a “labor usage plan” for the restructuring, distinguishing WHOare leaving behind, and send this to the nativebrotherhood, or the employer’s own brotherhood, if it's one. The leader should then await the trade union’s consent, which, in apply, might take 2 months or a lot of.
Some native trade unions might not offer a transparent opinion on whether or not they consent to the provided labor usage set up, however can instead merely reply that the corporation is needed to formulate and implement a labor usage set up in accordance with the applicable laws and rules of Vietnam. If this can be the case, the leader might have to figure once more with the native brotherhood, which is able to take time beyond regulation.
The provincial labor authority should then be notified of the employees’ termination a minimum of thirty days before the terminations occur. Thus, the timeline for such restructuring is often terribly long.
Each worker leaving behind should receive one month’s wage p.a. of service (which doesn't embrace the time that the workers participated in state insurance)—and a minimum of 2 months’ salary—as payment thanks to termination as a result of redundancy.
Due to the impact of the Covid-19 outbreak, there are many changes in HR activities in the Vietnamese market, this is a big challenges of doing business in Vietnam, putting challenging the acumen and flexibility of the business in human resource management. Please contact us if you’re in need of comprehensive support by leading experts in the field!
When the foreign company has gone through all the legal procedures to complete their business set up in Vietnam, but it still has to deal with the next hurdle of hiring staff and the payroll obligations. These both can be confusing processes, yet the knowledge of HR regulations in Vietnam is also important. Therefore, this article offers information about HR compliance in the country, especially for foreign investors. Let’s read until its end!
In these recent years, Vietnam has become an attractive place for all businesses. The country also has a fast-growing consumer class, a young and dynamic workforce to build its skillset. Another fact to add, Vietnam’s labor force is growing by more than one million people per year.
There are a number of important HR compliance trends in Vietnam, and the hottest hiring areas are sales, IT & Software, and marketing. Speaking about salary, the labor costs in Vietnam are still low, but wages are steadily increasing. Over these past five years, the increasing salary has come without a corresponding increase in productivity. The associated costs of employing staff in Vietnam are the country’s comparatively high social contribution and income tax rates.
Finding highly skilled employees is rather difficult due to the developing nature of the workforce in Vietnam. Technology and banking are the industries that face severe skills and talent shortages.
Nonetheless, many international companies which are in partnership with the Vietnamese government, are sponsoring training programs to ensure that there will be a growing number of highly skilled employees. For instance, ANZ is looking to attract Vietnamese expatriates back to the country since they have a higher skills set.
Today, the country’s workforce related to HR compliance has continued to grow and it results in a rise in competition within the job market. Additionally, it has increased the rates of turnover at many companies as employees are often shopping their skills around to other potential employers. Fact, it is unusual to see applicants who have worked at a lot of companies over a short span of time.
HR Compliance Workforce in Vietnam
In recent years, the number of foreign workers coming to Vietnam has steadily increased as it surges over 77.000. The huge majority of these workers are employees of foreign contractors, working for, or establishing, and FDI projects. There are things related to hiring and payroll workforce or all about HR compliance you need to understand.
1. Employment Contracts
A Vietnamese entity is necessary to recruit foreigners to work as managers, executive directors, experts, and skilled labor where local candidates may not meet the business or production requirements. However, it is important to note that in some other Asian countries, such as Vietnamese representative offices are able to hire staff directly.
The company requires to get approval for the employment of foreign workers in each position before the official recruitment. The approval is around 30 to 40 days from the date of application by the President of The People’s Committee of the province. It also includes the work permit, which you need to submit no later than 15 working days before the foreign workers begin to work in Vietnam.
2. Minimum Statutory Employment Rights
Here are the following list of employment rights:
Hours of work
In general, employees shall not work more than 8 hours a day and 48 hours a week. Employees who work in a difficult, harsh or hazard condition are not permitted to work more than 6 hours a day. Employees have the right to an hour break each work day. Lastly, employees may work night shifts between the hours of 10pm and 6am.
Probation period
Employees with definite and indefinite contracts may be essential on probation at the beginning of their job. The length of probation period depends on the position an employee is employed for and the required qualification. Probation period for employees in the intermediate level is 30 days. Then, employees that require a college level technical or professional may get up to 60 days. However, employees with seasonal contracts of less than one year cannot be on probation.
Annual leave
All employees who have worked a minimum of one year in the company should have annual paid leave. Employers must give them 12 days leave if they work in a normal working environment, 14 days leave if they work in difficult, harsh or hazard working conditions, and 16 days in case of extreme difficult working conditions. Lastly, employees are entitled to an extra one-day annual leave for each 5 completed years of work.
Parental leave
A female employee is entitled to 4 -6 months of paid maternity leave plus 5 pre-natal check-ups, one day or two days per check-up depending on one specific factor. Employees who have multiple births are entitled to an added one month leave for each child. Maternity benefit is paid to employees who have made payment to the Social Insurance Fund of a minimum of 6 months out of the 12 months preceding the leave.
Sick leave
Employees must be given 30 days’ sick leave a year if their total contribution period to the social insurance is not up to 15 years, 40 days’ sick leave a year if their total period of contribution is between 15 and 30 years, and 60 days sick a year if they have made payment to the system for a period of 30 years or more. These conditions only apply to employees who work under normal working conditions.
Overtime
The maximum overtime an employee can work during any given working time is 4 hours a day, 30 hours per month, 200 or 300 hours per month. For every overtime worked employees are entitled to be reimbursed at a premium pay, such as 150% of base pay if worked at the normal workday, 180% of base pay if work during night shift, 200% of base pay if worked over the weekend, and 300% of base if worked on holiday.
3. The Minimum Wages
Wages vary depending on the location of employment and the type of skills, also experience to complete the work. There are two kinds of minimum wages. The first one is the common minimum wage of VND1.150.000 or US$55 which is used to calculate salaries for employees in state-owned organizations and enterprises. The second one is for employees in all non-state enterprises based on zones as defined by the government.
This HR compliance is needed when you start hiring staff for your new business. Remember, you must go through all the processes and regulations in setting up the business, then you can find the talented young people who will contribute to your company. In conclusion, these are the conditions that you have to discern in order to hire employees. Plus, you need to keep an eye out on their needs, or else your recruitment will not come to a success.
If you have a company in Singapore, you may be wondering how to be a tax resident, what benefits you are going to get, or you are asking yourself what is a certificate of residence itself. Moreover, you may occasionally need to produce a certificate of residence as well in order to pay tax and get benefits just like others. Thus, this article focuses on introducing the certificate of residence in Singapore and how to get one. Let’s keep reading!
A Certificate of Residence (COR) is a letter from the Singapore tax authority (IRS) stating that a company is resident in Singapore. The COR is also a letter certifying that you are a resident in Singapore for the purpose to claim the benefits under the Avoidance of Double Tax Agreements (DTAs). In other words, you need to have a COR to enjoy the benefits that the country will give you if you have the certificate.
However, the certificate of residence is not only valid for foreigners but also for Singaporean. It is more like Singapore tax resident and non-resident companies are generally taxed in the same manner, but the Singapore tax resident companies are able to enjoy these benefits:
Tax benefits provided under Double Tax Agreements (DTA) between Singapore and other jurisdictions. These can take the form of lower rates of withholding tax or the blockage of source country taxation in certain circumstances.
Tax exemption on foreign-sourced dividends, foreign branch profits and foreign-sourced service income under Section 13(8) of ITA.
Foreign tax credits.
Tax exemption scheme for new start-up companies.
These benefits are available to be claimed by a company in its domestic tax return filled with IRAS. On the contrary, the availability of tax benefits under a DTA often requires evidence of tax residency and provides the tax authority of the treaty jurisdiction in which the company is seeking a tax benefit from.
Here is the example to illustrate the situation. A Singapore company receives a dividend from Japan, and the domestic rate of withholding tax in Japan is slightly over 20% on dividends which had been paid to non-residents.
Moreover, under the Singapore / Japan DTA, this rate can reduce to as low as 5%, the Japanese company that pays the dividend will need some level of assurance for the lower rate application.
This assurance is provided in the form of a COR by the Singapore recipient, and providing a COR is also an administrative requirement that will be satisfied before a payer can conceal at a DTA rate.
What Factors That Are Impacting The Application of COR?
As a company owner, you should consider these factors before deciding to attain a COR for your company. The factors that you should take a note are:
Being incorporated in Singapore does not automatically make a company to be a Singapore tax resident. The residency status may change from year to year, depending on the certain factors.
Requires the proper documentations, such as minutes of the Board of Directors (BOD) meetings held in the year, noting the location, name of attendees and detailed description of the practical matters that had been discussed.
The conduction of BOD meetings via conference call or video conferencing, the tax residency of a company based on the location of the majority directors.
The location where an Annual General Meeting takes place is not relevant.
The concept of control and management is exclusive. However, it is not possible for a company to claim tax residency in Singapore and another country where the same test of control and management applied. In an administrative way, the IRAS will need a Singapore company to confirm the COR application process.
The IRAS defines additional requirements which apply to foreign-owned investment holding companies. Furthermore, the company must demonstrate a business reason for establishing in Singapore, also it needs to have an additional indication of economic substance.
It includes the existence of related companies carrying on business in the country, such as receiving administrative services from a group company in Singapore, or have at least one executive director or key employee based in Singapore as well.
A foreign incorporated company to be granted a COR, the general position that a company has to be a Singapore-incorporated as well as resident under the test of control and management to get a COR.
The Steps To Apply a Certificate of Residence Singapore
Before applying for a COR, you might want to know if there are restrictions on who can obtain this certificate. However, you can apply only if your company is a tax resident in Singapore. The application is for a back Years of Assessment (YA), the current YA or the next YA.
Moreover, the income of your company is remitted or going to be remitted into Singapore. Additionally, a foreign-owned company refers to a company where 50% or more of its share are foreign companies or stakeholders.
If your company is eligible to obtain a COR, you can do these steps to apply a COR through the website. For Singapore Citizen or Permanent Resident Individuals, you can submit the documents here, if you are a self-employed or Sole-Proprietors or Partners, you can submit your documents here and lastly, if you are a foreigner submit your documents here.
Nature of income derived, such as Consultancy Fees, Dividend, Freight, Interest, Management Fees, Others, Professional Fees, Royalty, Service Fees and Technical Fees. You can select one of the above.
Calendar Year in which the certificate requires.
Preparation of the application form
Submission of the application to IRAS. The link is mentioned above and please select one that is eligible to you.
Finally, you can receive the COR in 7 to 14 days after the submission of application.
Keep yourself reminded that you do not need to apply for another COR for similar transactions in the same country.
These are the information that you need to know about Certificate of Residence Singapore. Getting a COR earlier will give you the benefits that work for your company, such as tax benefits. In conclusion, if you still struggle whether to apply or not, or you simply do not understand how it works, you can contact us below. Viettonkin will be ready to assist you anytime!
When we talk about Vietnam, we have to acknowledge it as one of the fastest-growing economies in Asia today. Vietnam also has become the primary source for programmer in Southeast Asia. However, keep in mind, the Vietnamese programmer is not as experienced in selling their skills, and finding the top talents in Vietnam can take a different approach. Thus, this article will provide you with tips for hiring pogrammer in Vietnam. Let’s keep reading!
According to Channel News Asia (CNA), Vietnam has a robust annual growth of 6% since 2010. In 2019, Vietnam has received over US$38.2 billion for total Foreign Direct Investments (FDI), which is a 7.2% year-on-year increase compared to 2018. Moreover, Singapore was Vietnam’s third-largest investor in 2019 with total investments of US$4.5 billion.
Singapore’s Direct Investments Abroad (DIA) into the country has more than tripled in the last decade. In addition, the seven Vietnam-Singapore Industrial Parks (VSIPs) have attracted over US$12.9 billion in investment for more than 800 companies in 2018.
Vietnam has a rapidly-growing technology community that attracted a wave of foreign investors, including venture capital funds and co-working space providers. The country’s heavy investment in technology and engineering, combined with improved internet connectivity and a young, low-cost workforce, has hatched a prospering IT outsourcing industry.
According to Vietnam’s Ministry of Science and Technology, the country is now home to roughly 30.000 IT companies, while churn out 80.000 IT graduates a year from its universities. Another interesting fact to add, there is top tech talent behind Vietnam's economic growth, and it increases the demand for programmer.
Programmer Types Available in Vietnam
Before hiring the top talents in the technology industry, you have to recognize the field of software development, because there are many different roles involved. If you want your software development project to work out successfully, your company should include different types of programmer in your team.
Frontend developers are specialists in user interface development. They include web developers with expertise in CSS, HTML5, Javascript, CMS, and WordPress, and frontend developers with Angular or ReactJS knowledge.
2. Backend Developers
Backend developers specialized in the performance and logic behind an application through the integration of Application Programming Interfaces (APIs). Common backend developers are C developers, Java developers, .NET developers, PHP developers, NodeJS developers, Python developers, and Ruby developers.
3. Mobile Developers
This type of developer specialized in mobile technology such as creating applications for Apple’s iOS, Google’s Android, or Microsoft’s Windows Mobile platforms. Developers with expertise in Ionic or React Native are also part of this category and are more difficult to find.
4. Offshore Full Stack Developers
Another type of software developer is offshore full stack developers. They can manage both backend and frontend software development in terms of Javascript, PHP, NodeJS, C# Net, and so on.
Salary and Benefits Expected by a Programmer in Vietnam
Software developers in Vietnam often expect the proper salaries and benefits for them to consider joining your company. Here is the guide for your reference:
1. Salary
Junior developers with 2 to 3 years of experience: US$500 - US$1.200 monthly
Senior developers with 3 to 7 years of experience: US$1.000 - US$2.000 monthly
UI / UX designers” US$600 to US$2.000 monthly.
2. Tax and Insurance
Employers in Vietnam are required to pay for their taxes, social insurances, health insurance, trade union fees, and unemployment insurance. All these payments are around 15% to 35% of an employee’s base salary.
3. Other Benefits
It is very common to include an employee’s benefit package, but it depends on their necessities and employer’s ability. Here are the common benefit packages for the employees:
A bonus on the Lunar New Year equals at least a one-month salary. This bonus is different from performance bonuses.
Annual company trip, either domestic or overseas.
Annual company dinner or party.
Private health insurance.
Training and career advancement opportunities.
Flexible working hours.
Premium office facilities.
What To Avoid When Hiring Programmer?
After knowing the tips for hiring software developers, you also need to keep in mind what things that you need to avoid these common mistakes when doing one.
1. Interviewing Programmer Candidates without Pre-screening
A recruiter can easily find 20 or 30 profiles matching the requirements, but interviewing all of them would take up a lot of time. Thus, the recruiter needs to pre-screening the candidates.
During pre-screening, the recruiter will have an initial interview and validate basic claims made by the candidates and how interested they are in the job.
2. Hiring Programmer Based on Their Resume Only
Some people may have great resumes and conquer all interview questions, but sometimes you find out that they just packaged themselves well. It can be the opposite, a skilled candidate may be terrible at presenting their skills. However, when hiring a software developer, a test assignment will usually tell you more about the candidate.
3. Making an Offer Without Understanding The Local Salary Standards
A recruiter’s objective should be to pay competitive market rates. Nonetheless, you can only do that by knowing what the local salary standard is for similar positions.
You also need to be cautious when a candidate asks for less than the market standard, it might be they likely do not have the qualifications you asked for or have some other issues you will not want to deal with later.
4. Not Understanding Local Employment Regulations
Being a foreign company does not exempt you from following local laws and regulations. For instance, in Vietnam, companies pay employees a TET (Vietnamese New Year) bonus. This is the 13th salary paid to employees before Lunar New Year. It is not mandatory by law but unless you agree otherwise, your employee will assume they get it.
Furthermore, employees will expect this on top of any other bonuses you give them, so you need to consider this when discussing the job offer. It is also good to know the regular working hours, annual leaves, and paid holidays when preparing an employment contract.
In conclusion, these are all the information related to hiring software developers in Vietnam. If you approach them in the right way, you will get the top tech talents for your upcoming companies. Finding the top talents in Vietnam can be easy as long as you can avoid the common mistakes, and start planning things ahead. If you are still unsure, do not hesitate to contact us. Viettonkin will always be ready to assist you!
With a population of almost 100 million, Vietnam is emerging as a go-to location for hiring Remote Employees that are exceptional talented. And with many Vietnamese professionals moving overseas, hiring offshore will enable companies access to a much larger talent pool while saving up on the hiring process. The COVID-19 pandemic has also forced many businesses to develop the infrastructure to transition into remote work as a longterm solution. This article will provide you advice and tips on the remote working recruitment process and remote management in Vietnam.
Why should employers consider recruiting remote working employees in Vietnam
To start with, a flexible schedule allows employees to save time travelling while maintaining work-life balance. Employees do not have to show up at 8:00AM after suffering from heavy traffic in Vietnam, only to get stuck in a traffic jam for another 30-60 minutes when coming back home. This in turn increases productivity and work performance.
Remote employment also allows employers access to a wider talent pool, especially given that high-skilled labour in Vietnam is usually concentrated in major cities such as Hanoi and Ho Chi Minh City. With office-based work, it is compulsory for the employees to be physically at work which restricts their availability in terms of geographical areas. The ability to attract and retain top talent is the key that makes businesses more competitive.
Having fewer staff in the office also means less money spent on a traditional office space and other office-related costs. Not only do organizations save money, but employees can also cut costs by reducing spendings on transportation and childcare.
Another reason why employers should reconsider remote recruitment is that many Vietnamese professionals are returning home and this has emerged as a viable alternative for firms looking to overcome the talent shortage by employing them offshore. By working remotely employees can live and work in their own country and foreign companies not only gain talented employees and cut back on the cost of employment.
Before launching your recruitment campaign, it is important to grasp the basic laws and regulations that will help you maximize your recruitment process. In Vietnam, employment contracts are classified into seasonal, definite or indefinite labor contracts. The seasonal contracts are the shortest ones, only lasting for about a year or less. Definite term labor contracts are between 1 to 3 years, while the indefinite term contracts tend to have a more erratic employment period but are advisable and advantageous for some industries such as event-related agencies.
Before you are able to hire remote workers, your contracts must clearly state the following: (1) employee insurance for your staff, (2) specific job description and (3) a certain amount of salary. The minimum wage of Vietnamese workers ranges between VND 1,600,000 to VND 4,420,000 per month. Converted, that is roughly between $68 to $190. However, remote workers are mostly skilled individuals; hence, employers should expect this number to bloat up as they go up the corporate echelon as well.
Income tax and social security are also strictly implemented in Vietnam. Personal income tax ranges from as low as 5% to as much as 35%. As for their social security, Vietnamese employees are required to contribute an average of 8% of their income. Their employer counterparts are then mandated to cover the remaining 17.5%. Employers shall also be charged 3% for health insurance and 1% for unemployment insurance. This taxation scheme is designed primarily for Vietnamese workers but at the same time employer’s rights are also protected.
And finally as with any country where you are planning to hire remotely, bonuses, benefits, and leaves are imposed on employers so that they can fairly provide for their Vietnamese staff.
Tips on recruiting and managing remote employees
Before listing a position for remote employees, there are several simple preparation steps that can improve your search.
Prospecting for potential employees ahead of time to improve your chances of finding good fits, especially for niche industries that require specialized talents.
Use your existing network for potential referrals or start building your network in your target country. This includes connecting with universities and institutions or employee referral programs.
Keep an eye on online places that potential employees will engage such as Github, Stack Overflow or Reddit.
Build an employment brand before you commence your search. Companies in a new environment can suffer from a lack of credibility, especially in Asian cultures.
These strategies will definitely serve you better in the long run than last-minute tweaking your ad or fine-tuning your hiring channel. Then, once you are reading to hire remote employees, there are several important practices to keep in mind that will improve your selection process.
Look at the local competition to make sure your offer is competitive. What employee benefits are they offering? What titles do they use to describe their roles?
Have multiple people involved in the hiring process. As each individual will have specific biases, it is easier to identify potential problems amongst your candidates by working together.
Have structured interview and test technical ability to improve hiring effectiveness. CVs can provide a good starting point but do not suffice. Experiential interviews are also a good recommendation.
Involve your current team members. Considering getting shortlisted applicants to meet your current team members to see whether your new hire will fit into the team. Even if this is an online environment, not all candidates will fit in. It is important to let the candidates decide on their own whether they can effectively collaborate with other members to avoid future conflicts or reduced productivity.
Once you have had your perfect hires, it is key that you be able to keep them. Below are various approaches that will help you manage your remote team:
Communicate openly about your expectations. Since the potential employee will not be present at the workplace, it is hard to know whether they fit in the culture and the company’s values. Thus, it is important to communicate to them clearly about your company’s values from the start to avoid any confusion.
Engage with your new team members: remote staff will need to feel part of the team. Spending time together seriously reduces turnover and can increase the speed at which the new staff fits into your team.
Get new staff to start meaningful work quickly. If your team has barriers (like poor management or work allocation), you are running an increased risk of losing that staff member.
Remote working guidelines
Anticipate short-term problems. To start with, with employees working remotely, connectivity and other related issues are expected to arise. Ensuring your IT staff are always at hand and maintaining access to IT resources extra hours can mitigate the problems. If you have corporate communication tools that can be used effectively in Vietnam, ensure your Vietnam-based staff have sufficient guidance to use them and know that they need to be logged-on. Consider requiring employees to download the apps (Teams / Sharepoint Online etc.) onto their mobile phones as well. Setting up a clear and regular communication schedule for senior resources during the coming weeks is also important when people doing the remote working.
Communication is key. Communicate clearly with your remote working employees. If possible, use visual communication techniques such as video conferencing; share your screen during meetings; use screenshots or diagrams in your emails to better explain what you want them to do; use chat platforms when talking about work as a group.
Encourage collaboration. Have a document management system in place for sharing documents and files. Tools like Google Drive and Dropbox are great for this. Don’t rely on emails for sharing files because they might get lost and people can have a hard time tracking the latest version and the changes made. Give them the tools they need to work efficiently and make sure everyone is on board with these. There are also many other free tools available for virtual teams.
Set clear expectations. Every week make status meetings with your remote working employees. Walkthrough the tasks expected from him/her. Set his/her goals. Establish a timeline. Give feedback about his/her progress. Have a formal process for reviewing his/her performance. If your remote working employee doesn’t know how s/he is performing, then s/he cannot motivate him/herself for doing better.
Implement a tracking system. Instead of micromanaging your remote working employee, you should give them the flexibility to do their work efficiently, but do not leave them entirely to their own devices either. You can ask them to put in their work hours if they are getting paid based on hours and you can track if they really work these many hours using a time tracking software.
Finally, make them feel part of the team. Send them newsletters about what is going on within the company. Show that you remember and care about them. Establish rapport with them and try to get to know them on a personal level. Send them gifts during the holidays. If possible, invite them to the main office once a year and get together as a big team.
Tell people that you are moving to Vietnam and you will get varying responses. Some will be wildly confused trying to figure out what evil has caused you to run all the way there; others will commend you for your adventure-some spirit and ask to tag along on your next service trip. Most of the time, rarely do you find an American soul who proclaim to know with certainty the place called Vietnam besides “pho” or the occasional Vietnamese food found in Chinatown. Vietnam today is a rapidly growing economy, an attractive place for FDI in Asia, and a tourist hotspot. Whether you have an eye on the place as your next destination or are currently in Vietnam, this article will provide a big picture of what life in Vietnam has to offer.
Life quality in Vietnam
Lifestyle
If you are used to clocking in long hours every day, holidays few and far between, living the life on the job, moving to Vietnam might prove a bit of a shock to your system. Vietnamese life is laid-back, not because Vietnamese people do not work hard - in fact, an average employee in Vietnam works 8 hours per day -, but because they value the time devoted to social life and relationships.
Talking about social life, I mean the time spent completely detached from the work life, chatting away the day over a cup of coffee in a cafe or bistro. Yes, coffee is the way of life over there. Forget about the big American Starbucks. Behold, you are to enter the kingdom of artisan coffee with its dizzying array of specialties, from roasted coffee to condensed milk coffee, egg coffee, and yogurt coffee.
Both Hanoi and Ho Chi Minh City are known for their street food culture. You can grab a meal from a food truck (or rather, food-carts/bikes/motorbikes here in Vietnam) or a street food stall for as cheap as $3.79. Of course, if you have grown up among the big-consumer culture, portions in Vietnam are pretty small. But the small portion and reasonable price allow for eclectic choices and great affordability. And the food scene of Vietnam is extremely vibrant and diverse – no less than any Chinatowns in the state – and city life is bustled with activities day and night.
Bistros/Cafes are popular among office workers and students who look for the casual dining’s standard of quickness and courtesy. Since social life and community are of high value in Vietnam, drive-through McDonald’s or Burger King are a crime. Instead, these small restaurants serve moderately priced simple meals in a modest setting with alcohol, prices around $4-5 per meal. Fining dining or formal dining restaurants are also popular and offer an upscale setting and service while featuring unique menu options. And of course - no need for TIP in this country.
2. Sports and Leisure
A wide range of sports and recreational activities are available to locals and expatriates in Vietnam. If you are used to the massive NFL, baseball, and basketball, you might find Vietnamese sports well, a little less than sports. Popular sports include soccer, badminton, volleyball, and martial arts. Playgrounds and recreational grounds are plentiful in major cities.
You will also find gyms and sports centers in most neighborhoods that cater for a range of indoor activities and classes such as cardio, weightlifting, yoga, rumba, and squash. A typical fitness club subscription in Hanoi/HCMC costs around $21.74 monthly. If you are an outdoor person, tennis, volleyball, and badminton are country-wide favorites. Vietnamese people also specialize in martial arts: you can join any classes for as low as $5 per session.
3. Utilities
The average cost of basic utilities (electricity, heating, cooling, water, garbage) for a typical household of 4 people in Hanoi and HCMC is $70 monthly. This is significantly lower compared to the US, where the the average cost of basic utilities is 160.3$ per month. Likewise, monthly internet subscription for unlimited data is $9.74 in Hanoi and $12 in HCMC, the equivalent of which in the US costs 65.2$ per month.
Tourist destinations
Vietnam is an attractive tourist destination with over 18 UNESCO recognized World Heritage sites, including 2 natural heritages (Ha Long Bay, Phong Nha – Ke Bang National Park), 5 cultural heritages (Thang Long Imperial Citadel, Hanoi Citadel, Hue Imperial Citadel, Hoi An Ancient Town, My Son Temple), a mixed heritage (Trang An Complex), and other intangible cultural heritage.
If you love the sunshine of Cali and the natural vistas of the Bay area, Vietnam is THE place to be, boasting some 2,000 miles of sun-filled coastline plus renowned island destinations. Vietnam has no shortage of stunning beaches, from the shores of the UNESCO-designated Ha Long Bay to the rolling dunes of Mui Ne and the island getaways of Con Dao and Phu Quoc. Da Nang coastal city is popular among expatriates for its high quality of life and refreshing atmosphere. Besides its sunlit coast, 40% of Vietnam is forested and home to some 1534 known species according to the World Conservation Monitoring Centre, at least 10500 species of vascular plants, of which 3.4% is protected under IUCN categories I-V.
Some tourist hotspots in Vietnam
Ha Long Bay: The seascape of Ha Long Bay is one of the world's most spellbinding sea views and is a UNESCO World Heritage Site. Thousands of limestone islands sit within this bay in the Gulf of Tonkin, eroded into jagged pinnacles by wind and water action over millennia.
Ho Chi Minh City: For big city fans, no visit to Vietnam is complete without a visit to Ho Chi Minh City, the commercial hub of the country. The streets at night are buzzed with activities; the dining scene is incredibly cosmopolitan, and the shopping is the best in the country.
Ha Giang: Ha Giang is a rugged, remote, and spectacular rural area. This area features some of the best views in the country, overlooking terraced rice paddies and deep valleys that have been carved into the limestone mountains over thousands of years.
Ninh Binh: This is one of the most popular options for a day trip in Vietnam. The limestone karsts, serpentine rivers, and lush scenery make for perfect holiday photos. Most trips to this area are combined with a visit to the Trang An caves and grottoes.
Hue: This historical city has witnessed the ebbs and flows of Vietnam imperial kingdom. The centerpiece is the Citadel and the enclosed Imperial City overlooking the serene Huong river.
Hoi An: This Southeast Asian trading port that fuses indigenous and foreign cultures gets even more magical at night being lit up by lanterns. This town is also home to hundreds of professional tailors who specialize in Vietnamese traditional craft.
Phu Quoc: This island off the coast near the border with Cambodia has some of the most pristine beaches in the country. Parts of the island have big resorts, but others are secluded, with nothing but palm trees and the waves.
Nha Trang: Set against a stunning backdrop of white sandy beaches and verdant mountains, this coastal city is home to the Champa Kingdom and Buddhist temples. The nightlife is a lot of fun, and there are so many extreme activities for the adrenaline junkies among you such as jet skiing, surfing or even a fly board.
Accommodation
Hanoi
With its expanding campuses, extensive partnerships with overseas institutions, and vibrant intellectual community, Hanoi has emerged in recent years as an ideal destination for international students looking to study in Vietnam. Overseas students enjoy a wide range of accommodation options both inside and outside the city’s central districts, with the most popular ones including homestay, studio apartment, rental houses, and shared apartment.
Student accommodation in Hanoi is estimated 80% lower than in the US. The average accommodation cost in the central districts of Hai Ba Trung, Hoan Kiem, Dong Da, Tay Ho, and Long Bien ranges from $357.76 for a 1-bedroom to $751.46 for a 3-bedroom apartment, while in major cities of the States, average rent for an apartment ranges from $1370 to $2203.
For professional workers and entrepreneurs looking for long-term stay in Hanoi, the accommodation outlook in the city appears prospective. Decentralization trend and increased housing developments in the western suburbs may lead to softer rents in the city. According to the 2020 market brief of Savills - an independent real estate consulting firm -, future supply of housing in Hanoi is expected to push westward into districts such as Cau Giay, Nam Tu Liem, Bac Tu Liem, Thanh Xuan, and Ha Dong. The research also projects that by the end of 2021, 20 projects will enter Hanoi, 39% of which are in the Western suburb, with some notable projects being Vincom Mega Mall Smart City, Vincom Mega Mall Ocean Park, and Hinode City.
On average, the price for purchase of an apartment in Hanoi is $1460/m2, significantly lower than that in the States which approximates $311,254/m2. While the virus outbreak tempered both supply and demand of houses in the US, its impact carries heavier weight to the former than the latter, as sellers are pulling away from the market much faster than the buyers. Therefore, the existing rate of home sales has plunged by nearly 18% in April to a 10-year-low.
For investors and company-owners looking to establish locations in Vietnam, the average office rent is $20/m2 per month. Reported trend reveals decreasing rent and increasing occupancy, with grade A offices having the strongest occupancy growth following several successful projects launched in 2019. On the other hand, the average monthly costs of class A office occupancy in the US is $39/m2, while that of CBD markets are $50.95. Co-working spaces are also a popular alternative in Vietnam, with prices ranging from $64.72 to $172.58 for a fixed desk per month.
Serviced apartments in Hanoi are a potential field with a significant increase in vacancy in recent years. Several locations to keep in mind for business travelers or temporary workers are Thanh Xuan, Cau Giay, Nam Tu Liem, Bac Tu Liem, and Hoang Mai Districts (peripheral areas surrounding central districts). The average rent is $26/m2 per month or approximately $2600 for a three-bedroom apartment. Meanwhile, the monthly rate for a serviced apartment in cities in the US range from $3200 to $3800.Ho Chi Minh City
2. Ho Chi Minh City (HCMC)
As Ho Chi Minh City gains a reputation as an emerging hub for engineering and telecommunications, more and more students are drawn to the place as a destination for their studying. One of the perks of choosing HCMC as your college destination is its incredible affordability. Average rent is $393 for a 1-bedroom apartment outside the city center or up to $780 per month for a three-bedroom.
Apartments inside the city are on average $548 per month for a one-bedroom and $1,194 for a three-bedroom. Again, this is incredibly cost-saving compared to an apartment in most US states, which is approximately around $1100 to $1,734 and can be as high as $2,203 for a three-bedroom apartment in the city center.
Workers and entrepreneurs looking for long-term stay in Vietnam might consider purchasing an apartment, either to live or to invest. The average price for an apartment in HCMC is $1,460/m2. While the prospects for apartments in HCMC are dimmed by the pandemic, which severely decreased supply of buildings 52% to a five-year low, it still stands as an attractive destination.
Office rent in HCMC is slightly higher than that in Hanoi, approximating $32/m2 per month. However, it is projected that by the end of 2022, over 376,00m2 from 24 projects is scheduled for entry. Increasing vacancies will leverage negotiations for tenants. Co-working space is always a back-up alternative with prices ranging from $64.72 to $172.58 for a fixed desk per month.
Being a high-on-the-list destination for FDI, demand for HCMC’s serviced apartments is in the high. However, with the current situation of the pandemic, vacant units of serviced apartment have increased from 1900 in 2019 to 2400 in the first half of 2020. The average rent is $23/m2 per month, significantly lower than that in the US where high occupancy rates result in higher room rates.
Transportation
Just as private automobiles and Fordism shape the American way of life, motorbikes characterize the Vietnamese metropolitan culture. Private motorbike is the most popular mode of transportation in Hanoi, as over 58.5% of the city's population opts for private motorbike. Public transportation includes regular buses and BRT, a monthly pass for which is approximately $20.
Also, you can always opt for a taxi or Grabcar - the equivalent of an Uber in the US - with an average price per tariff of $0.52. Private cars are the second most popular mode of transportation in Vietnam given its rapidly developing network of highways. However, for short-distance commuting, motorbikes prove much more convenient.
Insurance
Even though Vietnam lacks a nation-wide healthcare plan that covers all residents with basic medical care, its current health insurance system is extensive, and the medical cost is only a fraction of that in the US. Health insurance is deducted from monthly salary, and private insurance companies can provide premium plans from $250 to $1000 for an adult above 30 years of age.
The use of private hospitals is a popular choice among expatriates; these provide excellent standard of service and are staffed by doctors from the USA, Korea, Japan, and France, as well as Vietnamese doctors who have trained overseas. They generally accept international health insurance. Private health insurance companies in Vietnam also offer premium plans varying from $250 to $100, only 25% of the cost individuals would pay in the US.
Foreigners who work in Vietnam under an indefinite or definite term of a labor contract are qualified for compulsory social insurance in Vietnam, which covers maternity, illness, retirement, labor accidents, occupational diseases, and survivorship. The rates of contribution to social insurance are the same for both foreigners and those Vietnamese: 8% for employees and 17.5% for employers.
Meanwhile in the US, due to several factors such as the decreasing number of workers per retiree, the Social Security Trust Fund is project to be depleted by 2034 without meaningful entitlement reform; hence, many American workers and young retirees are concerned about the future prospect of Social Security and the potential impacts to their retirement plan.
Premium life insurance in Viet Nam averages $30, much lower than the global average of $595 and Southeast Asia’s average of $74. The average annual premium insurance in the US is $538.
Of course, a few bullet points can hardly do justice to a country, but it is hoped that after reading this article you feel more confident knowing the place, which might later inform your future directions and goals. And should further insight and advice be needed, your Viettonkin experts are always ready to help.
The Vietnamese lifestyle maybe nothing new to Australians who grew up anywhere near the metropolitan areas of Sydney, Melbourne, or Canberra; or have been to Footscray and Cabramatta which very much resemble Hanoi on the other side of the ocean. But how is it actually like living in this Southeast Asian Country? What are the perks of life in Vietnam compared to that in Australia? Whether you have an eye on the place as your next destination or are currently in the country, this article provides a broad picture of what life in Vietnam has to offer.
Life quality in Vietnam
Lifestyle
Vietnam is one of those rare places in Asia where you can both experience the jam-packed activities of metropolitan life while at the same time being reminiscent of the laid-back Aussie lifestyle. Most cities in Vietnam are bustled with traffic and activities, but Vietnamese people also like spending their day chatting away over a cup of artisan coffee. Coffee is a serious culture in Vietnam. If Australia has been credited with inventing lots of modern coffee types such as flat white and long macchiato, you would be overwhelmed by the Vietnamese coffee culture and its abundant coffee shops.
Both Hanoi and Ho Chi Minh City are known for their street food culture. You can grab a meal from a food truck (or rather, food-carts/bikes/motorbikes here in Vietnam) or a street food stall for as cheap as $3.79. And the food scene rivals that of Melbourne and Sydney in its variety and fusions from Korea, Japan, Singapore, Thailand, China and Taiwan.
Bistros/Cafes are popular among office workers and students who look for the casual dining’s standard of quickness and courtesy. These are small restaurants serving moderately priced simple meals in a modest setting with alcohol, prices around $4-5 per meal. Fining dining or formal dining restaurants are also popular and offer an upscale setting and service while featuring unique menu options.
2. Sports and Leisure
A wide range of sports and recreational activities are available to locals and expatriates in Vietnam. If you are used to the fast-paced football and cricket bats over in Oz, you might find Vietnamese sports well, a little less than sports. Popular sports include soccer, badminton, volleyball, and martial arts. Playgrounds and recreational grounds are plentiful in major cities. You will also find gyms and sports centers in most neighborhoods that cater for a range of indoor activities and classes such as cardio, weightlifting, yoga, zumba, and squash. A typical fitness club subscription in Hanoi/HCMC costs around $21.74 If you are an outdoor person, tennis, volleyball, and badminton are country-wide favorites. And Vietnamese specialize in martial arts: you can join any classes for as low as $5 per session.
3. Utilities
The average cost of basic utilities (electricity, heating, cooling, water, garbage) for a typical household of 4 people in Hanoi and HCMC is $70 monthly. This is significantly lower compared to Australia, where the same cost would be for one person. Likewise, monthly internet subscription of unlimited data is $9.74 in Hanoi and $12 in HCMC, the equivalent of which in Australia costs an average of $52.75.
Tourist destinations
Vietnam is an attractive tourist destination with over 18 UNESCO recognized World Heritage sites, including 2 natural heritages (Ha Long Bay, Phong Nha – Ke Bang National Park), 5 cultural heritages (Thang Long Imperial Citadel, Hanoi Citadel, Hue Imperial Citadel, Hoi An Ancient Town, My Son Temple), a mixed heritage (Trang An Complex), and other intangible cultural heritage.
If you love the sunshine on the coast of Sydney and East Melbourne, Vietnam does not pale in comparison with its 2,000 miles of coastline plus renowned island destinations. Vietnam has no shortage of stunning beaches, from the shores of the UNESCO-designated Ha Long Bay to the rolling dunes of Mui Ne and the island getaways of Con Dao and Phu Quoc. Da Nang coastal city is popular among expatriates for its high quality of life and refreshing atmosphere. Besides its sunlit coast, 40% of Vietnam is forested and home to some 1534 known species according to the World Conservation Monitoring Centre, at least 10500 species of vascular plants, of which 3.4% is protected under IUCN categories I-V.
Some tourist hotspots
Ha Long Bay: The seascape of Ha Long Bay is one of the world's most spellbinding sea views and is a UNESCO World Heritage Site. Thousands of limestone islands sit within this bay in the Gulf of Tonkin, eroded into jagged pinnacles by wind and water action over millennia.
Ho Chi Minh City: For big city fans, no visit to Vietnam is complete without a visit to Ho Chi Minh City, the commercial hub of the country. The streets at night are buzzed with activities; the dining scene is incredibly cosmopolitan, and the shopping is the best in the country.
Ha Giang: Ha Giang is a rugged, remote, and spectacular rural area. This area features some of the best views in the country, overlooking terraced rice paddies and deep valleys that have been carved into the limestone mountains over thousands of years.
Ninh Binh: This is one of the most popular options for a day trip in Vietnam. The limestone karsts, serpentine rivers, and lush scenery make for perfect holiday photos. Most trips to this area are combined with a visit to the Trang An caves and grottoes.
Hue: This historical city has witnessed the ebbs and flows of Vietnam imperial kingdom. The centerpiece is the Citadel and the enclosed Imperial City overlooking the serene Huong river.
Hoi An: This Southeast Asian trading port that fuses indigenous and foreign cultures gets even more magical at night being lit up by lanterns. This town is also home to hundreds of professional tailors who specialize in Vietnamese traditional craft.
Phu Quoc: This island off the coast near the border with Cambodia has some of the most pristine beaches in the country. Parts of the island have big resorts, but others are secluded, with nothing but palm trees and the waves.
Nha Trang: Set against a stunning backdrop of white sandy beaches and verdant mountains, this coastal city is home to the Champa Kingdom and Buddhist temples. The nightlife is a lot of fun, and there are so many extreme activities for the adrenaline junkies among you such as jet skiing, surfing or even a fly board.
Accommodation
Hanoi
With its expanding campuses, extensive partnerships with overseas institutions, and a vibrant intellectual community, Hanoi has emerged in recent years as an ideal destination for international students looking to study in Vietnam. Overseas students enjoy a wide range of accommodation options both inside and outside the city’s central districts, with the most popular ones including homestay, studio apartment, rental houses, and shared apartment. Student accommodation in Hanoi is estimated 75% lower than in Australia. Average accommodation cost in the central districts of Hai Ba Trung, Hoan Kiem, Dong Da, Tay Ho, and Long Bien ranges from $357.76 for a 1-bedroom to $751.46 for a 3-bedroom apartment.
For professional workers and entrepreneurs looking for long-term stay in Hanoi, the accommodation outlook in the city appears prospective. Decentralization trend and increased housing developments in the western suburbs may lead to softer rents in the city. According to the 2020 market brief of Savills - an independent real estate consulting firm -, future supply of housing in Hanoi is expected to push westward into districts such as Cau Giay, Nam Tu Liem, Bac Tu Liem, Thanh Xuan, and Ha Dong. The research also projects that by the end of 2021, 20 projects will enter Hanoi, 39% of which are in the Western suburb with some notable projects being Vincom Mega Mall Smart City, Vincom Mega Mall Ocean Park, and Hinode City,
On average, the price for purchase of an apartment in Hanoi is $1460/m2, significantly lower than that in Australia which approximates $5860/m2. And with Australia’s estate prices continuing to grow, Vietnam’s cheaper prices are an attractive offer. Residential property might also be a good investment in Vietnam as its urbanization level still lags behind other SEA countries and Asian peers.
Serviced apartments in Hanoi are a potential field with a significant increase in vacancy in recent years. Several locations to keep in mind for business travelers or temporary workers are Thanh Xuan, Cau Giay, Nam Tu Liem, Bac Tu Liem, and Hoang Mai Districts (peripheral areas surrounding central districts). The average rent is $26/m2 per month or approximately $2600 for a three-bedroom apartment. Meanwhile, serviced apartments in Oz are highly concentrated in major business and tourism hubs such as NSW, VIC, and QLD, and average rent ranges from $2,754 to as high as $3,321 in Sydney and Melbourne.
2. Ho Chi Minh City
As Ho Chi Minh City gains reputation as an emerging hub for engineering and telecommunications, more and more students are drawn to the place as a destination for their studying. One of the perks of choosing HCMC as your college destination is, of course, its incredible affordability. Average rent is $393 for a 1-bedroom apartment outside the city center or up to $780 per month for a three-bedroom. Apartments inside the city are on average $548 per month for a one-bedroom and $1,194 for a three-bedroom. Again, this is incredibly cost-saving compared to an apartment in Aus’ major cities, which approximates from $850 to $1,450 and can be as high as $2,054 for a three-bedroom apartment in the city center.
For workers and entrepreneurs who might consider purchasing an apartment either for long-term stay or to invest, the average price for an apartment in HCMC is $1,460/m2. While the prospects for apartments in HCMC are dimmed by the pandemic - supply of buildings decreased 52% to a five-year low -, it still stands as an attractive option compared to apartments in Australia that approximate $5,860/m2.
Office rent in HCMC is slightly higher than that in Hanoi, approximating $32/m2 per month. However, it is projected that by the end of 2022, over 376,00m2 from 24 projects is scheduled for entry. Increasing vacancies will leverage negotiations for tenants. Co-working space is always a back-up alternative with prices ranging from $64.72 to $172.58 for a fixed desk per month.
Being a high-on-the-list destination for FDI, demand for HCMC’s serviced apartments is in the high. However, with the current situation of the pandemic, vacant units of serviced apartment have increased from 1900 in 2019 to 2400 in the first half of 2020. The average rent is $23/m2 per month, significantly lower than that in Australia.
Transportation
Yes, admittedly, Vietnam lacks the availability and flexibility offered by a wide range of public transportation options in Oz, and traffic etiquette is quite chaotic. However, once you get used to the flexibility of commuting via motorbikes, it is a cost-effective and convenient way of commuting to work. Private motorbike is the most popular mode of transportation in Hanoi, as over 58.5% of the city's population opts for private motorbike.
Public transportation includes regular buses and BRT, a monthly pass for which is approximately $20 compared to the regular price of Australian monthly pass which is $108. Also, you can always opt for a taxi with an average price per tariff of $0.52. Private cars are another popular alternative in Vietnam given its rapidly developing network of highways.
Insurance
Even though Vietnam lacks a nation-wide healthcare plan that covers all residents with basic medical care, its current health insurance system is extensive, and the medical cost is only a fraction of that in Australia. Health insurance is deducted from monthly salary, and private insurance companies can provide premium plans from $250 to $1000 for an adult above 30 years of age. The use of private hospitals is a popular choice among expatriates; these provide excellent standard of service and are staffed by doctors from the USA, Korea, Japan, and France, as well as Vietnamese doctors who have trained overseas. They generally accept international health insurance.
Australia foreigners who work in Vietnam under an indefinite or definite term of a labor contract are qualified for compulsory social insurance in Vietnam, which covers maternity, illness, retirement, labor accidents, occupational diseases, and survivorship. The rates of contribution to social insurance are the same for both foreigners and those Vietnamese: 8% for employees and 17.5% for employers.
A premium plan of life insurance in Viet Nam averages $30, much lower than the global average of $595 and Southeast Asia’s average of $74.
Of course, a few bullet points can hardly do justice to a country, but it is hoped that after reading this article you feel more confident knowing the place, which might later inform your future directions and goals. And should further insight and advice be needed, your Viettonkin experts are always ready to help.
When establishing a business in Vietnam, managers, besides digging deep into Law on investment, Law on enterprises, should do research on a salary standard of “hot” fields in Vietnam. Each major has a different salary floor, hence understanding the standard can help entrepreneurs seduce talents, specialists since a handsome salary is considered extrinsic motivation. This article provides you precise information about the minimum wage in Vietnam and suggested the salary guide for some “hot” sectors.
Regulations about salary in Vietnam
According to the Degree 90/ 2019/ ND-CP, the minimum salary for employees working in region I is VND 4.420.000/ month. Employees working in region II receive the minimum salary of VND 3.920.000/ month while the minimum salary of region III is VND 3.430.000/ month. (The areas of region I, II and III will be listed here). As to working hours: the Labor Code provides a maximum 8-hour working day and 48-hour working week. Adhering to the international standards, this enables foreign enterprises to develop and follow a consistent global strategy since they can incorporate the existing work practices into their Vietnamese production chains.
Fresh graduate salary in Vietnam
Based on a report in 2019, fresh graduate Vietnamese students made one-sixth the income of the Singaporean counterparts. Job Street, a job advertising company presented that the average minimum salary of an entry-level in Vietnam was USD 250 per month. Meanwhile, this figure was much lower than Malaysia (USD 493), Thailand (USD 605) and Singapore (USD 1, 481).
The minimum and maximum salary of the entry-level in 5 Southeast Asia countries (Source: Vietnam express)
Salary guide of some “hot” fields in Vietnam
This part provides you salary information about 5 “hot” fields in Vietnam. In the previous article, the salary guideline for IT vacancies has been presented, then you can get what salary floor for these IT-related positions. Then six fields are medicine, tourism - hospitality (hotel, F&B, and recreation), accountant, graphic design, and marketing.
These figures used in this part come from two publications written by Adecco Vietnam and First Alliances.
Notes: These numbers mentioned below come from the two leading HR companies in Vietnam (Adecco Vietnam and First Alliances).
Tourism - Hospitality
The salary of tourism - hospitality is divided into three sub-parts: hotels, F&B chain and recreations.
Salary guide in Vietnamese hotel in terms of departments namely sales and marketing, operation, executive, and F&B kitchen.
Salary guide in Vietnam F&B sub-sector.
Salary guide in the Vietnamese recreation including golf, gambling, spa and fitness.
Accounting
Salary guide of external finance service and management consulting service in Vietnam.
Salary guide of internal accounting and finance in Vietnam.
In Hanoi, an entry-level graphic designer (1-3 years of experience) earns an average salary of 228,777,117 VND/year. On the other end, a senior level graphic designer (8+ years of experience) earns an average salary of 390,989,142 VND/year. The average base salary is 312,989,503 VND/year.
In HCM City, an entry-level graphic designer (1-3 years of experience) earns an average salary of 217,711,655 VND/year. On the other end, a senior level graphic designer (8+ years of experience) earns an average salary of 372,077,829 VND/year. The average base salary is 297,850,867 VND/year.
Marketing
The salary of marketing is different from the position of each industry like marketing for FMCG, marketing for healthcare and so forth.
Marketing for FMCG
Marketing in healthcare
In conclusion, it is inevitable for enterprises to catch up with the salary standards so that managers are able to distribute an appropriate salary to each employee. The minimum and maximum salary are varied from field to field, years of experience and education. This article hopes to provide you essential information about the salary of some fields in Vietnam. Viettonkin is always ready to assist you in researching the market as well as offering professional services in HR.
Vietnam stands as one of Asia’s premier destinations for foreign direct investment (FDI), offering significant growth potential amidst a dynamic economy. To succeed, investors require a deep understanding of the local landscape, from regulatory frameworks to market-specific opportunities.
This comprehensive eBook serves as your strategic guide to navigating Vietnam's investment environment. It provides an in-depth analysis of high-potential sectors, outlines crucial legal and compliance considerations, and details proven strategies for successful market entry and operation.
Download the eBook to equip yourself with the expert insights and actionable knowledge needed to invest in Vietnam with confidence.
Vietnam stands as one of Asia’s premier destinations for foreign direct investment (FDI), offering significant growth potential amidst a dynamic economy. To succeed, investors require a deep understanding of the local landscape, from regulatory frameworks to market-specific opportunities.
This comprehensive eBook serves as your strategic guide to navigating Vietnam's investment environment. It provides an in-depth analysis of high-potential sectors, outlines crucial legal and compliance considerations, and details proven strategies for successful market entry and operation.
Download the eBook to equip yourself with the expert insights and actionable knowledge needed to invest in Vietnam with confidence.
Founded in 2009, Viettonkin Consulting is a multi-disciplinary group of consulting firms headquartered in Hanoi, Vietnam with offices in Ho Chi Minh City, Jakarta, Bangkok, Singapore, and Hong Kong and a strong presence through strategic alliances throughout Southeast Asia. Our firm’s guiding mission is aimed towards facilitating intra-ASEAN investments and connecting investors in Southeast Asia with the rest of the world, thus promoting international business relationships and strengthening inter-nation connections.
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