Hire in Vietnam

Hire In Vietnam‍

Vietnam is one of the most dynamically emerging economies in East Asia. The country once considered poor has now moved into the lower-middle-income category. It is regarded as a manufacturing export powerhouse. Vietnam’s GDP is heavily dependent on its manufacturing sector. It is among the largest exporters in the region; be it clothes, footwear, plastics, electrical machinery, or electronics, everything is being manufactured and exported globally.

The country has one of the lowest unemployment rates among all developing nations. In 2019, only 2.04% of the total available workforce was unemployed, while the employment-to-population rate stood at an impressive 68.9%. No wonder, compared with other developing markets in the region, Vietnam has emerged as the clear leader in low-cost manufacturing and sourcing.

According to the latest World Bank Ratings, Vietnam ranks 70th among 190 economies in the ease of doing business; hence, a growing number of foreign companies are investing and expanding in Vietnam. Over the years, Vietnam has developed an excellent infrastructure to support knowledge and service industries.

Overview of Vietnam

Population: 96.50 million (2019)

Gross Domestic Product (GDP): 261.92 billion USD (2019)

Languages Spoken: Vietnamese, English, Chinese, French, Khmer, Nung, Hmong, Muong, Cham, and Tay.

Economic Overview

Vietnam witnessed significant economic reform in 1986, after which it has become one of the fastest-growing economies. Between 2002 and 2018, the GDP per capita increased by 2.7 times while poverty rates declined drastically. The current labor force participation rate is around 77%, which is excellent for the country’s future economic growth.

Vietnam’s currency is the Vietnamese Dong (VND); per the current exchange rate, 100 USD is equivalent to 2,303,866 VND. In 2020, the cost of living for one person was approximately 640 USD/ 14,744,743 VND, while the monthly minimum wage in Vietnam is 4.42 million VND or 14,240 USD. Unlike most other countries, Vietnam handled the Covid-19 pandemic very well; hence its economy remained largely unaffected. It was among the countries with the highest GDP growth globally, with an estimated GDP of over 340 billion USD.

Market Overview

Vietnam is one of the prime locations for investors focusing on the textile industry. Apart from this, there are many other business areas, including information and communications technology, automotive, pharmaceuticals, medical devices, and e-commerce, which see significant growth in the country. Interestingly, over the past few years, Vietnam has also become a key location for high-technology manufacturing. Companies like Nokia, Samsung, Intel, and LG Electronics have multi-billion dollar investments in the country.

Here is a glimpse at the top exports from Vietnam in 2020:

Internet Penetration and Speed

One of the most significant factors helping the economic growth in Vietnam is its excellent digital infrastructure. The internet penetration in the country stood at an impressive 70.3%, with 68.72 million internet users in January 2021. According to the latest data, Vietnam ranks 56 for mobile speeds (average 45 Mbps) and 60 for fixed broadband speed (average 70 Mbps) globally.

Reliable internet connection is essential for every industry; the IT services and software industry depend entirely on it. Vietnam has the edge over other countries in the region with a massive availability of remote knowledge workers at competitive wages.

Talent In Vietnam

Vietnam’s human capital index (HCI) stands at 69%, higher than the average for East Asia and the Pacific region and lower-middle-income countries. Vietnam’s workforce has grown consistently over the past few years, offering young, inexpensive, and highly skilled talents to national and global markets.

Ho Chi Minh and Hanoi are the most populated cities; they are also the hub of knowledge workers. Other major urban cities with excellent infrastructure and human resources include Hai Phong, Da Nang, and Can Tho. Vietnam offers a pool of well-educated experts in the latest technologies and skills such as web design, mobile development, data management, transcription, customer service, digital marketing, and accounting.

Top Skills in Vietnam

The top skills available in Vietnam include:

• Information Technology services
• Development and programming
• Accounting and sales
• Admin Support and Customer Service
• Data Science and Analytics
• Advertising and creative media
• Healthcare
• Legal consultation
• Travel and Tourism

Top Skills by City in Vietnam

Hanoi

Ho Chi Minh

Top Remote Job Profiles in Vietnam

The average hourly wage in Vietnam is 4.5 USD/99,300 VND. Below are a few top remote profiles, along with starting hourly rates.

Hiring Cost in Vietnam

The hiring process involves many steps like screening candidates, interviews, onboarding, and training, which require time, expertise, and money. The hiring process in a foreign country can be complex and costly. Hence, most organizations take the help of EOR services such as Skuad. Let’s look at the cost of living for one person in Vietnam and its major cities.

Cost of Living in Vietnam

Cost of Living by City in Vietnam

Salary Structure for Various Roles in Vietnam

The highest average monthly salary may go up to 76.9 million VND/3000 USD. It is important to note that compensation depends on many factors like skills, education level, years of experience in the industry, and location.

The data below provides the average annual salary in various sectors.

Average Annual Salary Comparison By City

Employment Laws in Vietnam

In January 2021, Vietnam’s National Assembly amended and approved a new Labor Code. The amendments provide ample protections to the employees and make the code better aligned with global best practices. Below are a few key points of Vietnam‘s Labor Law.

• ‍Employment Contracts – Definite-term contracts are for a maximum of three years and must be renewed every year. Employers can also opt for indefinite-term contracts. Foreigners are offered a work permit for two years, which needs to be renewed every year.
• Termination – The minimum notice period is 30 days for a definite term and 45 days for indefinite-term employment contracts.
• Working Hours - The maximum duration of working hours per week is 48 hours. Overtime should not exceed 12 hours a day and 40 hours a month.
• Holidays and Leaves - Employees can take up to 12 paid leaves; In addition, there are 11 public and new year holidays.

Conclusion: How Can Skuad Help You in Hiring in Vietnam?

Hiring in Vietnam is a multi-faceted task requiring in-depth knowledge of the laws, trends, hiring costs, living costs city-wise, and more. Skuad comes onboard as a one-stop solution handling every minute aspect of recruitment. It gives you the freedom and time to focus on your project and expansion plans without any hiring stresses. Connect with Skuad experts to know more.