• Home
  • Services
    • OUR SERVICES

      We solve challenging market challenges and build all varieties of custom and platform-based frameworks and provide comprehensive end-to-end software development and IT services.


      Ask Us
    • Overview

      Professional Services

      Software Dedicated Team, GEO, EOR

      Team Augmentation & Full team Outsourcing

      1. Python
      2. Node
      3. .NET
      4. React, Angular, Vue

      Enterprise Digital Transformation

      Application Support & Maintenance

      Devops Services

      Software Consultancy

    • Custom Software Development

      Android & iOS Mobile App Development

      React Native Mobile App Development

      Custom Application Development

      Web Application Development

      Product Development for Startups & Established Business

      Internet of Things (IoT)

      Industry Expertise

      Data Analytics & Intelligence

      BigCommerce

      Shopify

  • Process
    • OUR PROCESS

      We solve market challenges and build all varieties of custom and platform-based frameworks and provide comprehensive end-to-end software development and IT services.

    • Overview

      Fully Outsourced

      Dedicated Teams

    • Team Augmentation

      Fixed Scope Projects

      Time & Material (T&M)

  • Company
    • OUR COMPANY

      Since 2016, we have been the first and last stop for companies worldwide that need support to develop digital products and custom software solutions. Our integrated resource model paves the way for your technology projects to be completed sooner, with less effort.


      contact us
    • About us

      What we do

      Our story

      Our core values

      Customer’s feedback

      What makes us different?

      Creative, Quality & Speed

      Project timeline

      Long term success

      FAQ

    • Portfolio/Case studies

      E-commerce

      Education

      Finance

      Hospitality

      HR

      Legal

      Logistic

      Marketing

      Operation

      Real Estate

      Retail

      Sport

  • Blog
    • BLOG

      Since 2016, we have been the first and last stop for companies worldwide that need support to develop digital products and custom software solutions. Our integrated resource model paves the way for your technology projects to be completed sooner, with less effort.

      View all blogs
    • Statistics for 2023 on Mobile App Growth and Usage

      RECENT BLOGS

      Statistics for 2023 on Mobile App Growth and Usage

      Finally, the year 2022 has come to a close. Furthermore, in this post-pandemic context, companies are still trying...

      Read the blog >>
      The Best Hybrid Mobile App Development Frameworks in 2022

      RECENT BLOGS

      The Best Hybrid Mobile App Development Frameworks in 2022

      Having a mobile presence has become essential for businesses to survive and reach a broader audience in today's...

      Read the blog >>
      Top 8 Helpful Web Usability Tips For Web Designers

      RECENT BLOGS

      Top 8 Helpful Web Usability Tips For Web Designers

      Making it simple for users of your website to locate the information they require when they require it is the...

      Read the blog >>
  • Careers
  • Contact Us
    • Link copied

    • Link copied

Contact Us
  • Home
  • Services

    Our Services

    • Professional Services
    • Overview Software Consultancy Team Augmentation & Full Team Outsourcing Enterprise Digital Transformation Application Support & Maintenance, Hosting Devops Services Hosting
    • Custom Software Development Services
    • Overview Android & iOS Mobile App Development React Native Mobile App Development Custom Application Development Web Application Development Product Development for Startups & Established Business Internet of Things (IoT)
    • Industry Expertise
    • Overview Education Technology Data Analytics & Intelligence BigCommerce Shopify
  • Process

    Our Process

    • Fully Outsourced
    • Dedicated Teams
    • Team Augmentation
    • Fixed Scope Projects
    • Time & Material (T&M)
  • Blog
  • Careers
  • More

    More

    • About Us
    • What Makes Us Different?
    • Contact Us
    • Case Studies
Home Blog IT Outsourcing In Vietnam: EOR, PEO/ GEO – Which Solution Is Best For Your Business?
Blog Post
Matt Long CEO
August 11, 2022

IT Outsourcing In Vietnam: EOR, PEO/ GEO – Which Solution Is Best For Your Business?

8 min read
Voiced by Amazon Polly
Table of contents show
1. IT Outsourcing in Vietnam with Employer of Record (EOR)
2. How is EOR Different from Professional Employer Organization (PEO)?
3. What about GEO?
3.1. What distinguishes an EOR from a GEO?
4. Expand your business into Vietnam without establishing a legal entity
5. Simplify your global business expansion with Groove
6. Our global employment solutions
6.1. Global Employment Organization (GEO)
6.2. International Payroll Services
6.3. Global HR Consulting
6.4. Dedicated Team Services at Groove
6.4.1. Our dedicated team process:
7. Conclusion
8. FAQs
8.1. Should I work with a PEO or an EOR?
8.2. Why use an EOR in Vietnam?

Employing both local and foreign workers must comply with the minimum salary established by the Vietnamese government. However, employing a foreigner in Vietnam is difficult.

This cumbersome and time-consuming procedure is restricted by a number of restrictions and regulations regarding the positions that foreigners may hold.

Foreigners are subject to different tax and payroll requirements, and it may not be cost-effective to provide relevant training to your HR and accounting teams.

In this post, we will explore the various types of IT outsourcing in Vietnam as well as the means by which enterprises can employ foreigners without forming a formal entity in Vietnam.

IT Outsourcing in Vietnam with Employer of Record (EOR)

Employer of Record (EOR) is a service provider that employs workers on their payroll, but the workers are employed by other businesses. EOR allows firms to hire overseas workers prior to having a physical presence in Vietnam. This is especially advantageous for foreign employers that wish to develop their businesses into Vietnam.

Additionally, it works for businesses who do not intend to establish operations in Vietnam but wish to outsource procedures such as IT support and customer service. In general, EOR assists businesses in managing the following:

  • Payroll
  • Tax Forms
  • Employment contracts
  • Candidate hiring and background checks.

How is EOR Different from Professional Employer Organization (PEO)?

Co-employment services are provided by PEO in partnership with existing small and medium-sized businesses. Although the primary function of PEO is to assist with contract management, the contract is between the employee and the client utilizing PEO services. This can substantially decrease legal risk and streamline administration.

The main difference between EOR and PEO is:

  • The EOR provider is the sole legal employer of the payroll employees. The EOR vendor is already established in locations where corporations wish to grow their operations; the company can lawfully engage its personnel in these countries without a legal entity and without any employment duties.
  • A PEO vendor, on the other hand, is not a full legal employer, but rather a provider that shares employer risks and provides additional employee litigation protection. Since the PEO provider is not mentioned in the employment contract, it has no legal responsibilities.

In general, these two types of HR outsourcing correspond to distinct workforce strategies.

While PEO is appropriate for organizations seeking external help with HR functions, EOR is ideal for enterprises hoping to expand fast or without the burden of creating a legal entity in Vietnam.

What about GEO?

Global expansion is frequently the best option for organizations that wish to expand their corporate footprint beyond their home country, gain access to larger talent pools, and tap into new revenue streams.

However, entering foreign countries can be difficult. This is why an increasing number of organizations are choosing to collaborate with GEO firms. The term GEO stands for Global Employment Outsourcing.

These services are supplied by multinational employment businesses that can function as a client company’s legal EOR.

GEO services are meant to help you handle numerous administrative HR responsibilities and simplify the international expansion path when:

  • Working in a country where your company is not registered;
  • Establishing a new legal entity;
  • Understanding local labor regulations and tax ramifications.

An EOR is a company that is legally responsible for labor compliance. This is especially significant if you are operating in a country where your organization does not have a formal presence. An EOR can help you with a variety of duties, such as:

  • Administration of payroll and taxes
  • Employee advantages
  • Foreign exchange and intra-country money transfer
  • Employment agreements
  • Insurance
  • Local regulations

What distinguishes an EOR from a GEO?

EORs are often used as part of a larger GEO strategy. A GEO is a service that assists businesses of all sizes in mobilizing a staff in a foreign country. The GEO will adhere to all national and local labor regulations, taxes, and work licenses. They may also employ an EOR to manage the payroll functions for the workers.

The GEO serves as a single point of contact for the company that is employing the GEO service to perform EOR. An EOR could potentially be used as a temporary option until a local entity and activities are established.

Expand your business into Vietnam without establishing a legal entity

Groove Technology offers worldwide employment solutions to companies looking to hire staff and distribute payroll in Vietnam. We manage your company’s payroll, benefits, and expenses in Vietnam using our Vietnam EOR & PEO. We also manage human resources, as well as employment and tax compliance.

Groove Technology will operate as your workers’ Vietnam EOR, allowing you to start doing business in Vietnam without the need for a local corporation. This not only allows your company to go to market faster, but it also has the potential to save your company thousands of dollars in expansion expenditures.

Groove Technology, the only Vietnam PEO with an in-house recruitment team, will source, hire, and onboard your Vietnamese personnel. We hire staff in compliance with Vietnamese labor laws and manage all expenditure claims and benefit payments.

Simplify your global business expansion with Groove

Employees are hired on your behalf and seconded back to you under a particular project agreement with PEO/EOR services. This approach greatly simplifies worldwide company expansions by allowing the client to acquire employees immediately.

Perform sales operations, market research, and launch the company in a specific location without establishing a new corporation in a new country.

Our global employment solutions

Global Employment Organization (GEO)

Groove’s GEO assists businesses in expanding their international talent acquisition initiatives. An employer of record can assist firms in hiring from anywhere in the world without the need to set up a foreign organization.

An employer of record can help you get your overseas hires on-boarded and on the job within days by allowing you to bypass time-consuming international business formation requirements.

Best for organizations without an in-country presence and/or local HR help.

  • Record service provider
  • Payroll of employees (calculation of pay from gross to net)
  • Possibility of providing Groove Technology employee benefits.

International Payroll Services

  • For businesses with an entity but no local HR help.
  • Pay calculation from gross to net
  • Payroll procedures and reconciliations
  • Expense tracking and payment
  • Tax returns and payments
  • End-of-year compliance reporting
  • Equalization of taxes
  • Allowance administration
  • Tracking PTO and accruals
  • Employee enquiry administration
  • HRIS Administration
Groove Technology It Outsourcing In Vietnam: EOR, PEO/ GEO - Which Solution Is Best For Your Business?

Groove’s GEO assists businesses in expanding their international talent acquisition

Global HR Consulting

  • Entity formation and administration
  • Services for project management
  • Organizational structure
  • Cost-cutting/synergy assessments
  • Payroll implementations in-house
  • Outplacement services for HRIS implementations
  • Learning and Growth
  • System for Learning Management (LMS)
  • Generation of content
  • Leadership training programs
  • Academies for new hires

Dedicated Team Services at Groove

Besides outsourcing services mentioned above, Groove Technology can offer you dedicated team services with fewer HR burdens, and you can focus on your core business. Over the years, we have already had the standard process of providing the right talents to advance your team capacity in the long run.

Our dedicated team process:

  • Requirement discovery: Research and define the project requirements with related resources. An in-depth analysis will ensure that we are on the right track from the beginning.
  • Proposal and pilot team: select the right people; propose the suitable resources; conduct interviews (direct interview, cv, or use video about developers talking, introducing about themselves); put together a pilot team
  • Contract & development: form the entire team; sign the contract; manage, assign tasks, communicate directly with the staffs about the development process.
  • On-boarding: It will be all hands-on deck on our side. You will receive support from the delivery manager, solution architect, and other skills we think might benefit you.
  • Scale-up: You will evaluate the hired staff on a monthly or quarterly basis so that we can continuously improve. You can add more staffs to your team as you need.

Conclusion

Established in 2016 to provide contractor verification, compliance, and payroll, the contingent workforce market has remained our primary focus, with services being provided all around the globe by local experts. Our corporate offering has developed over the years as a result of increased market complexity, legislation, technology, and client demand.

Groove Technology may now act as an extension of your HR and Procurement department, managing your whole contingent workforce. Groove Technology is unique in that, in addition to managing visibility, cost, and control, we enable your talent-first approach, providing access to new and known talent and enhancing the engagement and performance of your staff.

Contact us now to learn how to enhance the performance, efficiency, and effectiveness of your future workforce.

FAQs

Should I work with a PEO or an EOR?

A Professional Employer Organization, or PEO, is another option. A PEO does not hold the employment relationship and related risk, whereas an EOR does.

A PEO, on the other hand, advises on payroll service, registration, and compliance requirements. This may entail putting a corporation in touch with an Employer of Record. The firm would be in charge of managing connections with both the PEO and the EOR.

Why use an EOR in Vietnam?

Vietnam is one of the world’s fastest developing economies. If you want to do business or extend your operations abroad, investing in the country is a wise decision. You can do this with an employer of record without establishing a legal presence in the nation.

  • Workforce that is young and well-educated

Vietnam has a young and educated labor force. According to Worldometer, the median age in this country is 32.5 years old, while the World Bank estimates that 70% of the population is under the age of 35.

The Vietnamese government places a high importance on education, allocating almost 20% of its budget to it. Furthermore, the EF English Proficiency Index (EF EPI) ranked Vietnam 10th out of 25 Asian countries in terms of English language proficiency in 2019. The EF EPI also indicates that Hanoi and Ho Chi Minh City have moderate English proficiency.

  • Labor costs are low.

Despite a consistent GDP growth rate of 7.08 percent in 2018, according to the World Bank, the minimum wage in Vietnam remains comparatively low.

Minimum wage rates in select Asian countries:

Country: Monthly minimum wage in 2019/2020**
China: USD 341
Indonesia: USD 215
Malaysia: USD 253
Vietnam: USD 177

CEO - Matt Long - Groove Techonology - We Build Amazing Software For Your Business CEO - Matt Long - Groove Techonology - We Build Amazing Software For Your Business
Matt Long CEO AT GROOVE TECHNOLOGY
Matt Long is the founder and CEO of Groove Technology. Groove Technology recruit at the top of their market, providing cutting-edge software development services to partners located across the world through a unique, integrated resource model. You can get in touch with him here, or find out more about Groove Technology Services.
Recent Blogs
  • Statistics for 2023 on Mobile App Growth and Usage
    December 15, 2022

    Statistics for 2023 on Mobile App Growth and Usage

  • The Best Hybrid Mobile App Development Frameworks in 2022
    December 1, 2022

    The Best Hybrid Mobile App Development Frameworks in 2022

  • Top 8 Helpful Web Usability Tips For Web Designers
    November 16, 2022

    Top 8 Helpful Web Usability Tips For Web Designers

  • Design-First or API-First: What’s the Best Approach?
    November 12, 2022

    Design-First or API-First: What’s the Best Approach?

  • How to build a cross-platform mobile app?
    November 8, 2022

    How to build a cross-platform mobile app?

What it’s like working at Groove Technology?

View
START YOUR JOURNEY
TO AMAZING SOFTWARE

If you have any questions, our team is happy to support!



START YOUR NEW
CAREER AT GROOVE

If you have any questions, our team is happy to support!

Your Resume

App demo request

If you want to experience this app on iOS, please contact us to be added to the test environment.

Contact us
Refresh Page

Please rotate your screen horizontally for the best experience.

Career Contact
Business Request
X
  • Home
  • Services
  • Process
  • Company
  • Blog
  • Careers
  • Contact Us
Groove Technology - Software Company in Australia - Viet Nam - Singapore - VN Flag
VIETNAM

Floor 18, Havana Tower, 132 Ham Nghi, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam.

Groove Technology - Software Company in Australia - Viet Nam - Singapore - AU Flag
AUSTRALIA

Suite 115, 358 Clarendon Street, South Melbourne, Victoria, Australia, 3205.

Groove Technology - Software Company in Australia - Viet Nam - Singapore - HK Flag
HONG KONG

5/F, Yat Chau Building, 262 Des Voeux Road Central, Hong Kong.


Copyright ©2022 Groove Technology. All Rights Reserved.
Security Statement. Modern Slavery Statement.

BACK TO TOP