Language barriers and legal system differences
Vietnam's labor, tax and social insurance system has many differences compared to Japan, Korea or China — from the way gross/net salary is calculated, the social insurance payment rate, to the labor disciplinary process. Using an EOR unit that understands both systems helps businesses avoid costly errors in the early stages.
Prioritize deployment speed when expanding markets
When many Japanese and Korean corporations expand their supply chains to Vietnam, they need to have operating personnel within a few weeks to keep up with the project schedule, while establishing a new legal entity takes many months. EOR solves this speed problem correctly.
Control compliance risks from the start
Large corporations often have strict compliance requirements from headquarters. Entrusting labor, social insurance, and personal income tax obligations to a licensed EOR unit helps reduce compliance risks compared to operating on your own when not familiar with Vietnamese law.
Focus resources on core production and business
For small and medium-sized factories new to Vietnam, building a full human resources and administrative department from the beginning is no small burden. Outsourcing human resources helps management focus resources on production and sales operations, instead of administrative and legal operations.
Long-term trend: from EOR to own operating model
In fact, many Japanese and Korean businesses start with EOR in the first 6-12 month survey period, then when operations are stable, they move on to establishing their own legal entities and receiving staff - with support for transferring documents from the EOR unit.
Frequently asked questions
Does the EOR unit support communication in Japanese, Korean, Chinese? Many EOR units in Vietnam, including Nhân Kiệt, have a multilingual support team or coordinate translation to conveniently work with foreign investors.
Are small businesses from Japan/Korea/China suitable to use EOR? Very suitable, especially for newly opened representative offices or branches with less than 20 employees in the early stages.
How to start cooperating with Nhân Kiệt? Send your information needs via contact page or hotline 0901 557 456, the Nhân Kiệt team provides free consultation and response within 24 working hours.