Payroll Processing & Compliance Success in Vietnam of a Singaporean FinTech Firm

Vietnam’s fast-growing economy and expanding workforce make it an attractive destination for regional operations, but managing payroll locally can be complex for foreign companies. Our client, a leading financial services firm in Singapore, partnered with us to implement professional payroll solutions in Vietnam to ensure accurate payroll processing, maintain full compliance, and support a growing local team. 

1. Client Overview

Our client is a leading international digital consumer finance provider with an established reputation across multiple Asian markets, including Vietnam as a key operating hub. As part of its Vietnam expansion, the company needed a reliable local partner to manage payroll accurately while ensuring full compliance with Vietnamese labor and tax regulations. 

2. Client Requirements

When establishing operations in Vietnam, payroll quickly emerged as a critical challenge. The client had a growing local workforce but lacked internal expertise in Vietnam’s complex payroll and tax environment.

Key challenges included:

• Limited knowledge of Vietnam payroll processing requirements
• No in-house payroll manager familiar with Vietnamese labor law
• Difficulty in calculating payroll tax accurately, including PIT and statutory contributions
• High compliance risk due to frequent regulatory updates
• Administrative burden placed on leadership and finance teams

Without a local payroll compliance practitioner, the company risked payroll errors, delayed payments, and potential penalties.

3. Reco’s Approach

Reco delivered professional payroll solutions designed specifically for the Vietnam regulatory environment, providing both operational execution and ongoing compliance assurance.

3.1. Centralized Payroll Processing

Reco assumed full responsibility for monthly payroll processing, including:

• Collection and validation of payroll input data
• Gross-to-net salary calculations
• Payslip preparation and secure distribution
• Coordination of salary payments

This centralized approach reduced errors and ensured consistency across payroll cycles.

3.2. Accurate Payroll Tax & Statutory Contributions

Reco ensured precise payroll tax calculation in line with Vietnam regulations by:

• Calculating personal income tax (PIT) based on applicable brackets
• Managing employee and employer social insurance contributions
• Preparing statutory declarations and payment schedules
• Ensuring timely submissions to local authorities

All calculations were reviewed by a dedicated payroll compliance practitioner to maintain accuracy and regulatory alignment.

3.3. Local Payroll Compliance & Advisory Support

Reco provided ongoing compliance monitoring and advisory support, acting as the client’s external payroll manager in Vietnam. This included:

• Monitoring changes to the Vietnam labor and tax regulations
• Proactively updating payroll processes as laws evolve
• Supporting audits and internal compliance reviews
• Advising HR and finance teams on payroll-related decisions

3.4. Employee-Centric Payroll Experience

Reco prioritized a positive payroll experience for Vietnam-based employees by:

• Providing clear, compliant payslips in line with local requirements
• Ensuring on-time salary payments every payroll cycle
• Addressing employee questions related to tax, insurance, and deductions
• Maintaining clear and culturally aligned communication

3.5. Scalable Payroll Framework

The payroll solution was designed to scale seamlessly as the client’s Vietnam workforce grew:

• New employees were added without disruption to payroll cycles
• Payroll processes adapted smoothly to headcount increases
• Service quality and compliance standards remained consistent

4. The Outcome

By outsourcing payroll to Reco, the client achieved stable, compliant, and scalable payroll operations in Vietnam.

• 100% accurate payroll processing
• Full compliance with Vietnam payroll regulations
• Reduced compliance and audit risk
• Operational efficiency for internal teams