For businesses paying independent contractors in Vietnam
Best payment methods for Vietnamese contractors:
Key requirements:
Vietnam has emerged as a major tech outsourcing destination with competitive rates and skilled developers. If you're hiring contractors in Vietnam, you need to understand:
| Method | Cost | Speed | Best For |
|---|---|---|---|
| Wise | $3-$8 | 1-2 days | Regular payments, best exchange rates |
| PayPal | $5-$15 | Instant | Widely accepted, instant transfers |
| Payoneer | $5-$10 | 1-3 days | Popular with Vietnamese freelancers |
| Bank Transfer | $15-$40 | 3-7 days | Large amounts, traditional method |
Why Wise is best for Vietnam payments:
Currency choice is important when paying Vietnamese contractors, with USD being strongly preferred.
Pay in USD if:
Pay in VND if:
Pro tip: Most Vietnamese tech contractors prefer USD because it provides more stability and international purchasing power. Always ask your contractor which currency they prefer before setting up payments.
When hiring contractors in Vietnam, tax obligations are straightforward: the contractor is responsible for their own taxes.
Important: As a foreign company paying a Vietnamese contractor, you typically don't have tax withholding obligations in Vietnam. The contractor handles their own tax compliance. Consult with a tax professional for your specific situation.
Problem: Traditional international wire transfers cost $15-$40 per transaction with poor exchange rates.
Solution: Use Wise or PayPal to save 60-80% on transfer fees.
Problem: You assume VND is preferred, but contractor wants USD for stability.
Solution: Always ask your contractor which currency they prefer. Most tech workers prefer USD.
Problem: Verbal agreements lead to disputes about scope and payment terms.
Solution: Always have a written service agreement before starting work. Kontrable provides contract templates.
Problem: Vietnam is UTC+7, which can create communication challenges with US teams.
Solution: Establish clear communication windows and use async tools. Vietnamese contractors are often flexible with hours.
Kontrable is built specifically for managing international contractors:
A: Most Vietnamese tech contractors prefer USD for stability and international purchasing power. Always ask your contractor which currency they prefer.
A: No. EOR is for employees. Vietnamese contractors handle their own tax compliance. You just need a good payment method (Wise) and contractor management tool (Kontrable).
A: Wise offers the lowest fees ($3-$8) and best exchange rates. PayPal is also popular but has higher fees ($5-$15). Avoid traditional bank transfers ($15-$40).
A: No. As a foreign company paying a Vietnamese contractor, you typically don't withhold Vietnamese taxes. The contractor is responsible for their own tax compliance.
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