Solutions for localization in expat hiring

To address these challenges, Vietnamese businesses can enhance their localization strategies through two key approaches.

With over 100,000 expatriates currently living and working in Vietnam, the demand for international talent is rising among local businesses. "In the next 5-10 years, attracting global professionals will no longer be optional but a strategic necessity. Companies seeking to expand their talent pool and stay competitive in the global market must prioritize international hiring," said Andree Mangels, Deputy CEO of Talentnet, during the recent webinar "Expats Hiring: Trends & Challenges in Vietnam."

However, despite the increasing demand, recruiting and retaining global talent in Vietnam remains challenging. The main obstacles are salary competitiveness and cultural integration. To overcome these issues, more than 95% of multinational corporations focus on localization—offering competitive compensation and fostering engagement through customized benefits and integration programs.

The "local plus package" approach

A local plus package combines a locally competitive salary with additional benefits tailored to expatriates' needs. These benefits often include housing allowances, education support for children, cost-of-living subsidies, healthcare insurance, and return flight tickets.

This approach enhances job satisfaction and encourages long-term engagement by easing financial and social challenges for expatriates. A Mercer report highlights its effectiveness in economies like mainland China, Hong Kong, and Singapore, where retention rates for international employees have reached up to 80% within two years of adoption.

Despite its success in other markets, Andree Mangels noted that this model is still not widely adopted in Vietnam. However, in the long run, it presents a sustainable strategy for companies to strike a balance between offering reasonable benefits and retaining top talent.

A local plus package combines a locally competitive salary with additional benefits tailored to expatriates' needs. Photo courtesy of Talentnet

Localization in the onboarding process

"Our team has a Malaysian colleague, but we don't interact much. When we chat and laugh together, they often don't understand. The same happens at work - we tend to operate independently or communicate separately, assigning someone to relay information instead of engaging in group discussions," shared Minh Ngoc, an HR professional at an international firm.

This disconnect between expatriates and local teams can hinder work efficiency and team dynamics. A well-structured onboarding process is essential to help expats understand their roles, feel welcome, and integrate into the company culture.

Onboarding for expats should begin early, ensuring a smoother transition into the company's culture and work environment. Photo courtesy of

According to Andree Mangels, implementing cultural workshops, language training, and dedicated support initiatives ensures a smoother transition and stronger team cohesion.

Hosting cultural workshops and team-bonding activities can help expatriates feel more comfortable and confident in their new workplace. Language courses are another effective tool, allowing international employees to communicate more effectively and develop a deeper understanding of the local culture.

During the webinar, Andree Mangels shared a successful case study from Talentnet, where internal engagement activities played a crucial role in team integration. Every month, Talentnet's Payroll Services team participates in interactive events organized by a volunteer group called the "People Team." These activities range from professional skill-building workshops to social events featuring food, games, and puzzle-solving, all designed to strengthen team relationships and foster a supportive work environment.

Bilingual managers play a crucial role in bridging cultural and linguistic gaps. Beyond being translators, they serve as connectors within teams, helping to prevent misunderstandings and create a collaborative work environment. These managers also educate both expatriates and local employees on diverse work styles, enhancing cooperation and productivity.

Adopting localization strategies in expat hiring benefits businesses by improving team collaboration, productivity, and overall employee satisfaction while managing costs effectively. By investing in programs that address cultural adaptation, language skills, and structured onboarding, companies can build a solid foundation for retaining top international talent and driving sustainable growth in an increasingly globalized world.

HR consulting services—ranging from competitive salary design and benefits advisory to streamlined legal processes—are critical to ensuring seamless international integration and effective global talent management.

For further insights, access the recap of "Expats Hiring: Trends & Challenges in Vietnam" here and explore Talentnet's services to strengthen your global talent strategy.