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A Vietnam Employer of Record (EOR) is a service provider or company that assists businesses in managing their employment obligations and responsibilities in Vietnam. When a company wants to hire employees in Vietnam but does not have a legal entity or presence in the country, it can partner with an EOR to act as the official employer for employment compliance purposes.
Vietnam’s job market is one of the most active and interesting in the region for companies looking to grow. It used to be known mostly for factories, but today it is also a center for tech companies, service industries, and skilled engineers. This change means there is a wider range of talented people available to hire.
For a foreign company, the hiring rules in Vietnam can be difficult to learn. The Labor Code from 2019 explains what must be in an employment contract, how long a trial period can last, the correct way to end someone’s employment, and what benefits they should get.
Companies also have to register with government social insurance funds and make regular payments for their employees’ health, unemployment, and retirement. There are national rules to follow, and sometimes extra rules that depend on the specific city or region.
For an international company that does not have its own registered office in Vietnam, handling all this is a big task. It can make entering the market a slow process. Using an Employer of Record (EOR) in Vietnam solves this problem. The EOR becomes the official employer for legal purposes.
A foreign company can now start hiring people in Vietnam quickly and correctly, without the delay and cost of creating its own local company first. The EOR handles the paperwork and legal responsibilities.
An Employer of Record in Vietnam acts as a local hiring partner for a company. This is an official company based in Vietnam to become the legal employer for your team there. This arrangement means the EOR takes care of all the formal responsibilities that come with having staff on the ground.
Companies can decide what projects they work on, manage their performance, and set their tasks. The EOR simply handles the legal and financial paperwork in the background. An EOR is the better choice when you don’t have a local company and want to avoid the long and expensive process of setting one up.
For any business that wants to test the market in Vietnam or start operating there quickly, using an EOR in Vietnam is the fastest and most straightforward path. It lets companies hire the talent they need right away, without getting into months of legal procedures to create their own entity.
Vietnam’s employment laws are structured to provide clear protection for workers and ensure that companies follow standardized labor practices. It defines the rules on employment contracts, working hours, rest periods, overtime, probation, and employee benefits.
It also outlines termination procedures and the rights of employers and employees during disputes or contract changes. Employers must also pay attention to provincial-level guidelines issued by local labor authorities. Each region can set its own minimum wage brackets and may have unique administrative processes for registering employees or reporting payroll.
Compliance in Vietnam is not optional; it’s mandatory. Companies that fail to follow local labor laws may face financial penalties, demands for back payments of social contributions, or suspension of foreign employee permits. For organizations that are new to the country, this can become a significant challenge.
Many international businesses choose to work with an EOR to manage these requirements accurately. EOR providers understand Vietnam’s employment system and handle all payroll, benefits, and statutory filings on behalf of their clients.
In Vietnam, a written labor agreement is the law. Every person a company hires must have a signed contract that clearly explains the terms of their work. This document needs to list their exact job title, a description of their main tasks, and their full salary.
It should also state the daily and weekly work schedule, any trial period at the start of the job, employee benefits, and the conditions under which the job could end. There are two main types of work contracts.
A company can hire someone for a fixed period, but this type of contract can only last for a maximum of three years and can only be renewed once. If the worker continues after that, the agreement automatically becomes permanent. The other option is an indefinite contract, which has no set end date.
The law also requires specific details to be in every contract. It must explain how the company will handle social insurance payments and deduct income tax.
The contract should clearly state the standard work hours and confirm that any extra hours worked will be paid at the higher, legally required overtime rate. Having all these points clearly written down helps prevent misunderstandings and creates a solid foundation for the working relationship.
Vietnam’s labor law sets clear rules for working hours to protect employees.
The standard schedule is based on eight hours in a single day, adding up to no more than forty-eight hours over a full week. A company can decide how to arrange this time, either a five-day or six-day workweek that fits its business. Workers are also entitled to a break during their shift.
For people working during the day, this must be at least thirty minutes. If an employee is on a night shift, the required break time is longer, at forty-five minutes. The law does allow for overtime, but it sets strict limits to prevent employee burnout. In most cases, a person should not work more than forty hours of overtime in one month, or more than two hundred hours over a full year.
Some fields, like garment manufacturing or electronics assembly, can obtain special permission to go up to three hundred annual overtime hours. Any time an employee works beyond their standard hours, they must be paid extra. The added pay depends on when the work is done. For regular overtime on a weekday, the rate is time-and-a-half. Working a Saturday or Sunday means double the normal pay.
If an employee works on an official national holiday, they are owed triple their standard hourly wage.
The Labor Code entitles employees to a range of paid leave benefits:
Unused annual leave can often be carried forward or paid out upon termination.
Vietnamese law provides strong support for new mothers, with benefits funded by the national social insurance system. An employee who has paid into this system is entitled to six months of fully paid leave when she has a baby. If she gives birth to twins, she gets seven months’ leave.
For triplets, the leave increases to eight months, adding one extra month for each additional child. Payment for this entire leave period does not come from the employer’s budget. Instead, it is paid directly from the social insurance fund. The support also covers time off for appointments during pregnancy.
A pregnant employee is entitled to paid time away from work for doctor’s visits and check-ups. After she returns to her job, she receives special protection for a period of time. Her employer cannot require her to work overtime or during the night shift.
For a company, it is essential that its internal policies and employment contracts clearly state these rights. An Employer of Record in Vietnam handles all this administrative work. They confirm the employee’s eligibility, manage the application for benefits with the social insurance office, and ensure the company’s records are fully compliant with these protective laws.
Termination of employment in Vietnam is highly regulated, and employers must follow the proper procedures. Valid reasons for termination should include the expiry of a definite-term contract, mutual agreement, performance-related issues, or structural redundancies.
Notice periods depend on the type of contract:
Employees dismissed for disciplinary reasons or repeated misconduct must be notified in writing and have the opportunity to respond. Termination without cause can cause legal penalties or reinstatement orders from the labor authorities. Foreign companies should pay special attention to local regulations.
Employers in Vietnam have a range of mandatory contributions and compliance duties to fulfill. These ensure employees are protected under the country’s social welfare system and that businesses meet tax and insurance requirements.
Using an EOR in Vietnam offers benefits for companies entering the market without an established entity.
| Speed | Setting up a local company in Vietnam can take several months and involves multiple steps, such as capital registration, office verification, and tax code issuance. An EOR can hire employees on your behalf within days to start operations immediately. |
| Compliance | Vietnam’s employment regulations are detailed and frequently updated. EORs ensure every employment contract, payroll submission, and statutory contribution aligns with current requirements under the Labor Code, Social Insurance Law, and Vietnamese tax authorities. |
| Risk Reduction | Misclassification of employees as contractors can cause back payments of insurance, taxes, and penalties. With an EOR, workers are fully compliant employees under Vietnamese law, minimizing any legal exposure. |
| Payroll and Benefits Accuracy | EORs handle payroll calculations, statutory deductions, and filings across provinces to maintain precise compliance with the tax and insurance systems of the country. |
| Local HR Expertise | EORs bring in-country HR professionals who understand Vietnamese workplace norms, dispute procedures, and labor relations. |
An EOR in Vietnam ultimately gives companies a lawful and efficient framework to hire and manage teams, without the time and administrative cost of forming a local entity.
The Employer of Record market in Vietnam features international and local specialist firms. The listed providers are established services known for compliant hiring, payroll, and administration in the country.
RemotePeople connects global employers to trusted local partners in Vietnam for full Employer of Record support. The company helps businesses hire and pay Vietnamese employees legally without opening a local entity. Their services cover employment contracts, payroll processing, benefits management, and compliance monitoring through local experts.
Key Features
| Pros | Cons |
|---|---|
| Simplifies hiring in Vietnam without company registration | Some service quality variation is possible due to partner-based delivery |
| Consistent compliance with Vietnamese employment and tax laws | Limited built-in software analytics compared to large global EORs |
| Trusted local HR and legal specialists handle government reporting |
Deel is one of the most recognized global EOR platforms that supports businesses hiring across 100+ countries, including Vietnam. It provides digital onboarding, automated payroll, tax management, and benefits administration to provide employers with full control through an intuitive dashboard.
Key Features
| Pros | Cons |
|---|---|
| Ideal for companies scaling into multiple regions | Premium pricing compared to regional providers |
| Well-designed interface and high automation accuracy | Support times may align more with Western time zones |
| Reliable document and payment tracking for compliance | Limited flexibility for fully custom agreements in some markets |
Papaya Global provides multinational payroll and EOR solutions to combine global compliance tools with financial automation. It supports companies hiring in Vietnam through local partners and ensures that statutory contributions and taxes are managed accurately.
Key Features
| Pros | Cons |
|---|---|
| Reliable payroll accuracy across multiple jurisdictions | Higher price point compared to smaller or regional EORs |
| Helpful for enterprises needing consistent reporting standards | Onboarding may take longer for smaller companies |
| Automated compliance and payments reduce manual errors |
Double M is a Vietnam-based EOR and market entry firm providing localized employment, legal, and administrative services. They help companies establish compliant operations, hire staff, and handle documentation efficiently within Vietnam’s legal structure.
Key Features
| Pros | Cons |
|---|---|
| Deep understanding of Vietnam’s administrative and labor environment | Limited technology automation and integrations |
| Transparent billing with no hidden fees | Smaller scale compared to global providers |
| Strong hands-on assistance and responsive support | May not suit large enterprises requiring multinational reporting systems |
Globalization Partners operates its own legal entities in Vietnam, which enables foreign employers to hire staff legally without opening a subsidiary. The platform manages employment contracts, payroll, benefits, and local compliance directly through in-country teams.
Key Features
| Pros | Cons |
|---|---|
| Trusted for risk management and compliance reliability | Higher pricing structure than smaller providers |
| Strong infrastructure for large or regulated companies | Longer onboarding for enterprise clients |
| Consistent employment standards across regions | May be less flexible for smaller or short-term projects |
Multiplier simplifies global hiring across Asia-Pacific markets, including Vietnam. The company provides EOR, payroll, and HR services with an emphasis on quick onboarding and localized compliance.
Key Features
| Pros | Cons |
|---|---|
| Cost-effective choice for companies expanding regionally in Asia | Fewer enterprise-grade integrations than top-tier providers |
| Easy onboarding and straightforward contract setup | Smaller Vietnam presence compared to regional specialists |
| Flexible pricing and responsive support teams | Some features may vary depending on local partnerships |
For a more in-depth and detailed overview, see Best Employer of Record in Vietnam.
EOR pricing in Vietnam ranges from USD 200 to 600 per employee per month, depending on the provider, team size, and service scope. This includes payroll, HR administration, and compliance management.
Global platforms like Deel and Globalization Partners tend to charge more due to wider integrations and support coverage, but local providers may offer lower rates and more personalized service as per needs.
Employers must also account for mandatory contributions such as social, health, and unemployment insurance, which are separate from gross salaries. Most EORs issue detailed monthly invoices to help companies track all payroll and statutory costs transparently.
Some companies choose to hire directly by setting up a local Vietnamese entity, such as a limited liability company (LLC) or joint stock company (JSC). However, it also comes with a longer setup process and strict compliance duties. Establishing a local entity involves several stages.
Once a company exceeds a certain number of employees, it must also issue official internal labor regulations that follow Vietnamese labor law. Companies should also plan for annual audits, corporate tax reporting, and maintaining local representation for government correspondence.
There are also ongoing costs and tasks. The business must budget for yearly statutory audits and handle continuous corporate reporting to the government. This method offers complete independence, but it also comes with heavy administrative responsibilities that never end.
Many companies hire contractors in Vietnam to get a project started fast to avoid the need to create a local company. However, this strategy carries a major legal risk. The government may decide that the contractor is actually an employee. This is called misclassification. Several factors can trigger this.
If the company controls the worker’s daily schedule, supervises their methods closely, or requires them to work only for that one company, the arrangement looks like a job, not independent contracting. If the labor authorities rule that the worker was an employee, the consequences are severe.
The company will be forced to pay all the missed social insurance contributions, plus any back taxes, along with substantial fines. To reduce this risk, the work contract must be very clear, and the company must avoid managing the contractor like a staff member.
Staffing agencies can place personnel on their own payroll for temporary or variable demand. This is useful for short-term coverage, pilot projects, or bridging needs while an entity is being formed.
Since the agency is the legal employer, the arrangement is not ideal for long-term roles, senior positions, or situations where your organization needs full control over policies and progression. Many firms use an agency for the initial period and transition to EOR or a local entity as the team grows.
Vietnam is one of Asia’s most practical locations for building international teams. It offers skilled professionals, competitive labor costs, and improved English proficiency for global employers. Working with an EOR helps companies hire in Vietnam without setting up a local entity.
A trusted EOR provider such as RemotePeople can manage payroll, compliance, and contracts so businesses can focus on operations. For companies expanding in Southeast Asia, Vietnam remains a cost-effective and reliable base for compliant hiring.
