Hire in Vietnam Without a Local Entity - EOR Made Simple
Want to hire Vietnamese employees but not ready to set up a company? Our Employer of Record service lets you onboard local staff compliantly under our legal entity. We handle payroll, social insurance, labor contracts, and tax compliance - you manage the work.
Our Process
Clear, transparent steps to achieve your goals
Scope and Agreement
1-2 daysWe confirm employee details, salary structure, role, and engagement terms. You review and sign the EOR master service agreement.
Employment Contract and Onboarding
3-5 daysWe draft a compliant Vietnamese labor contract, register the employee with social insurance authorities, and complete onboarding paperwork.
Payroll and Compliance Setup
1-2 daysWe set up monthly payroll processing, personal income tax (PIT) withholding, and mandatory social, health, and unemployment insurance contributions.
Ongoing HR and Reporting
OngoingMonthly payroll runs, payslips, tax filings, and labor reporting. We handle HR issues, leave tracking, and termination procedures when needed.
What's Included
What You'll Need
Don't have all documents? No problem! We'll guide you through obtaining everything you need.
Key Benefits
Frequently Asked Questions
What is an Employer of Record (EOR) in Vietnam?
An EOR is a licensed local company that becomes the legal employer of your staff on paper. You direct the employee's work, but the EOR handles the labor contract, payroll, tax, and social insurance obligations under Vietnamese law. This lets foreign companies hire in Vietnam without first incorporating a local entity.
How is EOR different from a staffing agency?
A staffing agency recruits and places workers. An EOR employs workers on your behalf on a permanent or long-term basis. With an EOR, you choose who you want to hire - we simply provide the legal framework to employ them compliantly.
What are the mandatory employer contributions in Vietnam?
Under Vietnamese law, employers must contribute approximately 21.5% of gross salary to social insurance (17.5%), health insurance (3%), and unemployment insurance (1%). Employee contributions total 10.5%. These are calculated on capped salary bases set by the government and must be registered within 30 days of employment start.
How is personal income tax handled?
We withhold and remit PIT on behalf of each employee each month. Vietnam uses a progressive PIT scale from 5% to 35% on employment income, with deductions for personal and dependant allowances. At year-end, we handle annual PIT finalization and issue tax certificates to employees.
Can I use EOR for just one or two employees?
Yes. EOR is particularly cost-effective for small teams or test hires. There is no minimum headcount. It is commonly used for a first Vietnam hire before deciding whether to set up a full entity.
What types of employment contracts are used?
Vietnamese law recognizes definite-term contracts (up to 36 months) and indefinite-term contracts. Under the Labor Code 2019, if a definite-term contract is renewed more than once, it typically must convert to indefinite-term. We advise on the right structure based on your engagement plan.
How does termination work under EOR?
We follow Vietnamese Labor Code requirements for notice periods and severance. Employees with 12+ months of service are entitled to severance pay (0.5 months gross salary per year of service up to the social insurance contribution cap). We manage the process to minimize risk and ensure full compliance.
When should I switch from EOR to my own entity?
Most clients transition to their own entity once they have 5 or more employees, need to sign local contracts in their own name, require a business license for their activity, or want greater control over HR policies. We also offer company setup services to make that transition straightforward.
Our Guarantee
We guarantee all employment contracts, payroll filings, and social insurance registrations are fully compliant with Vietnamese law. If a penalty arises due to our processing error, we cover it in full.
Ready to Get Started?
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