Employer of Record (EOR) in Vietnam
Employer of Record (EOR) in Vietnam allows businesses to hire employees without setting up a local entity. Vietnam has a labor force of over 52 million people, one of the largest in Southeast Asia. The country is well known for its growing talent pool in manufacturing, IT, engineering, and business services. Many international companies choose EOR services in Vietnam to manage employment contracts, payroll, taxes, and compliance with local labor laws, which can be challenging due to frequent legislative updates. Using EOR, businesses can expand faster, minimize risks, and ensure compliance with Vietnamese employment regulations.
About Vietnam
Vietnam is a fast-growing economy located in Southeast Asia, bordered by China, Laos, and Cambodia, with a long coastline along the South China Sea. The country has become a top destination for foreign investment, particularly in manufacturing, electronics, textiles, software development, and agriculture.
Over the past two decades, Vietnam has transformed into one of Asia’s most dynamic emerging markets, supported by a young population, competitive wages, and government-backed economic reforms. The workforce is relatively young, with a median age under 33, providing a strong foundation for industries requiring skilled labor and technical knowledge.
Vietnam’s strategic location, membership in multiple trade agreements, and improving infrastructure make it attractive for companies seeking to enter Asian markets. The government actively promotes digitalization and workforce upskilling, creating opportunities for international firms to hire through EOR solutions.
Employment Terms and Regulations
Types of Contracts
- Indefinite-term contracts
- Definite-term contracts (12–36 months)
- Seasonal or specific-job contracts (under 12 months)
Working Hours
- Standard: 48 hours per week (8 hours/day, 6 days/week)
- Overtime capped at 40 hours per month, 200 hours/year (exceptions: up to 300 hours/year)
Minimum Wage (2025)
- Varies by region: approx. VND 3.25M – 4.68M per month (~USD 130–185)
Probation Period
6–60 days depending on job level
Taxation and Contributions
- Employers withhold Personal Income Tax (PIT): progressive rates from 5%–35%
- Social insurance contributions apply to Vietnamese employees; expatriates also covered under certain conditions
Types of Leave
Annual Leave:
12–16 days (increases with seniority)
Public Holidays:
11 days per year
Maternity Leave:
6 months
Paternity Leave:
5–14 days
Sick Leave:
Covered under social insurance (up to 30–70 days depending on seniority and job type)
Employee Benefits
- Mandatory social insurance (pension, sickness, maternity, occupational risks, unemployment)
- Paid annual leave
- Health insurance
- Public holidays and Tet (Lunar New Year) leave
Termination Process
- Notice period: 30 days (fixed-term contract), 45 days (indefinite contract)
- Dismissal allowed only under specific legal grounds
- Severance pay: half a month’s salary per year of service if eligible
Employer Taxes
Social Insurance: 17.5%
Health Insurance: 3%
Unemployment Insurance: 1%
Total Employer Contributions: ~21.5% of gross salary
EMPLOYER TAXES
21.5% (Estimated)
FAQ's
How an Employer of Record Manages Employment in Vietnam
Establishing a legal entity in Vietnam can be costly and time-consuming. We simplify the process by employing and paying your Vietnamese talent on your behalf. We handle employment contracts, social insurance registrations, and payroll in compliance with Vietnamese labor law. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent in Vietnam without setting up a local subsidiary.
Payment Processes for Employees in Vietnam
We manage payroll for your Vietnam-based workforce. Employee hours, leave, holidays, bonuses, and social insurance contributions are calculated in accordance with Vietnamese requirements. Invoicing is handled monthly in your preferred currency, including Euros (EUR), US Dollars (USD), or British Pounds (GBP), ensuring your employees receive their salaries promptly in Vietnamese Dong (VND).
Full-time Employees vs. Independent Contractors in Vietnam
Independent contractors in Vietnam engage with multiple companies and are self-employed, while full-time employees work exclusively for one employer and receive statutory benefits such as social insurance coverage, paid leave, and severance protections. Misclassifying employees as contractors carries legal and financial risk under Vietnamese labor law. Partnering with an EOR for compliant hiring and payment removes that risk.
Reliable Employee Support in Vietnam
Our platform offers accessible support for employers and employees with inquiries about benefits, contracts, and employment in Vietnam. Every client is assigned a dedicated account manager who serves as the primary contact for HR and compliance assistance throughout the employment relationship.
