01 · Overview
What an Employer of Record does in Vietnam
An Employer of Record arrangement may allow a foreign company to hire an employee in Vietnam without first establishing its own local employing entity. The EOR becomes the local legal employer under the agreed structure, while the client continues to direct the employee’s work.
This is an employment administration model—not a transfer of business management. Your company normally chooses the employee, defines the role, sets priorities, manages performance, and makes business decisions. The EOR supports local employment documentation, payroll, statutory processes, employee administration, and other activities included in the written scope.
Start by evaluating an EOR arrangement.
Evaluate payroll administration or PEO support.
Compare EOR with establishing your own local entity.
02 · Responsibility model
One employee, two clearly defined operating roles
Strong EOR engagements document the responsibility boundary before onboarding. Each recurring activity should have a named owner, input, deadline, approval point, and output.
03 · Employment basics
Facts to confirm for each employee
Vietnam’s Labour Code provides the general framework, but the correct employment terms depend on the employee, role, work location, working arrangement, and applicable instruments. Confirm the following in writing during onboarding.
Written terms
Confirm the employing entity, role, workplace, compensation, working time, benefits, start date, and required documents.
Schedule and overtime
Normal working time is generally capped at 8 hours per day and 48 hours per week. The actual schedule and any overtime process should be documented.
12 working days
The baseline for normal working conditions, plus one day for every five years of service. Heavier or hazardous work carries 14 or 16 days.
12 paid days from July 2026
Vietnamese Culture Day on 24 November joined the calendar from 1 July 2026. Foreign employees also get their home country’s New Year and National Day.
6 to 180 days
Capped by role: 180 days for managers, 60 for degree-level roles, 30 for intermediate, 6 working days for others. Pay at least 85% of the role’s salary.
45 / 30 / 3 days’ notice
By contract type, on lawful grounds only. Severance is half a month per year not covered by unemployment insurance; one month (minimum two) on redundancy.
21.5% employer, 10.5% employee
Social, health and unemployment insurance, plus a 2% union fund paid by the employer. Social and health insurance stop at ₫50.6m a month from 1 July 2026.
Five bands, 5% to 35%
From tax year 2026, after a ₫15.5m personal and ₫6.2m per dependant monthly deduction. Non-residents pay a flat 20%.
04 · Payroll & records
Make the monthly process visible
A reliable payroll process is built around controlled inputs, clear cut-offs, documented approvals, and usable outputs. Software may support coordination, but experienced professionals remain responsible for review, communication, and execution.
Practical outputs to request
| Process | Example output | Control question |
|---|---|---|
| Payroll input | Input template and cut-off calendar | Who may submit or approve a change? |
| Payroll review | Payroll register and variance summary | How are changes from the prior month explained? |
| Employee pay | Payslip and payment record | How are employee questions tracked? |
| Statutory administration | Submission or status records, where applicable | Which records can the client receive? |
| Employee data | Employee file and change history | How is access controlled and data returned? |
05 · Employee lifecycle
Plan beyond the first payroll
Evaluate how the provider supports the complete employment lifecycle. The exact documents and steps vary, so the final checklist should be confirmed for each employee.
Before start
- Employee and role information
- Document checklist and review
- Employment terms and approvals
- Payroll and benefit setup
During employment
- Monthly payroll and payslips
- Leave and claims administration
- Employee changes and amendments
- Employee support and escalation
At exit
- Documented review before action
- Notice and offboarding timeline
- Final payroll and records
- Data, asset and access handover
06 · Cost structure
Compare the complete employment cost
A headline EOR fee is only one part of the cost. Ask every provider to price the same employee scenario and separate recurring employment costs from one-time or conditional items.
Confirm the funding currency, invoicing timeline, exchange-rate methodology, deposit treatment, refund process, and fees that may apply during onboarding, changes, or offboarding.
Worked example: a Region I employee on ₫40,000,000 gross costs the employer about ₫9,400,000 more in statutory contributions, about US$1,900 a month in total before the EOR fee. Published fees then range from US$152 (percentage-based) to US$599 (flat) at this salary.
Compare fees at three salary levels07 · Provider selection
Seven questions for a useful proposal
- 01Which Vietnam entity will employ the person?
Ask for the legal entity name and the role it performs.
- 02What is included in the written scope?
Map payroll, tax coordination, statutory insurance, employee support, leave, claims, and offboarding.
- 03Who are the operating contacts?
Identify experienced contacts, backups, response expectations, and escalation routes.
- 04Which inputs and approvals does the client own?
Clarify payroll cut-offs, change controls, and consequences of late inputs.
- 05Which files will we receive?
Request examples of reports, payslips, trackers, checklists, and status records.
- 06How is the employee supported?
Understand the employee contact channel, response process, and language coverage.
- 07How does the arrangement end or transfer?
Review notice dependencies, final payroll, data return, and transition support.
08 · Alternatives
EOR is not the answer to every Vietnam hiring need
EOR / payroll staffing
No local employing entity
The EOR supports local employment administration; the client manages daily work and business priorities.Payroll administration / PEO
Your entity remains employer
A payroll provider supports agreed payroll and HR administration while your company remains the legal employer.Own Vietnam entity
A permanent local operation
Your company establishes and operates a local entity, directly employs its workforce, and maintains the required local functions and processes.The final service model and scope should be assessed using the company’s intended activities, workforce plan, entity status, employee circumstances, and applicable requirements.
Sources & review notes
Built for practical orientation, not formal advice
This guide summarizes general operating considerations. It does not replace advice on a specific employment arrangement. Rules and administrative practice can change; verify current requirements before making employment decisions.
Next step
Turn your hiring plan into a provider-ready brief.
Prepare the role, location, proposed compensation, nationality, target start date, benefits, headcount plan, and required HR outputs. Send the same written brief to each provider so their proposed scope, responsibilities, outputs, and fees can be compared on the same basis.
Independent hiring research · Vietnam