HR, PEO & Employer of Record (EOR) Services in Vietnam

Introduction

Vietnam has rapidly emerged as one of Asia’s most attractive markets for global expansion, combining strong economic growth with a young, highly skilled workforce. Its strategic location in Southeast Asia, competitive labor costs, and extensive trade agreements make it a prime hub for manufacturing, technology, and services. With a business-friendly investment climate and rising consumer demand, Vietnam offers companies an ideal platform to scale and access regional opportunities.

EOR & PEO Solutions in Vietnam

If you’re looking to hire employees in Vietnam without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Vietnam acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Vietnam quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Vietnam?

An Employer of Record Vietnam (also known as an EOR provider) enables businesses to hire and onboard Vietnam employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Vietnam, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Vietnam hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Vietnam

By using an EOR solution, companies can confidently build their team in Vietnam, access top talent in Vietnam, and stay focused on business growth — without getting tangled in bureaucracy.

Hiring in Vietnam

Vietnam is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Vietnam successfully, it’s important to understand your options especially when you don’t have a legal entity in Vietnam.

That’s where using an Employer of Record in Vietnam makes all the difference.

Your Hiring Options in Vietnam

Businesses have two main paths to hire employees in Vietnam:

The second option is faster, lower-risk, and ideal for companies that want to test the Vietnamese market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Vietnam?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Vietnam

Understanding how employment in Vietnam works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Vietnamese labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Vietnam to handle these responsibilities with confidence.

Employment Contracts in Vietnam

All employees in Vietnam must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Vietnam, and are usually signed before or on the first day of work.

By working with a Vietnam employer of record, you can ensure that all employment contracts in Vietnam are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Vietnam involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Vietnam handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Vietnamese labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Vietnam receives all required benefits and that your business remains fully compliant with Vietnamese employment law.

Termination & Notice Periods

Ending an employment contract in Vietnam requires strict adherence to the Labor Code, which governs notice periods, valid grounds for termination, and severance obligations. An Employer of Record (EOR) ensures that all terminations are handled in full compliance with these regulations, including calculating appropriate notice periods and severance pay, while minimizing legal and financial risks for employers. This approach allows businesses to manage workforce transitions smoothly and professionally, without navigating complex local labor laws themselves.

Visas & Permits in Vietnam

If you’re planning to hire employees in Vietnam or bring in foreign talent, understanding Vietnam’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Vietnam makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Vietnam with confidence.

Work Permits for Foreign Employees in Vietnam

Foreign nationals who plan to work in Vietnam must secure the appropriate work and residence permits, a process that can be complex due to local labor and immigration regulations. An Employer of Record (EOR) streamlines this process by managing all permit applications, liaising with government authorities, and ensuring compliance with Vietnamese labor law. This allows companies to onboard international talent quickly and legally, while giving employees confidence that their employment status and rights are fully protected.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Vietnam, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Vietnam or send international staff temporarily, an EOR Vietnam solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Vietnam, foreign companies typically need to register a legal entity in Vietnam and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Vietnamese labor laws.

Alternatively, you can use an EOR in Vietnam to bypass the need for a local entity. The Vietnam employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Vietnam.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Vietnam, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Vietnam

How long does it take to hire an employee through an EOR in Vietnam?

The hiring process through an EOR in Vietnam typically takes between 1 to 4 weeks, depending on the complexity of the employment contract and any visa or permit requirements

What types of employees can be hired via an EOR in Vietnam?

An EOR can engage both local Vietnamese nationals and foreign employees, provided proper contracts, work permits, and visas are in place. This flexibility allows businesses to tap into both domestic and international talent.

Is using an EOR in Vietnam legal?

Yes, using an EOR in Vietnam is entirely legal. EOR services operate within the framework of Vietnamese labor laws and regulations, offering a compliant solution for businesses looking to hire employees without setting up a local legal entity.

What are the risks of employee misclassification in Vietnam?

Misclassifying employees as independent contractors to deny them access to critical benefits like health care can lead to legal consequences. Vietnamese authorities may consider any case of misclassification as deliberate and may impose fines or order you to pay damages for any entitlements a worker should have been entitled to.

How do I choose the right EOR provider in Vietnam?

When selecting an EOR provider in Vietnam, consider factors such as geographic coverage, industry specialization, service level, compliance expertise, and cost structure. It's essential to choose a provider with a strong understanding of Vietnamese labor laws and a track record of reliable service.