EOR Vietnam: Employer of Record Services to Hire Without a Local Entity

An Employer of Record in Vietnam is a locally licensed company that legally employs your workers on your behalf. You direct the work, set the salary, and manage the team day-to-day. The EOR handles the bilingual Vietnamese-English employment contract, monthly payroll, Social Insurance (Bao Hiem Xa Hoi) contributions, Health Insurance (Bao Hiem Y Te) contributions, Unemployment Insurance (Bao Hiem That Nghiep) contributions, the 2% Trade Union fee, monthly Personal Income Tax (PIT) withholding through the General Department of Taxation, Work Permit and Temporary Residence Card sponsorship through the Department of Labour, Invalids and Social Affairs (DOLISA) and the Immigration Department, and full compliance with the Labour Code 2019 (Law 45/2019/QH14) and Decree 145/2020/ND-CP. You hire in Vietnam in days, not the months it takes to register your own LLC or branch.

What’s New in 2026

The Region 1 minimum wage rose to VND 5,310,000 per month from 1 January 2026, with corresponding increases to Regions 2 (VND 4,720,000), 3 (VND 4,140,000) and 4 (VND 3,700,000). Region 1 covers urban Hanoi, Ho Chi Minh City, Hai Phong, Da Nang and selected industrial-park districts. Social Insurance, Health Insurance and Unemployment Insurance contribution bases adjust to the new minimums. Reform proposals to update Personal Income Tax bands are under National Assembly review through 2026. An Employer of Record applies all changes automatically.

Hire in Vietnam in 60 Seconds

• Hire without an entity: An EOR holds the local company so you don’t have to register an LLC or branch
• Statutory load: ~21.5% employer (SI 17.5% + HI 3% + UI 1%) plus 2% Trade Union fee, capped at 20× the regional minimum wage
• Foreign workers: EOR sponsors Work Permit through DOLISA and Temporary Residence Card through the Immigration Department; SI applies, UI does not
• Standard work week: 48 hours under the Labour Code 2019
• Severance: Job Loss Allowance at 1 month per year (min 2 months) for restructuring; UI covers post-2009 service

Quick Facts: Hiring in Vietnam (2026)

Who Uses an EOR in Vietnam?

Companies using an Employer of Record in Vietnam typically fall into three groups. The first is regional teams headquartered in Singapore who need a Vietnam payroll for one to ten staff without registering a separate LLC. The second is US, European, Korean and Japanese manufacturers and tech firms hiring engineers, supply-chain managers and country managers in Hanoi, Ho Chi Minh City or the industrial corridors. The third is global SaaS, fintech and gaming companies hiring developers, content and customer-success staff in Vietnam’s growing digital economy. Many pair EOR Singapore with EOR Vietnam to cover the cross-border ASEAN structure.

EOR Vietnam vs. Setting Up a Local Entity: Which Is Right for You?

The short version: if you are hiring fewer than thirty people in Vietnam, or you need someone working before quarter-end, an EOR is the route. If you are committing to Vietnam as a customer-facing limited company with local invoicing or planning a factory in an industrial park, a Vietnamese LLC is the right long-term move. Many of our clients start with EOR and transition once headcount and revenue justify their own entity. See our Professional Employer Organisation (PEO) services for the in-between option where you have your own entity but want us to run HR.

Key Industries Hiring Through EOR Vietnam in 2026

• Manufacturing and supply chain — Korean, Japanese, US and EU OEMs hiring engineering, quality, supply-chain and operations staff in Bac Ninh, Bac Giang, Binh Duong and Dong Nai industrial parks under “China+1” diversification.
• Technology and SaaS — Foreign tech firms hiring developers, product, customer-success and country managers in Hanoi and Ho Chi Minh City. Vietnam has one of Asia’s largest English-speaking developer pools.
• Renewable energy and EV supply chain — Solar, wind, EV and battery firms hiring project managers, engineers and stakeholder leads.
• Financial services and fintech — Banks, insurers, fintech and payments operators hiring back-office, claims and product staff.
• Retail, e-commerce and FMCG — Cross-border platforms, FMCG brands and retailers hiring country managers, marketing and operations leads.

Vietnamese employment is governed primarily by the Labour Code 2019 (Law 45/2019/QH14), effective 1 January 2021. Implementation details sit in Decree 145/2020/ND-CP and supporting circulars. Industrial disputes go through grassroots mediation, the People’s Committee mediator, and the Labour Court (a division of the People’s Court). Workplace safety obligations sit under the Law on Occupational Safety and Hygiene 2015. Tax administration runs through the Personal Income Tax Law, enforced by the General Department of Taxation (GDT). Overall labour policy is set by the Ministry of Labour, Invalids and Social Affairs (MOLISA). Social insurance is administered by Vietnam Social Security (VSS).

Critical Compliance Framework (2026)

Common Mistakes Foreign Employers Make in Vietnam

• Forgetting the 2% Trade Union fee — Payable by the employer regardless of whether a trade union exists at the workplace. Many overseas companies miss this in their cost model and budget only for SI, HI and UI.
• Misclassifying contract types — Indefinite-term, 12–36 month, and under-12-month definite contracts each have different notice periods (45 days, 30 days, 3 days) and different conversion rules. Mis-typing the contract creates termination risk.
• Treating Severance Allowance and Job Loss Allowance as the same — They’re different. Severance Allowance applies to lawful termination for service before 2009 (0.5 month/year). Job Loss Allowance applies to structural redundancy (1 month/year, minimum 2 months). For service from 2009 onward, Unemployment Insurance covers the employee instead.
• Underestimating Tet timing — Lunar New Year shuts most Vietnamese operations for 7–10 days. Start dates, payroll cycles and onboarding plans should account for this each January/February.

What an EOR Vietnam Partner is Legally Responsible For

When an Employer of Record is the legal employer in Vietnam, the EOR carries direct responsibility for the bilingual Vietnamese-English employment contract, monthly statutory contributions to Social Insurance, Health Insurance, Unemployment Insurance and Trade Union fee, monthly PIT withholding and remittance to the General Department of Taxation, Work Permit and Temporary Residence Card sponsorship and renewal, statutory leave administration, payslip issuance under the Labour Code, retention of employment records for the statutory period, response to any VSS or MOLISA inspection, and conduct of any termination in line with the Labour Code 2019. Your company directs the work and pays the EOR a fee.

Working hours, overtime, leave entitlements and public holidays in Vietnam are set by the Labour Code 2019 and Decree 145/2020/ND-CP. The Ministry of Labour, Invalids and Social Affairs publishes the annual public holiday list and enforces minimum standards.

Working Hours and Overtime (2026)

The standard work week is 48 hours, structured as 8 hours per day for 6 days, or with reduced daily hours over a 5.5-day week. Daily working time is capped at 10 hours including overtime. A weekly rest of at least 24 consecutive hours is mandatory.

Maximum overtime is 40 hours per month and 200 hours per year (extendable to 300 hours per year in specific industries with employee consent and notification to the labour authority). Overtime pay is at 1.5× the basic hourly rate on a working day, 2× on a weekly rest day, and 3× on a public holiday or paid annual leave day. Night work (10pm to 6am) attracts a 30% premium on top.

Leave Entitlements

Public Holidays 2026

Vietnam observes 11 paid public holidays in 2026: New Year’s Day (1 day), Lunar New Year / Tết (5 days), Hung Kings’ Commemoration Day (1 day, 10th day of 3rd lunar month), Reunification Day (30 April), International Labour Day (1 May), and National Day (2–3 September, 2 days under the 2021 amendment). Where a holiday falls on a weekend, a substitute weekday is granted. Tết is the major operational consideration — most businesses shut for 7–10 days around the holiday.

To hire a foreign national in Vietnam, the employer obtains a Work Permit through the Department of Labour, Invalids and Social Affairs (DOLISA) of the relevant province, then sponsors a Temporary Residence Card (TRC) through the Immigration Department of the Ministry of Public Security. When you use an Employer of Record in Vietnam, the EOR is the registered sponsor — your overseas company does not apply directly. See our Asia Mobility service for standalone visa support in markets where AYP is not your EOR.

How EOR Vietnam Handles Work Permit Sponsorship

The EOR is the registered employer with DOLISA, holds an Investment Registration Certificate and Enterprise Registration Certificate, prepares and submits the Work Permit application along with the employer’s labour need explanation, sponsors the Temporary Residence Card with the Immigration Department, enrols the foreign worker in Social Insurance and Health Insurance, and renews permits on schedule. The Work Permit application requires demonstration that the role cannot be filled by a Vietnamese national, supporting documents legalised at a Vietnamese embassy abroad, and a health certificate. An EOR handles document preparation, translation, notarisation and submission. If the employee brings dependants, the EOR coordinates dependant TRC applications.

Work Permit and Visa Categories

Termination in Vietnam requires a legitimate reason and proper procedure. Disputes go through grassroots mediation, then the People’s Committee mediator, and finally the Labour Court division of the People’s Court. Notice periods, severance pay and job-loss allowance are set by the Labour Code 2019 and Decree 145/2020/ND-CP. The Ministry of Labour, Invalids and Social Affairs enforces the standards. An Employer of Record absorbs this legal exposure on your behalf, manages the notice period, calculates statutory exit payments correctly, and documents the exit in line with the law.

Notice Period Requirements

Either party may pay wages in lieu of notice. Employees giving notice owe the same statutory minimums.

Severance and Job Loss Allowance

Vietnam uses two distinct exit payments. Severance Allowance (trợ cấp thôi việc) applies on lawful termination for reasons not covered by Unemployment Insurance — primarily for service prior to 2009 (when UI was introduced). The rate is 0.5 month’s salary per year of service. Job Loss Allowance (trợ cấp mất việc làm) applies in cases of structural redundancy or restructuring. The rate is 1 month’s salary per year of service, with a minimum of 2 months’ salary.

For service from 2009 onward, the employee’s protection comes from Unemployment Insurance, which is funded by the 1% employer + 1% employee contribution and pays out via Vietnam Social Security on qualifying termination.

Legitimate Grounds for Termination

The Labour Code 2019 allows termination for misconduct (after a documented warning sequence, with disciplinary procedures including a labour disciplinary council where serious), repeated underperformance over a reasonable period, redundancy or business restructuring (with prior consultation, notification to the labour authority for mass layoffs of 10+ employees, and Job Loss Allowance), serious natural disaster or pandemic, or expiry of fixed-term contract. Termination of pregnant workers, employees on maternity leave, and employees raising children under 12 months is generally prohibited. An Employer of Record manages the documentation, the warning process, and the exit calculation end to end.

AYP Group is the Employer of Record partner of choice for companies hiring across Asia-Pacific. Our Vietnam advantage rests on three things our clients tell us they don’t get elsewhere.

• Transparent, predictable pricing. EOR Vietnam with a clear monthly fee per employee, no hidden setup fees and no surprise compliance charges. You see the full cost before you sign. Full details on our pricing page.
• One partner, one contract, all of APAC. If you hire in Vietnam today and Singapore, Malaysia, the Philippines, Thailand, Indonesia or Hong Kong next quarter, it’s the same contract, the same account team, and the same monthly invoice.
• Ready for the 2026 changes. We applied the new Region 1 minimum wage of VND 5,310,000 from day one of January 2026, run the full Social Insurance, Health Insurance, Unemployment Insurance, Trade Union and PIT enrolments through Vietnam Social Security and the General Department of Taxation, and are recognised by DOLISA for Work Permit and Temporary Residence Card sponsorship. Compliance is not a feature — it’s the whole product. See About AYP for our company background and APAC footprint.

Glossary of Vietnam Employment Terms

• SI (Social Insurance) — Bao Hiem Xa Hoi. 17.5% employer + 8% employee, covering retirement, sickness, maternity and work injury.
• HI (Health Insurance) — Bao Hiem Y Te. 3% employer + 1.5% employee.
• UI (Unemployment Insurance) — Bao Hiem That Nghiep. 1% each side. Vietnamese nationals only.
• Trade Union Fee — 2% employer contribution to the Vietnam General Confederation of Labour, regardless of whether a workplace union exists.
• PIT (Personal Income Tax) — Progressive 5–35% on resident employment income.
• PND — Monthly withholding tax return filed by the employer to the General Department of Taxation.
• TRC (Temporary Residence Card) — Foreign worker residency permit, sponsored alongside the Work Permit.
• DOLISA — Department of Labour, Invalids and Social Affairs at the provincial level. Issues Work Permits.
• MOLISA — Ministry of Labour, Invalids and Social Affairs at the national level.
• VSS (Vietnam Social Security) — Administers SI, HI and UI.
• Tết — Lunar New Year. Major operational consideration — most businesses shut for 7–10 days.

Legal Disclaimer: This guide provides general information about Vietnam employment regulations and EOR services. Specific legal advice should be obtained from qualified professionals. Employment laws and regulations are subject to change.

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