Employer of Record Vietnam: Hire Compliantly Without an Entity in 2026
An Employer of Record Vietnam is a locally licensed company that legally employs your staff so you can hire in Vietnam without registering an LLC. The EOR runs payroll, handles Social Insurance, Health Insurance, Unemployment Insurance and the Trade Union fee, withholds monthly Personal Income Tax, sponsors Work Permits and the Temporary Residence Card, and ensures Labour Code 2019 compliance.
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Introduction
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 Vietnamese-language employment contract, monthly payroll, Social Insurance (SI), Health Insurance (HI) and Unemployment Insurance (UI) contributions through Vietnam Social Security, Trade Union fee, monthly Personal Income Tax (PIT) withholding through the General Department of Taxation, Work Permit and Temporary Residence Card sponsorship through the Ministry of Labour, Invalids and Social Affairs (MOLISA) and the Ministry of Public Security Immigration, and full compliance with the Labour Code 2019 and Decree 145/2020/ND-CP. You hire in Vietnam in days, not the months it takes to register your own LLC or branch.
Quick Facts: Hiring in Vietnam (2026)
If you want to hire in Vietnam, you have two real options: engage an Employer of Record Vietnam partner, or register your own Vietnamese LLC, joint stock company or branch. The right choice depends on how many people you plan to hire, how fast you need them onboarded, and how much regulatory burden you are willing to carry directly. The rest of this guide compares both routes, walks through every statutory obligation that applies in 2026 — including the VND 5,310,000 Region 1 minimum wage from 1 January 2026 — and shows you exactly what an EOR partner takes off your plate.
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.
EOR Vietnam vs. Setting Up a Local Entity
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.
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.
Employment Landscape
Market Overview (2026 Projections)
Vietnam is Southeast Asia's fastest-growing manufacturing economy and a top destination for "China+1" supply-chain diversification. The 2026 theme is industrial expansion and digital-economy growth, anchored by FDI inflows and government infrastructure spending. GDP is projected at USD 510 billion in 2026, growing 6.0–6.5%. The Dong trades at VND 24,800–25,500 per USD. Tech and engineering wages sit at VND 25,000,000–VND 80,000,000 per month, with senior tech roles in Hanoi and HCMC reaching VND 100M+.
Where You'll Be Hiring
Hanoi and northern industrial corridor (Bac Ninh, Bac Giang, Hai Phong) — The largest manufacturing concentration. Samsung, Foxconn, LG and a deep electronics supplier base. Strong engineering and supply-chain talent.
Ho Chi Minh City and southern industrial corridor (Binh Duong, Dong Nai, Long An) — The commercial and tech capital. Concentration of finance, technology, FMCG and consumer brands. The Saigon High-Tech Park is a key tech corridor.
Da Nang and central Vietnam — Growing tech and tourism hub, strong English-speaking talent pool.
Industrial parks and EPZs — Special tax incentives apply in qualified Industrial Parks (KCN), Export Processing Zones (KCX) and Economic Zones (KKT). Many manufacturers operate from these zones.
Why Singapore-Headquartered Companies Hire Here
Many Singapore-headquartered companies use an Employer of Record in Vietnam to hire engineers, developers, country managers and supply-chain leads in Hanoi, Ho Chi Minh City or the industrial corridors without setting up a separate Vietnam LLC. The EOR sponsors the Work Permit and Temporary Residence Card, manages Vietnam Social Security and Health Insurance enrolment, and applies the correct regional minimum wage — none of which the Singapore parent entity can do directly. This keeps the Singapore entity clean while you build a Vietnam team.
Laws & Compliance
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), with overall labour policy set by the Ministry of Labour, Invalids and Social Affairs (MOLISA). Social insurance is administered by Vietnam Social Security (VSS).
Critical Compliance Framework (2026)
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, 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.
Payroll & Tax
Vietnamese payroll runs through three statutory bodies. Vietnam Social Security (VSS) administers Social Insurance, Health Insurance and Unemployment Insurance covering retirement, sickness, maternity, work injury, healthcare and unemployment benefits. The General Department of Taxation (GDT) collects monthly Personal Income Tax (PIT) through employer withholding and annual filing. The Vietnam General Confederation of Labour collects the Trade Union fee, payable by the employer regardless of whether a trade union exists at the workplace. An Employer of Record registers your workforce with all of these on your behalf.
Employer Statutory Contributions (2026)
Foreign Employees and Statutory Insurance
Foreign employees holding a valid Work Permit and an indefinite or 12+ month employment contract are subject to Social Insurance at the same rates as Vietnamese nationals (employer 17.5%, employee 8%) and Health Insurance (employer 3%, employee 1.5%). Unemployment Insurance does not apply to foreign employees. Bilateral social security agreements may exempt nationals of certain countries (Korea, Japan have such agreements) — an EOR confirms eligibility per worker.
Minimum Wage (2026)
Vietnam operates a four-region minimum wage. Effective 1 January 2026:
- Region 1 (urban districts of Hanoi, HCMC, Hai Phong, Da Nang and selected industrial-park districts): VND 5,310,000/month
- Region 2: VND 4,720,000/month
- Region 3: VND 4,140,000/month
- Region 4: VND 3,700,000/month
The hourly minimum wage is calculated proportionally. An Employer of Record applies the correct region based on where the employee is engaged.
Vietnamese personal income tax is administered by the General Department of Taxation (GDT) under the Personal Income Tax Law. Tax is progressive up to 35% for residents on employment income. The first VND 11,000,000 per month is the personal allowance (deducted before tax); each dependant adds VND 4,400,000 deduction. Tax is withheld monthly by the employer and remitted by the 20th of the following month, with annual finalisation typically by 31 March. Non-residents (in Vietnam fewer than 183 days in a 12-month period) are taxed at a flat 20% on Vietnam-sourced employment income. An Employer of Record calculates monthly PIT, files monthly returns to GDT, and issues the annual income confirmation to the employee for self-finalisation.
2026 PIT Bands (Resident, Monthly Taxable Income)
The bands shown are net taxable income after the personal allowance (VND 11M/month) and dependant allowances (VND 4.4M per dependant) are deducted. Reform proposals to raise the personal allowance threshold and update the band structure are under active review by the National Assembly.
Working Hours & Leave Entitlements
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.
Work Permits & Visas
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.
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. If the employee brings dependants, the EOR coordinates dependant TRC applications.
Work Permit and Visa Categories
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.
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Termination & Employee Exit
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.
Why AYP
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 from $488 per employee per month, with no hidden setup fees and no surprise compliance charges. You see the full cost before you sign.
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. No procurement loop for each new country.
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.
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Questions?
We're here to help
An Employer of Record in Vietnam is a locally licensed company that legally employs staff on your behalf. You direct the work and manage the team day-to-day. The EOR holds the bilingual Vietnamese-English employment contract, runs payroll, makes Social Insurance, Health Insurance, Unemployment Insurance and Trade Union contributions, withholds monthly Personal Income Tax, and ensures compliance with the Labour Code 2019. You hire in Vietnam without registering your own LLC or branch.
EOR Vietnam from AYP starts at $488 per employee per month. The fee covers the local employment contract, monthly payroll, Social Insurance, Health Insurance, Unemployment Insurance and Trade Union contributions, monthly PIT withholding and remittance, Work Permit and Temporary Residence Card sponsorship for foreign hires, and ongoing compliance with the Labour Code. There are no separate setup fees and no per-filing surcharges.
From 1 January 2026, the Region 1 minimum wage rose to VND 5,310,000 per month, with corresponding increases to Regions 2, 3 and 4 (VND 4,720,000, VND 4,140,000 and VND 3,700,000 respectively). Region 1 covers the urban districts of Hanoi, Ho Chi Minh City, Hai Phong, Da Nang and selected industrial-park districts. An Employer of Record applies the correct regional rate and recalculates Social Insurance, Health Insurance and Unemployment Insurance contributions on the updated salary base.
Vietnamese employees require Social Insurance contributions of 17.5 percent employer plus 8 percent employee, Health Insurance at 3 percent employer plus 1.5 percent employee, Unemployment Insurance at 1 percent each side, and a Trade Union fee of 2 percent paid by the employer. Total typical employer load is about 23.5 percent, capped at 20 times the regional minimum wage. The EOR calculates, deducts and remits each one each month.
Yes, with conditions. Foreign employees holding a valid Work Permit and an indefinite or 12+ month employment contract are subject to Social Insurance at the same rates as Vietnamese nationals, plus Health Insurance. Unemployment Insurance does not apply to foreign employees. Bilateral social security agreements may exempt nationals of certain countries (such as Korea or Japan) from one or both contributions. An Employer of Record confirms eligibility and applies any treaty exemption per worker.
Yes. The EOR is the registered employer with the relevant Department of Labour, Invalids and Social Affairs (DOLISA), prepares and submits the Work Permit application, sponsors the Temporary Residence Card with the Immigration Department, and enrols the foreign worker in Social Insurance and Health Insurance. The EOR also manages document legalisation, notarisation and translation requirements, and coordinates dependant TRC applications for spouse and children.
An Employer of Record manages termination in line with the Labour Code 2019, including statutory notice periods of 45 days, 30 days or 3 working days based on contract type, calculation of Severance Allowance for pre-2009 service or Job Loss Allowance for restructuring at 1 month per year (minimum 2 months), and full documentation. The EOR carries the legal employer position, which means it absorbs Labour Court exposure on your behalf when terminations are handled correctly.
Singapore-headquartered regional teams use an Employer of Record in Vietnam to hire engineers, developers, country managers and supply-chain leads in Hanoi, Ho Chi Minh City or the industrial corridors without setting up a separate Vietnam LLC. The EOR holds the local employment contract, sponsors Work Permits and Temporary Residence Cards for non-Vietnamese hires, applies the correct regional minimum wage, and handles Social Insurance, Health Insurance, Unemployment Insurance and PIT filings. Your Singapore entity stays clean while you build a Vietnam team.
More questions?
We're here to help. Whether it's pricing details, country-specific compliance, or how we compare to other EORs, let's talk.
