AYP Group

EOR Vietnam: Complete 2026 Guide for Global Companies

EOR in Vietnam: compliant hiring and payroll in one of Southeast Asia's fastest-growing and most investment-attractive economies.

Official
currency

Vietnamese

Official
language

Vietnamese

Public
holidays

11 days (2026)

Employer
contributions

21.5% (SHUI + Union)

4.8

Google Reviews

Introduction EOR Employment landscape Laws & compliance Payroll & tax Working hours & Leave entitlements Work permit & Visas Termination & employee exit Why AYP

Introduction

Employer of Record Vietnam enables international companies to access Southeast Asia's fastest-growing manufacturing hub with compliant hiring solutions. This comprehensive guide covers Vietnam's regional minimum wages, social insurance requirements under the 2024 Social Insurance Law, and work permit regulations for 2026.

Employer of Record (EOR) Vietnam 2026

Why Choose EOR Vietnam in 2026

Vietnam has emerged as Asia's manufacturing powerhouse, with GDP growth forecast at 6.3-7.6% for 2026 according to World Bank and AMRO projections. The government's ambitious 10% growth target signals major infrastructure investment and economic reforms.

The Social Insurance Law 2024 (effective July 2025) introduced significant changes including expanded coverage, mandatory participation for foreign workers, and stricter enforcement penalties. An EOR manages these complex requirements while you focus on business growth.

Why the EOR Model is Critical in 2026

Economic Growth Leader - Vietnam is projected to be the fastest-growing economy in East Asia & Pacific in 2026, driven by electronics manufacturing, AI-driven semiconductor demand, and strong FDI inflows.
New Social Insurance Law - The 2024 Law expanded mandatory coverage to part-time workers and business managers, reduced pension eligibility from 20 to 15 years, and introduced 0.03%/day late payment penalties.
Regional Minimum Wage Increase - From January 2026, minimum wages increased 7.2% across all four regions under Decree 293/2025/ND-CP, affecting social insurance contribution bases.

Employment landscape

Vietnam's transformation into a global manufacturing hub continues to accelerate. The country achieved 8% GDP growth in 2025, its second-fastest pace in 15 years, driven by electronics exports and processing industry expansion.

Market Overview (2026 Projections)

Economic Indicator	2026 Data
GDP	~USD 470 billion
GDP Growth	6.3-7.6% (WB/AMRO); Govt target 10%
Population	~100 million
Labor Force	~52 million
Unemployment Rate	~2.3%
Currency	VND ~25,000-26,000 per USD
Inflation	~3.5-4.0%
Key Industries	Electronics, textiles, footwear, furniture

Market overview (2026 projections)

Economic Indicator	2026 Data
GDP	~USD 19 trillion
GDP Growth	4.5% (IMF forecast)
Population	~1.41 billion
Labor Force	~780 million
Urban Unemployment	~5.0%
Currency	CNY ~7.2-7.4 per USD
Inflation	~0.8% (gradual recovery)
Key Industries	Manufacturing, tech, services, EVs, renewables

Laws & compliance

Regional Minimum Wages (Effective January 1, 2026)

Under Decree 293/2025/ND-CP, Vietnam's four-region minimum wage system was updated with an average 7.2% increase. Employers must apply wages based on the employee's workplace location.

Region	Monthly Minimum (VND)	Hourly Minimum (VND)
Region I (Hanoi, HCMC, etc.)	5,310,000 (~USD 212)	25,500
Region II	4,730,000 (~USD 189)	22,700
Region III	4,140,000 (~USD 166)	19,900
Region IV	3,700,000 (~USD 148)	17,800

Social Insurance Requirements (2026)

Regulatory Area	Key Requirement & 2026 Updates
Social Insurance (SI)	Employer: 17.5% (14% retirement/death + 3% sickness/maternity + 0.5% occupational). Employee: 8%. Mandatory for contracts 1+ months. Foreign workers: 12+ month contracts required.
Health Insurance (HI)	Employer: 3%. Employee: 1.5%. Covers medical treatment at public facilities. Mandatory for contracts 3+ months.
Unemployment Insurance (UI)	Employer: 1%. Employee: 1%. Vietnamese employees only. New Employment Law 2025 expanded eligibility and capped benefits at 5x regional minimum wage.
Trade Union Fee	Employer: 2% of SI salary base. Employee: 1% (if union member). Mandatory regardless of whether company has union.
Contribution Cap	SI/HI: 20x common minimum salary (VND 46.8M). UI: 20x regional minimum wage (up to VND 106.2M depending on region).

Payroll & tax

Total Employer Costs (2026)

Contribution	Employer Rate	Employee Rate
Social Insurance	17.5%	8%
Health Insurance	3%	1.5%
Unemployment Insurance (VN only)	1%	1%
Trade Union Fee	2%	1% (if member)
TOTAL (Vietnamese)	23.5%	11.5%
TOTAL (Foreign)	20.5%	9.5%

Personal Income Tax (PIT) Rates

Vietnam applies progressive tax rates to residents (183+ days/year or registered permanent address). Non-residents are taxed at a flat 20% on Vietnam-sourced employment income.

Monthly Taxable Income (VND)	Tax Rate
Up to 5,000,000	5%
5,000,001 - 10,000,000	10%
10,000,001 - 18,000,000	15%
18,000,001 - 32,000,000	20%
32,000,001 - 52,000,000	25%
52,000,001 - 80,000,000	30%
Above 80,000,000	35%

Working hours & Leave entitlements

Working Hours Regulations

Regulation	Requirement
Standard Hours	8 hours/day, 48 hours/week
Overtime Cap	40 hours/month; 200-300 hours/year max
Regular Overtime	150% of hourly wage
Weekend/Rest Day	200% of hourly wage
Public Holiday	300% of hourly wage (+ 400% if also OT)
Night Work (10pm-6am)	Additional 30% premium

Leave Entitlements

Leave Type	Entitlement	Notes
Annual Leave	12 days (normal); 14-16 days (hazardous)	+1 day per 5 years service
Sick Leave	30-70 days/year (depends on SI contributions)	75% salary paid by SI fund
Maternity Leave	6 months (180 days)	100% salary from SI (6+ months contribution)
Paternity Leave	5-14 days (depends on circumstances)	Paid by SI fund
Marriage Leave	3 days (own); 1 day (child's)	Paid leave
Bereavement	3 days (parents/spouse/child)	Paid leave
Public Holidays	11 days in 2026	Paid at normal rate

Public Holidays 2026

New Year (Jan 1)
Lunar New Year/Tet (5 days - late Jan/Feb)
Hung Kings Commemoration (Apr 6)
Reunification Day (Apr 30)
Labor Day (May 1)
National Day (Sep 2 - 2 days)

Work permits & Visas

Foreign workers in Vietnam require a Work Permit (WP) for most employment. The Ministry of Labor, Invalids and Social Affairs (MOLISA) oversees work permit applications through provincial labor departments.

Work Permit Categories

Category	Description	Validity
Manager	Head of organization/department	Up to 2 years
Executive Director	Enterprise management role	Up to 2 years
Expert	University degree + 3 years experience OR 5+ years experience	Up to 2 years
Technical Worker	1+ year training in technical field	Up to 2 years
Intra-Company Transfer	12+ months with parent company	Up to 3 years

_{Key Requirements: Criminal background check (authenticated), health certificate, degree/qualification verification, labor demand approval from provincial authorities. Processing time: 15-20 working days after complete submission.}

Employer of Record

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Termination & Employee exit

Notice Period Requirements

Contract Type	Minimum Notice (Employer)
Indefinite term	45 days
Fixed term (12-36 months)	30 days
Seasonal/specific work (<12 months)	3 working days
Special sectors (elderly care, etc.)	120 days for indefinite; 60 days for fixed term

Severance Pay

Employees with 12+ months of service are entitled to severance pay equal to half month's salary for each year of employment. This is calculated on the average salary of the 6 months preceding termination.

Why AYP

AYP Group provides comprehensive EOR services in Vietnam, combining deep understanding of the Labor Code 2019, Social Insurance Law 2024, and Employment Law 2025 with technology-driven compliance solutions.

Capability	AYP Group Advantage
SI Law 2024 Compliance	Full compliance with the new Social Insurance Law including expanded coverage rules, 0.03%/day penalty avoidance, and mandatory foreign worker SI registration.
Regional Wage Management	Accurate application of the four-region minimum wage system, ensuring correct SI contribution bases for employees across multiple locations.
Work Permit Processing	End-to-end work permit management including labor demand approval, document authentication, and provincial submissions.
Local Entity	Direct presence in Vietnam through our own licensed entity. Not an aggregator - we employ your staff directly.
Bilingual Support	Vietnamese and English-speaking HR team ensuring clear communication with your employees and local authorities.

Get Started

Vietnam's position as Asia's fastest-growing manufacturing hub makes it essential for companies targeting regional expansion. AYP Group's EOR services eliminate the complexity of Vietnam's evolving labor laws while ensuring full compliance.

Ready to hire in Vietnam? Contact AYP Group today to discover how our local expertise and transparent pricing can accelerate your expansion into Southeast Asia's most dynamic market.

_{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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Questions?
We're here to help

AYP’s pricing covers the end-to-end employment lifecycle for your employees in each country.

This includes payroll processing, statutory filings, compliance monitoring, local employment administration, and ongoing HR support. Our goal is to ensure your workforce is managed compliantly and smoothly, without you having to coordinate multiple vendors.

Before you start, we provide a clear breakdown of what is covered, so you know exactly what to expect.

We believe regional workforce management should be predictable, not full of surprises.

That’s why we walk you through a detailed cost breakdown before onboarding begins. This includes employer costs, statutory contributions, and service fees. If any scope changes arise, they are discussed with you in advance, so you stay in control of your budget.

In some countries, a security deposit is required as part of responsible employment and payroll risk management.

This deposit is typically aligned with local notice period obligations and helps ensure that final salary, statutory payments, and any end of employment costs are properly covered. The deposit remains in your company’s funds and is returned according to the agreed terms when employment ends.

Your AYP advisor will explain clearly if this applies in your chosen countries.

AYP charges a fixed monthly service fee per employee, rather than a percentage of salary.

This makes your costs more predictable and easier to plan across countries. Pricing is structured based on country requirements, workforce size, and the level of support needed. There is no long term lock in. We work with you based on your current workforce needs.

AYP combines in-country expertise with structured support across Asia.

Instead of routing requests through a general support system, you work with teams who understand local regulations and your workforce setup. We focus not only on payroll processing, but also on proactive compliance updates and practical HR advisory, so you can make informed decisions with confidence.