Employer of Record (EOR) in Vietnam

Vietnam tightened foreign worker permit requirements in 2025 and overhauled its social insurance framework the same year.
The new Law on Social Insurance, effective July 2025, expanded coverage obligations and altered contribution mechanics.

The new Law on Employment, effective January 2026, broadened mandatory unemployment insurance.

If your hiring plans predate these changes, your cost model is already wrong.

The reason these reforms matter for employer of record buyers is Vietnam’s multi-fund contribution system.

Employers pay into four separate funds: social insurance at 17.5%, health insurance at 3.0%, unemployment insurance at 1.0%, and a trade union fee at 2.0%, for a total employer burden of approximately 23.5% of gross salary.

Social insurance and health insurance contributions are capped at VND 46,800,000 per month (20 times the base salary of VND 2,340,000).

Get the cap calculation wrong and you create retroactive liability across every payroll cycle.

There is one more layer that catches foreign companies off guard. Vietnam has no specific employer of record legal framework. EOR providers must hold a Labour Outsourcing Licence (cho thue lai lao dong) issued by MoLISA.

Operating without this licence is illegal. Before you sign with any provider, ask for the licence number and verify it directly.

An unlicensed arrangement exposes both the provider and your company to enforcement action.

Which EOR Providers Are Strongest for Vietnam?

Remote.com: Best for Direct Compliance Chain and IP Protection in Vietnam

Remote operates its own legal entities rather than routing through local partners.
That gives you a direct compliance chain: no intermediary between your employee and the entity filing social insurance contributions with the Vietnam Social Security agency.

Their IP Guard feature handles intellectual property assignment, relevant if your Vietnamese hires create protectable work.

Pricing is USD 599 per employee per month.
Remote covers social insurance at 17.5%, health insurance at 3.0%, unemployment insurance at 1.0%, trade union fee at 2.0%, PIT withholding, statutory leave administration, and employment contract drafting compliant with the Labour Code.

For companies that prioritise owned-entity compliance and IP protections, Remote is a strong default in Vietnam.

The limitation is platform depth. Remote’s HR features are solid but less extensive than Rippling’s unified suite.

If you need device management or deep HRIS integrations alongside EOR, you will encounter gaps that require separate tooling.

Multiplier: Best for Cost-Sensitive Hiring in Vietnam

Multiplier is the cost leader at USD 400-450 per employee per month, saving you USD 150-200 per employee compared with premium-tier providers.

Vietnam’s four-fund contribution system and MoLISA licence requirement create real compliance obligations, and Multiplier covers the core requirements at that lower price point.

Multiplier handles Vietnamese payroll processing in VND, social insurance and health insurance contributions with correct cap calculations at VND 46,800,000 per month, PIT withholding, leave tracking, and employment contract generation.

If you are cost-sensitive and hiring for standard roles, Multiplier gives you the best price-to-compliance ratio in this market.

The named limitation: Multiplier’s support team and platform depth are not on the same level as Deel or Remote.

If your Vietnamese hire faces a complex termination dispute or a tax authority query, you may find escalation slower than with a larger provider.

Rippling: Best for Teams Running Vietnam Alongside US HR

Rippling offers Vietnamese EOR as part of a unified global HR, IT, and payroll platform.
If you already run US payroll or HR through Rippling, adding Vietnamese employees keeps everything in one system.

Their global payroll engine handles the four-fund contribution calculations and VND payroll natively.

Pricing is USD 599 per employee per month. Rippling’s strength is integration: payroll, benefits, device management, app provisioning, and expense management in a single dashboard.

For teams managing employees across the US and Vietnam, that consolidation saves real administrative time.

The limitation is Rippling’s sales process. You cannot self-serve a quote.

Budget for the sales cycle when planning your Vietnam hiring timeline, and make sure Finance has signed off on the consolidated platform cost, the per-employee EOR fee.

Oyster: Best for Distributed-First Teams Prioritising Benefits

Oyster charges USD 599 per employee per month and positions itself as the EOR for distributed-first companies.
Their benefits marketplace covers Vietnam, including supplementary private health insurance options.

Vietnamese employees already receive mandatory public health coverage through the social insurance system, but supplementary coverage is increasingly common for professional roles in Ho Chi Minh City and Hanoi.

If your Vietnamese hires expect private health insurance as part of their package, Oyster bundles benefits administration into the EOR relationship more cleanly than most competitors.

That saves you from managing a separate benefits broker in a Vietnamese-language market.

The limitation: Oyster’s compliance depth for Vietnam’s specific regulatory requirements, including the labour outsourcing framework and 2025-2026 legislative changes, is less consistently evidenced than Remote’s or Deel’s.

Ask specifically how they have implemented the new Law on Social Insurance before committing.

Papaya Global: Best for Finance-Led Payroll Auditability in Vietnam

Papaya Global takes a payroll-technology-first approach.
Their platform processes payroll across 160+ countries with a focus on accuracy, auditability, and real-time gross-to-net calculations.

Vietnamese payroll, with its four separate contribution funds, contribution caps, four regional minimum wage tiers, and monthly PIT remittance deadlines, benefits from that level of calculation transparency.

Pricing is typically USD 599-650 per employee per month. Papaya is best suited to finance teams that want deep payroll analytics and cross-country reporting.

If your CFO drives the EOR decision and wants line-by-line payroll transparency across Southeast Asian markets, Papaya delivers.

The limitation: Papaya is not the right fit if your People team is driving the decision and prioritises a polished employee experience or HR workflow tooling.

The platform skews towards finance and payroll operations rather than HR self-service.

Velocity Global: Best for Multi-Country Consistency, With Vietnam Caveats

Velocity Global covers 185+ countries and has been operating in Vietnam for several years. They focus on compliance depth and local support rather than platform features.

If you need a single EOR provider across a large number of countries and want consistency in service delivery, Velocity Global is a solid option for your Vietnamese headcount.

Pricing is quote-based and generally falls in the USD 500-700 range per employee per month.
The limitation: some multi-country providers use local partners for smaller Southeast Asian markets, and Vietnam can fall into that category.

Confirm their Vietnamese entity model directly and which entity holds the MoLISA Labour Outsourcing Licence before signing.

How Does EOR Work in Vietnam?

What Is an Employer of Record in Vietnam?

The MoLISA Labour Outsourcing Licence is the single most important due-diligence item for any Vietnam EOR engagement.

An EOR becomes the legal employer of your Vietnamese workers through a licensed entity, handling social insurance registration, PIT withholding, monthly payroll in VND, statutory leave, and Labour Code-compliant employment contracts. You manage the employee day-to-day; the EOR handles all employment law, social insurance, and tax compliance.

How Does an EOR Work in Vietnam Under the Labour Outsourcing Framework?

Vietnam’s classification of EOR as labour outsourcing creates meaningful compliance obligations that many Western employers underestimate when entering the market.

Why EOR Is Treated as Labour Outsourcing in Vietnam

Vietnam has no specific legal framework for employer of record arrangements. Instead, EOR providers operate under the labour outsourcing (cho thue lai lao dong) regulations.

This is a conditional business line: the provider entity must hold a Labour Outsourcing Licence issued by MoLISA to supply workers to third-party clients legally.

The EOR entity signs the employment contract, processes monthly payroll in VND, remits SI contributions across four funds, withholds and remits PIT by the 20th of the following month, and bears all statutory obligations.

Your employee receives full protection under Vietnamese employment law, including the Labour Code’s provisions on working time, leave, and termination.

One structural risk specific to Vietnam: because EOR falls under labour outsourcing rather than a dedicated legal category, extended use may trigger permanent establishment arguments from Vietnamese tax authorities.

Keep the relationship structured cleanly and review your arrangement annually if you plan to use EOR beyond an initial market-testing phase.

Why the MoLISA Labour Outsourcing Licence Is Non-Negotiable in Vietnam

Your EOR provider must hold a MoLISA Labour Outsourcing Licence, a specific permit (not general business registration) authorising them to supply labour.

It is a conditional business line; operating without it is illegal. Before signing, ask for the licence number and verify it directly with MoLISA; providers using local partners must disclose which entity holds it.

An unlicensed arrangement puts both the provider and your company at risk of enforcement action, including fines and potential voiding of employment contracts.

Licensed EOR providers in Vietnam can sponsor work permits and temporary residence cards for foreign employees. The process takes 4-8 weeks and permits are valid for up to 2 years.

If you are hiring non-Vietnamese nationals, confirm that your provider has experience with the work permit sponsorship process.

Four Regional Minimum Wage Tiers Create Compliance Complexity in Vietnam

Vietnam operates four regional minimum wage tiers (January 2026): Region I (Ho Chi Minh City/Hanoi) VND 5,310,000/month; Region II VND 4,730,000; Region III VND 4,140,000; Region IV VND 3,700,000.

These tiers set wage floors and the unemployment insurance cap (20 times regional minimum wage), so the UI cap ranges from VND 74,000,000 to VND 106,200,000 depending on location.

Your EOR must correctly identify which region each employee’s workplace falls into and apply the correct minimum wage and contribution cap.

Getting the region wrong creates immediate compliance violations across wages, social insurance contributions, and unemployment insurance calculations.

If you have employees in multiple Vietnamese cities, your provider needs to track different rates for each location.

2025-2026 Legislative Reforms Are Changing Vietnam’s Employment Landscape

Multiple legislative changes are already in effect or pending.

The new Law on Social Insurance, effective July 2025, altered contribution mechanics and expanded coverage.
The new Law on Employment, effective January 2026, broadened mandatory unemployment insurance coverage.

A new Population Law is expected to increase maternity leave to 7 months for the second child from July 2026.

Updated PIT personal and dependent deductions also apply from the 2026 tax year. Ask your provider specifically how they are handling each reform; providers that are slow to implement create compliance liability for you.

EOR in Vietnam vs Setting Up a Cong ty TNHH

The true cost of establishing a Cong ty TNHH substantially exceeds government fees once you factor in compliance, payroll infrastructure, and local accounting expertise.

Registering a Cong ty TNHH requires two certificates (IRC: 15-20 working days; ERC: 7-14 working days) for a total timeline of 2-4 months. Government fees are minimal (VND 150,000 total).

First-year practical costs run VND 5-7 million for licence fees, company seal, digital signature, e-invoice setup, and bank deposit. No statutory minimum capital for most business lines, though USD 10,000 is commonly recommended; charter capital must be contributed within 90 days of ERC issuance.

Compare that with EOR: setup in 3-7 business days, no formation costs, no charter capital, no Investment Registration Certificate process.

For your first 1-5 hires for market testing or short-term projects, EOR is clearly faster and cheaper to launch.

At 6-10 employees, annual EOR platform fees approach the cost of your own Cong ty TNHH with outsourced payroll: 5 employees at USD 599/month is USD 36,000/year in platform fees alone. Your own entity costs less in ongoing fees but requires the 2-4 month setup timeline and ongoing corporate compliance.

What Does EOR Cost in Vietnam?

What Does It Cost to Hire in Vietnam Through an EOR?

Vietnam’s capped social insurance contributions create predictable mid-range hiring costs compared to regional peers.

Employer Social Security Contributions in Vietnam

Employer contributions: social insurance 17.5% (pension 14.0%, sickness/maternity 3.0%, occupational accident 0.5%), health insurance 3.0%, unemployment insurance 1.0%, trade union fee 2.0%. Total: approximately 23.5% of gross salary.

SI and HI are capped at VND 46,800,000/month; UI cap varies by region (up to VND 106,200,000 in Region I). The four-fund structure with different caps and regional variations makes calculation more complex than a single-rate system.

How the BHXH, BHYT and BHTN Funds Split Across Employer and Employee

The labels matter when you read a Vietnamese payslip. BHXH is bảo hiểm xã hội (social insurance: pension, sickness, maternity, occupational accident). BHYT is bảo hiểm y tế (health insurance).

BHTN is bảo hiểm thất nghiệp (unemployment insurance). Employer pays 17.5% BHXH plus 3.0% BHYT plus 1.0% BHTN plus 2.0% trade union, totalling 23.5%. Employee pays 8.0% BHXH plus 1.5% BHYT plus 1.0% BHTN, totalling 10.5%, withheld from gross before PIT.

The trade union 2% is the line that surprises foreign finance teams: it is paid even when no union exists at the workplace. Build the full 23.5% employer load into the offer cost from the start, otherwise your hiring manager will quote a base salary that comes in over budget once payroll runs the first cycle.

Whichapp view: Vietnam’s SI cap is more consequential than most providers’ sales material suggests. SI and HI apply only up to VND 46,800,000/month; any provider calculating on actual salary above the cap is over-contributing at your expense. For senior hires, ask your provider to confirm in writing how they apply SI calculations.

There is a second risk that rarely appears in provider marketing: Vietnam’s labour inspectorate (Thanh tra lao dong) has increased enforcement since 2023 on EOR-type arrangements where the client exercises operational control over workers employed nominally by a third party.

This is treated as disguised labour supply (cung ung lao dong trai phep) and carries fines and work permit revocation.

Before Legal signs off, confirm that your day-to-day management practices are structured to avoid triggering an operational control finding. Enforcement has been active since 2023.

EOR Fees and What They Usually Include in Vietnam

Most providers charge USD 400-700 per employee per month for Vietnamese EOR.

Your fee typically covers payroll processing in VND on a monthly cycle, social insurance contribution calculation and remittance across all four funds, PIT withholding and monthly remittance by the 20th of the following month, annual PIT finalization filing by March 31, statutory leave tracking (12 days annual, 11 public holidays, sick leave, maternity and paternity leave), employment contract drafting compliant with the Labour Code, and onboarding and offboarding administration.

Some providers include work permit sponsorship for foreign employees in the base fee; others charge separately. The work permit process takes 4-8 weeks and permits are valid for up to 2 years.

Check what your provider includes before signing.

Hidden Costs to Ask About in Vietnam

The four regional minimum wage tiers mean your provider needs to track different contribution caps by location.

If your employees move between regions or you have staff in multiple cities, ask how your provider handles regional reclassification and whether they adjust contribution calculations automatically.

Also ask about: how your provider handles the 2025-2026 legislative changes (contribution rate adjustments, expanded coverage), whether there is a minimum contract term with early termination charges, work permit sponsorship fees for foreign employees, and how they manage the bi-annual labour usage reports due twice yearly with the last report due before December 5.

Finance teams should model SI contributions on the capped salary amount, not actual salary for high earners, to avoid building an inflated cost forecast into the business case.

The difference matters: for an expat on VND 80,000,000 per month, SI applies only to VND 46,800,000, saving approximately VND 5,810,000 in employer contributions monthly.

If your provider is not applying the cap correctly, you are overpaying every cycle.

How Personal Income Tax (Thuế Thu Nhập Cá Nhân) Is Withheld in Vietnam

Vietnamese PIT is progressive across seven bands from 5% on monthly taxable income up to VND 5,000,000 to 35% on income above VND 80,000,000. Your EOR withholds monthly and remits to the General Department of Taxation by the 20th of the following month, then files an annual finalisation by 31 March on the prior calendar year.

What catches finance teams out is the dependant deduction. Each registered dependant gives the employee a VND 4,400,000 monthly deduction on top of the VND 11,000,000 personal allowance, and that registration must be completed by the employee through your EOR. Miss the paperwork and the employee overpays for the year, then chases a refund through finalisation in March.

Tell your EOR which hires have dependants during onboarding, not at year end.

The 13th-Month Bonus (Thưởng Tết) and Lunar New Year Retention Risk

Vietnam has no statutory 13th-month salary, but the Tết bonus is so deeply embedded in the labour market that refusing one is functionally a resignation trigger. Most employers pay one month of gross salary one to two weeks before Lunar New Year, with senior roles often receiving 1.5 to 2 months.

If your contract is silent on Tết, your EOR will still recommend you fund a bonus before the holiday because the alternative is a wave of January and February resignations in a market where talent moves between Tết and the lunar New Year holiday season. Build the Tết bonus into your annualised cost forecast from day one rather than treating it as a discretionary line item.

What Are the Compliance Risks of EOR in Vietnam?

Vietnam Employment Law Every EOR Buyer Should Understand

Vietnam’s automatic conversion to indefinite employment after two fixed-term contracts significantly increases employer liability and requires careful contract structuring.

Employment Contracts and Probation Periods in Vietnam

Vietnamese employment contracts fall into two categories under the Labour Code: indefinite-term and definite-term (12-36 months). Fixed-term contracts can be renewed once.
After the second contract, the relationship automatically converts to indefinite-term employment.

All contracts must be in Vietnamese and comply with Labour Code requirements.

Probation periods vary by role: up to 180 days for enterprise managers, 60 days for roles requiring a college degree, and 30 days for intermediate vocational roles.

Probation salary must be at least 85% of the official job salary.

Either party can terminate during probation without notice. These periods are longer than many Southeast Asian markets.
Plan your hiring timeline accordingly.

Paid Leave and Public Holidays in Vietnam

Annual leave: 12 working days per year for normal working conditions, 14 days for heavy or hazardous jobs, and 16 days for especially heavy or hazardous jobs.

Leave increases by one additional day for every 5 years of service with the same employer.

Public holidays: Vietnam has 11 official public holidays per year. If a public holiday falls on a weekend, employees are entitled to a compensatory day off on the following working day.

That gives your Vietnamese employee 23 paid days off annually (12 annual leave plus 11 public holidays) for standard roles before any company-specific policy.

Why Tết Long-Weekend Planning Quietly Wrecks Q1 Delivery

The 11 public holidays look unremarkable on paper. The problem is concentration. Tết Nguyên Đán (Lunar New Year) is a statutory five-day public holiday, and the surrounding bridge days, weekend rolls, and customary unpaid leave routinely produce 9 to 12 consecutive non-working days for most Vietnamese employees.

For project teams running on weekly sprints with offshore stakeholders, that single block consumes more capacity than the rest of Vietnam’s public holiday calendar combined. Sarah’s rule for any client building a Vietnamese team: lock the Tết window in the project plan before signing the EOR contract, set deliverable expectations with US and EU sponsors in October, and treat the first working week after Tết as ramp-up rather than full output. Surprise schedule slips in February are almost always a Tết planning failure rather than a performance issue.

How DOLISA Registration and Bi-Annual Labour Reports Work

Beyond the MoLISA Labour Outsourcing Licence at the provider level, every Vietnamese employer must register each employee with the provincial Department of Labour, Invalids and Social Affairs (DOLISA, called Sở Lao động ở các tỉnh) within 30 days of the start date. Your EOR handles the filing, but you should ask to see the labour usage declaration and the bi-annual reports.

The labour usage reports are due twice yearly, with the second report filed before 5 December. They list every active employee, contract type, and salary band. A provider that cannot produce a recent report on request is a red flag during evaluation; ask for the November filing summary as part of due diligence before you sign.

Sick Pay and Parental Leave in Vietnam

Sick pay: 75% of the social insurance contribution salary, paid by the social insurance fund, not the employer.
Duration depends on SI contribution years: 30 days per year for employees with under 15 years of contributions, 40 days for 15-30 years, and 60 days for over 30 years.

Maternity leave: 6 months fully paid by the social insurance fund at 100% of the employee’s average contribution salary. This is among the most generous in Southeast Asia.
The new Population Law may extend this to 7 months for the second child from July 2026.

The employee is protected from dismissal during pregnancy and maternity leave.

Paternity leave: 5-14 days paid, depending on birth type (natural birth, caesarean, multiple births). Paid by the social insurance fund..

Termination Rules and Notice Periods in Vietnam

Notice periods in Vietnam depend on contract type: 45 days for indefinite-term contracts, 30 days for definite-term contracts (12-36 months), and 3 working days for contracts under 12 months.

No notice is required during probation.

Severance allowance is half a month’s salary per year of service for employees with 12 or more months of service. This covers the period not already covered by unemployment insurance contributions.

For structural or economic layoffs, the job-loss allowance is one month’s salary per year of service with a minimum of two months’ salary.

Dismissal must follow Labour Code procedures. Invalid termination exposes the employer to reinstatement claims, back pay, and damages. Vietnamese terminations are more procedurally demanding than most regional markets; your EOR should guide the required documentation.

Work Permit (Giấy Phép Lao Động) Exemptions for Foreign Hires

Hiring a foreign national in Vietnam usually means a full work permit application: 4 to 8 weeks of processing, certified police checks, a notarised health certificate, an authenticated degree, and a job description that maps to the position your EOR is sponsoring. The permit is valid for up to 2 years and renewable.

Several exemption categories cut that timeline dramatically. Intra-company transferees with at least 12 months at the parent entity, board-level appointees, contributors to government-approved projects, and short-term assignments under 30 days (capped at 3 trips per year) can qualify for exemption confirmation rather than a full permit. The exemption still requires a DOLISA filing, but the documentation burden drops sharply.

If your candidate is moving from a related entity, raise the exemption route with your EOR before paying for full work permit translations and apostilles you may not need.

Worker Classification and Contractor Risk in Vietnam

The 2019 Labour Code (effective 2021) expanded the employment relationship definition. Vietnamese authorities use a substance-over-form test; calling an arrangement a service contract does not prevent reclassification if the worker is functionally an employee.

Key indicators that trigger reclassification: the company directs when, where, and how work is done; the worker receives a regular recurring salary; or the agreement is substantively a labour contract regardless of its title.

Penalties include retroactive social, health, and unemployment insurance contributions for the entire misclassified period, plus late payment interest, administrative fines, PIT withholding penalties, and employee claims for unpaid leave, overtime, and severance.

MoLISA and tax authorities actively investigate during audits.

How Should You Choose the Best EOR Provider for Vietnam?

How to Choose the Best EOR Provider for Vietnam

We prioritize owned-entity EOR providers in Vietnam because their direct MoLISA licensing eliminates intermediary risks around payroll compliance and tax disputes.

Owned Entities vs Partner Model in Vietnam

Some EOR providers operate their own Vietnamese entity with a valid MoLISA Labour Outsourcing Licence. Others partner with a local firm that holds the licence.

An owned entities gives you a direct compliance chain: fewer parties, clearer liability, and faster resolution when something goes wrong with social insurance filings or tax authority queries.

A partner model adds a layer between you and the employer of record.
That is not automatically a problem, but you should know who the actual employer entity is, whether they hold the MoLISA licence, and what happens if the local partner changes.

Ask every provider directly: do you own the Vietnamese entity and hold the licence yourself? Get the answer in writing before your Legal team approves the contract.

Local Compliance Depth vs Global Coverage

Vietnam’s compliance requirements are above average for Southeast Asia: four-fund contributions with different caps, four regional minimum wage tiers, mandatory monthly PIT remittance, and the MoLISA licence requirement all demand genuine local expertise.

What separates good providers from adequate ones is handling of regional minimum wage identification, contribution cap calculations, UI cap variations by region, and the 2025-2026 legislative changes.

If Vietnam is your only Southeast Asian market, deep local expertise matters more than 180-country coverage; if you are hiring across multiple markets, a consistent single-dashboard provider may serve you better.

Payroll Accuracy, Support and Liability in Vietnam

Ask your provider who is liable if SI contributions are filed late or PIT remittances miss the 20th-of-the-month deadline.

The EOR entity bears legal liability, but some pass risk back via indemnity clauses; you want that liability with the entity that controls the payroll. Also check timezone coverage: PIT deadlines are strict, and a late-discovered error needs a support team that can respond during Indochina hours.

Questions to Ask Before Signing

Before you commit to any Vietnamese EOR provider, get clear answers on:

MoLISA Labour Outsourcing Licence status (owned or through a local partner), how they handle the four regional minimum wage tiers and contribution cap variations, how they have implemented the 2025-2026 legislative changes, and work permit sponsorship capability for foreign employees.

Also ask about minimum contract terms, early termination charges, how they manage bi-annual labour usage reports, and whether they have experience navigating MoLISA and tax authority audits.

Which EOR in Vietnam Is Best for Your Business?

Our testing found Multiplier’s pricing undercuts competitors by 30-40% while maintaining compliance with Vietnam’s mandatory social insurance contributions.

Best for Startups

Multiplier at USD 400-450 per employee per month.
When you are making your first hire in Vietnam and watching every dollar, Multiplier gives you compliant payroll with four-fund contributions, regional minimum wage compliance, and PIT handling without the premium price.

The savings of USD 150-200 per employee per month matter more in Vietnam where the EOR fee can approach or exceed the local salary.

Best for Enterprise

Rippling at USD 599 per employee per month.
If you need Vietnamese EOR to plug into an existing global HR, IT, and payroll stack, with unified reporting, device management, and cross-country analytics, Rippling’s platform depth is unmatched.

The integration payoff is real for larger distributed teams managing employees across the US and Southeast Asia.

Best for Asia-First Hiring

Remote at USD 599 per employee per month. Remote operates owned entities across key Asian markets.
If Vietnam is part of a planned Southeast Asian expansion, starting with Remote gives you a single provider with direct compliance chains across the region.

Their contract and leave management handles Vietnam’s four-fund structure and Labour Code requirements cleanly.

Best for Payroll-Led Teams

Papaya Global at USD 599-650 per employee per month.
If your finance team drives the EOR decision and wants deep payroll analytics, gross-to-net transparency, and cross-country cost reporting across Southeast Asian markets, Papaya delivers the data layer that most HR-first platforms do not.

Vietnam’s complex payroll, with four contribution funds with different caps, regional minimum wage tiers, and monthly PIT deadlines, benefits from that level of calculation visibility.

Check providers that match this market4 providers · links may include affiliate referralsDeelSee current pricing, plans, and how setup works. View details →RemoteSee current pricing, plans, and how setup works. View details →MultiplierSee current pricing, plans, and how setup works.

View details →RipplingSee current pricing, plans, and how setup works. View details →

What Are the Most Common Questions About EOR in Vietnam?

FAQs About Employer of Record in Vietnam

Is EOR legal in Vietnam?

Vietnam has no specific EOR legal framework. EOR providers operate under the labour outsourcing (cho thue lai lao dong) regulations and must hold a Labour Outsourcing Licence issued by MoLISA.

Operating without this licence is illegal, and the risk sits with both the provider and your company.

Before you sign with any provider, ask for the licence number and verify it directly with MoLISA.

The arrangement is legal when the provider holds a valid licence and management practices avoid triggering an operational control finding. Confirm both before committing.

How long can you use an EOR in Vietnam?

There is no statutory time limit on EOR use in Vietnam, but extended use introduces two risks you should plan around.

First, Vietnamese tax authorities may raise a permanent establishment argument if your EOR arrangement begins to look like a sustained business presence rather than a temporary employment vehicle.

Second, the disguised labour supply enforcement risk increases as the engagement extends and your operational control over the workers becomes more embedded.

The decision to transition to your own Cong ty TNHH is typically financial rather than legally forced: once you reach 6-10 employees, entity setup costs are modest and ongoing payroll costs are lower than cumulative EOR fees. Build the trigger into your original business case.

How much does an EOR cost in Vietnam?

EOR service fees range from USD 400 to USD 700 per employee per month. On top of this, you pay the employee’s gross salary plus statutory employer costs: approximately 23.5% of gross salary across four contribution funds.

For an employee on VND 30,000,000 per month gross, your total monthly employer cost including the platform fee is approximately VND 52,050,000 (around USD 2,100). The platform fee at that salary level represents nearly as much as the salary itself.

The ratio improves as salaries rise: for a senior hire on VND 60,000,000/month, the platform fee drops to roughly 25% of total employer cost. Note that SI contributions apply only up to the VND 46,800,000 monthly cap; model on capped salary for high earners or your forecast will be inflated.

Do you need a Cong ty TNHH to hire employees in Vietnam?

Not necessarily. An EOR with a valid MoLISA Labour Outsourcing Licence can legally employ workers in Vietnam on your behalf without you having a local entity.

You will need your own entity if you want full operational control, are planning 6-10 or more long-term hires, need a physical presence such as an office or factory, or want to enter into commercial contracts in Vietnam directly.

Entity registration takes 2-4 months; first-year practical costs are approximately VND 5-7 million excluding professional fees.
EOR is faster and cheaper for the first 1-5 hires, but beyond that threshold entity setup pays back quickly. Build the transition cost into your 3-year headcount model.

What is the difference between EOR and PEO in Vietnam?

In Vietnam, the EOR is the sole legal employer under a labour outsourcing licence. A PEO typically co-employs workers alongside your existing entity, which requires you to already have a Vietnamese legal presence.

Since the usual reason for using an EOR in Vietnam is that you do not have a local entity, the co-employment model does not apply to your situation.

If a provider describes themselves as a PEO in Vietnam, they are functionally operating as an EOR under the labour outsourcing framework.
The practical implication: the entity model distinction matters less than the licence question.

Whether the provider calls themselves an EOR or PEO, ask for their MoLISA Labour Outsourcing Licence number and verify it directly.

Can an EOR sponsor work permits in Vietnam?

Yes.

Licensed EOR providers in Vietnam can sponsor work permits and temporary residence cards for foreign employees. The process takes 4-8 weeks and permits are valid for up to 2 years.

Not every provider has the same depth of experience with the Vietnamese work permit process.

Some handle it as a standard in-house service; others outsource to an immigration specialist and pass on the cost. Confirm which model your provider uses and what the total fee includes before you make an offer to a foreign candidate. The 4-8 week timeline is the minimum under normal conditions.

Build extra buffer if the role requires specialist exemption documentation or the candidate is transferring from a previous employer with an existing permit.

What are Vietnam’s social insurance contribution rates?

Total employer burden is approximately 23.5% of gross salary: social insurance 17.5% (pension 14.0%, sickness/maternity 3.0%, occupational accident 0.5%), health insurance 3.0%, unemployment insurance 1.0%, and trade union fee 2.0%.

Social insurance and health insurance contributions are capped at VND 46,800,000 per month (20 times the base salary of VND 2,340,000).

The unemployment insurance cap varies by region, up to VND 106,200,000 per month in Region I.

These rates were updated by the new Law on Social Insurance (effective July 2025); confirm current rates with your provider. Employee contributions are additional: SI 8%, HI 1.5%, UI 1% of capped salary, withheld from gross before net pay remittance.

What happens if I misclassify a contractor in Vietnam?

Vietnamese authorities use a multi-factor test where actual substance overrides contract title.

If your contractor is reclassified as an employee, the financial exposure is substantial:

Retroactive social, health, and unemployment insurance contributions for the entire misclassified period, plus late payment interest, administrative fines, PIT withholding penalties, and employee claims for unpaid leave, overtime, and severance.

Persistent or large-scale social insurance evasion can trigger criminal liability under recent enforcement trends.

MoLISA and tax authorities actively investigate contractor arrangements during audits, particularly in the technology and professional services sectors.

The key risk indicators: the company directs when, where, and how work is done; the worker receives a regular recurring payment regardless of output; or the agreement is substantively a labour contract regardless of its title.

If any of these indicators apply to your current contractor arrangements, the EOR route is more compliant and lower-risk than the status quo.

What are the minimum wages in Vietnam?

Vietnam has four regional minimum wage tiers effective January 2026: Region I (major cities including Ho Chi Minh City and Hanoi) VND 5,310,000 per month, Region II VND 4,730,000 per month, Region III VND 4,140,000 per month, Region IV VND 3,700,000 per month.

These tiers do more than set wage floors.

The unemployment insurance contribution cap is set at 20 times the regional minimum wage, so the cap itself varies by location.

For a Region I employee, the UI cap is VND 106,200,000 per month; for Region IV it is VND 74,000,000 per month.
If you have employees in multiple Vietnamese cities, your EOR must track and apply the correct tier for each location.

Getting the region wrong creates compliance violations across wages, social insurance, and unemployment insurance simultaneously.

Ask your provider how they handle regional reclassification when employees move between cities and whether cap calculations update automatically.

Is EOR the right structure for hiring in Vietnam?

Model the total cost of EOR versus setting up your own legal entity in Vietnam. Adjust headcount, salary, and entity setup costs to find your break-even point.

Model EOR break-even point →

Final Verdict: When Does an EOR Make Sense in Vietnam?

Vietnam’s rigid compliance framework and lengthy entity setup make EORs most valuable for businesses prioritizing speed and regulatory certainty over long-term cost optimization.

Use an EOR in Vietnam when you need to hire 1-5 people quickly for market testing or short-term projects, when you want to avoid the 2-4 month entity registration process, and when you need compliant payroll that handles four-fund contributions at the correct rates, regional minimum wage compliance, and monthly PIT remittance from day one.

The MoLISA licence requirement means your EOR has already passed a regulatory gate that ensures baseline legitimacy.

Move to your own Cong ty TNHH once you reach 6-10 employees, once you need full operational control or a physical presence, or once you are building a long-term strategic position in Vietnam.

Entity setup costs are low by regional standards (VND 5-7 million first-year practical costs), and ongoing payroll costs are a fraction of annual EOR platform fees at scale.

The most common mistake is underestimating how much the EOR platform fee weighs against Vietnamese salaries.

At VND 30,000,000/month gross (approximately USD 1,200), a USD 599 platform fee nearly matches the salary itself. Run the full cost calculation before making an offer; if the platform fee exceeds 30% of total employer cost, the entity route makes more financial sense.

Vietnam EOR Methodology and Disclosure

Already have a local entity in Vietnam? See our guide to payroll in Vietnam.