Vietnam has emerged as one of Southeast Asia’s fastest-growing economies. With a young and dynamic workforce, a growing tech and manufacturing sector, and increasing foreign investment, businesses from around the world are setting their sights on this vibrant market. But for many international companies, hiring local talent in Vietnam can be a complex undertaking due to legal, cultural, and regulatory differences.

That’s where Employer of Record (EOR) services come in. A Vietnam EOR provider enables your business to hire remote employees in the country without setting up a legal entity. They manage everything from employment contracts and local compliance to payroll outsourcing, taxes, and benefits.

In this guide, we break down what Vietnam EOR services are, what they include, how they differ from PEO services, and what you should expect from your provider. Whether you’re expanding into Vietnam for the first time or scaling a remote team, this article will equip you with the knowledge to do it right.

What Is an Employer of Record (EOR) in Vietnam?

An Employer of Record is a third-party organization that legally employs workers on your behalf. While your company retains control over daily operations, the EOR becomes the official employer in the eyes of Vietnamese authorities. This includes handling:

• Employment contracts
  
• Statutory benefits and social insurance
  
• Work permits (if needed)
  
• Monthly payroll and tax filings
  
• Compliance with labor laws
  

Using a Vietnam EOR lets you quickly enter the market and hire remote employees without needing to incorporate a local business or navigate the complex employment infrastructure yourself.

Why Use an EOR in Vietnam?

Vietnam’s labor and tax regulations are distinct and constantly evolving. Foreign companies attempting to employ Vietnamese workers directly often face hurdles such as:

• Inability to legally hire without a registered local entity
  
• Complex social security and personal income tax rules
  
• Region-specific regulations (e.g., differences between Hanoi and Ho Chi Minh City)
  
• Strict labor contract requirements
  

With a Vietnam EOR, you sidestep these challenges and gain immediate access to local talent. Here’s why more businesses are turning to EOR providers as part of their global employment solutions:

1. Fast Market Entry

Hiring through an EOR can be completed in days—not months—giving you a competitive edge in fast-moving industries.

2. Risk Mitigation

Avoid penalties, fines, or disputes caused by non-compliance. The EOR ensures your employment processes are 100% legal.

3. Reduced Costs

Skip the time and expense of setting up a legal entity, local HR team, or in-house international payroll services.

4. Local Expertise

Benefit from local HR, legal, and cultural knowledge that helps you onboard, support, and retain top Vietnamese talent.

What Services Should You Expect from a Vietnam EOR Provider?

Not all EOR providers are the same. A reliable partner should offer comprehensive, end-to-end support tailored to Vietnam’s labor landscape.

Here’s what a top-tier Vietnam EOR provider should offer:

1. Legal Employment & Onboarding

Your EOR should take over the legal employment responsibilities and:

• Draft bilingual (English-Vietnamese) employment contracts compliant with Vietnamese labor law
  
• Ensure onboarding documents meet local standards
  
• Handle background checks if necessary
  
• Manage probation periods (typically up to 2 months for white-collar roles)
  

2. Payroll Processing and Tax Compliance

One of the biggest advantages of an EOR is payroll outsourcing. Your provider should:

• Run monthly payroll in VND (Vietnamese Dong)
  
• Withhold and pay personal income taxes
  
• File reports with the Vietnamese tax authority
  
• Deliver payslips to employees
  
• Handle 13th-month salary payments, which are customary in Vietnam
  

Your EOR partner should also stay updated with local tax law changes to ensure full compliance.

3. Social Insurance and Employee Benefits

Vietnamese law mandates contributions to:

• Social Insurance (SI)
  
• Health Insurance (HI)
  
• Unemployment Insurance (UI)
  

Your EOR provider will register employees for these programs and manage contributions. They should also offer:

• Supplemental health insurance (common among professionals)
  
• Annual health checks
  
• Paid annual leave and public holidays
  

Offering competitive benefits through your EOR helps you attract and retain talent in a competitive job market.

4. Work Permits for Foreign Nationals

If you’re hiring expatriates or foreign consultants in Vietnam, your EOR should guide you through the work permit and visa application process. This includes:

• Determining eligibility
  
• Collecting necessary documentation
  
• Submitting applications to the Ministry of Labor
  
• Managing renewals or extensions
  

5. HR and Employee Support

A trusted EOR provider should act as your local HR department by:

• Managing grievances or disputes
  
• Supporting performance reviews or promotions
  
• Assisting with local holidays, leave tracking, and overtime policies
  
• Offering legal guidance for terminations and severance packages
  

EOR vs. PEO: What’s the Difference?

Many companies confuse Employer of Record (EOR) and Professional Employer Organization (PEO) services. While they share similarities, the difference lies in legal employment responsibility:

If you don’t have a registered business in Vietnam, an EOR is your only compliant option. If you already have an entity but need local HR and payroll outsourcing, a PEO may be a better fit.

What Makes a Good Vietnam EOR Provider?

When selecting a Vietnam EOR, you want a provider that not only meets regulatory requirements but also enhances your employee experience and reduces your operational burden.

Here’s what to look for:

Deep Knowledge of Vietnam Labor Law

Local regulations can vary by city and province. Choose an EOR with on-the-ground teams who understand the nuances.

Multilingual Support

Ensure the EOR offers support in both English and Vietnamese for seamless communication with your HR team and local employees.

Transparent Pricing

Look for simple, all-inclusive pricing models. Hidden fees for benefits, visa applications, or offboarding can blow up your budget.

Customizable Services

As your business grows, you may need to scale benefits, manage multiple locations, or transition to your own entity. Your EOR should grow with you.

Positive Employee Experience

Ultimately, the EOR will be your employees’ point of contact. Choose a partner known for professionalism, responsiveness, and a human-centered approach.

Why Vietnam Is a Smart Choice for Remote Hiring

More companies are turning to Vietnam as a destination to hire remote employees, and it’s easy to see why:

• Young workforce: 70% of the population is under 35
  
• High education rates: Particularly in IT, finance, and engineering
  
• English proficiency: Especially in urban centers like Ho Chi Minh City and Hanoi
  
• Cost-effective: Competitive salary structures compared to Western markets
  
• Digital infrastructure: Rapid improvements in internet connectivity and cloud tools
  

With the right EOR partner, companies can harness this talent pool without the administrative overhead of setting up locally.

Team APAC: Your Trusted EOR Partner in Vietnam

At Team APAC, we specialize in helping businesses hire remote employees across Asia-Pacific with ease, speed, and compliance. Our Vietnam EOR services are part of our broader suite of global employment solutions, built to help you grow without borders.

Here’s what we offer:

• Fully compliant Vietnam EOR services
  
• Bilingual HR support and legal guidance
  
• Complete payroll outsourcing and tax filing
  
• Visa and work permit management
  
• Customized benefits packages
  
• Dedicated onboarding and employee support team
  

Whether you’re hiring one employee or building an entire team, our international payroll services and EOR expertise ensure your expansion into Vietnam is smooth, compliant, and cost-effective.

Final Thoughts

Hiring in Vietnam is a strategic move for companies looking to expand in Asia. But navigating labor law, payroll, and compliance is no small feat. That’s where a reliable Employer of Record makes all the difference.

By partnering with a Vietnam EOR, you can:

• Hire top talent fast
  
• Stay compliant with local regulations
  
• Avoid costly setup and operational delays
  
• Focus on business growth while we handle the rest
  

With Team APAC’s trusted support, you can hire smarter, onboard faster, and grow globally—without borders.

Ready to Hire in Vietnam?

Let Team APAC guide your entry into Vietnam with professional, people-first EOR services.

Contact us now for a free consultation and discover how easy compliant hiring in Vietnam can be.