Vietnam has become a prominent hub for software development in Asia, thanks to its growing tech ecosystem, highly skilled workforce, and competitive labor costs. The country’s software engineers are now playing a pivotal role in global IT, product development, and digital transformation efforts for international companies.

For foreign businesses eager to tap into this talent pool, hiring software engineers in Vietnam can be a smart move. However, managing legal compliance, payroll, and contracts remotely can be difficult—especially if you don’t have a local business entity. That’s where partnering with a reliable Employer of Record (EOR) becomes critical.

In this guide, we’ll cover what you can expect when using top EOR providers to hire software engineers in Vietnam and how they support legal, efficient, and seamless hiring through global employment solutions, international payroll services, and more.

Why Vietnam’s Software Engineers Are in Demand Globally

Vietnam’s tech industry has seen exponential growth in the past decade, with more than 400,000 IT professionals and a pipeline of 50,000 tech graduates annually. The government actively supports digital transformation and innovation, making Vietnam a fertile ground for startups and multinational tech operations alike.

International companies look to Vietnam for:

• High-quality coding and product development
  
• Cost-effective talent acquisition
  
• English-speaking developers
  
• Experience with global platforms (Java, Python, React, Node.js, AWS, etc.)
  
• Strong work ethic and agile development mindset
  

As a result, demand for software engineers in Vietnam continues to rise in sectors like fintech, eCommerce, health tech, logistics, and SaaS.

Common Challenges in Hiring Directly

Before diving into recruitment, it’s essential to understand the roadblocks of hiring directly without a local entity:

1. Legal Restrictions

Vietnam’s labor code requires all employment contracts to comply with local laws, including social insurance, health insurance, and labor standards. Without a registered entity, global companies cannot legally employ full-time staff.

2. Payroll and Taxation Complexities

Running payroll in Vietnam involves withholding personal income tax, employer and employee contributions to social security, and submitting monthly reports to local tax authorities. Mishandling these can result in legal penalties.

3. Onboarding and Employment Contracts

Employment contracts must be in Vietnamese, meet statutory requirements, and be registered appropriately. Termination clauses and benefits must follow Vietnamese labor law to avoid future disputes.

How an Employer of Record (EOR) Helps

A trusted EOR company becomes the official employer of record for your Vietnam-based software engineers, while your business retains control over their day-to-day activities.

Here’s how it works:

• The EOR company signs a compliant employment contract with the employee.
  
• It handles onboarding, benefits administration, and statutory compliance.
  
• You manage the employee’s tasks, deadlines, and performance.
  
• The EOR runs monthly payroll outsourcing, ensuring legal contributions.
  
• It provides support for renewals, terminations, and labor law updates.
  

This model enables your company to hire remote employees in Vietnam without establishing a subsidiary—saving time, cost, and legal risk.

What to Expect from the Top EOR Providers

When selecting a partner to help with hiring in Vietnam, look for the following qualities in the top EOR providers:

1. Local Compliance Expertise

The best Employer of Record services are run by experts who understand Vietnamese labor regulations and tax systems. They ensure that your employment contracts, benefits, and working hours are legally compliant from day one.

2. Streamlined Onboarding

Top providers can onboard a software engineer in as little as 1–2 weeks. They collect necessary documents, translate contracts, register employees with the authorities, and set up their payroll accounts efficiently.

3. Integrated Payroll Management

The provider offers international payroll services, including local tax filings, payslip generation, mandatory insurance contributions, and end-of-year tax summaries. This ensures transparency and accuracy in salary disbursement.

4. Support for Contractor to Employee Transition

Many companies begin by hiring developers as contractors. Top EOR providers can convert these workers into full-time employees under compliant contracts, ensuring long-term team stability.

5. Workforce Flexibility and Scalability

Whether you need one backend developer or an entire offshore engineering team, a strong EOR company can scale with you. They also handle exit processes, terminations, and replacement hires.

Understanding Compensation and Benefits for Software Engineers in Vietnam

Here’s what global companies typically offer:

Salary Ranges

• Junior Software Engineer: USD 8,000 – 12,000/year
  
• Mid-Level Developer: USD 12,000 – 18,000/year
  
• Senior Software Engineer: USD 18,000 – 30,000/year
  
• Tech Lead / Architect: USD 30,000 – 45,000/year
  

Statutory Benefits

• Social insurance (8% employee, 17.5% employer)
  
• Health insurance (1.5% employee, 3% employer)
  
• Unemployment insurance (1% employee, 1% employer)
  
• 12 days paid leave/year
  
• Public holidays (12–14 days annually)
  
• Overtime pay as mandated
  

An experienced EOR company ensures all required benefits and taxes are calculated correctly, protecting your business and your employees.

Why Use Global Employment Solutions for Vietnam?

Today’s international teams demand a unified system to manage HR, compliance, and hiring across borders. Global employment solutions offer:

• Single dashboard for all international hires
  
• Real-time visibility into payroll and compliance
  
• Cost analysis by country and role
  
• Audit trails and HR documentation storage
  
• Local support when issues arise
  

This is especially useful for fast-scaling tech teams where hiring across multiple APAC regions is required. With Team Apac’s EOR solution, you can manage Vietnam alongside other countries with consistency and confidence.

Final Thoughts: Work with Team Apac to Hire Vietnam’s Best Developers

Hiring software engineers in Vietnam offers enormous benefits in cost, skill, and scalability. But to do so legally and efficiently, global businesses must understand the local labor landscape—or better yet, work with a reliable Employer of Record.

An EOR company allows you to hire remote employees in Vietnam without establishing a local entity, run payroll outsourcing seamlessly, and provide your engineers with compliant contracts and benefits. The top EOR providers take care of compliance, onboarding, and HR admin so you can focus on building your next big tech product.Team Apac is one of the region’s top EOR providers, offering tailored global employment solutions and full-service international payroll services across Vietnam and beyond. Whether you’re hiring your first Vietnamese developer or scaling a remote product team, Team Apac provides the best Employer of Record services to power your tech expansion.