Employer of Record Vietnam: The Complete 2026 Guide
How startups and SMEs can hire employees in Vietnam legally and compliantly without establishing a foreign-invested enterprise, navigating BHXH social insurance from scratch, or managing work permit documentation independently.
What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organisation that becomes the legal employer of your workers in a given country. In this case, Vietnam. You select the talent, define the role, and manage day-to-day performance. The EOR handles everything else: labour contracts under the Labour Code 2019, social insurance enrolment, payroll processing, Personal Income Tax (PIT) withholding, and for foreign hires, work permit and Temporary Residence Card (TRC) sponsorship.
The EOR’s registered Vietnamese entity name appears on the labour contract and the social insurance declaration. Your company name appears on the work scope, the performance objectives, and the reporting line. You hold full operational control without carrying Vietnam’s compliance obligations directly.
EOR is a fully legal employment model in Vietnam. The EOR operates as a registered Vietnamese enterprise, enrolled with the Vietnam Social Security agency (VSS) as an employer, and registered with the General Department of Taxation (GDT) for PIT withholding. Workers engaged through an EOR have full legal protections under the Labour Code 2019 (Law No. 45/2019/QH14), including minimum leave entitlements, notice period rights, and severance obligations.
How EOR Works in Vietnam: Step by Step
Vietnam’s employer compliance framework is detailed and multi-agency. Understanding each step of the EOR process makes it clear why attempting to self-manage these obligations from outside the country or through an informal arrangement, creates significant legal and financial exposure.
Step 1: You Identify the Candidate
You run your own recruitment process and select the person you want to hire, whether a Vietnamese national or a foreign professional requiring a work permit and TRC. The EOR is not a recruitment agency. You bring the talent; the EOR provides the compliant employment infrastructure to bring them on board legally.
Step 2: Labour Contract Issued Under Vietnamese Law
The EOR drafts a compliant labour contract under the Labour Code 2019. Vietnam recognises three main contract types: definite-term contracts (up to 36 months, extendable once), indefinite-term contracts (for permanent roles), and seasonal or specific-work contracts (under 12 months). The contract must be in Vietnamese or bilingual, Vietnamese takes legal precedence. It must specify salary, job title, working hours, leave entitlements, probation terms, and social insurance obligations.
Step 3: Social Insurance Registration & Work Permit (If Applicable)
For Vietnamese national hires, the EOR registers the employee with VSS for BHXH, BHYT, and BHTN, and with the tax authority for PIT within the required timeframes. For foreign hires, the EOR applies to the Department of Labour, Invalids and Social Affairs (DOLISA) for a work permit, the sponsoring employer must demonstrate that no suitable Vietnamese candidate was available for the role. The TRC is then applied for through the provincial Immigration Department.
Step 4: Monthly Payroll & PIT Withholding
Each month, the EOR processes payroll, calculates and withholds PIT according to the progressive rate schedule (or flat 20% for non-resident foreign employees), deducts employee social insurance contributions, and remits all amounts to the GDT and VSS on time. Employees receive their net salary and a payslip. You receive a consolidated invoice with a clear breakdown of statutory and service costs.
Step 5: HR Administration, Tet Bonus & Ongoing Compliance
The EOR manages annual leave (minimum 12 days for standard roles, 14 days for hazardous roles), sick leave, public holidays, and probation periods (maximum 180 days for senior roles, 60 days for degree-level positions, 30 days for others). Critically, the EOR manages the Tết bonus while not legally mandated in the same way as Vietnam’s 13th-month salary practice, it is a deeply ingrained market norm and a key factor in employee retention. As regional minimum wages are revised annually, the EOR ensures payroll reflects the correct zone rate from the effective date.
Social Insurance (BHXH), Health Insurance (BHYT) & PIT in 2026
Vietnam’s statutory compliance framework centres on three mandatory insurance contributions and a progressive income tax system. Understanding each component rates, ceilings, and who they apply to, is essential for accurate employment cost modelling.
Mandatory Social Insurance Contributions (2026)
All employers in Vietnam must register employees with the Vietnam Social Security agency (VSS) and remit contributions monthly. The three programmes, BHXH, BHYT, and BHTN. Each have distinct employer and employee rates, contribution ceilings, and applicability rules for foreign nationals.
| Programme | Employer Rate | Employee Rate | Contribution Ceiling & Notes |
|---|---|---|---|
| BHXH — Social Insurance (Bảo hiểm Xã hội) | 17.5% | 8% | Ceiling: 20 × VND 2,340,000 = VND 46,800,000/month (effective 1 July 2025, per revised reference level) Foreign nationals: Compulsory if employed under a labour contract of at least 12 months (per Law on Social Insurance No. 41/2024/QH15, effective 1 July 2025 — supersedes Decree 143/2018/ND-CP) |
| BHYT — Health Insurance (Bảo hiểm Y tế) | 3% | 1.5% | Same ceiling of VND 46,800,000/month. Covers inpatient and outpatient public hospital treatment. Applies to all employees including foreign nationals. |
| BHTN — Unemployment Insurance (Bảo hiểm Thất nghiệp) | 1% | 1% | Vietnamese nationals only. Under the Employment Law 2025 (effective 1 January 2026), BHTN coverage has been expanded to include employees on contracts of 1 month or more, |
| Trade Union Fee New | 2% | 0% | Mandatory employer contribution calculated as 2% of the total payroll fund used for social insurance. Applies regardless of whether a trade union exists in the workplace. Remitted monthly to the Vietnam General Confederation of Labour (VGCL) via the provincial trade union. This brings the true total employer statutory burden to 23.5%. |
Personal Income Tax (PIT) 2026
Vietnam uses a seven-bracket progressive PIT system for tax residents (those present in Vietnam for 183+ days in a calendar year, or who maintain a regular place of residence). Non-resident foreign employees are taxed at a flat rate on Vietnam-sourced income.
| Monthly Taxable Income (VND) | Annual Taxable Income (VND) | PIT Rate |
|---|---|---|
| Up to 5,000,000 | Up to 60,000,000 | 5% |
| 5,000,001 – 10,000,000 | 60,000,001 – 120,000,000 | 10% |
| 10,000,001 – 18,000,000 | 120,000,001 – 216,000,000 | 15% |
| 18,000,001 – 32,000,000 | 216,000,001 – 384,000,000 | 20% |
| 32,000,001 – 52,000,000 | 384,000,001 – 624,000,000 | 25% |
| 52,000,001 – 80,000,000 | 624,000,001 – 960,000,000 | 30% |
| Above 80,000,000 | Above 960,000,000 | 35% |
Non-resident foreign employees are taxed at a flat 20% on all Vietnam-sourced income. Tax residents are entitled to:
- Personal deduction: VND 15,500,000/month
- Dependent deduction: VND 6,200,000/month per qualifying dependent
Regional Minimum Wages 2026
The most recent revision took effect 1 January 2026, shifting the cycle from the historical July effective date. Employers should note that future revisions may revert to July or remain in January, monitor the National Wage Council’s annual recommendation each year.
| Zone | Coverage (Examples) | Monthly Minimum Wage (VND) |
|---|---|---|
| Zone I | Hanoi (urban districts), Ho Chi Minh City (urban districts) | 4,960,000 |
| Zone II | Hanoi & HCMC (suburban districts), Da Nang, Hai Phong (urban) | 4,410,000 |
| Zone III | Remaining provinces/cities with industrial zones | 3,860,000 |
| Zone IV | All remaining provinces and rural areas | 3,450,000 |
General Department of Taxation (GDT): www.gdt.gov.vn/
Ministry of Labour, Invalids and Social Affairs (MOLISA): www.molisa.gov.vn/
Department of Labour, Invalids and Social Affairs (DOLISA — Hanoi): laodong.hanoi.gov.vn/
General Department of Immigration: xuatnhapcanh.gov.vn/
Work Permits & TRC: Sponsoring Foreign Workers via EOR
Vietnam’s work authorisation process for foreign nationals is detailed, document-intensive, and involves two government agencies. It is also one of the more frequently updated frameworks in ASEAN. The Labour Code 2019 and its implementing Decree 152/2020/ND-CP significantly reformed the prior system. Understanding what your EOR handles and why is important before you begin a foreign hire.
The Two Core Authorisations
📄 Work Permit (Giấy phép lao động)
Issued by DOLISA (the provincial Department of Labour). Authorises a foreign national to work for a specific employer in a specific role. Valid for up to 2 years, renewable once. The sponsoring employer i.e., the EOR must justify why the role cannot be filled by a Vietnamese national (labour market test). The work permit is tied to the employer; a job change requires a new permit.
📄 Work Permit (Giấy phép lao động)
Vietnam’s work authorisation process for foreign nationals is detailed, document-intensive, and involves two government agencies. It is also one of the more frequently updated frameworks in ASEAN. The Labour Code 2019 and its implementing Decree 152/2020/ND-CP significantly reformed the prior system. Understanding what your EOR handles and why is important before you begin a foreign hire.
📄 Work Permit Exemption
Certain foreign nationals are exempt from obtaining a work permit under Decree 152/2020/ND-CP, including: internal company transfers within a foreign enterprise (subject to conditions), certain specialists and managers under specific treaty provisions, and foreigners married to Vietnamese citizens working short-term. Exemption still requires formal registration with DOLISA, it does not mean unrestricted work rights.
Before submitting a work permit application, the employer must advertise the position and demonstrate that no suitable Vietnamese candidate was available. This is a substantive requirement, not a formality. DOLISA reviews the employer’s documentation of the recruitment process. An EOR with experience in this process will guide you on role framing and documentation to satisfy the test efficiently.
Work Permit & TRC — Document Checklist
Vietnam’s work permit application requires a more extensive document package than most comparable ASEAN markets. All foreign documents must be notarised and apostilled (or consularised for countries not party to the Hague Apostille Convention). Preparation time is the most common cause of delay.
| Document | Notes |
|---|---|
| Criminal record check | From the applicant's home country AND any country of residence in the past 6 months. Must be apostilled and notarised. Typically the longest lead-time item — allow 4–6 weeks for some jurisdictions. |
| Health certificate | Issued by a licensed Vietnamese hospital or clinic. Valid for 12 months. Can be obtained in Vietnam after arrival on a business visa. |
| Degree / qualification certificates | Must match the role claimed. Apostilled and notarised. For experience-based exemptions, a notarised CV with 5+ years verified experience may substitute. |
| Passport copy | Valid for at least 12 months beyond the intended permit period. |
| 4x6cm passport photos | White background, recent. Specific DOLISA requirements vary slightly by province. |
| Employer's DOLISA application form | Submitted by the EOR as the sponsoring employer, including the labour market test evidence. |
End-to-End Timeline via EOR
| Step | Agency | Processing Time |
|---|---|---|
| 1. Document preparation & apostille | Home country / applicant | 2–6 weeks (criminal record lead time varies by country) |
| 2. Labour market test & DOLISA application | DOLISA (provincial) | 10–15 business days |
| 3. Work permit card issued | DOLISA | Included in step 2 processing |
| 4. TRC application | Immigration Department (provincial) | 5–10 business days after work permit |
| Total Typical Timeline | — | 4–8 weeks (document prep is the primary variable) |
EOR vs Setting Up a Vietnamese Entity: Which Is Right for You?
Foreign companies operating in Vietnam require a foreign-invested enterprise (FIE), most commonly a wholly foreign-owned limited liability company (LLC). Vietnam has made progress in streamlining FIE registration through the National Business Registration Portal, but the process still involves multiple agencies, mandatory charter capital declarations, and sector-specific licensing requirements. For companies building an early-stage team, EOR removes every one of those barriers.
| Factor | EOR | Vietnamese FIE (Own Entity) |
|---|---|---|
| Setup Time | 3–7 business days to first hire | 2–3 months (Investment Registration Certificate + Enterprise Registration Certificate + sector licences) |
| Charter Capital | None required | Must declare charter capital; amount scrutinised by licensing authority for some sectors (e.g. technology, retail, education) |
| Legal Representative | None required from client | Must appoint a legal representative residing in Vietnam; responsible for all regulatory filings |
| Ongoing Compliance | Fully managed by EOR | Quarterly CIT declarations, annual financial audit, annual labour report to DOLISA, annual foreign currency reporting (if applicable) |
| Work Permit Sponsorship | Yes — via EOR's registered entity | Yes — after FIE is registered and enrolled with DOLISA |
| Commercial Contracting | EOR name on employment contracts only | Your FIE name on all commercial and employment contracts |
| Sector Restrictions | EOR handles its own licensing; some sectors remain closed to 100% foreign ownership regardless of structure | Certain sectors require a local joint-venture partner or are subject to market access conditions under WTO commitments |
| Best For | <12–15 employees; market entry; fast regional scale-up | 15+ employees; long-term Vietnam commitment; commercial operations; local contract signing |
Vietnam’s FIE setup requires an Investment Registration Certificate from the Department of Planning and Investment, a step that does not exist in most other ASEAN markets, before you can even register the enterprise. For most startups and regional SMEs, EOR is the only practical way to have people on the ground while the entity question is still being evaluated.
How Much Does EOR Cost in Vietnam?
Vietnam offers some of the most competitive EOR service fee pricing in ASEAN, reflecting the lower absolute salary base compared to Singapore and Malaysia. However, the 23.5% employer social insurance contribution is the highest statutory burden in Gotpaid’s coverage region and it must be factored in accurately from the start.
| Cost Component | Typical Range | Notes |
|---|---|---|
| EOR Monthly Service Fee | USD 249 – USD 499/employee/month | Varies by provider, role complexity, and work permit requirements |
| BHXH Employer Contribution | 17.5% of gross salary | Capped at VND 46,800,000/month salary base (2026) |
| BHYT Employer Contribution | 3% of gross salary | Same ceiling of VND 46,800,000/month |
| BHTN Employer Contribution | 1% of gross salary | Vietnamese nationals only |
| Trade Union Fee | 2% of payroll fund | Mandatory regardless of whether a trade union exists. Remitted monthly. |
| Work Permit Government Fee | VND 400,000 – VND 600,000 | DOLISA fee; varies by province |
| TRC Government Fee | USD 25 – USD 145 | Immigration fee; varies by nationality and permit duration |
| Tết Bonus (Market Norm) | 0.5 – 2 months gross salary (annual) | Not legally mandated, but universally expected |
| Total Employer Statutory Cost | ~23.5% above gross salary | BHXH + BHYT + BHTN + Trade Union Fee combined |
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How to Choose the Right EOR Provider in Vietnam
Vietnam is a market where EOR provider depth matters enormously. The compliance framework is updated frequently, Decree 152/2020/ND-CP replaced prior work permit rules, the Labour Code 2019 changed probation and contract rules, and BHXH ceiling adjustments follow base salary revisions. An EOR operating on outdated knowledge creates real liability for you. Here is what to evaluate:
DOLISA Track Record in Key Cities
Vietnam’s provinces process work permits independently. DOLISA Hanoi and DOLISA Ho Chi Minh City each have their own documentation preferences and processing cultures. An EOR that has submitted hundreds of applications in both cities, and knows the specific document formatting preferences of each office has a materially higher first-time approval rate than a provider without that experience.
BHXH Ceiling and Base Salary Monitoring
Vietnam’s base salary (used to calculate the BHXH ceiling) is periodically revised by the National Assembly. Each revision changes the maximum monthly contribution ceiling. An EOR should adjust your payroll cost model automatically when these changes occur, not after you flag a discrepancy in their invoice.
Tết Bonus Process Management
While not legislated, Tết bonuses are a compliance risk in the sense that underpaying relative to market norms drives attrition. Your EOR should provide guidance on competitive Tết bonus benchmarks by city, industry, and seniority and should build the disbursement date into your annual payroll calendar proactively.
Labour Contract Localisation
Vietnamese labour contracts must be in Vietnamese or bilingual, with the Vietnamese version taking legal precedence. An EOR that issues contracts in English only or whose Vietnamese-language contracts use template language that does not reflect the specific role terms you agreed, creates enforceability risk at the point of any employment dispute or termination.
Regional ASEAN Coverage
Vietnam is typically the fifth market companies enter after Singapore, Malaysia, Indonesia, and Thailand. If you are building a regional team, your EOR needs genuine in-country operations, not reseller arrangements in all your markets. Gotpaid.asia operates dedicated in-country teams across Vietnam, Singapore, Malaysia, Thailand, and Indonesia, with a single point of contact for regional payroll and compliance management.
Frequently Asked Questions
What is an Employer of Record (EOR) in Vietnam?
An Employer of Record (EOR) in Vietnam is a third-party company that becomes the legal employer of your workers under the Labour Code 2019, while you retain full operational control. The EOR handles BHXH social insurance, BHYT health insurance, BHTN unemployment insurance, PIT withholding, labour contracts, and for foreign hires, work permit and TRC sponsorship through DOLISA and the Immigration Department. This allows foreign companies and startups to hire in Vietnam without establishing a foreign-invested enterprise (FIE).
How much does EOR cost in Vietnam?
EOR service fees in Vietnam typically range from USD 249 to USD 499 per employee per month. Statutory employer social insurance adds 21.5% above gross salary (BHXH 17.5% + BHYT 3% + BHTN 1%), capped at the monthly BHXH ceiling of VND 36,000,000. Work permit government fees are modest (VND 400,000–600,000 per application) but the Tết bonus — while not legislated — is a significant annual cost that should be factored into your total employment cost planning.
Contact Gotpaid.asia for a full itemised breakdown.
How long does it take to hire someone via EOR in Vietnam?
Is the Tết bonus mandatory in Vietnam?
Do foreign employees in Vietnam need to pay BHXH?
What is the difference between a definite-term and indefinite-term labour contract in Vietnam?
What social insurance contributions does an EOR manage in Vietnam?
When should I use EOR instead of setting up a company in Vietnam?
Official Government Resources Referenced in This Article:
- Vietnam Social Security (VSS / BHXH) — Social & Health Insurance
- General Department of Taxation (GDT) — PIT & Tax Registration
- Ministry of Labour, Invalids and Social Affairs (MOLISA) — Labour Code & Minimum Wage
- General Department of Immigration — TRC & Temporary Residence
- National Business Registration Portal — FIE & Enterprise Registration
- Ministry of Planning and Investment (MPI) — Investment Registration