Employer of Record Vietnam: Hiring Talent in Vietnam Without Entity

Hiring in Vietnam sounds simple, until you actually try to do it without a local entity. What starts as a straightforward plan to recruit talent can quickly turn into a maze of labor laws, payroll setup, tax compliance, and mandatory statutory requirements.

Instead of focusing on finding the right candidates, you end up dealing with legal processes that slow everything down.

For companies that want to move fast, setting up a legal entity just to hire one or two employees often feels unnecessary and time-consuming. The risk of non-compliance also adds another layer of concern, especially when you’re not fully familiar with local regulations.

This is where an Employer of Record (EOR) becomes a practical solution, allowing you to handle hiring in Vietnam without the hassle of entity setup, while staying fully compliant from day one.

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

An Employer of Record (EOR) in Vietnam acts as the legal employer for your hires, so you can operate without setting up a local entity. While you manage daily work and performance, the EOR ensures full compliance with local regulations.

This includes adherence to the Labor Code 2019 (Law No. 45/2019/QH14), the Law on Social Insurance 2014, and personal income tax requirements, areas that can be complex without local expertise.

Is Employer of Record Legal in Vietnam?

Yes, using an Employer of Record in Vietnam is legal.

However, it must be structured correctly.

Vietnam does not explicitly use the term employer of record in its labor laws. Instead, EOR services operate through local employment and outsourcing frameworks, where the EOR is registered as the legal employer and complies with all statutory obligations.

A compliant EOR in Vietnam will:

• Issue locally compliant employment contracts
• Register employees with social insurance authorities
• Handle personal income tax (PIT) filings
• Ensure adherence to Vietnam’s Labor Code

The key is working with a provider that has a registered local entity and deep understanding of Vietnam’s employment regulations.

Why Hire Talent in Vietnam?

Vietnam has become an increasingly attractive destination for global hiring. Here’s why:

1. Growing Talent Pool

Vietnam boasts a large, educated workforce, particularly in fields like technology, manufacturing, and customer support. The country produces a steady stream of skilled graduates each year.

2. Competitive Labor Costs

Compared to many other countries in Asia, Vietnam offers lower labor costs without compromising on quality, making it ideal for startups and scaling businesses.

3. Strong Economic Growth

Vietnam’s economy has shown consistent growth over the past decade, supported by strong exports, foreign investment, and government reforms.

4. Strategic Location

Located in Southeast Asia, Vietnam provides easy access to major markets such as China, Singapore, and Thailand, making it a strategic hub for regional expansion.

Key Employment Regulations in Vietnam

Hiring in Vietnam comes with specific statutory requirements that employers must follow.

1. Employment Contracts

All employees must have a written labor contract. Contracts can be:

• Indefinite-term
• Fixed-term (up to 36 months)

2. Working Hours and Overtime

• Standard working hours: up to 48 hours per week
• Overtime is regulated and capped annually
• Overtime pay ranges from 150% to 300% depending on timing

3. Minimum Wage

Minimum wages vary by region. For example:

• Region I (e.g. Hanoi, Ho Chi Minh City): ~VND 4,680,000/month
• Lower regions have slightly reduced minimum thresholds

4. Social Insurance Contributions

Employers and employees must contribute to mandatory insurance schemes:

• Employer contribution: ~17.5% (Social Insurance) + 3% (Health Insurance) + 1% (Unemployment Insurance)
• Employee contribution: ~8% (Social Insurance) + 1.5% (Health Insurance) + 1% (Unemployment Insurance)

These contributions are calculated based on salary (with caps depending on regulations).

5. Personal Income Tax (PIT)

Vietnam uses a progressive tax system ranging from 5% to 35%, depending on income level.

6. Employee Leave Entitlements

The following is employee leave in Vietnam:

• Annual leave: minimum 12 days per year
• Public holidays: around 11 days annually
• Additional leave may apply based on tenure or working conditions

7. Work Permits for Foreign Employees

Foreign hires typically require:

• A valid work permit
• Employer sponsorship
• Compliance with quota and eligibility requirements

Hiring Talent in Vietnam with Glints TalentHub

Vietnam offers a compelling mix of talent quality, cost efficiency, and growth potential. But hiring here requires careful navigation of local regulations.

An Employer of Record simplifies the process by handling compliance, payroll, and legal employment, so you can focus on building your team.

If you’re exploring hiring in Vietnam and want a faster, compliant way to get started, partnering with the best EOR in Vietnam like Glints TalentHub can make all the difference.

This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.

Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.

Schedule a no-obligation consultation with our experts to receive a tailored proposal today!