Employer of Record (EOR) in Vietnam
Easily hire employees in Vietnam without establishing a local business entity. Native Teams simplifies expanding your workforce internationally by handling local laws, taxes, and payroll management. Focus on growing your business while we ensure compliance.
How does an EOR in Vietnam work?
Partnering with an Employer of Record (EOR) provider like Native Teams enables businesses to expand into Vietnam without the need to establish a local legal entity or navigate complex labour laws. The EOR manages all administrative responsibilities, including payroll processing, employment contract preparation, onboarding, and compliance with Vietnamese labour regulations. Meanwhile, businesses retain complete control over the daily management of their employees.
Who can use EOR services in Vietnam?
An Employer of Record (EOR) is an excellent solution for businesses looking to expand their global workforce seamlessly. EOR services in Vietnam support companies of all sizes, from startups to large multinational corporations. These services are particularly beneficial for businesses looking to expand into Vietnam without the complexities of establishing a local legal entity. By partnering with an EOR, companies can hire local talent, manage payroll efficiently, and fully comply with Vietnamese labour laws and regulations.
Features of Native Teams EOR Services in Vietnam
Employers can compliantly hire, onboard, and pay their global team members through Native Teams’ EOR services in Vietnam.
We will automate all the HR administration and provide you with all the necessary documentation. You’ll be able to access everything with just one click in your Native Teams dashboard.
With our payroll calculator available in 85+ countries, employers can easily calculate salary, taxes, benefits, and other deductions. Employers can easily manage a global payroll for all employees on a single platform.
Employers can offer comprehensive benefits to attract and retain the best talent on their team through Native Teams. These benefits include private health insurance, retirement savings plans, or wellness programmes.
Dive deeper into Vietnam’s labour laws and regulations with our hiring guide.
What legal requirements exist for employment in Vietnam
Employers in Vietnam must provide their employees with a written employment contract that complies with Vietnamese labour laws. This contract should clearly outline the job title, duties, salary, working hours, benefits, probation period, and termination conditions. Employment contracts can be indefinite, definite (up to 36 months), or seasonal, and they protect the rights of both employers and employees.
Employers are required to register employees with Vietnam’s social insurance system, which includes Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI). Contributions are deducted from employees’ salaries, with employers making additional mandatory contributions. These contributions provide employees with retirement pensions, healthcare, sick leave, maternity leave, and unemployment benefits.
Employers must withhold and remit Personal Income Tax (PIT) on behalf of employees to the Vietnamese tax authorities. The progressive tax rate ranges from 5% to 35%, depending on the employee's income. Employers must also ensure timely and accurate tax reporting to comply with Vietnamese tax laws.
Foreign nationals seeking employment in Vietnam typically require a work permit unless they qualify for an exemption. Employers must sponsor work permits that meet specific criteria, such as demonstrating the need for foreign expertise. Work permits are usually valid for up to two years and must be renewed before expiration.
Employers are legally obligated to provide a safe and healthy work environment in line with Vietnam’s occupational health and safety regulations. This includes workplace safety training, protective equipment, and measures to prevent work-related injuries or illnesses.
Vietnam’s Labour Code outlines essential employment standards, including minimum wage, working hours (a maximum of 48 hours per week), overtime pay, statutory holidays, leave entitlements, and termination procedures. Employers must comply with these regulations to avoid legal penalties.
In addition to mandatory contributions to social insurance, employers may offer additional benefits such as private health insurance, retirement savings plans, or wellness programmes to attract and retain employees. While these benefits are not legally required, they can enhance employee satisfaction and competitiveness in the job market.
Please note that specific legal requirements may vary depending on the type of job, industry, and individual circumstances.
Why choose Native Teams as your Vietnam Employer of Record?
Navigating Vietnam’s complex legal and regulatory employment landscape can be challenging and time-consuming for businesses. Native Teams simplifies this process by handling all employment-related legal and administrative requirements, allowing you to focus on expanding your business.
With legal entities in over 85+ countries, Native Teams has extensive experience managing cross-border employment. Our deep understanding of Vietnamese labour laws ensures seamless and compliant employment solutions tailored to your needs. By choosing Native Teams as your Vietnam Employer of Record, you eliminate the need to establish a local legal entity, saving time, resources, and the risk of compliance issues.
What you need to know?
An Employer of Record (EOR) is a third-party organisation that officially employs workers on behalf of a company, managing all legal and administrative aspects of employment. This includes payroll processing, tax deductions, compliance with local labour laws, and benefits administration. Using an EOR, businesses can expand into new markets without establishing a legal entity in the country.
The cost of using an Employer of Record (EOR) in Vietnam varies depending on the provider, the number of employees, and the range of services required.
To learn more about our pricing and plans, please visit our pricing page.
The key distinction between a Professional Employer Organisation (PEO) and an Employer of Record (EOR) lies in their roles and responsibilities.
An EOR is the legal employer of your workforce, assuming full responsibility for payroll, tax compliance, benefits, and adherence to local labour laws. This is ideal for companies expanding into a new country without establishing a local entity.
On the other hand, a PEO operates under a co-employment model. While it handles HR functions like payroll and benefits, the client company remains the legal employer and shares responsibility for compliance. PEO services are most suitable for companies with a legal presence in the country.
An Employer of Record (EOR) service provider acts as the official employer for a company’s workforce, ensuring full compliance with local employment laws and regulations. Their responsibilities include processing payroll by calculating and distributing salaries, taxes, and deductions, as well as managing compliance to ensure all employment practices align with local labour laws. They also draft legally compliant employment contracts tailored to specific regional requirements and oversee the administration of both mandatory and optional employee benefits.
Additionally, an EOR facilitates the onboarding and offboarding process, handling all necessary documentation for employee entry and exit. By assuming liability for employment-related risks, they help mitigate potential legal and financial issues for the client company. With these responsibilities covered, businesses can focus on managing their workforce and core operations without the complexities of local employment regulations.
Yes, using an Employer of Record (EOR) in Vietnam is entirely legal. EOR services operate within the framework of Vietnamese labour laws and regulations, offering a compliant solution for businesses looking to hire employees without setting up a local legal entity.
Many companies use EOR services to simplify employment in Vietnam, ensuring that payroll, taxes, and benefits are managed correctly while reducing administrative complexities and compliance risks.
Using an Employer of Record (EOR) allows businesses to expand into Vietnam without the complexities and costs of setting up a local entity. Establishing a company in Vietnam involves navigating intricate regulatory requirements, registering with government authorities, and ensuring compliance with ongoing legal and tax obligations—all of which can be time-consuming and resource-intensive.
An EOR streamlines this process by acting as the legal employer for your workforce, managing payroll, taxes, benefits, and compliance on your behalf. This enables you to start operations quickly and efficiently without long-term commitments. Additionally, if market conditions change or business priorities shift, you can scale your workforce up or down with ease, avoiding the challenges associated with closing a legal entity or handling local employment contracts.
There is no specific legal limit on the number of employees a business can hire in Vietnam as long as all labour laws and regulatory requirements are met.
With an EOR like Native Teams, you can hire as many employees as your business requires, whether a single worker or an entire team. The EOR handles payroll, benefits, and compliance, allowing you to scale your workforce efficiently without the administrative burden of managing local employment regulations.