Article
12 min read
How to Hire Using an Employer of Record in Vietnam (2025)
Employer of record
Author
Jemima Owen-Jones
Last Update
June 27, 2025
Table of Contents
What is a Vietnam Employer of Record?
Top reasons to use an EOR in Vietnam
How to hire in Vietnam: Step-by-step guide
Employment compliance tasks an Employer of Record manages in Vietnam
How much does it cost to hire through an EOR in Vietnam?
Which Vietnam EOR should you choose?
Is Deel Employer of Record a strong choice for hiring in Vietnam?
Hire employees in Vietnam effortlessly with Deel Employer of Record
Key takeaways
- Setting up a Vietnam entity to hire local talent can take months and cost over ₫906,636,920 in legal, tax, and payroll setup.
- A Vietnam Employer of Record lets you engage talent through its local entity, bypassing setup delays, legal costs, and compliance headaches
- Deel EOR owns its Vietnam entity for full control, supports hiring in 150+ countries, delivers transparent pricing, real-time compliance monitoring, and has top G2 ratings.
Expanding your business and hiring employees in Vietnam—such as a software engineer in Ho Chi Minh City or a sales lead in Hanoi—gives global companies cost-effective access to Southeast Asia’s booming market. Vietnam’s young, tech-savvy workforce, sustained GDP growth, and abundant STEM graduates make it the go-to expansion hub for 2025.
However, compliance with Vietnamese labor laws can be complex. Rapid legislative changes, strict labor contract requirements, and entity registration can take at least 2 months. Employers must ensure compliance with social, health, and unemployment insurance rules, manage monthly personal income tax (PIT) filings, and issue contracts compliant with local labor laws. Errors can result in hefty fines and costly back-payments for misclassification
An Employer of Record (EOR) solution, like Deel EOR, acts as the legal employer in Vietnam. You sign a single service agreement; Deel’s local entity hires workers on your behalf, runs payroll, ensures compliance with all Vietnamese labor laws, and indemnifies you against local employment liabilities. You retain day-to-day control of the employee’s role, performance, and culture, while the EOR manages administrative and statutory obligations.
See also: What’s the Fastest Way to Enter Markets and Hire Globally?
What is a Vietnam Employer of Record?
A Vietnam Employer of Record is a locally incorporated company that acts as the legal employer for your workforce. This EOR service:
- Signs the labor contract in its own name
- Registers employees with the Social Insurance Agency and Tax Department
- Deducts PIT and statutory insurance every payroll cycle
- Files monthly and annual returns
- Stays responsible for audits, back taxes, and labor disputes
Your business directs the employee’s daily work, compensation, and team integration, while the EOR absorbs employer status and compliance risk under local labor law.
Deel EOR operates a wholly owned Vietnamese entity—there is no reliance on third-party partners. This means faster onboarding, real-time compliance monitoring via Deel Compliance Hub, and a single monthly fee that includes all mandatory social insurance and union contributions.
Deel Employer of Record
Top reasons to use an EOR in Vietnam
Navigating Vietnam’s Labor Code, Social Insurance Law, and regulatory updates from the Ministry of Labor, Invalids, and Social Affairs can be daunting. With an EOR, you can:
- Avoid entity incorporation: Skip the 2-month setup, charter capital, and Foreign Investment registration
- Predict employer costs: Statutory costs are fixed at 23.5% of salary, including social, health, unemployment insurance, and trade-union fees
- Compliant, local-language contracts: Written, certified contracts are mandatory; Deel auto-generates bilingual copies
- On-time payroll filing: PIT returns are due by the 20th of the following month. Late filings risk 15,000,000 VND to 25,000,000 VND penalties. An EOR like Deel files on time, every time
- Misclassification protection: EORs ensure your workers are classified correctly, shielding you from worker misclassification penalties and back-pay risk
- Data-privacy and IP security: Decree 13/2023/ND-CP enforces strict data protection; Deel encrypts data and secures company IP
Choosing Deel was easy—they offer unmatched compliance and HR support that scales with fast-growing companies like ours. They’ve been the best partner for executing our global hiring strategy.
—Yunjung (Rina) Bae,
Director of People, MarqVision
How to hire in Vietnam: Step-by-step guide
Follow this step-by-step process to hire employees in Vietnam compliantly through an EOR, without ever visiting Hanoi or Ho Chi Minh City.
1. Choose an EOR with a wholly-owned Vietnam entity
Choose an EOR provider with full ownership of a Vietnamese entity, not just a partner. Full ownership enables the EOR to directly issue labor contracts, register employees for social insurance, ensure stronger compliance, and minimize intermediary fees.
Tip: Request the provider’s Enterprise Registration Certificate and tax code—ownership should be instantly verifiable via Vietnam’s National Business Registration portal.
2. Book a demo and verify social proof
During a product demo, look for features that support compliance with Vietnamese labor laws: native contract generation, VND payroll dashboards, and automated social insurance calculations. Ask for industry-specific client references or G2 reviews.
Tip: Request a demo payroll run to confirm statutory cost line items, including social insurance and union contributions.
3. Request a transparent EOR quote
A reputable EOR service will provide an itemized quote, including gross salary, statutory employer costs (23.5%), additional benefits, and the management fee. Deel’s flat monthly fee model simplifies budgeting and ensures full transparency.
Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?
4. Submit a 12–24-month hiring plan
Outline your expected headcount, job functions, and salary bands. The EOR uses this to pre-register union budgets, secure insurer discounts, and guarantee payroll capacity. Deel’s Workforce Planning tool visualizes costs by quarter and accounts for minimum wage adjustments.
Tip: Deel Compensation suggests market-rate offers to help you attract top talent in Vietnam.
5. Create the employment contract in the platform
Select “Vietnam—Fixed Term” in Deel’s contract generation workflow. The platform will specify salary in VND, working hours (maximum 48 hours per week), and probation period (up to 180 days for executive positions). The platform auto-inserts all mandatory clauses per Vietnamese labor law, such as work location, payment method, and IP assignment.
Tip: Opt for VNeID-compliant digital signatures for rapid, inspector-approved onboarding.
6. Confirm the candidate’s right to work
For Vietnamese nationals, match the ID card (CCCD) data against the Ministry of Public Security database. For foreign residents, confirm a valid work permit or exemption applies. Deel Immigration can manage work permit sponsorship and renewals.
Tip: Use Deel’s automated background checks for faster, compliant verification within 48 hours.
7. Run the onboarding workflow
After contract signature, the EOR must register employees on the Social Insurance Portal within 30 days. Payroll and tax details are collected securely and processed according to local payroll regulations.
Tip: Use Deel Engage to roll out training and performance goals, and Deel IT to provision equipment.
8. Maintain ongoing compliance
Every month, the EOR:
- Issues Vietnamese payslips
- Withholds PIT according to current brackets (5%–35%) and files Form 05/KK-TNCN before the 20th
- Remits social, health, unemployment insurance, and union fees by month-end
- Notifies employees of labor law updates, such as minimum wage increases
Deel’s Compliance Hub provides real-time alerts on regulatory changes, helping you budget and ensure ongoing compliance.
Tip: Subscribe to Deel’s compliance newsletter to receive clear and concise summaries of relevant compliance changes.
Platform Tour
Employment compliance tasks an Employer of Record manages in Vietnam
Below are the main 2025 compliance categories that an EOR service like Deel covers, ensuring compliance with Vietnamese labor laws at every step.
| Category | Key requirements (2025) |
|---|---|
| Statutory Employer Costs | Employers must contribute a total of 23.5% of an employee’s salary to mandatory social insurance programs, capped at VND 46.8 million monthly (20 times the national minimum base salary). This includes 17% for social insurance (covering retirement, sickness, maternity), 0.5% for accident insurance, 3% for health insurance, and 2% for trade union fees. Unemployment insurance is 1%, calculated based on regional salary caps ranging from VND 69 million to VND 99.2 million per month, depending on the region. All contributions are government-mandated, invoiced as employer costs monthly. |
| Employment Contracts & Probation Rules | Vietnam contracts, updated September 2023, disallow unused vacation carryover for hires after that date. Contracts may be English-only. Fixed-term contracts (3–36 months, one renewal) end automatically with severance after 12 months. Probation ranges from 6 to 180 days by role and can be waived with approval. Non-compete and non-solicitation clauses are enforceable during and after employment without employee compensation; typical non-compete lasts one year. |
| Pay and Working Hours | Vietnam has two minimum wages: the national base salary (VND 2,340,000/month from July 2024) for the public sector and social security calculations, and the regional minimum wage for private sector salaries, ranging from VND 3,450,000 to VND 4,960,000 monthly by region. Standard work hours are 8 hours per day, 40 per week, Monday to Friday. Overtime pay is mandatory, capped at 12 hours daily, with rates of 150% on weekdays, 200% on weekly days off, and 300% on public holidays. |
| Payroll & PAYE Compliance | Payroll runs monthly, from the 1st to the last day, with a cutoff on the 20th and payment on the last day. Gross salary equals daily rate times days worked plus other earnings. Assessable income is gross earnings adjusted for statutory social, health, and unemployment insurance deductions and personal exemptions (VND 11 million monthly, plus VND 4.4 million per dependent). Employee contributions are 8% social insurance, 1.5% health insurance (capped at 20 times the national base salary), and 1% unemployment insurance (capped regionally). Individual income tax is progressive from 5% to 35%, influenced by dependents and household status. Payslips reflect these earnings, deductions, and employer contributions clearly. |
| Vacation and Public Holiday Allowances | Employees in Vietnam receive a minimum of 12 vacation days per year, accruing one day monthly from employment start. Full- and part-time employees working five days a week are eligible. Unused vacation days cannot be carried over for hires after September 19, 2023; earlier hires may carry over up to five days to be used by March 31 of the following year. Vacation requests and half-day leaves are permitted. Unused vacation is forfeited at year-end but paid out upon termination. Vietnam observes 10–11 national public holidays; if a holiday falls on a weekend, the following Monday is a day off. Work on a public holiday requires 300% pay. The government may add extra days off to create extended breaks around certain holidays. |
| Income Taxes | Vietnam uses a progressive income tax system with rates from 5% to 35%, applied to salary, bonuses, allowances, and commissions. Employers withhold pay-as-you-earn tax and remit it monthly by the 20th of the following month. Annual tax returns are mandatory, filed by March 31 if the employer files, or April 30 if the employee files personally. Taxable income is reduced by mandatory social, health, and unemployment insurance contributions and personal exemptions of VND 11 million monthly plus VND 4.4 million per dependent. Eligible dependents include children under 18 or disabled and certain parents with low or no income. Employers handle tax finalization and issue tax receipts for employee filing. |
| Expenses, Allowances, and Bonuses | Employees can claim business expenses with approval and proper documents. Late claims apply to the next payroll. Domestic invoices must include the employer’s Vietnamese details; foreign invoices use English. Non-taxable expenses include phone, internet, office supplies, and travel. Per diems are non-taxable only if contract-specified with travel details. Allowances are discretionary and may be taxable. Bonuses are taxed as regular income with social contributions withheld. |
| Statutory Benefits & Pension Requirements | In Vietnam, statutory benefits include Social Security with a 17.5% employer and 8% employee contribution, covering workplace accidents and occupational illnesses (0.5% employer), pension insurance, unemployment insurance at 1% each from employer and employee, and health insurance with employer contributing 3% and employee 1.5%. Optional benefits, offered at the employer’s discretion, include private health and life insurance plans through providers like Unisure and Allianz, as well as travel, kidnap, and ransom insurance from Chubb. Optional benefits must be offered equally to all employees if provided. |
| Maternity, Paternity, Parental, Adoption & Foster Leave | Vietnam offers maternity leave of 6 months, including up to 2 months before birth, funded by social security at 100% of average salary. Mothers must not work for 2 months post-birth. Adoptive and surrogate mothers qualify under similar conditions. Paternity leave ranges from 5 to 14 days depending on circumstances, also funded by social security. Parental bereavement leave varies from 10 to 50 days based on pregnancy length, with full social security pay. Eligibility generally requires social security contributions. Leave must be applied for with appropriate certificates and notifications to employers. |
| Sick Leave, Bereavement Leave, and Carer’s Leave | Employees in Vietnam get 30 days of paid sick leave at 75% salary, capped at VND 36 million, with possible employer top-up. Sick leave requires a doctor’s note and can be extended case-by-case. Personal paid leave includes three days for marriage or close family deaths and one day unpaid for certain relatives, with options to negotiate more unpaid leave. |
| Terminations/Dismissals, Redundancy, Severance, and Resignations | Terminations in Vietnam are complex and carry high legal risks. Employers must give 45 days’ notice, with severance required for employees working 12+ months—0.5 month’s salary per year, or 1 month per year for redundancy (minimum 2 months). Benefits accrue during notice. A fair disciplinary process with a hearing is mandatory before dismissing for misconduct. Termination processing needs 30 days, except for gross misconduct. |
| Health & Safety | Health & Safety in Vietnam requires employees to complete an annual medical exam, typically in June. Employees schedule and pay for the exam, then upload the medical certificate within 30 days of starting or by June 30 each year. Reimbursable costs, including travel, are capped at USD 90 and classified as taxable allowances. The exam includes physical, clinical, and subclinical tests. Employers must follow occupational safety laws, provide regular health checks, and contribute to mandatory social and health insurance. Failure to complete the medical exam may cause penalties, which the employer must cover. |
| Misclassification Risk | Misclassification risk in Vietnam is high. Misclassifying employees as independent contractors violates the Labor Code and risks penalties. Authorities assess the real work relationship based on control, nature of work, economic dependence, and compensation patterns, not just contracts. Misclassified workers may be entitled to back pay, benefits, and employers may face fines and tax liabilities for unpaid social security and taxes. |
| Data & IP Protection | Vietnam’s draft Personal Data Protection Law, expected to take effect on January 1, 2026, introduces stricter rules for handling personal and sensitive data—particularly salary and biometric information. Key requirements include mandatory encryption, stricter employee monitoring rules, and regular data impact assessments. Employers must update contracts, security measures, and compliance processes, with a one-year grace period for appointing data protection officers. Early preparation is essential to avoid penalties. |
Continuous Compliance™
How much does it cost to hire through an EOR in Vietnam?
The total cost of employment with an EOR service includes:
- Gross salary: Negotiated with the employee, based on market data and minimum wages.
- Statutory employer costs: 23.5% for social, health, unemployment insurance, and trade-union fees, ensuring compliance with local labor laws.
- EOR management fee: Deel charges a clear monthly fee that covers onboarding, payroll, compliance, and statutory filings—there are no hidden costs.
| Factor | Your own Vietnam entity | Deel EOR |
|---|---|---|
| One-off setup costs (legal, licensing, bank, accounting) | ₫906,636,920 | ₫0 |
| Annual, recurring costs (bookkeeping, audits, payroll software, filings) | ₫894,762,550 | ₫0 |
| Deel EOR annual management fee | ₫0 | ₫188,002,140 per employee |
| Estimated total annual cost | ₫1,801,399,470 | ₫188,002,140 |
| Time to first hire | 2 months | 1 business day(s) |
Deel’s wholly owned entity and automated payroll keep your costs predictable. Use the Employee Cost Calculator for a tailored cost forecast, including salary and voluntary benefits.
Global Hiring Toolkit
Which Vietnam EOR should you choose?
When selecting an Employer of Record in Vietnam, focus on:
- Entity ownership & local licenses: Prioritize providers with a wholly owned, licensed Vietnamese entity for maximum control and compliance.
- Compliance expertise: In-house legal and HR specialists, plus real-time compliance monitoring, are essential. Deel’s Compliance Hub provides up-to-date guidance.
- Platform breadth: Look for added features, such as performance reviews, equipment logistics, and visa services. Deel offers team engagement tools, IT device management, and visa and immigration support in one platform.
- Global coverage: If Vietnam is just one part of your APAC strategy, choose an EOR like Deel with coverage across Thailand, Indonesia, and 150+ countries.
See also: Owned Entity vs. In-Country Partner: The Best Choice for Global Hiring
Discover how Lloyd’s List Intelligence expanded to new markets with Deel
Lloyd's List Intelligence provides business intelligence, data, and analysis on maritime trade and operations.
As a leader in a complex and regulated market, they faced challenges in expanding and managing teams across multiple locations. They explored different ways to set up entities but found it complicated, as each country had its own payroll regulations and tax requirements.
“We just didn’t have the economies of scale, time, and resources to be able to set up entities in each of those different locations. We went with Deel because they were able to provide us with everything we needed in one platform.”
—Hetty Townsend, APAC People And Culture Business Partner, Lloyd's List Intelligence
Is Deel Employer of Record a strong choice for hiring in Vietnam?
Absolutely—Deel is a leading Employer of Record in Vietnam, delivering robust compliance with an Employer of Record service, transparent pricing, and rapid onboarding. With a wholly owned Vietnamese entity, Deel EOR ensures seamless compliance with local labor laws, minimum wages, and statutory benefits.
With Deel EOR, you benefit from:
- G2 leader: Top-rated for user satisfaction and market reach
- Hire talent in Vietnam and across 150+ other countries without entity setup
- Wholly owned Vietnamese subsidiary for direct control—no intermediaries
- Flat, transparent pricing bundles all statutory costs
- Onboard employees in as little as 24 hours
- Automated payroll, PIT withholding, and social insurance filings
- Bilingual, local-law-compliant labor contracts and IP protection
- Real-time compliance monitoring via Compliance Hub
- Data protection compliant with Decree 13/2023, plus secure IP assignment
- Dedicated support with a 90%+ customer satisfaction score maintained over 16 months
Deel’s EOR solution enables you to focus on business growth while we ensure compliance with Vietnamese labor laws and payroll obligations, so you can effortlessly scale your team in Vietnam.
See also: More Than a Service: EOR as a Strategic Partner in Business Growth
Hire employees in Vietnam effortlessly with Deel Employer of Record
Ready to access top talent in Vietnam without compliance headaches? Deel EOR streamlines hiring, onboarding, and payroll, using our wholly owned and licensed Vietnam entity. We manage every compliance step, including social insurance, labor contract creation, and statutory filings, so you can onboard fast and avoid costly errors.
Enjoy transparent pricing—one monthly fee covers all employer responsibilities, from minimum wage compliance to public holiday pay.
Ready to see how Deel can simplify your hiring in Vietnam? Book a demo today.
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FAQs
How quickly can I hire employees in Vietnam using Deel EOR?
Most hires are onboarded within 1 business day after contract approval.
Do I need a Vietnamese bank account to pay employees?
No—Deel accepts payment in your home currency and pays employees in VND.
What labor contract types are used for Vietnamese hires?
Deel generates fixed-term, bilingual (Vietnamese/English) contracts compliant with all local labor laws.
How are statutory employer costs managed?
Deel calculates and remits all required contributions (23.5% of salary) for social, health, unemployment insurance, and trade-union fees, ensuring compliance.
When are payroll taxes and salaries due in Vietnam?
Payroll is processed monthly; PIT returns are filed before the 20th of the following month, compliant with Vietnamese deadlines.
What benefits do employees get through Deel EOR?
All statutory benefits: annual leave (12 days per year of service), sick leave, maternity/paternity leave, customary 13th-month salary, and public holidays.
How is probation managed?
Deel’s workflow ensures compliance: up to 60 days probation for junior roles and 180 days for exec roles, clear notice periods, and full documentation as required by labor law.
Can I protect IP and personal data using Deel?
Yes—Deel’s contracts assign IP to your company and follow Vietnam’s strict data regulations, including Decree 13/2023.
What happens if I need to terminate an employee?
Deel manages the process in line with Vietnamese labor law, calculating severance and ensuring all statutory steps are followed.
Is Deel available for hiring in other countries?
Yes—Deel supports hiring in over 150 countries, with the same transparent, compliant EOR model.
About the author
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
