Employer of Record (EOR) in Vietnam

An EOR in Vietnam allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment including work permit sponsorship, from payroll processing to compliant administration.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Vietnam.

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Quick Overview of EOR in Vietnam

Expanding your business into Vietnam doesn’t have to come with stacks of paperwork or large setup expenses. Using an Employer of Record (EOR) lets you skip the complications of local regulations and start hiring quickly while staying compliant with Vietnam’s labor laws. From handling payroll and taxes to managing employee benefits and social insurance, the EOR manages all the legal requirements so you can focus on business growth without opening a local entity.

The EOR model provides a low-risk and cost-efficient alternative to forming a subsidiary. Setting up a local entity in Vietnam can cost anywhere between USD 10,000 and USD 50,000, plus ongoing expenses for HR, legal, and accounting support. It’s also a time-consuming process. Working with an EOR helps you bypass these costs, enter the market faster, and operate without the burden of a physical office. This approach is particularly useful for startups, SMEs, and companies exploring new markets that need to move quickly and stay compliant.

Disclaimer: The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

What You'll Learn

  • Hiring in Vietnam doesn’t need to involve the effort or cost of creating a local entity.

  • An Employer of Record (EOR) lets you hire and onboard employees while staying compliant with Vietnam’s payroll and labor regulations.

  • A Direct EOR gives you greater control, faster onboarding, and stronger compliance, which is ideal for companies looking to scale quickly.

  • An Indirect EOR can be more affordable but often leads to slower processes and added administrative steps.

  • EOR service fees typically range from USD 300 to USD 800 per employee per month.

  • Atlas HXM offers a Direct EOR solution that supports market entry, compliance, and employee management within one platform.

How an EOR Works

At Atlas HXM, we provide EOR services that ensure your business remains compliant with Vietnam's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Vietnamese rules, and configuring payroll and statutory obligations correctly. Atlas HXM can sponsor work permits and visas for qualified foreign employees in Vietnam. We handle the complex application process with the Ministry of Labor, Invalids and Social Affairs, ensuring all documentation meets Vietnamese immigration requirements.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with the Vietnamese Labor Code. We clearly outline employment terms to reduce risk of future disputes, such as:

  • Probationary period

  • Salary, benefits, and working hours

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in Vietnamese Dong (VND), including:

  • Accurate tax withholdings and social insurance contributions

  • Statutory benefits such as health insurance

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Vietnam's laws.

Work Permit & Visa Compliance

Atlas HXM manages work permit applications and visa sponsorship for foreign employees, coordinating with Vietnamese authorities to ensure proper authorization. We handle renewals and maintain compliance with immigration regulations throughout the employee's tenure.

Ongoing HR Support

Provides HR support, including: Leave management and attendance tracking and employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Vietnam are typically billed as a platform/service fee in the range of USD 300–800 per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers. This service fee is separate from the employee's salary, benefits, taxes, and visa-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Vietnamese entity, which can require USD 10,000–50,000 upfront before any operational spend.

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What to Choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your hires in a country where you do not have an entity. The EOR carries employer liability and handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Vietnam without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Vietnam without setting up an entity and want a partner who absorbs employer risk.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Vietnam

Vietnam's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Permanent: Ongoing employment with full statutory benefits (indefinite-term contracts).

  • Fixed-Term: Hired for a specific project or defined duration (up to 36 months).

  • Temporary: Short-term assignments under 12 months; entitled to statutory benefits like leave and overtime.

Probation Periods

Probation periods may only be used once per employment contract and are not renewable. Duration depends on job type, with employees paid at least 85% of agreed salary during probation. Either party can terminate without notice during probation.

Working Hours & Overtime

In Vietnam, the standard workweek is 48 hours, with a maximum of 8 hours per day (up to 10 for weekly schedules). Overtime is paid at 150% for regular days, 200% for rest days, and 300% for public holidays. Monthly overtime is capped at 40 hours, with annual limits of 200-300 hours depending on industry.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

12 days (normal conditions), prorated for the first year of service, 14 days (heavy/dangerous work), 16 days (extremely hazardous work)

Paid by employer; increases by 1 day per 5 years of service

Maternity Leave

6 months, the prenatal leave period shall not exceed 02 months

Paid by social insurance for eligible employees

Paternity Leave

5-14 days depending on circumstances

Paid by social insurance for eligible fathers

Sick Leave

30-60 days based on contribution years

75% of wages paid by Social Insurance Agency

Public Holidays

6 official holidays plus Tet (5-9 days)

Paid; handled by Atlas HXM

Payroll & Benefits: Wages must meet regional minimum wage requirements ranging from VND 3,450,000 to VND 4,960,000 monthly, depending on the region. Atlas HXM manages payroll in VND, social insurance contributions (employer: 21.5%, employee: 10.5%), statutory benefits, and 13th-month salary expectations.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Vietnam's labor laws while businesses can focus on operations without administrative burdens.

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What to Choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Vietnam with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you'll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Vietnam operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit monthly social insurance contributions by the 15th of the following month, personal income tax withholdings by the 20th, and annual tax reconciliations by March 31st.

Category

Details

Employer Payroll Tax

Social insurance: 17.5%, Health insurance: 3%, Unemployment insurance: 1%, Trade union fees: 1% (Total: 22.5%)

Employee Payroll Tax

Residents: progressive income tax 0%–35%, Non-residents: flat 20% for employment income, Employee social insurance contributions: 10.5% total

Pension System

Mandatory social insurance scheme for retirement, disability, and survivor benefits. Retirement age: 60 (men), 55 (women), gradually increasing from July 2025. Pension: 45% of average salary for minimum contributions, up to 75% maximum

VAT & EOR Costs: Vietnam applies a 10% Value Added Tax to most professional services, including EOR services. This VAT component should be factored into total EOR cost calculations when budgeting for Vietnamese operations.

Atlas HXM handles tax compliance, including progressive income tax calculations, social insurance contributions, year-end filings, and expatriate tax management, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees must give written notice for termination, with statutory minimum notice periods: 45 days for indefinite-term contracts, 30 days for fixed-term contracts (12-36 months), and 3 working days for contracts under 12 months. Severance pay equals half a month's salary per year of service (one month's salary per year for redundancy). The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.

Visas & Work Permits

In Vietnam, foreign nationals must hold valid work authorization through work permits issued by the Ministry of Labor, Invalids and Social Affairs. Work permits are valid for up to 2 years with possible extensions.

Atlas HXM can sponsor and manage work permit applications and visa processing for qualified foreign employees. We coordinate with Vietnamese authorities, handle all required documentation including health certificates and criminal background checks, and ensure compliance with immigration regulations throughout the employment period.

5 Things to Look for in an EOR Provider in Vietnam

  1. Local expertise and knowledge of labor laws, social insurance contributions, and Ministry of Labor requirements.

  2. Advanced technology for payroll, reporting, and HR system integration.

  3. Experience in your industry and handling work permit and visa management.

  4. Strong compliance track record and relationships with government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

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Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Our unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

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FAQs

Can an EOR in Vietnam help with work permit and visa applications?

Yes. Atlas HXM can sponsor and manage work permit applications and visa processing for qualified foreign employees, coordinating with Vietnamese authorities and ensuring all documentation meets requirements.

What is the minimum wage in Vietnam for 2024?

Vietnam's minimum wage varies by region, ranging from VND 3,450,000 monthly in Region IV to VND 4,960,000 monthly in Region I (urban areas).

What is the typical probation period?

Probation periods depend on job type and may only be used once per contract. Typically, it ranges from 6 days to 180 days depending on the job nature. Employees receive at least 85% of agreed salary during probation.

How much notice is required for termination?

Notice depends on contract type: 45 days (indefinite-term), 30 days (fixed-term 12-36 months), 3 days (under 12 months).

What are the social insurance contribution rates?

Employers contribute 22.5% total (17.5% social insurance, 3% health insurance, 1% unemployment insurance, 1% trade union fees). Employees contribute 10.5% total.

Is 13th-month pay mandatory in Vietnam?

While not legally required, 13th month salary is widely expected practice, typically paid before Tet (Vietnamese New Year).

         

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