Employer of Record in Vietnam
Contents
General information, not legal or tax advice — confirm with a local adviser before you act.
A Vietnam employer can employ someone for a foreign client. If the client directs that person's work, the arrangement may need to meet Vietnam's labour-subleasing rules; the EOR label does not decide its legal character.
See hiring in Vietnam for the employment route and hiring independent contractors in Vietnam where the service is genuinely independent. 4dev.com operates a Contractor Platform for genuinely independent services in Vietnam; it is not an Employer of Record.
What an employer of record does in Vietnam
In an employer of record arrangement, a Vietnam provider normally signs the employment contract and the client signs a services agreement with the provider.
A provider may manage its own people, including their work allocation and supervision, to deliver a service. Supplying someone for the client's day-to-day direction calls for a different assessment: paid work under a party's management or supervision may be employment whatever the agreement is called.
Identify the employing entity and who gives the worker practical instructions. If the provider supplies someone for the client to direct, assess the labour-subleasing rules; the EOR label creates no exception.
When is an EOR arrangement legal in Vietnam?
Client direction is the first question in assessing an EOR arrangement. Where the client directs supplied labour, test the proposed structure against the labour-subleasing rules.
Decide whether the client directs the worker
Check who assigns work, gives daily instructions, supervises performance and manages the individual. Paid work under a party's management or supervision may be treated as employment regardless of the agreement's label. If the provider manages its own people and delivers an agreed output, that calls for a different assessment from a provider supplying a person for the client to direct.
Test the purpose and the listed occupation
For client-directed supplied labour, labour-subleasing is limited to a placement of no more than 12 months and to stated cases: a sharp temporary increase in demand, replacement of a worker on maternity leave, with an occupational accident or occupational disease, or fulfilling civic duties, or a need for highly skilled workers. It cannot be used to replace strikers or workers dismissed for restructuring or economic reasons.
The legal list contains 20 eligible job categories, including finance and tax handling. A software-engineer or IT-support title does not by itself show that the actual work fits that list: specialised IT jobs are not expressly listed as a general category, and a Ho Chi Minh City opinion about project support does not establish nationwide permission. Check the tasks and the client's practical direction before relying on the provider structure.
Check client direction first, then the permitted purpose and listed job, followed by local licence status and the 12-month placement cap.
The subleasing licence: what to ask and what to check
If the proposed structure is labour subleasing, verify the licence against the actual employing entity, role, place of work and assignment dates rather than treating an EOR brand as the licence holder.
Ask the provider for the legal name of the entity that will employ the worker and, where subleasing is the proposed route, its licence copy, issuing authority and validity details. Ask it to explain how that document applies to the client location, the actual occupation and the planned assignment period. No national public registry is identified for this check. Keep the licence document and seek confirmation from the relevant authority.
Under the temporary Resolution 66.18/2026 regime, effective 1 July 2026, Hai Phong's local notice said issuance and renewal of labour-subleasing licences were suspended there. The notice does not establish a nationwide rule or show that every provider-managed service requires a subleasing licence. Check the current local position before relying on it.
Who signs and controls the work
The client normally signs a services agreement with the provider, while the provider signs the employment contract. The parties must also record who directs the worker day to day.
| Party | Signs or issues | Controls or keeps |
|---|---|---|
| Client | Services agreement with the employing provider; agreed scope and operational requests | The work it actually assigns and supervises in practice; this is a central fact in the route analysis |
| Employing provider | Employment contract with the employee; employment, payroll and insurance administration for that employment | Its own workforce management where it delivers a managed service; agreed custody of applicant, employee and leaver records |
| Employee | Employment contract with the employing provider | Performs the agreed work and provides the information needed for the employment relationship |
The written allocation cannot override what happens in practice: paid work under a party's management or supervision may be employment regardless of the documents' label. The provider's employment contract also needs a continuity plan where it is fixed term, because a fixed-term employment contract has its own duration and post-expiry rules.
Set record custody before onboarding and again at exit. Ministry guidance says collection of recruitment or management data requires consent and that applicant or departing-worker data should be deleted or destroyed after rejection or contract end unless another agreement applies; any statutory retention duty still needs its own review.
Hiring through a Vietnam employer, step by step
Qualify the role and employment route before preparing contracts. Foreign-worker statutory clocks do not include the provider's preparation time or establish a start date.
| Step | What happens | Timing or trigger |
|---|---|---|
| 1. Qualify the arrangement | Confirm the role, actual direction, labour-subleasing analysis where relevant, and the employing entity before moving to documents. | Before contracting or a proposed start date |
| 2. Set the employment terms | The employing provider and employee set the employment contract and any probation. One probation period is allowed for a job, with limits of up to 180 days for enterprise executives, 60 days for junior-college-level roles, 30 days for vocational or technical roles, and 6 working days for other work. | Role-specific; a fixed-term employment contract can run for up to 36 months |
| 3. Choose the contract format | A paper employment contract remains available. Electronic contracting is optional; when used, the eContract provider sends the contract for a platform ID within 24 hours after the last signature. | The 24-hour step applies to the eContract provider, not to every employer or paper contract |
| 4. Complete insurance-linked registration | For a worker in compulsory social insurance, the employer registers or adjusts labour-registration information with the social-insurance filing or adjustment. | When the covered worker's insurance record is filed or adjusted |
| 5. Set up payroll | The employing provider applies the employment and insurance setup to its payroll administration. | After the legal route and worker setup are in place |
| 6. Follow the permit-required foreign-worker branch | A complete permit dossier has a decision period of 10 working days. For a foreign employee working under a labour contract, the written contract is signed after the permit is issued and before the expected start. | 10 working days begins only after a complete dossier is received |
| 7. Keep the specified exemption branch separate | Specified permit-exempt foreign workers must notify the authority before work. Other exemption routes need their own current check. | At least 3 working days before starting for the specified notice-only route |
Foreign-worker permits need a separate check
A foreign national needs a work-permit or exemption assessment separate from the EOR arrangement.
Under Decree 219/2025, a complete permit application is decided within 10 working days. A foreign employee working under a labour contract then signs the written contract after the permit is issued and before the anticipated start. A specified notice-only exemption instead requires notice at least three working days before work; a short visit does not automatically establish an exemption.
Decree 393/2026/NĐ-CP was promulgated on 20 October 2026 and is scheduled to take effect on 5 December 2026. Its procedure and transition still need verification before anyone applies the Decree 219/2025 steps after that date. The domestic insured Region I examples below do not establish a foreign worker's unemployment-insurance treatment or total cost.
What a Vietnam EOR costs, line by line
For an ordinary domestic employee insured in Region I, budget gross salary and employer additions on their respective bases. Ask the provider to quote its fee separately.
Statutory salary and employer additions
| Region I monthly floor | VND 5.31m from 1 January 2026 | Government wage update |
| Region II monthly floor | VND 4.73m from 1 January 2026 | Government wage update |
| Region III monthly floor | VND 4.14m from 1 January 2026 | Government wage update |
| Region IV monthly floor | VND 3.7m from 1 January 2026 | Government wage update |
| Pension and survivors; sickness and maternity | Employer: 14% + 3% of the compulsory social-insurance base | Social Insurance Law 2024 |
| Occupational accident and disease insurance | Employer: 0.5% of the salary basis | Accident insurance contribution |
| Health insurance | Employer: 3% of the compulsory social-insurance base | Health Insurance Decree 188 |
| Unemployment insurance | Employer: 1% for a local employee; Region I base capped at VND 106.2m | Employment Law 2025 |
| Trade union fee | Employer: 2% of the salary fund forming the compulsory social-insurance basis | Trade Union Law 2024 |
For the current July–October 2026 calculation, the social-insurance, health-insurance and union bases cap at VND 50.6m per month. The Region I unemployment-insurance ceiling is VND 106.2m, so it remains on a different base at higher salaries. Personal income tax is withholding context for the employee's resident income; it is not another employer-contribution percentage. See hiring in Vietnam for the complete wage, leave and tax reference.
A senior software salary example
These calculations assume an ordinary domestic insured Region I office worker whose full stated gross is covered salary, subject to the two caps above. They exclude provider fees, benefits and any guaranteed 13th-month salary. Each is a monthly current-rate illustration, not actual calendar-2026 payroll.
| Scenario | Gross monthly salary | Employer addition | Total monthly cost |
|---|---|---|---|
| Hanoi software engineer, 5+ years | VND 40m | VND 9.4m (23.5%) | VND 49.4m |
| Ho Chi Minh City software engineer, 5+ years | VND 70m | VND 12.085m (17.26%) | VND 82.085m |
At VND 70m, the VND 50.6m social-insurance, health-insurance and union ceiling reduces the employer addition below the 23.5% below-cap illustration, while unemployment insurance remains below its Region I ceiling. A provider fee, deposit or foreign-exchange charge needs a provider-specific quote rather than a universal EOR-cost figure.
Limits of a Vietnam EOR arrangement
The assignment, employment contract and exit each need a separate check in a Vietnam EOR arrangement.
Assignment duration and prohibited use
Where the arrangement qualifies as labour subleasing, the placement has a 12-month ceiling. That is not the same as the employment-contract term: a fixed-term employment contract may run for up to 36 months, with separate rules if work continues after expiry.
The subleasing route is limited to the stated temporary-demand, replacement or high-skill cases. It cannot be used to replace strikers or workers dismissed for restructuring or economic reasons.
Tax, IP, restraints and exit
The employing structure does not by itself answer the client's permanent-establishment exposure, the chain of IP rights, or the enforceability of a non-compete. Review the contract chain, role and actual work locally; none of those issues has a universal outcome.
Ending the client–provider services agreement is distinct from ending the employee's employment. For ordinary employee notice, the periods are 45 days for an indefinite contract, 30 days for a 12–36-month fixed contract, and 3 working days for a shorter fixed contract. See hiring in Vietnam for the complete employment, leave and notice rules.
Where the facts match a breach, Decree 283 has distinct categories rather than one flat EOR penalty. A missing required written contract or wrong contract type carries an individual-employer fine of VND 2–5m for 1–10 affected workers and up to VND 20–25m for 301 or more; a corporate employer is generally fined at twice that scale. Late compulsory social-insurance contributions, under-registration, and the specified evasion conduct have separate conditions, fines, debt or registration remedies, and a 0.03% daily additional amount for late or evaded compulsory contributions. Decree 283 has applied since 10 September 2026.
Recent changes that affect the EOR checklist
Changes to licence processing, employment records and permits affect the checks above.
- 1 January 2026: the Personal Data Protection Law took effect. Ministry guidance links recruitment and management data to consent and addresses deletion or destruction after an unsuccessful application or employment exit, subject to another agreement and separate retention duties.
- 1 July 2026: Resolution 66.18/2026 took effect. Hai Phong then suspended labour-subleasing licence issuance and renewal under the temporary regime; this remains a dated local example, not a nationwide EOR rule.
- 1 July 2026: electronic employment contracting became available through the national system and remains optional. From the same date, labour registration for a worker in compulsory social insurance is coupled to the employer's insurance filing or adjustment.
- 10 September 2026: Decree 283 replaced the prior labour and social-insurance penalty decree. Its consequence depends on the particular contract or insurance breach and the employer type.
- 5 December 2026: Decree 393/2026 is scheduled to take effect for foreign-worker permits and exemptions. Review the detailed transition and replacement procedure before applying it.
- 2027 wages: the National Wage Council proposal is not an operative regional wage rate.
Decree 371/2026 also has a narrow covered population of specified foreign bodies, including diplomatic and international organisations. It is not a general commercial EOR permission.
When you do not need an EOR in Vietnam
You may not need an EOR when your own registered Vietnam employer can employ the person directly, or when the engagement is genuinely independent service delivery.
Direct employment fits where you have the local employing entity and can carry the employment administration. An overseas commercial client should not assume it can directly employ a Vietnam-based person without a Vietnam entity; that route needs its own local-law basis.
Use a service contract only where the work remains genuinely independent in substance. Paid work performed under a party's management or supervision may be an employment contract whatever it is called, and a disguised contract of at least one month can also enter compulsory social insurance. See hiring contractors in Vietnam for that classification route and hiring in Vietnam for direct employment.
Decree 371/2026 applies to a narrow population of specified foreign bodies, including diplomatic and international organisations. It does not create a general shortcut for an overseas commercial employer.
Alternatives to an EOR in Vietnam
The actual work, supervision and employing party determine which route to assess.
| Route | Who employs or contracts | Works when | Main constraint |
|---|---|---|---|
| Own local entity | Your Vietnam employer employs the worker directly | You have the entity and will run a direct employment relationship | The entity carries the employment setup and obligations |
| Qualifying EOR, labour-subleasing or provider-managed service | A Vietnam provider employs the worker or manages its own service team | The provider manages its own output, or a client-directed supplied-worker structure fits the applicable subleasing conditions | Client direction can trigger the permitted-purpose, listed-job, licence and placement-duration checks |
| Independent contractor | The contractor contracts for an independent deliverable | The work remains independent in substance | Paid work under management or supervision may be employment regardless of its label |
For a client-directed supplied worker, test the actual tasks, the permitted purpose and the placement limit before selecting the provider route. For a genuinely independent service, keep the scope and working relationship consistent with that independence. See hiring in Vietnam for direct employment and hiring contractors in Vietnam for the service-contract route.
How to choose a provider for this Vietnam role
Ask the provider to document how its proposed structure fits the role, the client's direction of work and the intended duration.
- Entity and route: ask for the exact employing entity, the licence and issuing authority if labour subleasing is proposed, and the analysis of the listed job and permitted purpose.
- Control and duration: ask who will give daily instructions, how the provider manages its own people, and what happens before the 12-month subleasing placement limit.
- Cost and permits: request the gross salary, the social-insurance, health-insurance, union and unemployment assessment bases, and an itemized service quote. For a foreign worker, identify who owns the permit dossier and which statutory clock applies; a provider preparation estimate is not a universal start date.
- Documents and data: obtain the employment contract, IP-rights chain and end-of-service handling plan. Identify who keeps applicant and leaver records, whether a background check is necessary for this role, and how consent, retention and deletion will be handled; a background check is not a universal requirement.
Get those answers in documents tied to the actual role and assignment.
Questions people actually ask
Is an employer of record legal in Vietnam, or does the provider need a subleasing licence?
The answer depends on the actual arrangement. Where the client directs supplied labour, test the permitted purpose, listed occupation, 12-month placement limit and the provider's licence position; an EOR label does not settle those questions.
Can an EOR hire a software engineer in Vietnam?
A software title alone does not show that a client-directed labour-subleasing arrangement fits the permitted-job list. Check the actual tasks and supervision; a Ho Chi Minh City view on project support does not establish nationwide permission.
How long can a subleased employee work for the same client?
The maximum labour-subleasing placement is 12 months. That limit is separate from the employment contract, which may be fixed term for up to 36 months under its own continuation rules.
How long does it take to hire through an EOR in Vietnam?
The statutory clocks do not establish an end-to-end EOR hiring timetable. For a permit-required foreign worker, the decision clock is 10 working days after a complete dossier; the specified notice-only exemption route requires at least 3 working days' notice before work.
What does an EOR cost on top of salary?
For the domestic insured Region I examples above, employer additions are VND 9.4m on VND 40m gross and VND 12.085m on VND 70m gross. The latter is 17.26% because the VND 50.6m SI, HI and union base is capped; provider fees and benefits need a separate quote.
Can an EOR hire a foreign national in Vietnam?
A foreign national needs a separate permit or exemption analysis. Check the current procedure before setting a start date, particularly after Decree 393/2026 takes effect on 5 December 2026.
Who signs the employment contract and handles termination?
In the described model, the employing provider signs the employment contract while the client signs its services agreement with the provider. Ending client services does not itself end employment; ordinary employee notice is 45 days for an indefinite contract, 30 days for a 12–36-month fixed contract and 3 working days for a shorter fixed contract.
Can I hire directly without a local entity?
An overseas commercial company should not assume it can directly employ a Vietnam-based person without a local entity; it needs a separate local-law basis. Decree 371 covers specified foreign bodies, not a general commercial hiring route; use a registered local employer or assess whether the work is genuinely independent.
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