Employer of Record in Vietnam: Hire employees without a local entity

Hire employees in Vietnam with Multiplier EOR

Multiplier acts as the legal employer for your Vietnam-based employees, managing every compliance obligation so you can focus on building your team. You retain full control over day-to-day work, goals, and performance. Multiplier handles the rest.

• Contracts: Locally compliant employment contracts generated in under five minutes.
• Payroll: Monthly payroll processed in Vietnamese dong, with full PIT withholding.
• Social insurance: Statutory contributions calculated, filed, and remitted on your behalf.
• Benefits: Customizable benefits including health, supplementary insurance, and more.
• Onboarding and offboarding: End-to-end HR administration from day one to final payment.

Vietnam hiring at a glance

Use this quick-reference table before you hire your first employee in Vietnam.

What is an Employer of Record in Vietnam?

An Employer of Record (EOR) is a third-party organization that legally employs workers in Vietnam on behalf of a client company. The EOR is the entity on the employment contract. It is responsible for all statutory employer obligations, including payroll, personal income tax withholding, social insurance contributions, and compliance with the Vietnam Labor Code 2019. You direct the employee’s work and outputs. The EOR manages the legal and administrative aspects of the employment relationship.

How a Vietnam EOR works

The model is straightforward. You identify a candidate in Vietnam and agree on compensation and role. Multiplier onboards the employee under a compliant Vietnamese employment contract, registers them for social insurance and tax, processes payroll, and administers benefits. The employee works for you on a day-to-day basis, but Multiplier is the entity of record with Vietnamese authorities.

When should companies use an EOR in Vietnam?

An EOR is the right choice when you need to:

• Hire one or a few employees in Vietnam without the cost and time of entity registration
• Test the Vietnam market before committing to a full subsidiary
• Convert existing contractors to compliant full-time employees
• Hire remote employees across Vietnam as part of an APAC expansion
• Avoid the complexity of managing Vietnamese payroll, tax, and insurance directly

Why use an EOR to hire in Vietnam?

Vietnam has a competitive and talented workforce, but employment compliance here is layered and specific. Here is why companies choose an EOR over entity setup or direct hiring.

Hire without setting up a local entity

Establishing a wholly foreign-owned enterprise (WFOE) or representative office in Vietnam takes months and requires ongoing administrative overhead. With Multiplier’s EOR, you can hire in Vietnam and have an employee onboarded in days, not months.

Manage payroll, tax, and social insurance compliance

Vietnam’s compulsory social insurance framework was updated under the Social Insurance Law 2024, effective July 2025, expanding coverage and tightening enforcement. Employers who miss contributions or file incorrectly face fines of up to $5,900 (VND 150,000,000). Multiplier’s global payroll solution and global compliance platform handle every calculation and remittance automatically.

Onboard employees faster

Multiplier generates compliant employment contracts for Vietnam in under five minutes and completes full onboarding in under 48 hours. Candidates receive their contracts, complete their onboarding documents, and are enrolled in payroll and insurance without delay.

Reduce compliance and permanent establishment risk

Maintaining a remote workforce in Vietnam without a proper employment structure can create permanent establishment (PE) exposure, a situation where your business is deemed to have a taxable presence in Vietnam. Using an EOR separates your commercial activity from the legal employment relationship, reducing this risk. This is a business consideration; seek qualified legal advice specific to your situation.

How to hire employees in Vietnam with an EOR

The EOR hiring process removes the complexity of dealing with Vietnamese labor authorities directly. Here is what the process looks like when you hire through Multiplier.

Step 1: Choose an EOR provider with Vietnam expertise

Not all EOR providers operate through owned entities in Vietnam. Multiplier’s Employer of Record services use an industry-leading owned-entity network, which means your employees are employed by a Multiplier-owned legal entity in Vietnam, not a third-party partner. This reduces risk and ensures consistent compliance standards.

Step 2: Confirm the candidate’s right to work

Before issuing a contract, verify whether your candidate is a Vietnamese citizen or a foreign national. Vietnamese citizens are eligible to work without a permit. Foreign nationals require a valid work permit under Decree 152/2020/ND-CP. Multiplier supports work authorization checks and immigration workflows.

Step 3: Create a compliant employment contract

Multiplier generates a Vietnam-compliant employment contract that reflects the agreed compensation, role, location, working hours, benefits, and leave entitlements. The contract must be in Vietnamese and include all mandatory terms under the Labor Code 2019.

Step 4: Collect onboarding and payroll documents

The employee completes their onboarding documents through Multiplier’s platform, including national ID, bank account details, tax registration information, and social insurance records where applicable.

Step 5: Set up payroll, tax, and compulsory insurance

Multiplier registers the employee with the relevant social insurance authority and tax office, sets up payroll withholding, and confirms contribution rates based on the employee’s salary and contract type.

Step 6: Run payroll and manage benefits

Monthly payroll is processed in Vietnamese dong. Multiplier withholds personal income tax and employee social insurance contributions, remits employer contributions, and handles employee benefits in Vietnam, including any supplementary insurance or allowances.

Step 7: Maintain ongoing compliance and offboarding

Multiplier monitors changes to Vietnamese employment law, payroll regulations, and social insurance rules, keeping your employment relationship compliant as legislation evolves. When an employee leaves, Multiplier manages the offboarding process, including final payroll, severance calculation, unused leave payout, and social insurance deregistration.

Employment contracts in Vietnam

Every employment relationship in Vietnam starts with a written labor contract. The Labor Code 2019 removed seasonal and specific-task contracts, leaving two main types. Getting the contract right from the start protects both the employer and the employee.

Common labor contract types

Under the Vietnam Labor Code 2019, two labor contract types apply:

• Fixed-term contracts: Duration of up to 36 months. Employers can issue up to two consecutive fixed-term contracts with the same employee. After that, the relationship must convert to an indefinite-term contract.
• Indefinite-term contracts: No specified end date. Required after two consecutive fixed-term contracts with the same employee.

Vietnamese-language contract requirements

Employment contracts must be in Vietnamese. If one party is a foreign national, the contract can be bilingual. The Vietnamese version takes precedence in any dispute.

Key contract clauses

A compliant Vietnam employment contract must include:

• Job title and duties
• Workplace location
• Contract duration and type
• Salary, payment method, and payment schedule
• Working hours and rest periods
• Statutory benefits and leave entitlements
• Social insurance and health insurance enrollment details
• Rights and obligations of both parties

Employers may also include confidentiality clauses and IP assignment provisions. These protect company information and ensure that work created during employment belongs to the employer.

Probationary periods

Vietnam allows a probationary period before the formal labor contract begins. The maximum duration depends on the role:

• Up to 180 days for enterprise managers as defined under the Law on Enterprises
• Up to 60 days for roles requiring a university degree or above
• Up to 30 days for roles requiring secondary school or vocational qualifications
• Up to six days for unskilled roles

Probationary salary must be at least 85% of the agreed full-time salary. Either party can end the arrangement during probation without serving a notice period or paying compensation.

IP protection and confidentiality

Vietnam’s Labor Code allows employers to include IP assignment and confidentiality clauses in employment contracts. These provisions should clearly define what constitutes company IP, the obligations of the employee during and after employment, and any applicable penalties for breach. Multiplier’s contract templates include provisions to protect your business interests.

Payroll, taxes, and social insurance in Vietnam

Payroll compliance in Vietnam requires accurate calculation of personal income tax (PIT), compulsory social insurance, health insurance, and unemployment insurance. Vietnam’s payroll obligations are enforced by the Ministry of Labour, Invalids and Social Affairs (MOLISA) and the General Department of Taxation.

Payroll frequency

Vietnamese employees are paid monthly. Salaries must be paid in Vietnamese dong for local employees. Foreign employees may agree to payment in a foreign currency. Under the Labor Code, late salary payments (more than 15 days overdue) accrue interest.

Personal income tax withholding

Employers must withhold personal income tax from employee salaries and remit it monthly or quarterly to the Vietnamese tax authority. The tax treatment depends on the employee’s residency status:

• Tax residents (present in Vietnam for 183+ days in a calendar year): taxed on worldwide income at progressive rates from 5% to 35%.
• Non-residents: taxed on Vietnam-sourced income at a flat rate of 20%.

Vietnam passed a new Personal Income Tax Law (No. 109/2025/QH15) in December 2025, with effect from July 1, 2026. Payroll teams should note that certain salary and wage provisions apply from the 2026 tax period. The personal deduction for taxpayers increases to $610 (VND 15.5 million) per month, and the dependent deduction increases to $245 (VND 6.2 million) per month per dependent. For current tax period obligations, continue applying existing PIT rules under Vietnam’s General Department of Taxation.

Compulsory social insurance

Under Vietnam’s Social Insurance Law 2024 (effective July 1, 2025), total compulsory social insurance (SI) contributions equal 25% of the salary base, split as follows:

Health insurance and unemployment insurance

In addition to social insurance, employers and employees contribute to health insurance and unemployment insurance:

Contributions are calculated on the salary base stated in the employment contract, capped at 20 times the common minimum wage. Failing to remit contributions exposes employers to administrative fines up to $5,900 (VND 150,000,000) and back-payment obligations.

Payslips and payroll records

Under Article 96 of the Labor Code, employers must provide monthly payslips showing gross salary, overtime pay, and all deductions, including insurance contributions and PIT withholding. Payroll records must be maintained and are subject to audit by MOLISA and tax authorities.

Working hours, overtime, and employee rights in Vietnam

Vietnam’s working hour rules are set out in the Vietnam Labor Code 2019 and enforced by MOLISA. Employers must record working hours accurately and keep records available for inspection.

Standard working hours

Standard working hours must not exceed eight hours per day and 48 hours per week. In practice, most office-based employers operate a 40- to 44-hour work week. Employees are entitled to at least 30 minutes’ rest during an eight-hour daytime shift, and 45 minutes for night shifts. Employees must receive at least one full day off per week.

Overtime and rest periods

Overtime requires the employee’s agreement. Under the Labor Code 2019, overtime is capped at:

• 12 hours in a single day
• 40 hours in a month
• 200 hours per year for most industries
• 300 hours per year for certain industries permitted by the government

Overtime pay rates are: at least 150% of the standard hourly rate on weekdays, 200% on rest days, and 300% on public holidays. Employees under certain protections (including pregnant employees from the seventh month) cannot be required to work overtime.

Health and safety

Employers are required to provide a safe working environment, conduct risk assessments, and comply with occupational health and safety regulations under the Law on Occupational Safety and Health 2015. Violations can result in fines and operational shutdowns.

Remote and hybrid work considerations

The Vietnam Labor Code 2019 does not include a dedicated framework for remote work. However, employment contracts must specify the workplace. For remote or hybrid arrangements, employers should document the work location clearly in the contract, include data protection and security obligations, and confirm that working hours and overtime rules still apply. Multiplier’s contract templates can be adapted to reflect remote work arrangements.

Employee benefits and leave in Vietnam

Vietnam’s statutory employee benefits in Vietnam cover annual leave, public holidays, sick leave, and parental leave. Employers commonly supplement these with the Tet bonus and supplementary insurance.

Annual leave

Employees who have completed 12 months of continuous service are entitled to fully paid annual leave as follows:

• 12 working days per year for employees in normal working conditions
• 14 working days per year for minors, employees with disabilities, or those in hazardous roles
• 16 working days per year for employees in highly hazardous roles

Annual leave entitlement increases by one day for every five additional years of service, up to a maximum of 20 days per year.

Personal leave

Employees are entitled to up to three paid personal leave days per year for events such as a spouse’s or child’s wedding or the death of a close family member. One unpaid personal leave day applies to other immediate family events.

Sick leave

Sick leave in Vietnam is funded through the compulsory social insurance fund. Employees who have contributed to social insurance for the required period receive sick pay from the fund, not directly from the employer. The benefit is typically equal to 75% of the employee’s social insurance contribution salary base.

Maternity and paternity leave

Female employees are entitled to six months of paid maternity leave. Up to two months can be taken before the expected delivery date. Maternity leave pay is funded by the social insurance fund, provided the employee has contributed for at least six months in the 12 months before giving birth. Contracts cannot be terminated during maternity leave, and employees must return to their same or an equivalent role.

Male employees whose spouses give birth or undergo assisted reproduction are entitled to paternity leave. The duration ranges from five to 14 days, depending on the circumstances, including whether the birth was single or multiple and whether a cesarean section occurred.

Public holidays

Vietnam observes 11 national public holidays per year, including:

• New Year’s Day: January 1 (one day)
• Tet (Vietnamese Lunar New Year): five days
• Hung Kings Commemoration Day: one day
• Reunification Day: April 30 (one day)
• International Labour Day: May 1 (one day)
• National Day: September 2 to 3 (two days)

Employees required to work on public holidays receive at least 300% of their standard daily wage for hours worked.

Tet bonuses and supplementary benefits

The Tet (Lunar New Year) bonus is not legally mandated by the Labor Code, but it is a deeply embedded workplace norm. Employers who do not pay a Tet bonus risk retention issues and reputational damage in the local job market. The amount is typically one to two months’ salary, paid before the Lunar New Year. Many employers also provide supplementary health insurance, meal allowances, transportation allowances, and other localized benefits. Multiplier’s global benefits platform helps you design a benefits package that reflects local expectations and supports employee well-being.

Work permits and visas in Vietnam

Vietnam distinguishes between Vietnamese citizens and foreign nationals in its employment framework. For foreign hires, understanding Decree 152/2020/ND-CP and the work permit process is essential before onboarding.

Hiring Vietnamese citizens

Vietnamese citizens do not require a work permit to work in Vietnam. They are subject to standard Labor Code obligations, including social insurance enrollment, PIT registration, and the employment contract requirements outlined in this guide.

Hiring foreign workers in Vietnam

Foreign nationals working in Vietnam generally require a valid work permit issued under Decree 152/2020/ND-CP. The work permit process involves:

1. The employer submits an application to the provincial Department of Labour, Invalids and Social Affairs (DOLISA)
2. From January 2024, employers must also announce the position on the Government Employment Portal before applying to hire a foreign worker, confirming that a qualified Vietnamese worker is not available
3. The foreign worker applies for a relevant visa or temporary residence card
4. The work permit is issued for a maximum of two years and is renewable

Exemptions apply in specific circumstances, including for intra-company transfers, foreign workers covered by bilateral social insurance agreements, or workers who have reached retirement age.

Decree 152 and work permit considerations

Decree 152/2020/ND-CP governs the employment of foreign workers in Vietnam, including the approval process, exemptions, and documentation requirements. Employers who hire foreign workers without the required permits face administrative fines and the risk of the employee being required to leave Vietnam. Multiplier supports employers through the Vietnam work permit process to ensure your foreign hires are compliant before they start work.

How an EOR supports work authorization workflows

Multiplier’s immigration support team helps employers assess work permit eligibility, prepare documentation, submit applications, and track permit status. This reduces delays in onboarding foreign talent and ensures no employee starts work without the correct authorization in place.

Hiring contractors vs employees in Vietnam

Some companies begin hiring in Vietnam by engaging workers as independent contractors. While this can be faster initially, it carries significant compliance risk if the working relationship does not meet the criteria for independent contracting.

Employee vs independent contractor classification

Vietnamese law defines an employee as someone who works under the direction and management of an employer, receives a wage, and has their working conditions controlled by the employer. The formal classification of a worker as an “independent contractor” does not override these criteria if the actual working arrangement reflects an employment relationship.

Misclassification risks

If a worker classified as a contractor is found to be a de facto employee, the company may face:

• Back payment of social insurance contributions with penalties and interest
• Personal income tax liability for unwithheld amounts
• Administrative fines from MOLISA
• Reputational damage in the Vietnamese market

When to use EOR vs contractor management

If you need ongoing, directed work from a Vietnamese worker, an EOR is the safer path. Multiplier’s contractor management system helps you manage genuine independent contractors compliantly. If you need to convert an existing contractor to a full-time employee, Multiplier’s Contractor of Record service handles classification risk and a seamless transition.

Background checks in Vietnam

Vietnam does not have a single statutory framework governing pre-employment background checks in Vietnam, but employers can conduct employment and education verification, reference checks, and criminal record checks with appropriate candidate consent. Checks must be job-relevant and comply with Vietnam’s personal data protection requirements under the Law on Cybersecurity and related decrees. Candidates must provide written consent before any background check is conducted. Multiplier’s onboarding process includes consent collection and supports compliant screening workflows.

Termination, severance, and offboarding in Vietnam

Terminating an employee in Vietnam requires following a specific process under the Labor Code 2019. Errors in procedure can expose employers to reinstatement orders or financial compensation claims.

• Notice periods: Employers must give 30 working days’ notice for fixed-term contracts and 45 working days’ notice for indefinite-term contracts in most circumstances.
• Grounds for termination: Valid grounds include employee misconduct, prolonged illness, natural disaster affecting business operations, or workforce restructuring. Terminating an employee without a lawful basis constitutes wrongful dismissal.
• Protected employees: Employers cannot terminate pregnant employees, employees on maternity leave, or employees nursing a child under 12 months. Contracts expiring during protected leave periods must be extended until the protection period ends.
• Severance pay: Employees with 12 or more months of continuous service are entitled to severance equal to half a month’s average salary for each year of service, excluding any period covered by unemployment insurance contributions. The average salary is calculated from the six months preceding termination.
• Final payroll: All outstanding wages, unused annual leave, and severance must be paid within 14 working days of the termination date. In exceptional circumstances, this can be extended to 30 days.
• Trade union involvement: For certain termination types, the employer must consult the trade union before proceeding. Specific procedural steps apply depending on the grounds for termination.

Multiplier manages compliant offboarding documentation, final payroll calculation, social insurance deregistration, and all required communications with Vietnamese authorities.