How much does it cost to hire an employee through an EOR in Vietnam?

EOR pricing typically ranges from $400–$700 per month per employee, plus the employee's base salary and benefits. Beyond the EOR fee, you'll pay: (1) **Base salary**—market rate for the role in Vietnam. (2) **Employer contributions**—approximately 21.5% on top of salary for taxes, social insurance, and mandatory benefits. (3) **Optional benefits**—health insurance, bonuses, stock options. For example, hiring a developer earning $3,000/month would cost approximately $3,000 + (21.5% = $645) + $500 EOR fee = $4145/month total.

Is using an EOR legally safe in Vietnam?

Yes, using an EOR in Vietnam is fully legal and compliant when you work with established providers like Deel, Remote, or Oyster. These providers are registered employers in Vietnam and handle all legal obligations. Vietnam's 2021 Labor Code introduced more flexible working arrangements and expanded leave policies. Social insurance contributions total 32% (employer 21.5%, employee 10.5%). Foreign companies must register with authorities to hire directly or use a local intermediary. The Ministry of Labor actively monitors contractor arrangements and can reclassify dependent contractors as employees. Recent government focus on tech sector means supportive policies, but compliance requirements are strict. The EOR assumes the legal employer role, so you avoid misclassification risks that come with contractor arrangements. However, choose reputable EOR providers with proven track records in Vietnam—smaller or unregistered providers carry significant risk.

What are the mandatory benefits I need to provide to employees in Vietnam?

Vietnam requires employers to provide several mandatory benefits: - **Social Insurance**: Employer contribution of 17.5% (health 3%, unemployment 0.5%, pension 14%). - **Unemployment Insurance**: 0.5% employer contribution. Provides benefits if employee is laid off. - **Work Injury & Occupational Disease Insurance**: 0.5-1.5% depending on industry. Covers workplace injuries. - **Annual Leave**: Minimum 12 days per year. Accrues based on tenure; can be sold back (partially). - **Health Insurance**: Employers must provide basic health coverage through social insurance. - **Severance Pay**: If terminated without just cause: 0.5 months per year of service, minimum 1 month. These benefits are built into the EOR fee and handled automatically by your EOR provider. You don't need to manage them separately—just pay the total monthly fee and the EOR handles all compliance.

How long does it take to onboard an employee through an EOR in Vietnam?

With an EOR, the typical timeline is 14 days from offer acceptance to the employee's first paycheck. The process includes: (1) **Days 1–2**: Background checks and document verification. (2) **Days 3–7**: Employment contract in local language, tax registration. (3) **Days 8–14**: Payroll setup, benefits enrollment, system access. This is dramatically faster than hiring via a subsidiary (which typically takes 2–3 months), making EOR ideal for time-sensitive hiring.

Should I use an EOR or set up a legal subsidiary in Vietnam?

Use an **EOR** if you're: hiring your first employee in Vietnam, want to avoid legal complexity and ongoing compliance costs, or plan to hire fewer than 5 people. EORs typically cost $400–$700/month per employee and offer simple, predictable pricing with zero additional administrative burden. Use a **subsidiary** if you're: planning to hire 10+ people in Vietnam, want direct control over hiring and contracts, or are already established in the country. Setting up a subsidiary takes 2–3 months and costs $2,000–$10,000 in legal and accounting fees, but gives you flexibility and lower per-employee costs long-term. For most small companies hiring their first international team, EOR is the faster, safer choice.

Which EOR providers support hiring in Vietnam?

The major EOR providers supporting Vietnam are: **Deel** (150+ countries), **Remote** (80+ countries), **Oyster** (130+ countries), **Rippling** (50+ countries), and **Multiplier** (150+ countries). Each offers similar core features—payroll, compliance, tax handling—with varying prices, customer support, and platform quality. Compare based on: (1) **Price**: $400–$700/month, (2) **Support quality**: Check reviews for your timezone, (3) **Feature set**: Some offer built-in benefits, others are payroll-only, (4) **User experience**: Platform simplicity varies significantly.

What happens to my EOR employee if I stop using the EOR service?

If you decide to leave an EOR service, your options depend on your long-term plan: (1) **Switch to another EOR**: The employee transitions to a new EOR provider within days—no job loss. (2) **Set up a local subsidiary**: The employee becomes employed by your subsidiary. Most EOR providers can help facilitate this transition. (3) **Separate from the employee**: You can terminate the employment agreement with notice (typically 30–60 days in Vietnam), following all local severance requirements. Because the EOR is the legal employer, any transitions or terminations must comply with Vietnam's labor laws—another reason to use established, licensed EOR providers.

Employer of Record in Vietnam

Onboarding Time

14 days

Employer Contributions

21.5%

EOR Providers

Currency

Vietnamese Dong (VND)

Employer Cost Breakdown in Vietnam

21.5%

$1,075

Monthly cost on $5k salary

~$500

Typical EOR fee/mo

14d

Onboarding time

Vietnam is an emerging technology powerhouse, graduating 50,000+ IT students annually and hosting major R&D centers for Samsung, Intel, Qualcomm, and others. Ho Chi Minh City and Hanoi have thriving tech scenes with competitive salaries (60-75% below US) and growing expertise in modern tech stacks. The government has prioritized the IT sector, aiming for 1 million IT workers by 2030, making it an increasingly attractive destination for tech hiring. Vietnamese professionals are known for hard work, dedication to learning, and adaptability. The post-pandemic shift to remote work has accelerated acceptance of distributed teams. However, cultural communication styles differ from Western norms—Vietnamese colleagues may be more reserved in disagreeing with senior colleagues or authority figures. Creating safe spaces for feedback and explicitly asking for opinions helps bridge this gap. Vietnam's 2021 Labor Code modernized employment relationships, introducing flexible working arrangements and expanded leave policies. However, foreign companies face registration requirements and compliance complexity. Direct hiring requires navigating local labor authorities, social insurance registration, and tax compliance. Social insurance contributions total 32% (21.5% from employer, 10.5% from employee), which is substantial. Using an EOR in Vietnam simplifies this significantly. The EOR operates a registered local entity, handles all Ministry of Labor compliance, manages social insurance enrollment, calculates payroll taxes, and ensures you remain on the right side of labor regulations. Onboarding takes 2-3 weeks. You pay the EOR fee ($400-$600/month) plus salary and approximately 21.5% employer social insurance contributions. The timezone advantage is noted: Vietnam (UTC+7) is 12-15 hours ahead of US timezones. A "reverse schedule" model works well: Vietnam afternoons (2-6 PM) overlap with US mornings (2-6 AM PT). Many teams adopt async-first workflows with structured daily handoff points, enabling 24/7 coverage.

EOR Providers for Vietnam

Compare the leading Employer of Record providers for hiring in Vietnam. All prices are monthly and exclude employee salary and benefits.

Provider	Monthly Fee	Coverage	Best For	Key Features	Action
Deel	$599	150+	Companies scaling globally	Fast onboardingBuilt-in compliance	Get Quote
Remote	$599	80+	Mid-size companies	Own legal entitiesBenefits management	Get Quote
Oyster	$599	130+	Remote-first companies	Guided hiringLocal benefits	Get Quote
Rippling	$600	50+	Tech companies	Unified HR platformIT management	Get Quote
Multiplier	$400	150+	Cost-conscious companies	Competitive pricingMulti-currency payroll	Get Quote

Tip: Most EOR providers offer a free trial or demo. Contact multiple providers to compare features, customer support quality, and specific support for Vietnam. Pricing and coverage may change after 2026.

Legal Requirements in Vietnam

Tax registration number (VAT registration)

Social insurance enrollment via Bảo hiểm Xã hội Việt Nam

Employment contract in Vietnamese (or English with Vietnamese notarization)

Work permit or visa compliance for foreign company

Labor Code compliance per 2021 update

Mandatory Benefits

Benefit	Description
Social Insurance	Employer contribution of 17.5% (health 3%, unemployment 0.5%, pension 14%).
Unemployment Insurance	0.5% employer contribution. Provides benefits if employee is laid off.
Work Injury & Occupational Disease Insurance	0.5-1.5% depending on industry. Covers workplace injuries.
Annual Leave	Minimum 12 days per year. Accrues based on tenure; can be sold back (partially).
Health Insurance	Employers must provide basic health coverage through social insurance.
Severance Pay	If terminated without just cause: 0.5 months per year of service, minimum 1 month.

Compliance Guide

**Employment Contract Requirements**: All employment in Vietnam must have a written contract in Vietnamese (English contracts must be notarized in Vietnam). The contract must specify: job title, duties, salary, benefits, work schedule, leave policies, termination conditions, and dispute resolution. Contracts are typically 12-36 months. The employer must provide a copy to the employee. **Social Insurance Registration**: Foreign companies must register their employees with Vietnam's social insurance authority. Contributions are: 17.5% (health 3%, unemployment 0.5%, pension 14%) from employer and 10.5% (same breakdown) from employee. The EOR handles all registration and monthly submissions. **Work Permits and Visas**: If your employees are Vietnamese nationals working for a foreign company remotely, they may need work permits or proper visa classification. The EOR should verify compliance. If you're hiring foreign nationals in Vietnam, they need work permits, which the employer sponsors. **Payroll Timing**: Salaries must be paid monthly, typically by the 5th of the following month. Social insurance must be submitted to authorities by the 5th of the following month. **Annual Leave**: Employees accrue minimum 12 days per year (higher for hazardous roles). Leave accrues from day one and can be taken flexibly with employer approval. Unused leave must be paid out upon separation, though some can be carried over (up to 5 days in the following year). **Severance Pay**: If terminated without just cause, employees receive 0.5 months salary per year of service, minimum 1 month. Just cause terminations (theft, repeated violations) may reduce severance, but the employer must document the cause. **Contractor vs Employee Classification**: Vietnam allows service contracts, but regular work patterns, employer control, and economic dependency suggest employment. The Ministry of Labor can impose fines for misclassification and order reclassification with back payments of social insurance and leave benefits. **Flexibility Arrangements**: The 2021 Labor Code allows flexible working arrangements (remote, flexible hours, etc.) with no formal approval needed as long as productivity metrics are met. This makes Vietnam excellent for remote hiring. **Tax Compliance**: Personal income tax is progressive (0-35%) and withheld monthly. Corporate taxes apply separately to the EOR entity. The EOR handles all calculations and filings. **Audit and Compliance**: The Ministry of Labor conducts audits of foreign companies. Using an EOR significantly reduces audit risk as the EOR is the registered employer and maintains compliance documentation. **Currency and Foreign Exchange**: Salaries are paid in Vietnamese Dong (VND). Foreign remittances are allowed through banks with proper documentation. The EOR typically handles currency conversion and payment logistics.

Why Use an EOR in Vietnam?

Vietnam graduates 50,000+ IT students annually. Ho Chi Minh City and Hanoi have growing tech scenes with major operations by Samsung, Intel, and others. The country aims for 1 million IT workers by 2030. Salaries are 60-75% below US rates. However, foreign companies face registration and compliance complexity. Using an EOR in Vietnam provides a registered local entity, handles all tax compliance, manages social insurance, and enables fast hiring.

Want to compare hiring costs with our calculator?

Compare detailed hiring costs, salaries by role, and total employer burden for Vietnam.

View Hiring Guide for Vietnam

Other EOR Options in Asia

Philippines

Onboarding: 14 days

15% contributions→

India

Onboarding: 14 days

24% contributions→

Singapore

Onboarding: 10 days

17% contributions→

Japan

Onboarding: 14 days

15% contributions→

South Korea

Onboarding: 14 days

13% contributions→

China

Onboarding: 21 days

38% contributions→

Hiring in Vietnam: FAQs

An Employer of Record (EOR) is a third-party company that becomes the legal employer of your remote workers in Vietnam. You define the role, manage the day-to-day work, and set the compensation. The EOR handles all employer responsibilities: payroll, benefits, tax compliance, employment contracts, and labor law compliance. This means you can hire full-time employees in Vietnam without establishing a subsidiary or legal entity. The process typically takes 14 days from offer to first paycheck.

Start hiring talent in Vietnam

Deel handles payroll, compliance, and benefits. No local entity needed.

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