EOR by country · Canada
Hiring in Vietnam from Canada.
How Canadian companies employ people in Vietnam without an entity: tax, payments, time zone, staff and cost.
Updated 22 October 2026 · Written and checked by Nhân Kiệt's payroll and employment-law team (labour leasing licence 029/LĐTBXH-GP, employing people in Vietnam since 2009) · About 4 min read · General information, not legal or tax advice
Short answer
How can a Canadian company hire employees in Vietnam?
A Canadian company can employ staff in Vietnam without a Vietnamese entity by using an employer of record such as Nhân Kiệt, which signs the labour contract, runs payroll in dong, pays social insurance and income tax, and charges US$99–199 per employee a month plus VAT. Canada and Vietnam have a double tax agreement in force — unlike the United States, whose treaty with Vietnam is not in force. CPP and EI do not apply to staff employed in Vietnam, who join Vietnamese social insurance, and Regulation 105 withholding covers services rendered in Canada, not work done in Vietnam. Vietnam is 11 hours ahead of Toronto in summer and 12 in winter, and 14 or 15 hours ahead of Vancouver. Canadian technology companies often hire software engineers, QA and support staff in Vietnam this way.
Key takeaways
- Nhân Kiệt employs your Vietnam team for US$99–199 per employee a month plus VAT, with no entity needed.
- Canada and Vietnam have a double tax agreement in force.
- CPP and EI do not apply; staff join Vietnamese social insurance.
- Regulation 105 withholding covers services rendered in Canada, not work done in Vietnam.
- Vietnam is 11 to 15 hours ahead of Canadian time zones.
How it works
Hiring in Vietnam from Canada through an EOR.
Your company in Canada signs one service agreement with Nhân Kiệt. Nhân Kiệt signs a bilingual Vietnamese–English labour contract with each person, runs payroll in dong, pays social insurance and personal income tax, and applies for work permits for foreign hires. You choose the people, set salaries and direct their daily work, and pay one monthly invoice covering salary, statutory contributions and the service fee. Nothing is registered in Vietnam in your company’s name.
Tax
Tax treaty and tax exposure.
Canada and Vietnam have a double tax agreement in force, which sets the permanent establishment test for Canadian companies: keep contract signing and pricing in Canada. On the Canadian side, Regulation 105 withholding applies to fees paid to non-residents for services rendered in Canada; work performed by your team in Vietnam is outside it. Employees resident in Vietnam pay Vietnamese income tax at 5% to 35%, withheld monthly by Nhân Kiệt.
Paying
Paying from Canada.
Nhân Kiệt sends one invoice a month covering salary, statutory contributions and the fee, and Canadian clients usually pay by international wire in the currency agreed in the service agreement. Employees are paid in dong and join Vietnamese social, health and unemployment insurance; CPP and EI contributions do not apply to them.
Working together
Time zone and holidays.
Vietnam is 11 hours ahead of Toronto during daylight saving time and 12 hours in winter, and 14 or 15 hours ahead of Vancouver. The Canadian afternoon is the start of the Vietnamese working day, so many teams hold a short daily overlap then. Canada Day, Thanksgiving and Christmas are working days in Vietnam; Tết, from 16 to 20 February in 2026, is the main break.
People
Staff, contracts and work permits.
Employment in Vietnam ends on a lawful ground with notice — at least 45 days on an indefinite-term contract — rather than under Canadian reasonable-notice practice. Annual leave is 12 working days plus 12 paid public holidays in 2026, compared with a provincial minimum of two weeks in most of Canada. Canadian managers sent to Vietnam need a work permit, which Nhân Kiệt applies for as employer.
See also social insurance 2026, personal income tax 2026 and work permits.
Worked example
What one hire costs.
A QA engineer on ₫28,000,000 a month. Employer contributions for a Vietnamese employee are 23.5% — 21.5% social, health and unemployment insurance plus the 2% trade-union fee — or ₫6,580,000, so the monthly employment cost is ₫34,580,000. Add Nhân Kiệt’s fee of US$99–199 plus VAT. The salary is illustrative; use the employer cost calculator for your own figures.
Common mistakes
Mistakes Canadian companies make in Vietnam.
- Withholding Canadian tax under Regulation 105 on fees for work performed in Vietnam.
- Applying Canadian termination practice, such as pay in lieu of notice, instead of Vietnam’s lawful grounds and notice.
- Paying people as contractors when the work looks like employment under Vietnam’s Labour Code.
- Copying home-country contracts and policies instead of a Vietnamese labour contract.
- Letting Vietnam staff conclude sales contracts, which can create a permanent establishment.
Questions
Hiring in Vietnam from Canada: FAQ
Do Canada and Vietnam have a tax treaty?
Yes. A double tax agreement between Canada and Vietnam is in force.
Do CPP and EI apply to our Vietnam staff?
No. Staff employed in Vietnam by a Vietnamese employer join Vietnamese social insurance.
Does Regulation 105 withholding apply to Nhân Kiệt’s invoices?
It applies to services rendered in Canada; work performed in Vietnam is outside it. Confirm with your Canadian adviser.
What time difference should a Canadian team plan for?
Vietnam is 11 to 12 hours ahead of Toronto and 14 to 15 hours ahead of Vancouver.
Does a Canadian company need a Vietnamese entity to hire in Vietnam?
No. Nhân Kiệt employs your staff in Vietnam under one service agreement with your company.
How much does it cost a Canadian company to employ someone in Vietnam?
Salary, employer contributions of about 23.5% for a Vietnamese employee, and Nhân Kiệt’s fee of US$99–199 per employee a month plus VAT.
How quickly can we hire in Vietnam?
A Vietnamese national can start once the service agreement and labour contract are signed; a foreign hire typically takes four to eight weeks for the work permit.
Hiring in Vietnam? We handle all of this as your employer.
Nhân Kiệt employs your team, runs payroll, insurance, tax and work permits. Fee: US$99–199 per employee a month, plus VAT.
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