EOR by country · Germany
Hiring in Vietnam from Germany.
How German 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 German company hire employees in Vietnam?
A German company can employ engineers and other 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. Germany and Vietnam have a double tax agreement in force. Two points matter for German companies: employee data shared with headquarters falls under both the GDPR and Vietnam’s Personal Data Protection Law, in force since 1 January 2026; and there is no works council in Vietnam — employers with 10 or more employees register internal labour regulations instead. Vietnam is five hours ahead of Germany in summer and six in winter. German firms most often hire engineers, software developers and supply-chain staff this way.
Key takeaways
- Nhân Kiệt employs your Vietnam team for US$99–199 per employee a month plus VAT, with no entity needed.
- Germany and Vietnam have a double tax agreement in force.
- HR data shared with headquarters falls under both the GDPR and Vietnam’s Personal Data Protection Law.
- No works council: employers with 10 or more employees register internal labour regulations.
- Vietnam is five or six hours ahead of Germany.
How it works
Hiring in Vietnam from Germany through an EOR.
Your company in Germany 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.
Germany and Vietnam have a double tax agreement in force, which sets the permanent establishment test for German companies: keep contract signing and pricing in Germany, and let Vietnam staff support rather than conclude sales. Employees resident in Vietnam pay Vietnamese income tax at 5% to 35%, withheld monthly by Nhân Kiệt.
Paying
Paying from Germany.
Nhân Kiệt sends one invoice a month covering salary, statutory contributions and the fee, and German clients usually pay by SEPA-to-international or SWIFT transfer in the currency agreed in the service agreement. Employees are paid in dong. Employee records shared with headquarters — HR files, performance data, payroll reports — need a lawful basis and transfer documentation under both the GDPR and Vietnam’s Personal Data Protection Law (Law 91/2025/QH15).
Working together
Time zone and holidays.
Vietnam is five hours ahead of Germany in summer and six in winter, so a 9:00 start in Germany is 14:00 or 15:00 in Vietnam. Most teams overlap in the German morning. Easter, Whit Monday and Christmas are working days in Vietnam; Tết, from 16 to 20 February in 2026, is not a German holiday.
People
Staff, contracts and work permits.
Vietnam has no works council. Employee representation runs through the grassroots trade union where one exists, and an employer with 10 or more employees must register written internal labour regulations covering discipline and working rules. Annual leave is 12 working days, compared with a statutory minimum of 20 days on a five-day week in Germany, plus 12 paid public holidays in 2026.
See also social insurance 2026, personal income tax 2026 and work permits.
Worked example
What one hire costs.
A mechanical engineer on ₫30,000,000 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 ₫7,050,000, so the monthly employment cost is ₫37,050,000. 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 German companies make in Vietnam.
- Sending HR data to headquarters without the transfer documentation Vietnam’s data law requires.
- Waiting for a works council instead of registering internal labour regulations at 10 employees.
- 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 Germany: FAQ
Do Germany and Vietnam have a tax treaty?
Yes. A double tax agreement between Germany and Vietnam is in force.
Does the GDPR apply to our Vietnam employees’ data?
Data you hold in Germany falls under the GDPR, and Vietnam’s Personal Data Protection Law also applies to data about employees in Vietnam.
Is there a works council in Vietnam?
No. Employers with 10 or more employees register internal labour regulations, and a grassroots trade union may represent employees.
What time difference should we plan for?
Vietnam is five hours ahead of Germany in summer and six in winter.
Does a German 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 German 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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