EOR by country · Japan
Hiring in Vietnam from Japan.
How Japanese 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 5 min read · General information, not legal or tax advice
Short answer
How can a Japanese company hire employees in Vietnam?
A Japanese company can employ engineers and other staff in Vietnam without opening a subsidiary 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. Japan and Vietnam have a double tax agreement in force but no social security agreement, so a Japanese employee on a Vietnamese contract of 12 months or more joins Vietnamese social and health insurance even if they stay in the Japanese pension system. Tokyo is two hours ahead of Vietnam. Japanese offshore development teams often hire Japanese-speaking bridge engineers this way, and Vietnam’s overtime limits — 40 hours a month and 200 hours a year in most sectors — shape project schedules. Nhân Kiệt’s account team works with clients in Japanese as well as English.
Key takeaways
- Nhân Kiệt employs your Vietnam team for US$99–199 per employee a month plus VAT, with no subsidiary needed.
- Japan and Vietnam have a double tax agreement in force, but no social security agreement.
- Japanese staff on Vietnamese contracts of 12 months or more join Vietnamese social and health insurance.
- Overtime is capped at 40 hours a month and 200 hours a year in most sectors, paid at 150% or more.
- Tokyo is two hours ahead; Golden Week overlaps Vietnam’s 30 April and 1 May holidays.
How it works
Hiring in Vietnam from Japan through an EOR.
Your company in Japan 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.
Japan and Vietnam have a double tax agreement in force. It sets the permanent establishment test for Japanese companies, so keep contract signing and pricing in Japan and let Vietnam staff support rather than conclude sales. Japan and Vietnam have no social security agreement: a Japanese employee with a work permit and a Vietnamese labour contract of 12 months or more joins Vietnamese social and health insurance, and if your company also keeps them in the Japanese pension system, contributions are paid in both countries — budget for it from the start.
Paying
Paying from Japan.
Nhân Kiệt sends one invoice a month covering salary, statutory contributions and the fee. Japanese clients usually pay by overseas bank transfer, in the currency agreed in the service agreement; employees are paid in dong in Vietnam. Contracts are bilingual Vietnamese and English, and Nhân Kiệt’s account team works with your head office in Japanese.
Working together
Time zone and holidays.
Tokyo is two hours ahead of Vietnam, so a 9:00 start in Vietnam is 11:00 in Japan. Golden Week overlaps Vietnam’s 30 April and 1 May holidays, but Obon in August and the Japanese New Year week are working periods in Vietnam, while Tết, from 16 to 20 February in 2026, is not a holiday in Japan. Plan releases and deadlines around both calendars.
People
Staff, contracts and work permits.
Japanese offshore development in Vietnam usually relies on bridge engineers (BrSE) who work in Japanese — often at JLPT N2 level or above — between the team in Japan and developers in Vietnam. Overtime is capped at 40 hours a month and 200 hours a year, or 300 in permitted sectors, and paid at 150% or more on normal days, 200% on weekly rest days and 300% on public holidays. Annual leave is 12 working days, compared with 10 days after six months in Japan.
See also social insurance 2026, personal income tax 2026 and work permits.
Worked example
What one hire costs.
A Japanese-speaking bridge engineer on ₫40,000,000 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 ₫9,400,000, so the monthly employment cost is ₫49,400,000. 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 Japanese companies make in Vietnam.
- Planning overtime as in Japan, beyond Vietnam’s 40 hours a month.
- Forgetting Vietnamese social insurance for Japanese staff who stay in the Japanese pension system.
- 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 Japan: FAQ
Do Japan and Vietnam have a social security agreement?
No. Japanese employees on Vietnamese contracts of 12 months or more with a work permit join Vietnamese social and health insurance.
Is there a Japan–Vietnam tax treaty?
Yes. A double tax agreement between Japan and Vietnam is in force.
How much overtime can a Vietnam team work?
Up to 40 hours a month and 200 hours a year in most sectors, or 300 in permitted sectors.
Can we hire Japanese-speaking engineers through an EOR?
Yes. Nhân Kiệt employs them on Vietnamese labour contracts while they work for your company in Japan.
Does Nhân Kiệt work with clients in Japanese?
Yes. Nhân Kiệt’s account team works with clients in Japanese as well as English; labour contracts are bilingual Vietnamese and English.
Does a Japanese 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 Japanese 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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