EOR by country · Malaysia
Hiring in Vietnam from Malaysia.
How Malaysian 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 Malaysian company hire employees in Vietnam?
A Malaysian 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. Malaysia and Vietnam have a double tax agreement in force. Staff employed in Vietnam join Vietnamese social insurance; EPF, SOCSO and EIS do not apply to them. Kuala Lumpur is one hour ahead of Vietnam, and Chinese New Year falls in the same week as Tết. Malaysian companies often use an EOR for finance and shared-services staff, software and support teams, and sales and operations staff for the Vietnamese market. Nhân Kiệt’s account team works with clients in Chinese as well as English.
Key takeaways
- Nhân Kiệt employs your Vietnam team for US$99–199 per employee a month plus VAT, with no entity needed.
- Malaysia and Vietnam have a double tax agreement in force.
- EPF, SOCSO and EIS do not apply; staff join Vietnamese social insurance.
- Kuala Lumpur is one hour ahead; Chinese New Year and Tết fall in the same week.
- Annual leave is 12 working days, compared with 8 days in the first two years in Malaysia.
How it works
Hiring in Vietnam from Malaysia through an EOR.
Your company in Malaysia 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.
Malaysia and Vietnam have a double tax agreement in force, which sets the permanent establishment test for Malaysian companies. Finance, shared-services and development teams that serve the group rarely raise the question; staff who sell to Vietnamese customers should support deals rather than conclude them. Employees resident in Vietnam pay Vietnamese income tax at 5% to 35%, withheld monthly by Nhân Kiệt. Ask your Malaysian tax adviser whether withholding tax applies to the service fee; it generally depends on where the services are performed, and here they are performed in Vietnam.
Paying
Paying from Malaysia.
Nhân Kiệt sends one invoice a month covering salary, statutory contributions and the fee, and Malaysian clients usually pay by international transfer in the currency agreed in the service agreement. Employees are paid in dong and join Vietnamese social, health and unemployment insurance; EPF, SOCSO and EIS contributions do not apply to them.
Working together
Time zone and holidays.
Kuala Lumpur is one hour ahead of Vietnam, so regional teams share almost the whole working day. Chinese New Year and Tết fall in the same week — Vietnam’s holiday runs from 16 to 20 February in 2026 — while Hari Raya Aidilfitri, Deepavali and Christmas are working days in Vietnam.
People
Staff, contracts and work permits.
Malaysian managers working in Vietnam need a work permit, which Nhân Kiệt applies for as employer, with Malaysian documents legalised and translated into Vietnamese. Annual leave in Vietnam is 12 working days from the first year, compared with 8 days for the first two years of service in Malaysia, plus 12 paid public holidays in 2026. Vietnam teams reporting to a regional shared-services centre follow Vietnam’s holiday calendar, not Malaysia’s.
See also social insurance 2026, personal income tax 2026 and work permits.
Worked example
What one hire costs.
A shared-services accountant on ₫23,000,000 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 ₫5,405,000, so the monthly employment cost is ₫28,405,000. 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 Malaysian companies make in Vietnam.
- Adding EPF or SOCSO contributions to Vietnamese payslips.
- Running Vietnam staff on Malaysia’s holiday calendar instead of Vietnam’s.
- 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 Malaysia: FAQ
Do Malaysia and Vietnam have a tax treaty?
Yes. A double tax agreement between Malaysia and Vietnam is in force.
Do EPF and SOCSO apply to our Vietnam staff?
No. Staff employed in Vietnam by a Vietnamese employer join Vietnamese social insurance.
What is the time difference with Kuala Lumpur?
Kuala Lumpur is one hour ahead of Vietnam.
Can Malaysian managers work in Vietnam through an EOR?
Yes. Nhân Kiệt employs them and applies for the work permit as employer.
Does Nhân Kiệt work with clients in Chinese?
Yes. Nhân Kiệt’s account team works with clients in Chinese as well as English; labour contracts are bilingual Vietnamese and English.
Does a Malaysian 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 Malaysian 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.
Request a quote