EOR by country · United Kingdom
Hiring in Vietnam from the United Kingdom.
How UK 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 UK company hire employees in Vietnam?
A UK company can employ people 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. The UK and Vietnam have a double tax agreement in force. UK rules such as pension auto-enrolment and IR35 do not decide anything for staff in Vietnam: Vietnamese law governs their contracts, insurance and whether a contractor is really an employee. Vietnam is six hours ahead of London in British Summer Time and seven in winter, so the UK morning overlaps the Vietnamese afternoon. UK companies most often hire software developers, designers, finance operations and customer-support 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.
- The UK and Vietnam have a double tax agreement in force.
- Pension auto-enrolment and IR35 do not apply; Vietnamese law governs staff in Vietnam.
- Vietnam is six or seven hours ahead of London.
- Annual leave is 12 working days plus 12 public holidays in 2026, compared with 5.6 weeks in the UK.
How it works
Hiring in Vietnam from the UK through an EOR.
Your company in the UK 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.
The UK and Vietnam have a double tax agreement in force, which sets the permanent establishment test for UK companies: keep contract signing and pricing in the UK. Employees resident in Vietnam pay Vietnamese income tax at 5% to 35%, withheld monthly by Nhân Kiệt. If you currently pay Vietnamese freelancers, note that IR35 is a UK rule: whether a Vietnamese contractor is in fact an employee is decided under Article 13 of Vietnam’s Labour Code, by what the work looks like rather than what the contract is called.
Paying
Paying from the UK.
Nhân Kiệt sends one invoice a month covering salary, statutory contributions and the fee, and UK 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; UK pension auto-enrolment does not apply to them.
Working together
Time zone and holidays.
Vietnam is six hours ahead of London in British Summer Time and seven hours in winter. A 9:00 start in London is 15:00 or 16:00 in Vietnam, so most teams keep a two-to-three-hour overlap in the UK morning. Christmas, Boxing Day and Easter are working days in Vietnam; Tết, from 16 to 20 February in 2026, is the main break.
People
Staff, contracts and work permits.
Annual leave in Vietnam is 12 working days plus 12 paid public holidays in 2026, compared with 5.6 weeks including bank holidays in the UK; many UK companies top this up by contract. Employment ends on lawful grounds with notice — at least 45 days on an indefinite-term contract — rather than at the end of a short notice period alone. Contracts are bilingual Vietnamese and English.
See also social insurance 2026, personal income tax 2026 and work permits.
Worked example
What one hire costs.
A product designer on ₫32,000,000 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 ₫7,520,000, so the monthly employment cost is ₫39,520,000. 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 UK companies make in Vietnam.
- Applying IR35 thinking to Vietnamese freelancers instead of the Labour Code test.
- Issuing a UK-style contract instead of a Vietnamese labour contract.
- 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 the UK: FAQ
Do the UK and Vietnam have a tax treaty?
Yes. A double tax agreement between the UK and Vietnam is in force.
Does pension auto-enrolment apply to our Vietnam staff?
No. Staff employed in Vietnam by a Vietnamese employer join Vietnamese social insurance.
Does IR35 apply to freelancers in Vietnam?
No. Vietnam’s Labour Code decides whether a contractor is in fact an employee.
How much holiday do Vietnam staff get?
12 working days of annual leave plus 12 paid public holidays in 2026; you can add more by contract.
Does a UK 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 UK 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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