Guide · EOR or entity
EOR or your own company in Vietnam?
What setting up a foreign-owned company involves, what it costs to keep running, when it beats an EOR, and how to switch without disrupting your team.
Updated 22 October 2026 · General information, not legal or tax advice
Short answer
Should you use an EOR or set up a company in Vietnam?
Use an employer of record while your Vietnam team is small or its future is uncertain, and set up your own company once the team is large and permanent or you need to sell to Vietnamese customers locally. A foreign-owned company needs an investment registration and an enterprise registration, which typically take one to three months, and then carries fixed costs every month whether it employs one person or fifty: a registered office, an accountant and chief accountant, bank accounts, tax filings and an annual audited financial statement. An EOR has no setup and no fixed overhead; you pay salary, statutory contributions and a per-employee fee — US$99–199 a month plus VAT with Nhân Kiệt.
Setting up
What setting up a foreign-owned company involves.
- Investment Registration Certificate (IRC) for the project and its capital.
- Enterprise Registration Certificate (ERC) creating the company.
- Post-licensing steps: company seal, capital account and capital contribution, tax registration, e-invoices.
- Employer registrations: social insurance, internal labour regulations once you have 10 or more employees, labour-usage reporting.
Together these typically take one to three months before the first employee can be hired.
Sources: Law on Investment 2020; Law on Enterprises 2020.
Side by side
EOR and your own entity compared.
| EOR | Your own entity | |
|---|---|---|
| Time to first hire | Days for Vietnamese nationals | About 1–3 months |
| Fixed monthly costs | None | Office, accounting, chief accountant, audit, filings |
| Per-employee cost | Salary, contributions and the EOR fee | Salary and contributions, plus payroll work |
| Compliance risk | Carried by the EOR | Carried by you |
| Selling to Vietnamese customers | Not through the EOR | Yes, with local invoices |
| Exit | End the service agreement | Dissolution takes months |
Moving later
Moving staff from an EOR to your entity.
When your company is ready, each employee’s contract with the EOR ends lawfully and a new labour contract starts with your entity the next day. The EOR settles final salary and untaken leave and confirms the social-insurance contribution period, which follows the employee rather than the employer, so their record continues. Foreign employees need a work permit in your entity’s name before the switch. Your entity can then use payroll outsourcing to keep the monthly workload off your team.
Questions
EOR or entity in Vietnam: FAQ
How long does it take to set up a company in Vietnam?
Typically one to three months for the investment and enterprise registrations and the steps after licensing.
Is an EOR cheaper than an entity?
For small teams, usually yes, because an entity carries fixed costs such as an office, accountants, audited financial statements and tax filings regardless of headcount.
Can I start with an EOR and switch to my own company later?
Yes. Employees move to new labour contracts with your entity, and their social-insurance record continues because it follows the person.
Can an EOR invoice my Vietnamese customers?
No. An EOR employs your staff; selling to customers in Vietnam with local invoices needs your own entity.
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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