Guide · Employer of record
What is an employer of record (EOR) in Vietnam?
How an EOR lets a foreign company hire in Vietnam without its own entity: who does what, the legal basis, the cost and when it makes sense.
Updated 22 October 2026 · General information, not legal or tax advice
Short answer
What is an employer of record in Vietnam?
An employer of record (EOR) in Vietnam is a Vietnam-registered company that legally employs a worker on behalf of a foreign business. The EOR signs the labour contract under the Labour Code 2019, pays the salary in Vietnamese dong, registers and pays social, health and unemployment insurance, withholds personal income tax and, for foreign hires, obtains the work permit. The client company chooses the person, sets the salary and directs the daily work, and pays one monthly invoice covering salary, statutory contributions and a service fee. It lets a company hire in Vietnam without incorporating a local subsidiary.
How it works
Three parties, two contracts.
An EOR arrangement links three parties through two contracts. Your company signs a service agreement with the EOR. The EOR signs a labour contract with the employee. The employee works for you every day, but on paper the EOR is the employer, so the employer’s legal duties in Vietnam sit with the EOR.
| Task | EOR (legal employer) | Your company |
|---|---|---|
| Choose the person and the role | — | Yes |
| Set salary, bonus and benefits | Runs them | Decides |
| Direct daily work, hours and goals | — | Yes |
| Sign the labour contract | Yes | — |
| Monthly payroll in dong and payslips | Yes | — |
| Social, health and unemployment insurance | Yes | — |
| Personal income tax withholding and finalisation | Yes | — |
| Work permits for foreign hires | Yes | — |
| Lawful termination, notice and final pay | Yes | Decides when |
Legal basis
Is an EOR legal in Vietnam?
Yes, although no Vietnamese law uses the term. A lawful EOR rests on one of two mechanisms: licensed labour leasing (cho thuê lại lao động) under the Labour Code 2019 and Decree 145/2020/ND-CP, or direct employment of the worker by a licensed Vietnamese company that provides services to the client under a business-to-business agreement. There is no “EOR licence”; the mechanism is what makes the arrangement lawful, and each has its own conditions.
Only a company registered in Vietnam can be an employer there. A foreign company without its own entity therefore has two lawful choices: set one up, or employ through an EOR. Paying someone as an overseas “contractor” while directing their daily work is not a third option: Article 13 of the Labour Code treats any paid, directed work as employment, whatever the contract is called.
Sources: Labour Code 2019 (Law 45/2019/QH14), Articles 13 and 52–58; Decree 145/2020/ND-CP.
Your options
EOR, your own entity or a contractor?
| EOR | Your own entity | Contractor | |
|---|---|---|---|
| Legal employer | The EOR’s Vietnamese company | Your subsidiary | None, on paper |
| Time to first hire | Days for Vietnamese nationals | About 1–3 months to incorporate | Immediate |
| Who carries compliance | The EOR | You | You, if reclassified |
| Best for | Testing the market, small and mid-sized teams | Large permanent teams with local revenue | Genuinely independent short projects |
If an inspector reclassifies a contractor as an employee, the employer owes back-dated social, health and unemployment insurance — about 32% of gross pay between employer and employee — plus back income tax, interest and a fine.
Cost
What does an EOR cost in Vietnam?
You pay three things: the gross salary; the employer’s statutory contributions of about 23.5% (17.5% social insurance, 3% health insurance, 1% unemployment insurance and a 2% trade-union fee); and the EOR’s service fee. International platforms publish fees of about US$199 to US$699 per employee a month. Nhân Kiệt’s fee is US$99–199 per employee a month, plus VAT on the fee. See EOR cost in Vietnam for every published fee side by side.
When to use one
When an EOR makes sense.
- Your first hires in Vietnam — a country manager or small sales team to test demand before committing to an entity.
- Remote teams — engineers, designers or support staff working for you from Ho Chi Minh City, Hanoi or Da Nang.
- Before your entity is ready — plant, quality and sourcing staff while your factory is still being set up.
- Foreign specialists — a work permit and residence card sponsored by the EOR, without your own entity.
- Moving contractors onto proper contracts — removing reclassification risk for people already working for you.
Your own entity usually becomes cheaper once you employ enough people for long enough, because fixed overheads replace per-employee fees.
Questions
Employer of record in Vietnam: FAQ
What does EOR stand for?
EOR stands for employer of record: the company that is the legal employer on the labour contract, payroll and insurance records, while another company directs the work.
Do I need a company in Vietnam to use an EOR?
No. Your company signs one service agreement with the EOR, and the EOR employs your staff in Vietnam under its own registration.
How fast can someone start through an EOR?
A Vietnamese national can start as soon as the labour contract is signed and the employee is registered for insurance and tax. A foreign hire starts once the work permit is issued, up to 10 working days after a complete dossier.
Who owns the work my EOR employee creates?
By default the employer owns it, so a sound EOR contract assigns the intellectual property onward to you through both the labour contract and the service agreement.
Is an EOR the same as a PEO?
Not in Vietnam. Vietnamese law recognises one legal employer per labour contract, so most “PEO” offers there are either an EOR or payroll administration for a company that already has an 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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