Hire Employees in Vietnam without a Legal Entity
Emerhub’s Employer of Record (EOR) service lets you hire an employee in Vietnam in as quickly as 3 days!
What is an Employer of Record?
An Employer of Record (EOR) is a third-party organization that legally employs staff in Vietnam on your behalf. In doing so, EOR takes full responsibility forall formal employer-related tasks such as payroll processing, tax filing, benefits administration, and employment contracts to ensure compliance with local labor laws. This allows you to hire employees in Vietnam without establishing a legal entity.
Key Functions of an EOR
An EOR acts as an HR and administrative partner in Vietnam. This allows you to employ local or foreign talent legally and efficiently.
Legal Employer
Drafting and management of mandatory Vietnamese-language employment contracts, adhering to the Labour Code 2019 and local notice/probation requirements.
Payroll & PIT Compliance
Accurate and timely salary disbursement in Vietnamese Dong (VND), including all mandatory Personal Income Tax (PIT) withholding and monthly filings.
Statutory Contributions
Calculating and remitting mandatory employer and employee contributions for Social Insurance, Health Insurance, and Unemployment Insurance (approx. 21.5% employer cost).
Leave & Benefits
Administering statutory leave entitlements, including 12 days of annual leave, public holidays (Tết), sick leave, and 6 months of paid maternity leave.
Expat & Visa Services
For foreign employees, the EOR can handle the application process for work permits with DOLISA
Benefits of Partnering with an EOR in Vietnam
An EOR is suitable for newly established companies, startups, small and medium enterprises, and global entities who want to hire remote workers in Vietnam. You speed up the hiring process and establish your operations quickly with an EOR.
Test the Market
Enables you to gauge market potential without significant upfront costs.
Access to Local Talent
Helps you find and hire suitable local talent with knowledge of the Vietnamese market and labor conditions.
Quick Market Entry
Enables rapid hiring to quickly establish a presence in Vietnam and capitalize on market opportunities.
Scale According to your Business
Allows you to scale your workforce in Vietnam or adjust workforce size according to your business needs.
Simplified Compliance
Manage complex compliance with Vietnamese labor laws, social security, payroll taxes, employee benefits, and contract management, reducing legal risks.
Minimize Cost
Avoid the significant capital investment, registration fees, and ongoing administrative overhead associated with establishing and maintaining a foreign company.
EOR vs Setting Up a Legal Entity in Vietnam
Instead of incorporating a legal entity in Vietnam, you can engage with an EOR like Emerhub to enter the market quickly. Most business owners engage with an EOR either to test the market before setting up their legal entity and making investment commitment or to simply hire remote workers.
Employer of Record
Pros
- Quick market entry; hiring can start immediately without a legal entity
- Lower upfront and operational cost.
- EOR handles compliance with Indonesian labor laws.
- Easy to scale workforce up or down as needed
- EOR manages all HR administration for your company
Cons
- Pay a monthly fee to the EOR for managing HR functions.
- May have less control over HR concerns, requiring more communication with the EOR
- Sharing data with an EOR increases the risk of data breaches.
Setting up a Legal Entity
Pros
- Provides full control over business operations and HR decisions.
- Offers legal clarity and avoids potential risks associated with third-party providers.
- Enhances visibility and presence in the market, which can be beneficial for long-term business strategies.
Cons
- The registration process is lengthy and requires significant time and resources.
- Involves a complicated incorporation process with extensive paperwork and regulatory compliance.
- Requires substantial upfront expenses, including licensing fees and facility investments.
Employer of Record Service in Vietnam
The Easiest Way to Hire Employees in Vietnam
Emerhub’s EOR Services in Indonesia
We ensure your employees are onboarded smoothly, paid accurately, and receive the benefits they’re entitled to, all while staying compliant with local labor laws.
Legal & Contracts Management
- Drafting mandatory, bilingual employment contracts that adhere to the Vietnamese Labour Code (2019).
- Serving as the local legal employer, assuming all statutory employment liability and managing risk.
- Advising and executing termination procedures, including severance calculations and statutory notice periods.
Payroll & Tax Compliance
- Accurate calculation and timely payment of salaries, compliant with local minimum wage rules.
- Managing and remitting PIT and handling year-end tax finalization for employees.
- Calculating and paying mandatory employer and employee contributions (Social, Health, Unemployment Insurance).
Benefits & HR
- Tracking and administering all statutory leaves (annual, sick, paid maternity/paternity leave).
- Enrolling employees in state-mandated social and health insurance programs.
- Acting as the primary HR point of contact for routine employee inquiries regarding payroll and benefits.
Employee Relocation
- Full management of the application, renewal, and approval of mandatory Work Permits (WP) with DOLISA.
- Assistance with obtaining necessary entry visas and Temporary Resident Cards (TRC) for foreign staff.
- Ensuring the expatriate employee is registered and compliant with all local immigration and labor quotas.
FAQs about EOR Service in Indonesia
Typically, the onboarding process, including contract signing and initial registration, can be completed in 3 to 10 business days. This is significantly faster than the months required to set up a foreign-owned entity in Vietnam.
Yes, an EOR can hire both local Vietnamese citizens and foreign nationals. For expatriates, the EOR handles the complex and mandatory requirements for securing a Work Permit and supporting their visa application process, ensuring full legality.
As an employer, you are required to contribute approximately 21.5% of the employee’s salary towards Social Insurance, Health Insurance, and Unemployment Insurance. The EOR manages the accurate calculation and remittance of these funds.
While the terms are often used interchangeably in the region, an Employer of record is the sole legal employer, which is ideal for hiring in Vietnam without an established entity.
A PEO (Professional Employer Organization) model often involves co-employment and typically requires the client company to already have a local entity.
Schedule a call with an Emerhub consultant
We’ll discuss your needs and how we can help you expand your business in Indonesia.
Email Us
vietnam@emerhub.com
Call Us
+84 911 413 595
Visit Us
1bis Phạm Ngọc Thạch, Bến Nghé, Quận 1, Hồ Chí Minh, Vietnam