Hiring in Vietnam

The contract sets out role, salary in VND, working time, leave, notice and confidentiality terms. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Contracts are normally bilingual, in Vietnamese and English.

Fixed-term contracts can run up to 36 months, but only one renewal is allowed before the next contract must be indefinite. Contracts for foreign employees follow the work permit term instead.

Agree probation in the contract from day one, at no less than 85% of the role's salary. Probation can be used only once per role and cannot be extended.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at 1.5 times the normal rate on working days, 2 times on weekly rest days and 3 times on public holidays. It needs the employee's agreement and is capped at 40 hours a month and 200 a year.

There is no salary threshold or senior exemption, so overtime stays a statutory matter for professional hires too. Put the position in writing either way.

Market practice for professional roles is 12 to 15 days, close to the statutory floor. Foreign employees also get a day off for their own national day and traditional new year.

Sick, maternity and paternity pay come from the social insurance fund rather than from the employer directly. Maternity leave runs to six months, so confirm how the EOR handles cover and the return to work.

Unilateral dismissal is limited to grounds such as repeated failure to meet documented performance criteria, prolonged illness or restructuring. Restructuring carries a statutory job-loss allowance of one month's pay per qualifying year, with a minimum of two months.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay within 14 working days, unused leave and any severance. Unlawful dismissal can mean reinstatement, back pay and at least two months' extra salary, so mutual termination agreements are the usual route.

A 13th-month salary paid before Tet and private medical cover are standard for professional roles even though neither is mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 23.5% on top of gross salary for local hires, including the 2% trade union levy, up to a salary cap. That is before the EOR fee.

Net salary offers are the trap. Candidates often negotiate take-home pay, and grossing that up through tax and contributions raises the cost materially, so agree gross figures in writing.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the permit is tied to the sponsoring employer, the job code and the work location.

File at least 10 working days before the start date, and set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a transfer impact assessment filed with the Ministry of Public Security within 60 days, though storing employee data in the cloud is exempt. Fines for transfer breaches reach 5% of the previous year's revenue.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporating a foreign-owned company needs an investment registration certificate before the business can register, so it takes weeks rather than days. The running cost is the point: a resident legal representative, a chief accountant, a mandatory annual audit and regular tax filings set an annual floor.

EOR is not a defined model in Vietnamese law. Many providers rely on a labour outsourcing licence, which limits placements to 20 listed job types and 12 months with the same client.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.