EOR Service in Vietnam

Hire, Onboard and Pay Employees in Vietnam Quickly and Efficiently

Hiring in Vietnam at a glance

CURRENCY
Vietnamese Dong (VND)
working hours
48 hours per week
public/bank holidays
13 public holidays
capital
Hanoi
language
Vietnamese
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Calendar year, January 1 - December 31
minimum hourly salary
No minimum wage
CURRENCY
Vietnamese Dong (VND)
working hours
48 hours per week
public/bank holidays
13 public holidays
capital
Hanoi
language
Vietnamese
date format
DD/MM/YYYY
tax year
Calendar year, January 1 - December 31
payroll frequency
Monthly
GDP
$408.80 billion USD

Employer of Record in Vietnam

In Vietnam, Gloroots serves as a leading Professional Employer Organization (PEO) and Employer of Record (EOR) service provider, fully equipped to manage all your HR, payroll, compliance, and employment needs while ensuring strict adherence to local laws and regulations.

Why use Vietnam EOR?

When businesses aim to expand in Vietnam, the usual method often involves establishing a local branch, a process that can be time-consuming and extend over several months.Another challenge to address is ensuring that your hiring practices align with Vietnam's labor regulations. 


For example, in Vietnam employment contracts vary with scope of service, and duration: Indefinite-term contracts, definite-term contracts (lasting from 1 to 36 months), contracts for specific or seasonal tasks under 12 months.  Secondly, all trade unions in Vietnam operate under the umbrella of the Vietnam General Confederation of Labor (VGCL). This structure contrasts with many countries where multiple independent trade unions exist. Employers in certain sectors are required to establish a grassroots trade union within their organization.



These laws can confound even experienced employers. Gloroots offers a reliable solution for multinational companies seeking access to Vietnam's skilled workforce while avoiding the complexities of managing labor regulations. Through our Professional Employer Organization (PEO) services, we act as intermediaries, ensuring that your employees enjoy a seamless and favorable work environment in Vietnam.




EOR Costs in Vietnam

EOR/ PEO services in Vietnam can be billed using two methods: a fixed yearly fee per employee or a calculated fee based on the company's annual payroll. The first option generally falls within a specific range, while the second option is a percentage of the total payroll.

Gloroots provides an equally competitive platform in Vietnam at an attractive rate. Our pricing guarantees that your company and its employees receive the necessary HR support for optimal performance.

Key Metrics For Foreign Employers

The Vietnamese government has been actively driving substantial economic reforms, promoting private ownership, pursuing market-oriented restructuring, and implementing comprehensive five-year economic plans. 


Education has been a paramount focus for the government, with a substantial allocation of 20% of its budget since 2008. This strategic investment has led to the cultivation of a highly skilled workforce, particularly in the services sector.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Vietnam.

Factors Global Ranking Interpretation
Rule of law

Labour-employer cooperation

Reading Maths, and Science

University Ranking

Labour productivity per employee

Ease of finding skilled employees

Workforce with tertiary education

Digital Skills
70

24

15

68

89

28

88

82
Indicates effectiveness of law enforcement

Indicates positive labor-employee relationships

Indicates average scores in OECD's survey of 15-year-old students

Indicates average QS rankings

Indicates total output by the total labor input used to produce that output

Indicates findability of skilled talent

Indicates % of the workforce with PG degrees

Indicates the prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Vietnam.

Why work in Vietnam ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

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Employing in Vietnam

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income Tax

Annual Income (MYR) Income Tax Rate
Up to 5,000 0.00%
5,001 - 20,000 1.00%
20,001 - 35,000 3.00%
35,001 - 50,000 6.00%
50,001 - 70,000 11.00%
70,001 - 100,00 19.00%
100,001 - 400,000 25.00%
400,001 - 600,000 26.00%
600,001 - 2,000,000 28.00%
2,000,001 and over 30.00%

Social Security contribution

Employer Payroll Contributions:

Contribution Type Rate Range
Social Insurance * (Labor, Accident, and Occupational Disease Fund) 0.50%
Social Insurance * (Retirement & Death Gratuity Fund) 14.00%
Social Insurance * (Sickness & Maternity Fund) 3.00%
Health Insurance 3.00%
Unemployment Insurance (the maximum salary for Unemployment insurance is 93,600,000 VND.) 1.00%
Total Employment Cost 21.50%

Employee Payroll Contributions:

Contribution Type Rate Range
Social Insurance 8.00%
Health Insurance 1.50%
Unemployment Insurance (the maximum salary for Unemployment insurance is 93,600,000 VND.) 1.00%
Disaster Management Fund (for 2023 it is a one-time deduction of VND 90,000 per worker) 90,000 VND
Total Employee Cost 10.50%+ 90,000 VND

Separation

Termination Process

Grounds for termination are determined by the criteria specified in labor law regulations, which may include persistent failure to meet work standards or engaging in misconduct.

Termination notices must be provided in written form. It is prohibited to terminate an employee while they are on paid leave.

Notice Period

Termination notice must be in written form, and the duration of the notice period varies depending on the contract type:

  •  45 days for an indefinite labor contract.
  •  30 days for a definite labor contract lasting between 1 to 3 years.
  • 3 working days for a seasonal contract, which is a contract for less than one year.
  • No notice is necessary during the probationary period.

Severance Pay

In accordance with Vietnamese labor law, employers are obligated to offer severance compensation to employees who have worked consistently for them for 12 months or longer. The severance pay amounts to half a month's salary for each year of service. Both the employer and employee contribute to a severance fund each month, and the employee receives a calculated sum from this fund upon termination.

Probation Periods

For regular employees in Vietnam, the duration of the probationary period typically depends on the complexity and skill demands of the position, ranging from 6 to 60 days. In managerial roles, the probationary period might extend up to 180 days. It's essential to have a written agreement regarding the employee's salary during the probationary period, which, however, cannot be lower than 85% of the full-time permanent salary for the given role.

Start Hiring in Vietnam today

Hiring employees in Vietnam might seem complex due to various regulations to remember. You need to understand employment laws, ensure accurate payments to employees, adhere to fairness and data protection rules, and more. All these factors can make the hiring process appear intricate.

But here's the good news – Gloroots can simplify everything for you. Our comprehensive solutions offer a convenient way to manage all aspects of hiring in Vietnam. Our experts assist with international hiring and complying with payment and work regulations. We handle employment agreements, on-time payments, and benefits, allowing you to concentrate on choosing the best candidates.

You can rely on Gloroots to make global hiring straightforward and hassle-free.

Grow your team in Vietnam

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Experience Seamless Hiring in Vietnam ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Vietnam .

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