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Employer of Record Vietnam

Our Employer of Record in Vietnam service enables clients to hire employees without the need to operate a local legal entity there.

It makes a big difference to develop a new market with your own personnel on the ground. Particularly for functions related to sales & marketing, business development, distributor management, and service & maintenance, our customers are very satisfied using our Vietnam Employer of Record Service. 

Our customers and their local teams can be free of the distractions of administrative tasks and complex local requirements. So you can fully focus on the development of your core business.

If your local business grows large enough, you can easily transfer the employees to your own subsidiary. It also provides a quick exit strategy if necessary. In addition to Vietnam, we offer Employer of Record services in several other countries.


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Stephan Dorn FMC Group

Employer of Record Vietnam - FMC Group's Approach

  • Quick, flexible, and easy entry into Netherlands in compliance with local employment laws
  • Complete control over business development with your own team
  • Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
  • Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
  • Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
  • Allowing for easy market exit if necessary
  • Integrating your employees into our team through motivational events and special meetings

EOR Vietnam Management & Reporting Flow

Management and Reporting Flow Chart

Hiring an Employee

Employment Contract – indefinite vs. fixed term

In Vietnam, employers are indeed required to draft written employment contracts when hiring staff. These contracts should include essential details about the employment relationship, such as compensation, benefits, job responsibilities, and termination procedures.

It’s also important that employment documents, including letters of offer and employment contracts, are prepared in both Vietnamese and English. Any references to salary and benefits should be in Vietnamese dong (VND), the local currency, rather than a foreign currency

Probation Period

  • Statutory Minimum Notice Period: The statutory minimum notice period for termination in Vietnam is 6 working days. This means that either the employer or the employee is required to provide at least 6 working days’ notice before terminating the employment contract.
  • Statutory Maximum Notice Period: The statutory maximum notice period can vary depending on the position and qualifications of the employee. Here are the maximum notice periods based on different categories:
    • Enterprise Executive: The maximum notice period for an enterprise executive is 180 days. This applies to high-level executives within a company.
    • Positions Requiring a Junior College Degree or Above: For positions that require at least a junior college degree or higher, the maximum notice period is 60 days.
    • Positions Requiring a Secondary Vocational Certificate, Professional Secondary School, Technicians, and Skilled Employees: The maximum notice period for these positions is 30 days.

Work Week, Overtime & Maximum Working Hours

In Vietnam, the maximum working hours per week are generally regulated as follows:

  • Normal Working Conditions: Under normal working conditions, employees are typically required to work a maximum of eight hours per day, six days per week. This totals 48 hours per week.
  • Weekly Rest Day: Employers are legally obligated to provide employees with at least one full day off per week, and this day off is usually observed on Sundays.
  • Standard Working Hours: In practice, the standard working hours for many employees in Vietnam are often set at 8 hours per day and 40 hours per week, typically from Monday to Friday. This aligns with the common international practice of a 5-day workweek.

Income Tax

Taxable income (million VND) Tax rate (%)
0 to 5 5
5 to 10 10
10 to 18 15
18 to 32 20
32 to 52 25
52 to 80 30
More than 80 35

Typical Benefits

In Vietnam, the provision of employee benefits can vary from one employer to another, and it’s common for employers to offer additional benefits beyond the basic legal requirements. Here are some common employee benefits and practices in Vietnam:

  • Health Insurance: Employers are legally required to provide health insurance for their employees. This insurance is typically provided through the national health insurance system. Some employers may also offer supplementary health insurance to cover additional medical expenses not covered by the basic insurance.
  • Regular Health Check-ups: Employers are often expected to provide regular annual health check-ups for their employees as part of their benefits package.
  • Additional Vacation Time: Some employers may negotiate additional vacation days with their employees, especially for those with longer tenure or in specialized roles.
  • Team Outings and Company Trips: It’s common for companies to organize team outings and company trips as part of team-building and employee engagement initiatives. These events are often considered as bonuses and are appreciated by employees.
  • 13th Month Bonus: While not legally required, many employers in Vietnam provide a 13th month bonus to their employees. This is typically offered to employees who have worked for the company for more than one year and is often equivalent to one month’s salary. Annual bonuses or commission plans may also be offered by some employers.

Visa for the Employees

In Vietnam, non-Vietnamese citizens who wish to work legally in the country are generally required to obtain a work permit. Here are some key points to consider regarding work permits for foreign employees in Vietnam:

  • Employer’s Responsibility: It is the responsibility of the employer in Vietnam to apply for a work permit on behalf of the foreign employee they intend to hire. The employer should submit the application to the local Department of Labor, Invalids, and Social Affairs (DOLISA).
  • Eligibility: To be eligible for a work permit in Vietnam, the foreign employee typically needs to meet certain criteria, including having a valid employment contract with a registered employer in Vietnam. The employer should ensure that the foreign employee meets the necessary qualifications and requirements set by the authorities.
  • Work Permit Duration: A work permit in Vietnam can be granted for a maximum initial duration of two years. After this period, it may be renewed once for an additional two years. The total maximum period for a work permit is typically four years.
  • Work Permit Exemptions: Certain categories of foreign workers may be exempt from the work permit requirement, such as intra-company transferees, representatives of foreign entities, or experts and technicians working for less than 30 days.

Time off Policies

Public Holidays

There are 11 public holidays in Vietnam

  • New Year’s Day– 1 day off
  • Tết (The Lunar New Year) – 5 days off
  • Hung Kings Commemorations– 1 day off
  • Day of Southern Liberation for National Reunification– 1 day off
  • International Labour Day – 1 day off
  • National Day – 2 days off

Foreign employees are entitled to take a day off with pay on an additional traditional holiday from their home country. This practice recognizes the cultural diversity of the workforce and allows foreign employees to celebrate their own cultural or religious holidays.

Annual Leave

Vietnamese labor law mandates a minimum of 12 days of annual leave for employees who have worked for twelve months with an employer.

Additionally, employees earn one extra paid vacation day for each additional five years of service with the same employer, which allows them to enjoy longer annual leave as a reward for their loyalty and seniority within the organization.

Sick Leave

The statutory minimum for paid sick and hospitalization leave in Vietnam is 10 days. This means that employees are entitled to receive paid leave for medical reasons, such as illness or hospitalization, for up to 10 days as mandated by Vietnamese labor law.

Other Leave Types

Maternity Leave: Female employees are entitled to 6 months of paid maternity leave at 100% of their salary, which is based on their social insurance contributions. Additionally, they can receive an extra 30 days of leave for each additional child.

Paternity Leave: Fathers are eligible for 5 to 14 days of paid paternity leave.

Personal Leave: Employees have the option to take paid personal leave for specific life events, such as family member funerals or weddings.

Terminating an Employee

According to the Vietnam labor code, an employer can terminate a labor contract by giving advance notice of 30 working days for fixed-term labor contracts or 45 working days for indefinite labor contracts. However, this termination must be based on valid legal grounds.

Termination in Vietnam is a complex process, and certain procedures must be followed.

To terminate an employee, proper legal reasons must exist, such as issues with the employee’s performance, extended illness, a force majeure event, or the dissolution of the company. Employers are obligated to follow specific statutory procedures before terminating an employee.

Failure to prove valid legal grounds or failure to follow the correct procedures can result in wrongful termination. In cases of wrongful termination, employers may be required to reinstate the employee, pay their salary for the period they were unable to work, and provide a penalty of two months’ salary.

In practice, negotiation for a settlement or voluntary resignation often occurs, with the employee receiving some severance pay.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.