Hiring in Vietnam: Complete Guide 2027
Everything you need to know about hiring and managing employees in Vietnam
Overview
Vietnam is one of Asia's fastest-rising technology hiring destinations, with strong government investment in digital skills and a large, young, technically-educated workforce. Ho Chi Minh City and Hanoi are growing tech hubs with deep software development talent and highly competitive salary levels relative to Singapore or the Philippines. Employment is governed by the Labor Code 2019 (effective January 2021), which introduced significant changes to fixed-term contract limits, overtime caps, and trade union requirements. An EOR provides the local legal employer infrastructure without requiring a Vietnamese FDI entity.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Vietnam
Vietnamese payroll runs monthly with salaries paid in VND. Employer contributions cover social insurance (17%: retirement 14%, sickness and maternity 3%) plus the work-accident fund, health insurance (3%) and unemployment insurance (1%), about 21.5% in all. Employees contribute approximately 10.5% on their side. An EOR handles VSS (Vietnam Social Security) registration, monthly SI/HI/UI filings, PIT (personal income tax) withholding at progressive rates of 5–35%, payslip issuance, and the annual PIT finalization (quyết toán thuế) which must be completed by March 31st of the following year. Salaries are paid in VND; foreign employees may be paid in foreign currency.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract required
- Fixed-term contracts max 1 renewal then indefinite
- Probation 6 working days to 180 days depending on role
Leave & Time Off
- 12 days annual leave minimum
- Sick leave covered by Social Insurance Fund
- Maternity leave 6 months
Termination Rules
- 3 working days to 45 days' notice by contract type
- Severance 0.5 month per year not covered by unemployment insurance
- Termination without a legal ground: reinstatement plus at least 2 months' pay
COMPLIANCE
Labor Compliance in Vietnam
Vietnam's Labor Code 2019 limits fixed-term contracts to two consecutive terms — after which the employment must convert to an indefinite contract. Probation periods are capped at 180 days for senior management, 60 days for roles needing a college degree or higher, 30 days for intermediate-level roles and 6 working days for other jobs. Overtime is capped at 40 hours per month and 200 hours per year (300 hours in certain industries, with written notice to the provincial labour authority). Termination is allowed only on a statutory ground and requires written notice of 3 working days to 45 days depending on contract type, plus severance of half a month's salary per year of service not covered by unemployment insurance. An EOR manages all contract renewals, probation tracking, overtime compliance, and termination procedures in full compliance with the Labor Code 2019 and its implementing decrees.
Figures checked against official sources: National Assembly of Viet Nam (Labour Code 45/2019/QH14, Law on Social Insurance 41/2024/QH15, Law on Employment 74/2025/QH15, Law on Trade Union 50/2024/QH15, Law on Personal Income Tax 109/2025/QH15); Government of Viet Nam (Decree 399/2026/ND-CP); National Statistics Office. Checked November 2026.
Key Challenges
- Fixed-term contracts limited to 1 renewal
- Social insurance registration complexity
- Language barrier outside major cities
- Payroll must be in VND — FX planning required
- Termination without a legal ground triggers reinstatement and compensation
Country Highlights
Advantages
- Fast-rising tech hiring destination
- Very competitive engineering salary levels
- Strong government investment in digital skills
- Large young and educated workforce
- Ho Chi Minh City and Hanoi growing as tech hubs
Popular Industries & Roles
Technology
Salary range: $12k-$28k
Ho Chi Minh City and Hanoi are fast-growing tech hubs with strong software engineering talent at competitive rates
Manufacturing & Supply Chain
Salary range: $10k-$22k
Manufacturing operations and supply chain management are Vietnam's defining competitive advantage for foreign employers
E-commerce & Digital Marketing
Salary range: $11k-$25k
E-commerce and digital marketing roles are booming as Vietnam's domestic consumer economy grows rapidly
Top 3 Providers in Vietnam
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Multiplier
- 150+ owned entities; 150+ countries
- Flat $459/month annual or $499 monthly
- APAC heritage; 3,700+ companies served
- ESOP and equity administration included
Deel
- EOR in 130+ countries; owned entities in 130+
- Contractor and EOR in one platform
- 200+ integrations including Slack, Workday
- AI-powered compliance automation
BIPO
- EOR and payroll across 170+ countries
- Local teams in 30+ APAC markets
- Workday GPC certified, Oracle and SAP integrations
- 5,600+ clients; 700,000+ users
Frequently asked questions
Hiring in Vietnam through an EOR, in short.
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How much does an employer pay on top of salary in Vietnam?
Employer contributions in Vietnam come to 21.5% + 2% union fee; the largest mandatory line is Social + health + unemployment. With the other statutory benefits and a typical EOR fee, budget ~28–36% on top of gross salary.
What does an EOR charge per employee in Vietnam?
Published EOR fees in Vietnam run $250–400/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Vietnam pay in tax and contributions?
Income tax is 5–35% and employee social contributions are 10.50% (8% social insurance), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Vietnam?
5-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Vietnam?
Multiplier, Deel and BIPO hold the first three places in our ranking for hiring in Vietnam. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Vietnam.
Find a better EOR — without risk
Compare EOR providers to gain insights on cost, coverage, and contract flexibility, ensuring compliance and payroll continuity.
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