Vietnam has become one of the top destinations for remote hiring in Asia, thanks to its strong talent pool, competitive costs, and growing tech and professional workforce.
However, many foreign companies make a critical mistake: they hire remotely without understanding Vietnam’s employment and compliance rules.
This guide explains how to hire remote employees in Vietnam legally—without setting up a local entity, the available hiring models, risks to avoid, and how companies scale from remote hiring to full operations.
Can Foreign Companies Hire Remote Employees in Vietnam?
Yes—but not in every way you might expect.
Vietnam does not allow:
- Direct employment of Vietnamese staff by a foreign company without a legal presence
- Informal “contractor” arrangements that function like employment
However, foreign companies can legally hire remote employees in Vietnam using specific structures that comply with local labor, tax, and payroll laws.
The 3 Legal Ways to Hire Remote Employees in Vietnam
1️⃣ Employer of Record (EOR) – Most Common & Safest
An Employer of Record (EOR) hires employees on your behalf through a licensed Vietnam entity.
How it works
- The EOR is the legal employer in Vietnam
- Your company manages:
- Daily work
- Performance
- Reporting
- The EOR handles:
- Employment contracts
- Payroll & payslips
- Personal income tax (PIT)
- Social insurance
- Labor law compliance
📌 This is the fastest and lowest-risk way to hire remotely in Vietnam.
2️⃣ Independent Contractors (High Risk – Use with Caution)
Some companies attempt to hire Vietnamese workers as independent contractors.
This is risky because:
- Vietnam has strict worker classification rules
- Contractors who work like employees can be reclassified
- Misclassification can trigger:
- Back taxes
- Social insurance arrears
- Penalties and labor disputes
📌 Contractors are suitable only for short-term, project-based work, not ongoing roles.
3️⃣ Local Entity Setup (Not Required for Remote Hiring)
Setting up a Vietnam entity allows direct hiring—but:
- Takes time
- Requires ongoing compliance
- Is unnecessary for early-stage or remote teams
📌 Most companies hire remotely first, then set up an entity after demand is proven.
Why EOR Is the Preferred Model for Remote Hiring
EOR is widely used by:
- Tech startups
- SaaS companies
- Regional HQ teams
- Professional services firms
- SMBs entering Vietnam gradually
Key Advantages
✔ Hire in weeks, not months
✔ No entity setup
✔ Full labor law compliance
✔ Predictable monthly cost
✔ Easy exit or scale-up
📌 EOR lets you test talent and market fit without long-term commitment.
What Roles Can Be Hired Remotely in Vietnam?
Common remote roles include:
- Software engineers & developers
- QA & product teams
- Customer support & operations
- Finance & accounting staff
- Sales development representatives (SDRs)
- Marketing & design roles
Vietnam is especially strong in:
- Engineering & tech
- Operations & support
- Back-office functions
Cost of Hiring Remote Employees in Vietnam (Overview)
Employer cost typically includes:
- Gross salary
- Employer social insurance contributions
- EOR service fee (if applicable)
While Vietnam is not the cheapest market in Asia, it offers:
- Stronger retention than some outsourcing hubs
- Better time-zone alignment for APAC
- Good English proficiency in urban centers
📌 Detailed cost breakdown is covered in a separate article (internal link).
Employment Contracts for Remote Employees
Remote employees hired via EOR:
- Receive Vietnam-compliant labor contracts
- Are protected under Vietnam labor law
- Have statutory benefits and protections
Contracts must specify:
- Job role & responsibilities
- Salary and benefits
- Working hours
- Termination terms
📌 Verbal or foreign-law contracts are not valid for Vietnam employment.
Payroll, Tax & Social Insurance Obligations
For remote employees in Vietnam:
- Personal Income Tax (PIT) must be withheld
- Social, health, and unemployment insurance apply
- Payroll must be reported monthly
Using EOR:
- All payroll and tax compliance is handled locally
- You avoid direct regulatory exposure
📌 Payroll non-compliance is one of the fastest ways to trigger penalties.
Common Mistakes Companies Make When Hiring Remotely
❌ Paying staff “net salary” without tax handling
❌ Treating full-time staff as contractors
❌ Using overseas employment contracts
❌ Ignoring social insurance
❌ Hiring before understanding termination rules
❌ Assuming “remote” means “outside local law”
📌 Vietnam applies local law based on worker location, not company location.
When Should You Move Beyond Remote Hiring?
Remote hiring is ideal when:
✔ You are testing the market
✔ You need a small local team
✔ You want flexibility
Consider entity setup when:
- Revenue is recurring
- Team size is growing
- Local invoicing is required
- You need stronger market presence
📌 Many companies operate via EOR for 12–24 months before setting up an entity.
A Smart Remote Hiring Path (Recommended)
1️⃣ Validate roles & talent remotely
2️⃣ Hire via EOR
3️⃣ Build a small, high-performing team
4️⃣ Confirm long-term need
5️⃣ Transition to entity (if needed)
This approach minimizes risk and sunk cost.
How BusinessPartner.vn Helps You Hire Remote Employees in Vietnam
BusinessPartner.vn supports foreign companies with:
- Employer of Record (EOR) services
- Remote hiring strategy & role planning
- Employment contracts & onboarding
- Payroll, tax & social insurance compliance
- Contractor risk assessment
- Transition from EOR to local entity
- Ongoing HR & compliance support
👉 Talk to our Vietnam EOR & hiring advisors to hire remote employees quickly and compliantly.
Recommended Reading
Employer of Record (EOR) in Vietnam: Complete Guide
How to Hire Employees in Vietnam Without an Entity
Cost of Hiring Employees in Vietnam
Vietnam vs Philippines for Remote Hiring
