Vietnam EOR Explained for Singapore Companies (2026 Guide)

Singapore-headquartered companies expanding into Vietnam face a practical question: how do you hire local staff quickly without the cost and complexity of setting up a Vietnamese legal entity?

This guide explains how an employer of record (EOR) model works in Vietnam, what Singapore HR and Finance teams need to know about local regulations, and how to structure compliant, cost-effective employment for your Vietnam workforce in 2026.

If you are a Singapore-based HR or Finance leader managing ASEAN teams, the concept of EOR Vietnam is straightforward. An EOR provider holds the Vietnam labour contracts, processes payroll in VND, files social insurance and tax, and handles employment administration.

Your Singapore company directs work, sets budgets, and manages performance-exactly as you would with any other team member.

This arrangement allows you to hire talent-from one person to fifty or more-without incorporating a Vietnamese LLC or representative office, a process that typically takes months and requires additional capital.

EORs also expedite onboarding, often reducing time-to-hire from 36 days to around 10 days because the employment infrastructure is already in place.

The EOR operates as the local legal employer, registered with the Department of Planning and Investment (DPI) and the Department of Labour, Invalids and Social Affairs (DOLISA).

Singapore companies typically use a Vietnam EOR alongside their existing Singapore entity to coordinate remote workforce management across ASEAN and reduce administrative friction.

Employers maintain operational control over their employees while the EOR executes local employment mechanics.

The term "employer of record" is not explicitly named in Vietnam's labour code.

However, the underlying structure-a licensed local entity hiring staff who work under the direction of a foreign client-is legal when operated within Vietnam's employment regulations and labour outsourcing framework.

EOR services operate under local employment and outsourcing frameworks established by the Labour Code 2019 and Decree No. 145/2020/ND-CP.

A compliant Vietnam EOR structures the arrangement as follows: employees sign Vietnamese labour contracts with the EOR entity; a separate service agreement sits between the EOR and the Singapore parent.

The Vietnamese-language version of the contract holds legal primacy, though bilingual (Vietnamese and English) versions are standard for multinational companies.

Vietnamese authorities-MOLISA, DOLISA, tax offices, and the Social Insurance Agency-oversee compliance. EORs must comply with Vietnam's Labour Code 2019, handle social insurance registrations in accordance with local laws, and manage tax withholding in accordance with Vietnamese regulations.

Documented processes, accurate reporting, and compliant employment contracts are essential to avoid sanctions.

Typical compliance risks for cross-border arrangements include misclassification (using EOR beyond permitted durations or for unlicensed role types), incorrect insurance contributions, and the application of the wrong regional minimum wage.

EOR providers manage compliance with Vietnam's Labour Code 2019 to mitigate these risks. Singapore companies must also meet their own regulatory and transfer pricing requirements when funding payroll in Vietnam through an EOR.

From a Singapore decision-maker's perspective, the case for Vietnam hiring is commercially clear. Rising local wage costs in Singapore, limited supply of mid-level tech talent, and pressure to expand regional coverage across Asia Pacific are pushing more firms to look at Southeast Asia for execution capacity.

Vietnam's 2026 macro context supports this: GDP forecast around 6.0–6.5% growth, strong foreign investment inflows, and continued expansion of the technology and manufacturing sectors.

For foreign companies and investors, Vietnam represents a stable, growing economy with policy reforms aimed at attracting global talent.

Singapore firms most often hire Vietnam-based engineers, product teams, shared-service staff, and country managers to support regional operations.

The total employment cost for equivalent roles in Vietnam remains significantly lower than in Singapore-not because of low standards, but because of competitive labour costs combined with strong professional capability.

Vietnam's strategic location reinforces the case: Ho Chi Minh City and Hanoi are a 2–3 hour flight from Singapore, with favourable time-zone overlap for same-day communication.

This connectivity makes Vietnam a natural execution hub for Singapore HQs running operations across multiple countries.

Vietnam's talent pool runs deep in technology, manufacturing operations, finance, customer support, and back-office roles-all relevant to Singapore companies building regional teams.

The steady pipeline of graduates from top universities in Ho Chi Minh City, Hanoi, and Da Nang ensures a growing supply of capable professionals, with improving English skills in urban centres.

Common roles Singapore companies place via EOR include:

• Full-stack software engineers
• QA and test automation engineers
• Finance controllers and shared-services staff
• Country sales and operations managers
• Customer support and regional service teams

Hyer Talents, with 15+ years of hiring experience in Vietnam and local knowledge, helps Singapore employers assess cultural fit, language skills, and regional exposure to build teams with confidence.

Vietnam offers competitive labour costs compared with Singapore and other Asia-Pacific hubs, particularly for technology and operations roles, while maintaining professional standards. Mid-level engineers and managers in Ho Chi Minh City typically command salaries well above minimum wage-often four to fifteen times the statutory floor-depending on seniority and specialisation.

Total employer cost in Vietnam includes base salary, allowances, social insurance, health insurance, unemployment insurance, trade union fees (2% of the insurance salary base), and EOR service fees. An EOR clearly models the total cost of employment for Singapore finance teams, eliminating guesswork.

Hyer Talents focuses on value, reliability, and workforce quality. The emphasis is on building capable, long-term teams rather than short-term cost arbitrage.

Vietnam's geographic proximity to Singapore and major markets-China, Thailand, Malaysia-means same-day communication and manageable logistics.

Building a Vietnam team under EOR allows Singapore HQs to support clients and operations across ASEAN and broader Asia Pacific time zones efficiently.

Many Singapore companies design a "hub-and-spoke" model: Singapore as HQ and decision centre, Vietnam as an execution and delivery hub. This structure supports regional customer support hours, overlapping working schedules, and quick travel when needed.

Hiring through an EOR does not remove the need for Singapore HR and Finance to understand headline Vietnam employment regulations.

The core legal framework includes Vietnam's Labour Code (2019), the Social Insurance Law (2024), the Health Insurance Law, the Employment Law No. 74/2025/QH15, and key implementing decrees such as Decree 293/2025/ND-CP on minimum wages.

From 1 January 2026, Vietnam's four-region minimum wage levels were revised upward, affecting salary floors and social insurance bases across key industries and employment zones.

An EOR provider should monitor regulatory changes, inform Singapore stakeholders in advance, and adjust payroll and policies accordingly.

All employees in Vietnam must have a written labour contract. Vietnamese law requires written labour contracts in Vietnamese for every employee, with bilingual (Vietnamese/English) versions standard for multinational clients.

Contract types include fixed-term (up to 36 months) and indefinite, with strictly regulated transitions between them.

Probation periods are capped by law depending on role level and classification. Vietnam Labour Law favours the employee in termination cases, requiring strict adherence to notice periods and legal processes.

A Vietnam EOR drafts, issues, and stores employment contracts, but Singapore HR must ensure alignment with global policies on confidentiality, IP, and data protection.

Vietnam operates a four-region minimum wage system. From 1 January 2026, Region I (covering Ho Chi Minh City, Hanoi, Da Nang, and major industrial areas) increased to VND 5,310,000 per month-a roughly 7.2% increase. Region II is VND 4,730,000, Region III VND 4,140,000, and Region IV VND 3,700,000.

For context, Vietnam's minimum wage for 2025 ranged from VND 3.45 million to VND 4.96 million per month before the latest revision. These statutory minimums influence both salary floors and the lower bound of social insurance contribution bases.

An EOR ensures each employee's salary meets or exceeds the applicable regional minimum and monitors future government adjustments. Singapore finance teams should factor periodic minimum wage revisions into long-range cost models for Vietnam headcount.

Mandatory insurance contributions for Vietnam employees break down as follows:

Contributions are calculated on salary up to capped bases (20× the reference salary for social insurance and health insurance). As of 1 July 2026, this cap is approximately VND 50,600,000 per month. EORs handle social insurance contributions for employees in Vietnam and are responsible for registration, monthly filings, and payments to Vietnam Social Security.

Foreign employees with valid work permits are subject to social insurance and health insurance but are typically exempt from unemployment insurance contributions, bringing employer costs to approximately 20.5%. Vietnam's Social Insurance Law also reduces the pension eligibility period from 20 to 15 years of contributions.

Accurate benefits administration and filings are core to compliance management and a key value-add of a Vietnam EOR partner.

Vietnam's personal income tax rates range from 5% to 35% for tax residents under a progressive system. Non-residents pay a flat 20% on Vietnam-sourced employment income. The five progressive bands for residents run from 5% (on the first VND 10 million per month) up to 35% (above VND 100 million per month).

From 2026, updated personal deductions apply: VND 15,500,000 per month for the taxpayer and VND 6,200,000 per month per dependent.

EORs manage payroll and tax obligations for employees, including monthly PIT withholding, remittance to the tax authority (normally by the 20th of the following month), and annual finalisation by 31 March. EORs manage tax withholding in accordance with Vietnamese regulations. Singapore finance teams should understand net-versus-gross structures when making cross-border salary offers.

Standard working hours in Vietnam are up to 48 hours per week, with daily and weekly limits. The 2026 overtime cap stands at 40 hours per month and 200 hours per year, and may be extended to 300 hours in certain cases. Overtime premiums apply: higher pay on rest days and public holidays, plus a night-work surcharge.

Key leave entitlements include annual leave (12 days minimum), sick leave, maternity leave (6 months), paternity leave, and Vietnam's public holidays-including Tết (Lunar New Year) and National Day, which often affect Singapore–Vietnam joint operations.

Employers in Vietnam typically pay a 13th-month bonus, although it is not legally mandated. The EOR tracks balances, approvals, and statutory compliance, and provides reports to the Singapore HR team.

Foreign workers in Vietnam need work permits to be employed. Singapore or other foreign nationals working in Vietnam require work permits and Temporary Residence Cards, with the EOR acting as sponsor and registered employer.

Basic eligibility criteria include role justification (manager, expert, technician), minimum experience, relevant qualifications, valid health certificate, and legalised documents. Employers must submit a request at least 30 days before employment commences.

Singapore HQs should plan at least 2–3 months for end-to-end work permit processing, particularly for senior regional roles based in Ho Chi Minh City or Hanoi. The EOR prepares and submits applications, translations, and renewals on behalf of the Singapore parent.

EOR is not a full outsourcing of HR strategy. Singapore companies own culture, performance, and business decisions. The EOR executes local legal employment mechanics. Responsibilities split across three angles:

Legal employer obligations sit with the EOR: labour contracts, insurance registration, PIT withholding, and record-keeping. HR and payroll operations are managed by the EOR in coordination with Singapore. People leadership-KPIs, development, team culture-remains with the Singapore team.

The EOR takes legal exposure for employment relationships in Vietnam. The Singapore parent takes commercial and operational accountability. Hyer Talents provides clear communication and an employer-first process so Singapore HR, Finance, and line managers always know who is responsible for what.

Core legal-employer tasks include signing and maintaining compliant employment contracts, registering employees for social and health insurance, withholding and remitting personal income tax, and maintaining statutory employment records. EORs facilitate employee onboarding and termination processes in accordance with local labour laws.

The EOR handles inspections, responds to queries from DOLISA, tax authorities, and social insurance agencies, and manages statutory processes for probation, confirmation, contract renewal, disciplinary procedures, and lawful termination. Hyer Talents uses bilingual documentation and local legal counsel where necessary to protect both employer and employee interests.

The EOR runs monthly payroll in VND, prepares payslips, applies overtime and allowances, and ensures salary payments reach employees' bank accounts on time. EORs streamline payroll across countries, making payroll processing predictable for Singapore finance teams.

Benefits administration covers social and health insurance, unemployment insurance contributions, and any additional employer-funded benefits agreed with Singapore HQ, such as private medical plans or housing allowances.

HR support functions include onboarding documentation, policy acknowledgement, leave tracking, and statutory reporting. EORs handle payroll, taxes, and social insurance compliance in Vietnam within this scope.

Hyer Talents coordinates closely with Singapore HR and Finance calendars-quarter-end, year-end-to align payroll management and reporting cycles.

Singapore managers remain responsible for setting KPIs, workloads, performance reviews, and employees' professional development in Vietnam. Decisions on organisation design, compensation philosophy, bonus pools, and workforce planning originate from the Singapore leadership team.

Treat EOR-hired staff as integral members of your global team, with aligned policies on ethics, data security, and client engagement. Hyer Talents' employer-first process is designed to support Singapore HQ's long-term workforce strategy, not just short-term payroll processing.

EOR and entity setup are not forever choices. Many Singapore companies start with EOR and then incorporate a local legal entity once revenue, headcount, or regulatory requirements justify it. EOR services save over $40,000 in entity setup costs in most cases and significantly reduce the operational complexity of market entry.

EOR is particularly suitable for 1–30 headcount, market-testing, or project-based teams, and for Singapore firms needing to move within the current or next quarter. A Vietnamese LLC or subsidiary is typically more appropriate when the business needs local invoicing, large factory operations, or direct import/export licences.

Concrete examples include:

• A Singapore SaaS company building a 10-person engineering pod in Ho Chi Minh City
• A financial services firm running a regional KYC and operations team from Vietnam
• A logistics firm testing a local market commercial presence before committing to business expansion infrastructure

EOR pricing in Vietnam typically ranges from $350 to $599 per employee per month. For reference, global EOR platforms such as Gloroots charge $350 to $500 per employee per month, Remote and Deel charge $599 per employee per month, and AYP Group starts pricing from $450 per employee per month. EOR is also useful where Singapore HQ wants to keep the Vietnam balance sheet light and avoid additional statutory audits and corporate filings.

Hyer Talents can support transitions from EOR to employment with a local entity when the Singapore parent decides to incorporate.

Indicators that a local entity may be more appropriate include consistent local revenue in VND, the requirement to issue VAT invoices, larger manufacturing or warehousing operations, or participation in government tenders.

Over certain headcount and revenue thresholds, the per-employee EOR fee may become less efficient than running a local entity, despite the added governance burden.

Some Singapore groups run a hybrid model: a Vietnam entity for core staff plus EOR arrangements for project-based or remote employees in other provinces.

Hyer Talents serves as an ongoing workforce partner across both EOR and direct-hire models-covering recruitment, EOR support, payroll coordination, HR support, and workforce management.

Hyer Talents is a boutique Vietnam workforce and EOR partner with 15+ years of in-country hiring and workforce experience serving international employers, including Singapore HQs.

Hyer Talents supports employment, payroll, and workforce management in Vietnam, designed around international standards but implemented with local discipline.

Singapore clients value clear communication, responsive account management, and commercially sharp guidance on workforce scenarios and cost structures.

Service pillars include recruitment, employer of record (EOR), payroll coordination, HR advisory, and ongoing workforce management.

Hyer Talents' Vietnam-based execution teams operate in major cities, with English-fluent client service built around Singaporean and regional expectations. The team adheres to international HR and data-handling standards while staying tightly aligned with Vietnamese labour laws, including the Labour Code 2019, and the 2026 regulatory updates.

Singapore clients receive clear documentation, predictable timelines, and regular updates on legal or policy changes affecting their workforce in Vietnam. The focus is on lowering hiring and setup friction while maintaining a premium, employer-first service approach.

Hyer Talents conducts executive-search-quality recruitment for key roles and then places successful candidates under EOR where needed.

Practical workforce support includes drafting compliant employment contracts, onboarding, payroll coordination, benefits administration, and HR support on day-to-day contract management matters.

Reporting and insights useful to Singapore HR and Finance-headcount, cost breakdown, leave data, upcoming statutory obligations-are provided as standard.

The goal is for Singapore leaders to build their Vietnam team with confidence while Hyer Talents manages the complexity of local employment laws and relevant regulations.

Hyer Talents' approach to compliance management includes proactive review of law changes, periodic audits of payroll and insurance filings, and prompt issue escalation to Singapore stakeholders.

Common compliance risks for Singapore firms-such as misaligned global policies, misinterpreting Vietnam notice periods, or underestimating insurance bases-are addressed through structured processes and local knowledge.

EORs manage compliance with Vietnam's complex labour laws, using the Labour Code 2019 as a baseline.

Hyer Talents is positioned as a long-term partner that grows with the client's Vietnam strategy, from first hires under EOR to potential mixed models with a future local entity. EORs reduce hiring costs compared to establishing a local entity and help businesses navigate regulatory compliance with confidence.

If you are planning to hire in Vietnam-whether your first hire or your fiftieth-reach out to discuss headcount plans, projected timelines, and preferred employment structures.

Building a track record of successful international employment in Vietnam starts with practical workforce support and the right partner on the ground.

The following questions address issues commonly raised by Singapore-based leaders that are not fully covered in the main sections above.