Hire staff in Vietnam without setting up a legal entity first. Forra becomes the legal employer on your behalf — handling contracts, payroll, social insurance, and full Labor Code compliance while you direct the work.
An Employer of Record (EoR) is a licensed local company that employs staff on behalf of a foreign business. The EoR is the legal employer — it signs the employment contracts, registers the employee for social insurance, handles payroll and tax withholding, and bears all statutory employer obligations under Vietnamese law. The client company retains full day-to-day direction over the employee's work.
For businesses that want to hire in Vietnam without first completing the 6–8 week company registration process — or that want to test the market before committing to a full entity — EoR is the fastest, lowest-risk entry point available.
EoR vs. PEO: The terms are often used interchangeably. Technically, a Professional Employer Organisation (PEO) co-employs staff under a shared arrangement; an EoR is the sole legal employer. Forra operates as a true EoR — your employees are contracted directly to Forra Vietnam, with no co-employment ambiguity.
EoR is not a permanent solution for every business — but it's the right one in a number of common scenarios. The key question is whether you need to generate revenue in Vietnam under your own entity, or whether your primary need is to have people working on the ground.
Both routes allow you to have people working legally in Vietnam. The key differences come down to speed, cost, commercial flexibility, and long-term intent.
| Factor | EoR with Forra | Own Vietnam Entity (LLC/JSC) |
|---|---|---|
| Time to first hire | ✓ As fast as 48 hours | 6–8 weeks after entity is registered |
| Entity registration required | ✓ No — Forra is the employer | Yes — IRC + ERC process required |
| Setup cost | ✓ Low — monthly service fee only | Higher — government fees + legal costs |
| Charter capital requirement | ✓ None | Required within 90 days of ERC |
| Revenue generation in Vietnam | ✗ Not under EoR structure | ✓ Full commercial operations possible |
| Compliance responsibility | ✓ Forra manages all obligations | Your entity's responsibility |
| Flexibility to exit | ✓ End contract as per Labor Code | Formal dissolution process required |
| Best for | Market testing, fast hiring, pre-entity phase | Established operations, revenue, long-term presence |
Forra provides both services. When you're ready to incorporate, we can transfer your EoR employees to your new entity seamlessly. Learn about company registration →
Our EoR service is all-inclusive. The monthly fee covers the full scope of employment obligations — there are no add-on charges for standard HR and payroll tasks.
Once you confirm the hire and the terms, our onboarding process is fast and fully managed. Here's exactly what happens.
We send a custom EoR proposal covering our monthly service fee, the employee's gross salary structure, estimated PIT, and social insurance costs. No work begins until you've confirmed everything in writing.
You sign Forra's standard client agreement, which sets out your responsibilities (providing accurate employment terms, approving payroll) and ours (legal employment, compliance, payroll processing).
We issue a first invoice covering the setup fee (if applicable) and the first month's payroll funding. This must be settled before the employment contract is signed with the employee.
We contact your employee directly to collect the information required for their employment contract: personal details, tax code (if existing), bank account, and any agreed benefits or allowances.
We draft a Vietnamese Labor Code-compliant contract in your employee's name, with Forra as the employer of record. The contract is shared with the employee for review and signature. You receive a copy.
We register the employee with the Social Insurance Agency (BHXH) for social, health, and unemployment insurance. For foreign nationals, we advise on applicable social insurance obligations based on their nationality and work permit status.
At the end of the first month, we calculate net pay, PIT, and insurance contributions, issue a payslip, and process the salary transfer. You receive a payroll report and an invoice for the month's costs.
Each month: payroll processing, statutory filings, payslip delivery, and a summary report. Throughout the engagement: contract amendments, leave management, regulatory updates, and termination support when needed.
Many companies begin in Vietnam through EoR and grow into a fully registered entity once they've validated the market. Forra supports every stage of that journey — and can transfer your EoR employees to your own entity without disruption when the time is right.
Hire your first employee in Vietnam within 48 hours. Forra is the legal employer — you direct the work, test the market, and keep your options open.
Where you are nowWhen you're ready to generate revenue under your own brand or scale your team, we register your LLC or JSC and transfer your EoR employees to your new entity.
Natural next stepOnce incorporated, hand ongoing payroll processing, PIT declarations, and insurance filings to Forra so your team can focus on operations rather than monthly admin.
When you incorporateFor long-term operations: accounting, tax filing, corporate compliance, and legal advisory — keeping your registered entity in good standing as your business grows.
Long-term operationsForra is the legal employer of record. That means Forra signs the employment contract, registers the employee for social insurance, withholds and files personal income tax, and bears all statutory employer obligations under Vietnam's Labor Code. Your company is the client — you direct the employee's day-to-day work and approve payroll, but the legal employment relationship is between the employee and Forra.
Yes. Forra's EoR service covers both Vietnamese nationals and foreign nationals. For foreign employees, additional requirements apply — specifically a valid work permit (or confirmed work permit exemption) before the employment contract can be signed. Forra can assist with the work permit application process as part of our Global Mobility services.
We charge a fixed monthly service fee per employee. Each month you receive a single invoice that covers:
All amounts are transparent and itemised. There are no setup fees for standard onboarding and no hidden charges for routine HR tasks such as contract amendments, payslip reissues, or leave tracking.
When you're ready to transfer employees from Forra's EoR to your own registered entity, we manage the transition end-to-end. This involves terminating the existing EoR employment contract (with the employee's consent and appropriate statutory payments if required), and issuing a new contract directly between the employee and your company. The employee's continuity of service, accrued leave, and benefit entitlements are preserved throughout. Forra can also provide payroll outsourcing services to your new entity if needed.
Yes — full transparency is required by law. The employment contract is between the employee and Forra Vietnam, and the employee is aware of this arrangement. In practice, employees typically understand the EoR structure and it does not affect day-to-day working relationships. Their payslip, insurance records, and tax contributions are all issued under Forra's entity, which is clearly disclosed from the outset.
Vietnam's mandatory insurance contributions are split between employer and employee. Current rates for Vietnamese nationals are:
For foreign nationals, social insurance obligations depend on whether the employee holds a work permit (or is exempted) and the bilateral agreements applicable to their nationality. Forra advises on the applicable rates for each employee as part of onboarding.
There is no legal time limit on using an EoR structure in Vietnam. Some companies use EoR indefinitely — particularly those that do not generate revenue in Vietnam directly, such as companies with a remote engineering or customer support team. However, if you plan to invoice Vietnamese clients, hold assets, or require specific business licenses, you will need a registered entity. EoR is not a substitute for a legal entity in those cases. We advise clients honestly on when it makes sense to transition — and when it doesn't.
Book a free 30-minute call with a Forra HR advisor. We'll confirm the right approach for your situation and give you a clear, fixed-fee quote — no commitment required.