Employer of Record (EoR)
in Vietnam.
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.
Employ your team in Vietnam — without being the employer on paper.
An Employer of Record (EoR) is a 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.
True EoR — no co-employment.
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 Consulting, with no co-employment ambiguity.
The right tool for the right stage.
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.
- You need to hire before your entity registration is complete
- You're testing the Vietnam market and want to limit upfront commitment
- You're relocating a key employee to Vietnam to explore opportunities
- You need a compliant, low-cost way to hire remote Vietnamese talent
- You want to retain staff after closing a local entity
- You need to invoice clients and generate revenue under your Vietnam company
- Your sector requires a specific business license that EoR cannot provide
- You are managing a large team (10+ employees) long-term
- You want a registered brand presence and local entity for commercial purposes
How does EoR compare to incorporating in Vietnam?
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 registrationEverything covered under Forra's EoR service.
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.
- Drafting of Vietnamese-law compliant employment contract
- Bilingual (Vietnamese/English) documentation
- Contract amendments and renewals
- Probation period management
- Monthly salary calculation (gross-to-net)
- Personal income tax (PIT) withholding and declaration
- Payslip generation and distribution
- Year-end PIT finalisation
- Registration for social, health & unemployment insurance
- Monthly SI/HI/UI contribution calculations
- Statutory filings with SHUI (Social Insurance Agency)
- Claim processing support for employees
- Employee onboarding and records management
- Leave tracking and benefit administration
- Labor Code compliance monitoring
- Offboarding and termination handling
From approval to first payslip — fully managed.
Once you confirm the hire, Forra runs the entire onboarding — proposal, contract, insurance and payroll. Here's what happens on which day.
Proposal & Agreement
Custom proposal covering service fee, salary structure, PIT and insurance. You sign our standard client agreement.
Employee Kickoff
We collect the employee's details directly — personal info, tax code, bank account and agreed benefits.
Contract Signed
Labour Code-compliant contract in the employee's name, with Forra as employer of record. Reviewed and signed.
Insurance Registered
Employee registered for social, health and unemployment insurance. Foreign nationals advised on applicable obligations.
First Payslip
We calculate net pay, PIT and insurance, issue the payslip and process the salary transfer. Monthly rhythm begins.
EoR is a starting point, not a ceiling.
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.
Employer of Record
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.
Company Registration
When 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.
Payroll Outsourcing
Once incorporated, hand ongoing payroll processing, PIT declarations, and insurance filings to Forra so your team can focus on operations rather than monthly admin.
Governance & Compliance
For long-term operations: accounting, tax filing, corporate compliance, and legal advisory — keeping your registered entity in good standing as your business grows.
What clients ask us about EoR.
Who is legally responsible for the employee under EoR?
Forra 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.
Can I hire both Vietnamese and foreign employees through EoR?
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.
How is the monthly fee structured?
We charge a fixed monthly service fee per employee. Each month you receive a single invoice that covers:
- The employee's gross salary as approved by you
- Employer-side social, health, and unemployment insurance contributions
- Forra's EoR service fee
All amounts are transparent and itemised.
What happens to my employees when I incorporate my own entity?
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.
Does the employee know they're employed by Forra, not my company?
Yes — full transparency is required by law. The employment contract is between the employee and Forra Consulting, 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.
What are the social insurance rates for employees in Vietnam?
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.
Can EoR be used as a long-term arrangement, or does it have to transition to an entity?
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.
Ready to make your first hire in Vietnam?
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.
Book a free consultation