Building Distributed Teams in Vietnam Using an Employer of Record Model

Vietnam is one of the top countries that can be considered to build a distributed team. It is definitely a country for businesses looking for top-notch personnel in the fields of technology, manufacturing, or any digital service.

Employer of Record Vietnam could be the easy method of choice for international companies that seek to capitalize on what Vietnam has to offer without having to navigate the paperwork and documentation of actually becoming a Vietnam-based company.

Dive through this guide to understand what is needed to set up a distributed team in Vietnam with the EOR model.

Key Takeaways:

Vietnam offers a high density of tech talent and remains highly cost-competitive compared to Western and regional markets.

This Guest Post highlights how teams could be built in Vietnam using an EOR model.

• Seamless Market Entry Utilizing an EOR
• EOR providers manage regulatory compliance
• Cultural Expectations
• Leading platforms like Multiplier’s Expertise for Global hiring

The Strategic Shift: Why Vietnam?

Vietnam’s appeal for distributed teams is rooted in several key factors:

Talent Density: The nation has more than 50,000 IT students graduating every year, which makes it a hub for software development and engineering.

Cost Efficiency: Although pay is rising, relative professional and living costs are highly competitive with Western markets and other cities such as Singapore.

Stability and Growth: A steady GDP growth rate and an engaged government approach towards digitalization have ensured a very stable environment to invest.

Understanding the EOR Model in Vietnam

Employer of Record Vietnam is a third-party service that allows hiring employees. It serves as the legal employer to hire remote teams for your Vietnam business from all around the globe. This implies that employers still have control over the employee’s day-to-day work, working, and performance.

EOR provides:

Legal Employment: signer of the mandatory written labor contracts.

Payroll & Taxes: Calculation and withholding of Personal Income Tax (PIT).

Statutory Benefits: Managing Social, Health, and Unemployment Insurance (SHUI).

Compliance: Assisting in compliance with the latest labor law changes and Trade Union laws.

Navigating Vietnam’s Labor Law Landscape

To build a successful distributed team, one must understand the specific legalities of the Vietnamese workplace.

1. Statutory Contributions (SHUI)

Social security is a significant part of the employment cost in Vietnam. As of 2026, the contribution rates are generally structured as follows:

• Employee Contribution: ~10.5% (Deducted from gross salary).
• Trade Union Fee: Employers must contribute an additional 2% of the total salary fund to the Trade Union, regardless of whether a local union exists at the company.

2. The 13th-Month Bonus

While not legally mandated by the Labor Code, the 13th-month salary (often paid during the Tet/Lunar New Year) is a deeply ingrained cultural expectation. For distributed teams, failing to provide this bonus can lead to high turnover, as it is considered a standard component of a competitive compensation package.

Top EOR Provider Companies Across The Globe

1. Multiplier

Multiplier is widely recognized as a leader for distributed teams in Vietnam due to its “automation-first” approach and deep regional expertise. The platform excels at making complex Southeast Asian labor laws accessible to global managers. Employer of Record Vietnam, Multiplier manages everything from bilingual employment contracts to the mandatory 2% Trade Union fee and Social, Health, and Unemployment Insurance (SHUI) contributions.

Key Features:

• Instant Compliant Contracts: Generate legally vetted, bilingual contracts in minutes that adhere to the Vietnam Labor Code 2019.
• Local Benefits Management: Standardizes statutory benefits while offering a curated marketplace for private insurance and “Tet” (Lunar New Year) bonus administration.
• Centralized Global Payroll: Pay your entire Vietnamese team in VND while your invoice remains in your preferred currency (USD, EUR, etc.), with guaranteed on-time tax filings.
• Inventory & Equipment: A unique feature allowing companies to provision laptops and IT hardware directly to remote employees in Vietnam through the dashboard.

2. Deel

Deel is a powerhouse in the global EOR space, known for its high-speed onboarding and massive infrastructure. In Vietnam, Deel operates through its own legal entity, which provides an extra layer of security as there are no third-party “partner” providers involved. This direct ownership ensures faster resolution of labor disputes and tighter control over the employee experience.

Key Features:

• Self-Service Onboarding: Employees can upload their own Tax IDs and Social Insurance books through a streamlined, mobile-friendly interface.
• Deel Card & Advance: Allows Vietnamese contractors (if managed via the platform) to access earnings faster through a dedicated debit card.
• Visa Sponsorship: Robust support for obtaining Work Permits and Temporary Residence Cards (TRC) for foreign expats working in Vietnam.

3. Remote

Remote differentiates itself with a “flat-fee” pricing model and a heavy emphasis on intellectual property (IP) protection. For tech companies hiring software developers in Vietnam, Remote’s “IP Guard” ensures that the parent company legally owns all code and inventions created by the distributed team under both local and international law.

Key Features:

• Remote IP Guard: Provides the strongest legal framework in the industry for protecting company patents and trade secrets across borders.
• Localized Benefits Packages: Offers “best-in-class” private health insurance tiers that help international companies compete with local Vietnamese tech giants.
• Transparent Pricing: No hidden percentages or “setup fees,” which is ideal for startups with strict budget constraints.

4. Papaya Global

Papaya Global is the preferred choice for large enterprises that require a high degree of “payroll orchestration.” Rather than just being an EOR, Papaya provides a comprehensive platform that can integrate with existing ERPs (like NetSuite or SAP).

Key Features:

• Global Payroll Orchestration: Consolidates data from various sources into a single view, providing real-time analytics on “total cost of employment” in Vietnam.
• Equity Management: One of the few providers capable of managing complex cross-border stock options and RSU grants for Vietnamese employees.
• Bank-Level Security: High-tier data encryption and compliance with Decree 13 (Vietnam’s Personal Data Protection Regulation).

5. G-P (Globalization Partners)

G-P is a pioneer of the EOR industry and is often chosen for its “AI-driven” compliance engine. Their platform, G-P Meridian, uses artificial intelligence to help managers navigate the “Globalpedia”, a massive database of local labor laws.

Key Features:

• G-P Gia (AI Agent): An AI-powered HR assistant that provides instant, expert-vetted answers to specific Vietnam labor law queries.
• Meridian Recruit: An integrated recruitment tool that helps companies find and vet Vietnamese talent before moving them into the EOR workflow.
• Customized Reporting: Generates deep-dive reports on workforce spending, which is vital for CFOs managing distributed team budgets.
• Scalability: Their massive global infrastructure makes it easy to move an employee from an EOR model to your own local entity if you decide to incorporate in Vietnam later.

Conclusion

With the help of Employer of Record in Vietnam services, companies can easily avoid the high costs and challenges of entity establishment to concentrate on what is most important: integrating the best talent in Vietnam into their existing setup.

When Multiplier is involved as the right Employer of Record Vietnam partner, the transition from ‘local hire’ to ‘high-performing global team member’ can be completely seamless, compliant, and scalable.

FAQs

1. Is it possible to hire foreign nationals using a Multiplier’s Employer of Record Vietnam?

Yes, Multiplier allows hiring foreign employees in Vietnam with the help of EOR, following all the rules. This ensures your foreign staff are fully compliant with the Ministry of Labor, Invalids and Social Affairs (MOLISA) regulations without you needing a local entity.

2. What is the statutory notice period in Vietnam?

According to the Labor Code, the notice period usually consists of 45 days for indefinite contracts, and 30 days for definite ones that have a term between 12 and 36 months.

3. Is the 13th-month bonus compulsory?

Although not legally required under the Labor Code, it is a market norm and necessary to retain talent during the Tet holiday. In Vietnam, the 13th-month salary (or Tet bonus) is expected by employees to cover expenses for the Lunar New Year. Failing to provide this can significantly impact talent retention and morale.

4. How long does it take to onboard an employee using an Employer of Record Vietnam?

Using Multiplier’s Employer of Record Vietnam, onboarding of an employee can be done within 48 hours, if all the necessary documents are provided. For foreign nationals, the timeline might be longer (typically 8–12 weeks) due to the administrative requirements of work permit processing.

5. Who pays the Personal Income Tax?

The Multiplier EOR is legally liable under law to deduct PIT from the employee’s salary and pay it to the Vietnam Taxation every month. At the end of the year, the EOR also assists with the Annual PIT Finalization for employees who have authorized them to do so.