How to Hire Employees in Vietnam: Full Legal Guide (2025)

Jun 21, 2025

Blog, Recruitment, Staffing

How to Hire Employees in Vietnam: Full Legal Guide (2025)

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How to Hire Employees in Vietnam: Full Legal Guide (2025)

Vietnam’s dynamic economy and young, skilled workforce make it an attractive destination for businesses looking to expand or establish operations in Southeast Asia. However, hiring employees in Vietnam requires understanding local labor laws, employment contracts, and compliance requirements. This guide will walk you through the essential steps to hire employees in Vietnam smoothly and legally.

Understanding Vietnam’s Labor Market

Vietnam has a labor force exceeding 52 million people, with a high participation rate and a large population under 35 years old. Many young professionals are eager to pursue international career opportunities, especially in fast-growing sectors like IT, manufacturing, logistics, and renewable energy. This makes Vietnam a rich talent pool for global employers looking to hire employees in Vietnam.

Step 1: Register Your Local Entity (If Hiring Directly)

To hire employees directly, foreign companies typically need to establish a legal entity in Vietnam, such as a Limited Liability Company (LLC) or Joint-Stock Company (JSC). This involves:

Applying for an Investment Registration Certificate (IRC)
Obtaining an Enterprise Registration Certificate (ERC)
Registering with local tax and labor authorities

Entity registration can take several weeks and requires compliance with local regulations.

Step 2: Define Job Roles and Source Talent

Clearly define the roles you want to hire for and create localized, clear job descriptions. Use popular Vietnamese job platforms or partner with local recruitment agencies to source candidates.

Step 3: Screen and Interview Candidates

Establish a systematic process to review applications and shortlist candidates based on qualifications and experience. Conduct interviews to assess communication skills, cultural fit, and technical expertise. Always comply with Provisions on Employment and Occupational Discrimination in Vietnamese Law when you hire employees in Vietnam.

Step 4: Employment Contracts and Compliance

Vietnam’s Labor Code requires written employment contracts, which must be in Vietnamese or bilingual (Vietnamese prevailing). Contracts fall into two categories:

Indefinite-term contracts: No fixed end date.
Definite-term contracts: Fixed duration up to 36 months, renewable once.

Contracts must include details such as job description, salary, working hours, benefits, social insurance, and termination conditions. This step is crucial when you hire employees to ensure legal compliance in Vietnam.

Step 5: Hiring Foreign Employees (If Applicable)

Hiring foreign nationals requires additional steps:

Submit a written request to the Ministry of Home Affairs 30 days before employment.
Publicly announce the vacancy to Vietnamese job seekers.
Apply for a work permit on behalf of the foreign employee.
Ensure visa and work permit compliance.

Step 6: Payroll, Taxes, and Social Insurance

Employers must register and contribute to social insurance, health insurance, and unemployment insurance for employees. Moreover, payroll must comply with Vietnamese tax regulations, including personal income tax withholding.

Suggested Alternative: Use Employer of Record (EOR)

Setting up a local entity is complex and time-consuming, which can affect negatively to your business growth in the long term. Therefore, it is suggested that you should partner with an Employer of Record (EOR) or a local staffing agency. An EOR acts as the legal employer, handling compliance, payroll, and HR administration, allowing you to hire employees in Vietnam quickly and compliantly without establishing a local company.

See more about How NetViet’s Employer of Record Service works.

Why Choose NetViet to Hire Employees in Vietnam?

NetViet is a trusted local staffing agency and Employer of Record with over 25 years of experience connecting global employers to Vietnam’s rich talent pool. We hold all necessary legal certifications to ensure your hiring process complies fully with Vietnamese labor laws. Our full-service HR solutions cover recruitment, payroll, social insurance, tax compliance, and labor contract management, so you can focus on growing your business.

Ready to hire employees in Vietnam hassle-free? Contact NetViet today for expert advice and tailored staffing solutions!

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