Why do foreign technology companies choose to hire engineers in Vietnam?
Vietnam has an abundant source of software engineers, competitive costs compared to many other markets in the region, and a convenient time zone for companies in Asia-Pacific. However, many technology companies do not want to invest in setting up an office right after testing the team.
How does EOR solve this problem?
Instead of setting up a subsidiary or branch, technology companies can hire software engineers in Vietnam through EOR: the EOR provider signs labor contracts, handles salaries, social insurance, and personal income tax, while engineers still work directly with the technical team abroad through remote collaboration tools.
Deployment process
- The company itself interviews and selects suitable engineer candidates (or asks EOR provider to help introduce them).
- Agree salary, benefits (usually includes work equipment, additional health insurance).
- Signing the EOR service contract, the engineer will sign a labor contract and start working in 1-2 weeks.
- Manage daily work through tools like Jira, Slack, GitHub — no different from internal HR.
Notes on intellectual property and confidentiality
The EOR contract should have clear provisions that all intellectual products (code, technical documents) created by the engineer during the work process belong to the company hiring the service, along with a strict confidentiality commitment (NDA) - this is a point the technology company needs to clearly request when signing a service contract.
Reference costs
The cost of hiring software engineers in Vietnam through EOR includes salary negotiated according to the market (fluctuating according to level and technology expertise) plus EOR service fees calculated per person/month, which is still significantly lower than operating a legal entity yourself for a small team.
Is an engineer working through EOR considered an official employee of a foreign company? Legally, an engineer is an employee of the EOR provider in Vietnam, but in reality, he reports directly and is attached to the company's team hiring the service as an official employee.
Is it possible to hire software engineers on short-term contracts (3-6 months) through EOR? Yes, subject to agreement; However, you should consider a contract that defines a suitable term and has a clear extension plan if the project lasts longer than expected.