First: determine whether you have a legal entity in Vietnam or not
This is the question that determines the entire direction. Have a legal entity → can recruit directly. No legal entity yet → need to use EOR service to legally hire personnel in Vietnam without having to establish a company.
If you already have a legal entity: what to do
- Post a job ad or ask a headhunter.
- Interview, finalize candidates, negotiate salary.
- Sign the labor contract in the correct form and type.
- Register for social insurance - health insurance - unemployment insurance in the first month.
- Build payroll and timekeeping processes internally or outsource.
If you do not have a legal entity: what to do
- Find a reputable EOR unit with experience with foreign businesses.
- Provide position information and expected salary.
- Receive consultation and transparent quotes.
- Sign an EOR service contract.
- The EOR unit signs labor contracts, pays insurance, and manages taxes on your behalf.
Common mistakes when starting out
- Using "service contracts" or "collaborator contracts" to avoid paying social insurance, leading to the risk of arrears when the relationship is essentially labor.
- Not finding out the market salary before posting a job can cause slow recruitment or uncompetitive salaries.
- Skip procedures for foreign workers (work permit, temporary residence card).
When should you seek professional advice?
If this is the first time your business hires personnel in Vietnam, you should spend 30 minutes for a free consultation with an experienced unit to avoid costly mistakes in the future — especially if your business does not yet have a legal entity or human resources department in Vietnam.
Do you need to know Vietnamese to hire personnel in Vietnam? Not required for the hirer himself, but the labor contract and official documents must have a Vietnamese version according to regulations; Service units often support bilingual versions.
Do small businesses with less than 5 people need to follow this process? Yes. Being small does not exempt you from legal obligations — labor contracts and social insurance are still required even if you only hire 1 person.