Employer of record (EOR)

Yes, within Vietnam's statutory labor leasing (dispatch) framework under Articles 52–58 of the Labor Code 2019 and Chapter IV of Decree 145/2020. Vietnam does not have a standalone 'EOR' statute; from 01/07/2026 to 28/02/2027, labor leasing runs on a VND 2 billion deposit, notice of operations to the provincial Department of Home Affairs and quarterly reports, while new licences are not issued or renewed (Resolution 66.18/2026/NQ-CP). Placements are restricted to the 20 permitted occupational categories in Appendix II of Decree 145/2020 for temporary needs up to a maximum of 12 months per employee.

Onboarding is completed rapidly once the agreement is signed. This includes labor contract execution, Social Insurance registration, tax code setup, and bank account coordination.

You do. The EOR model separates legal employment (handled by ICLV) from operational management (handled by you). Your employees report to you for all work-related matters. We handle the legal, payroll, and compliance layer.

We manage the full transition: transferring labor contracts, Social Insurance books, and accumulated leave entitlements from ICLV to your newly incorporated company. This ensures continuous employment with no gap in benefits or compliance.

Under Decree 219/2025/ND-CP and the Labor Code 2019, the entity that directly uses a foreign worker must explain the foreign labor demand (Form 03) and sponsor the Work Permit. Using a pure EOR arrangement to sponsor a Work Permit and dispatch a foreign national to another organization carries high rejection and compliance risks because the named employer is not the direct user of labor. For expatriate hires, we advise incorporating a local entity or Representative Office to sponsor the Work Permit directly, or structuring a compliant technical/professional service delivery arrangement.

Vietnamese law does not cap the number of leased employees; the statutory limits under Decree 145/2020 are the 20 permitted occupational categories (Appendix II) and the maximum 12-month placement duration per employee. Once operations extend beyond 12 months, incorporating a local entity is the route to keep the team.

An Employer of Record (EOR) becomes the full legal employer: signing contracts, paying salaries, and bearing employment liability. A Professional Employer Organization (PEO) co-employs your staff alongside your own entity. In Vietnam, when you don't have a local entity, you need a full EOR arrangement. ICLV provides full EOR services, assuming complete legal employer responsibility.

EOR typically costs $500–800 per employee per month (covering payroll processing, SHUI management, and compliance). Setting up your own LLC/FDI entity costs $3,000–10,000+ upfront plus $1,500–3,000/month in ongoing compliance costs (accounting, tax filing, office lease).

Yes, for temporary support positions falling within the 20 permitted labor leasing categories under Appendix II of Decree 145/2020 (for up to 12 months per employee). Under this arrangement, the staff are employed by ICLV while reporting to you operationally.

We handle the full termination process in compliance with Vietnam's Labor Code 2019: termination only on the statutory grounds with the notice that ground requires, severance pay calculation, Social Insurance book closure, final salary and unused leave payout, and all required documentation. We ensure the process is legally compliant to avoid wrongful termination claims.