12 Things international companies should check before hiring in Vietnam

What appears straightforward at first — employment contracts, payroll, probation, or hiring foreign employees — can quickly create operational and compliance risks if not structured correctly.

Before building a team in Vietnam, here are 12 important areas companies should review.

A. Employment & Compliance

1. Need entity or EOR first

Not every company entering Vietnam needs a local entity immediately. For many early-stage market entry setups, an Employer of Record (EOR) structure may reduce cost and compliance risk.

2. Labor contract structure and mandatory clauses

Vietnamese labor contracts contain mandatory provisions under labor law. Improper contracts can create disputes or compliance risk later.

3. Probation period limitations

Vietnam labor law imposes probation limits depending on role type and seniority level.

4. Termination and severance obligations

Termination procedures in Vietnam can be more regulated than many foreign employers expect.

B. Payroll & Employment costs

5. Social insurance obligations

Employers must account for mandatory social, health, and unemployment insurance contributions.

6. Personal Income Tax responsibilities

PIT declaration and withholding responsibilities can create administrative burdens if processes are not set up correctly.

7. Payroll setup and local banking

Payroll currency, salary payment timing, and banking setup must be configured to meet local requirements.

8. Trade union contributions

Certain labor-related contributions may still apply even without an internal union structure.

C. Foreign hiring & Protection

9. Work permits and visa eligibility

Foreign employees may require work permits depending on role scope and legal structure.

10. Background screening limitations

Background checks in Vietnam must align with local privacy and labor regulations.

11. Non-compete and IP enforceability

Non-compete and intellectual property clauses should be carefully drafted to improve enforceability.

12. Employee data privacy compliance

Employee records and HR systems should comply with Vietnam’s evolving data privacy framework.

Hiring in Vietnam is not only about finding talent.

It is about building a compliant, scalable, and operationally sustainable employment structure from the beginning.

Companies that succeed long-term in Vietnam usually combine:

• Local market understanding,

• Compliant HR structures,

• Operational support,

• Realistic expansion planning.

Your company is preparing to hire in Vietnam — we can help.

Jade Halo Bridge supports international companies with recruitment, HR operations, EOR support, and market-entry assistance in Vietnam.

Talk to us