PEO Services in Vietnam

A co-employment model for companies that want to share the employer relationship in Vietnam rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in Vietnam than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Vietnam

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Vietnamese staff: you keep direction and day-to-day control, while the partner administers payroll, income tax, social insurance, the agreed contractual allowances (such as the Tet bonus where agreed), and HR compliance under a properly structured arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, income tax, social insurance, the agreed contractual allowances, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Vietnam, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in Vietnam, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in Vietnam, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Vietnamese partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Vietnamese employment terms under the Labour Code 2019, with the administrative employer functions handled by the partner from day one.

04 — Payroll & compliance

Income tax, social insurance, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in Vietnam costs

As with EOR, two parts: the statutory cost of employment — predictable once you factor in Vietnam’s capped, multi-fund social insurance and any agreed contractual allowances — and the partner service fee.

Employer contributions

For Vietnamese employees the employer contributes approximately 21.5% of the capped contribution base — 17.5% social insurance, 3% health insurance and 1% unemployment insurance — with 10.5% withheld from the employee (Social Insurance Law 41/2024); the trade-union fund contribution is separate and additional where applicable. For foreign employees, the compulsory social-insurance component is around 17% employer and 8% employee. A 13th-month or Tet bonus is customary where agreed: contractual, not statutory. Fully costed before you commit.

Minimum wage (2026)

Regional: from VND 3.70 million to VND 5.31 million a month across Regions IV to I from 1 January 2026 (Decree 293/2025). The applicable region follows the place of work.

Income tax (employee)

Five progressive bands from 5% to 35% on monthly taxable income under the 2026 regime, withheld at source as part of the shared-employer administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, Vietnam’s capped multi-fund social insurance and the agreed contractual allowances still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Vietnamese PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Vietnam’s social insurance runs across several funds on capped bases, with separate rates for foreign employees — not one flat line — which makes it easy to misquote a co-employment fee up front. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly Vietnamese compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Vietnamese LLC (WFOE), as your Vietnam presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a Vietnamese PEO shoulders

Whichever model you use, the underlying Vietnamese rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Vietnamese employment contracts and working-time rules: the statutory 8-hours-a-day, 48-hours-a-week standard, overtime only by agreement and capped monthly and annually, and 12 to 16 working days’ statutory annual leave by role. Income tax and social insurance withheld and filed correctly. Statutory benefits, notice and severance applied properly.

Statutory protections & exits

Statutory notice, probation, and the protections Vietnamese employees carry under the Labour Code 2019 — dismissal only on statutory grounds, and special protection during pregnancy and maternity leave — administered correctly under the co-employment arrangement.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Vietnamese employment contract under the Labour Code 2019, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax and social insurance calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, and statutory notice.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in Vietnam.

What is the difference between PEO and EOR in Vietnam?

With an EOR, the partner is the sole legal employer of your Vietnamese staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Vietnam, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Vietnamese entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own Vietnamese entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions — payroll, income tax, social insurance, the agreed contractual allowances, statutory benefits, and statutory filings — are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Vietnamese law is met.

Predictable, and flatter than most markets: employer contributions of roughly 21.5% of the capped contribution base for Vietnamese employees (17.5% social, 3% health and 1% unemployment insurance; the trade-union fund is a separate addition where applicable), and for foreign employees a compulsory social-insurance component of around 17% (Law 41/2024), plus any agreed contractual allowances such as a 13th-month/Tet bonus. Because the base is capped, the marginal cost of senior salaries falls rather than rises. We give you the all-in figure before you commit — plus a partner service fee for the co-employment administration, benchmarked across our network.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Vietnamese LLC (WFOE), as your Vietnam presence develops.

Not sure whether PEO or EOR is right for Vietnam?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified August 2026 (Vietnam Tax Department — Tong cuc Thue, Vietnam Social Security, Ministry of Home Affairs guidance, official gazette texts). Figures change; we confirm the current position when we scope your hire.