What Is an Employer of Record (EOR) — And How Can It Save You Money and Legal Headaches?

Admin Team May 22, 2024

If you're a U.S. employer looking to hire remote talent in Vietnam—or anywhere abroad—you’ve likely run into one frustrating roadblock: “How do I legally hire someone in another country without setting up a foreign entity?” Enter the Employer of Record (EOR). It’s the easiest, safest, and fastest way to build a global team—without the paperwork, payroll risk, or compliance minefields.

What Is an Employer of Record (EOR)?

An Employer of Record is a third-party organization that officially employs your overseas workers on your behalf. You choose the person and manage their day-to-day work, but the EOR handles legal employment, payroll, taxes, benefits, and compliance. It’s like having a local HR, legal, and payroll department… without actually building one.

Why Use an EOR to Hire in Vietnam?

Hiring remote talent in Vietnam offers access to skilled professionals at 50-70% lower salary costs. However, hiring directly presents significant challenges. An EOR eliminates these barriers.

Without EOR	With EOR
Must open a legal entity in Vietnam	No entity required
Need to understand complex Vietnamese laws	EOR handles all compliance
Risk misclassifying employees	Employees are hired legally
Manage local payroll, benefits & reporting	EOR does it all for you

What Does an EOR Actually Do?

A good EOR like VietAssist handles drafting and signing compliant local employment contracts, registering employees with authorities, paying salaries and contributions, managing leave, and ensuring all practices meet Vietnam’s labor code. You focus on the work, we handle the paperwork.

How an EOR Saves You Money

While it seems like an added cost, an EOR often saves you money by:

Eliminating Entity Setup Costs: Avoid the $10,000–$25,000+ upfront cost of opening a foreign subsidiary.
Avoiding Misclassification Fines: Stay safe from hefty fines and back taxes by hiring compliantly.
Faster Time-to-Hire: Start projects and generate ROI sooner by onboarding talent in days, not months.
No In-House Expansion: You don't need to hire an internal global compliance team.

Why Use an EOR in Vietnam Specifically?

Vietnam has very specific labor laws that differ from U.S. standards regarding contracts, paid leave, mandatory insurance, and severance. Navigating this without local expertise is risky. A trusted Vietnam-based EOR ensures you stay compliant.

When Should You Use an EOR?

Use an EOR if you want to hire remote employees in Vietnam fast, without opening a foreign subsidiary, while ensuring full legal compliance. It's perfect for testing a new market or scaling your headcount without scaling your risk.

Final Thoughts: Global Talent Without Global Headaches

Hiring in Vietnam can supercharge your business—if you do it right. With an EOR, you get the benefits of global hiring without the risks. You focus on your team’s performance—we handle the payroll, compliance, and legal complexity.

👉 Ready to Hire Remote Talent in Vietnam the Smart Way? Book a free consultation.