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PEO in Vietnam 2026: how the model works and when to use it

By Nguyễn Quốc Trung — Deputy General Director · Updated 2026-09-18

If your company already has a legal entity in Vietnam and needs to bring in a foreign expert, engineer or manager, a PEO (Professional Employer Organisation) arrangement lets you stay the legal employer while a local specialist runs the work permit, immigration, payroll and compliance. This article explains what PEO means in Vietnam in 2026, how it differs from EOR, the two compliant routes for foreign nationals, the social-insurance and tax rules that apply, and what a work permit and monthly service cost.

Key facts (2026):
- PEO fits companies that already have a Vietnam entity and are bringing in foreign staff — your entity stays the legal employer.
- EOR is the opposite: no entity needed, for hiring Vietnamese staff, with Nhân Kiệt as the employer.
- Two routes: Work Permit + TRC (low risk) or intra-corporate transfer (social-insurance exempt, higher risk).

What is a PEO and how does it work in Vietnam?

A PEO (Professional Employer Organisation) is a service model in which your company stays the legal employer of the worker while an external specialist handles the administrative side of employment. In Vietnam it is used mainly for foreign nationals: your Vietnamese entity signs the labour contract directly with the foreign employee, and the PEO provider handles the work permit and immigration procedures, monthly payroll, statutory insurance, personal income tax (PIT) filing and HR administration. You keep control of pay, role and day-to-day management; the provider keeps you compliant with Vietnamese labour, immigration, insurance and tax law.

PEO vs EOR in Vietnam: which one do you need?

The two models solve different problems, and the deciding factors are whether you already have a Vietnamese entity and whether you are hiring Vietnamese or foreign staff.

In short: choose EOR when you have no entity in Vietnam and want to hire Vietnamese staff without setting one up; choose PEO when you already have a Vietnamese entity and need to employ foreign nationals compliantly. For the underlying legal rules on foreign work permits and insurance, see our 2026 guide to foreigners working in Vietnam.

When should a company use PEO in Vietnam?

Use PEO when you already have a Vietnamese entity and are bringing foreign nationals to work in Vietnam for more than a short visit. Common cases are an FDI parent seconding a chief engineer or plant manager, a group rotating specialists between countries, or a company that needs a foreign hire on the ground quickly without building an in-house immigration and payroll team. Because the assignee usually stays more than 183 days, they become a Vietnam tax resident and PIT must be declared and paid in Vietnam — keeping payroll and insurance entirely offshore is generally not compliant for the Vietnam working period.

What does Nhân Kiệt's PEO service cover?

Nhân Kiệt handles the full administrative lifecycle so your entity can stay the employer without staffing an immigration and payroll function. The one-time immigration and licensing work covers preparing and filing the foreign-labour demand and approval with the labour authority, applying for the work permit under your entity's sponsorship, applying for the Temporary Residence Card (TRC, up to 2 years, renewable), and arranging the entry business visa with notarised translation of documents. The ongoing monthly administration covers payroll calculation and disbursement support with electronic payslips, registration and monthly filing of social and health insurance, PIT withholding, periodic declaration and annual finalisation, plus labour reporting, permit and TRC renewal tracking, bilingual employee support and monthly reporting to you.

Option 1 or Option 2: the two compliant routes

There are two lawful ways to place a foreign national, and they differ mainly in risk, cost and how social insurance is treated.

A short-term business-visa route (DN1, 3-month) is sometimes suggested but is not recommended: the holder is not authorised to work, and the arrangement risks penalties for unlicensed foreign labour.

Do foreign employees pay social insurance in Vietnam?

Yes in most cases, but at a different rate from Vietnamese workers and with one important exemption. Under the Law on Social Insurance 2024 (Law 41/2024/QH15) and Decree 158/2025/NĐ-CP (which replaced Decree 143/2018 from 1 July 2025), a foreign worker is subject to compulsory social insurance on a labour contract of 12 months or more with a valid work permit. The rates carry no unemployment insurance: the worker pays 9.5% and the employer pays 20.5%, plus 2% trade-union funding — a total employer cost of 22.5% on top of gross salary, capped at 20 times the reference level (VND 50,600,000 per month from 1 July 2026). The exemption is Option 2: an intra-corporate transferee is excluded from Vietnam compulsory social insurance and may retain home-country cover, though health insurance and Vietnam PIT still apply.

What about tax residency after 183 days?

An assignee who stays in Vietnam more than 183 days in a 12-month period becomes a Vietnam tax resident, and PIT on employment income must be declared and paid in Vietnam. This holds even under Option 2, where payroll and social insurance may stay in the home country. A double-taxation agreement between Vietnam and the home country may relieve double taxation, subject to conditions. This is the main reason a "keep everything offshore" plan does not work for a long assignment: the Vietnam working period creates a Vietnam tax obligation regardless of where the salary is paid.

What does a foreign work permit and PEO service cost?

Nhân Kiệt prices each service separately so you pay only for what you need: the work permit advisory and application is USD 650, the Temporary Residence Card is USD 450, the entry business visa is USD 250, and ongoing administration is a flat USD 35 per employee per month — all inclusive of government fees and exclusive only of 8% VAT. A work permit itself is issued within 10 working days of a complete, valid file, though you should allow extra time for consular legalisation and notarised translation of foreign documents. For the full service menu and how to pick only the components your case needs, see PEO cost in Vietnam 2026.

Why Nhân Kiệt

Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001 and ISO 14001. For foreign nationals we act as your PEO service provider — your entity remains the employer while we run the work permit, immigration, payroll and compliance. To scope an assignment, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224.

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