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What is a PEO? Professional Employer Organization explained

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

PEO stands for Professional Employer Organization — a provider that handles the administration of employment while your company remains the legal employer. In Vietnam the model is used mainly when a company already has a local entity and needs to bring in foreign experts, engineers or managers lawfully. This guide explains the model, the 2026 legal basis, the published per-service cost, and when to use it.

Key facts (2026):
- Under a PEO, the client (a Vietnamese entity) is the legal employer and signs the employment contract; the PEO handles permits, immigration, payroll, insurance and tax.
- It is for foreign nationals and requires you to already have a Vietnamese entity (unlike an EOR).
- Legal basis: Decree 219/2025/NĐ-CP for work permits, and the Law on Social Insurance 2024 with Decree 158/2025/NĐ-CP.
- Nhân Kiệt prices each service separately: work permit USD 650, TRC USD 450, entry visa USD 250, monthly administration USD 35 per employee.

What is a PEO?

A PEO is a service model in which your company keeps the role of legal employer while an external specialist handles the administrative side of the employment relationship. Your Vietnamese entity signs the employment contract directly with the worker and decides salary, job title and day-to-day management. The PEO handles the work permit and immigration procedures, payroll, insurance registration and filing, personal income tax withholding and finalisation, and the periodic labour reports.

Who is a PEO for in Vietnam?

A PEO suits a company that already has a Vietnamese entity and needs to bring foreign nationals in for longer than a short business trip. Typical cases are an FDI group seconding a chief engineer or plant manager, a group rotating specialists between countries, or a company that needs one foreign hire working quickly without building an in-house immigration function. If you do not have an entity, a PEO does not apply — the right routes are then to establish a presence, or to use the EOR model for Vietnamese staff.

What does a PEO actually do?

A PEO covers the whole administrative lifecycle so your entity can stay the employer without staffing the function. The one-time work covers preparing and filing the foreign-labour demand and approval, applying for the work permit under your entity's sponsorship, applying for the Temporary Residence Card, arranging the entry business visa, and notarised translation of documents. The ongoing monthly work covers payroll calculation and disbursement support with electronic payslips, registration and monthly filing of social and health insurance, PIT withholding and annual finalisation, tracking work permit and TRC renewals, bilingual employee support, and monthly reporting to you.

What legal basis applies in 2026?

Work permits follow Decree 219/2025/NĐ-CP, in force from 7 August 2025, which fully replaced Decree 152/2020 and 70/2023; the permit is issued within 10 working days of a complete file, is valid for up to 2 years, and may be renewed only once under Article 155 of the Labour Code 2019. Social insurance for foreign workers follows the Law on Social Insurance 2024 (41/2024/QH15) and Decree 158/2025/NĐ-CP, which replaced Decree 143/2018 from 1 July 2025. Foreign workers pay 9.5% and the employer pays 20.5% plus 2% trade-union funding — 22.5% on top of salary, with no unemployment insurance — capped at a salary base of VND 50,600,000 per month from 1 July 2026.

What routes are there for bringing a foreign employee in?

There are two lawful routes, differing in risk and in how social insurance is treated. Option 1 — work permit plus Temporary Residence Card: your Vietnamese entity sponsors the permit, the process is standard and the risk is low, and the employer bears the 22.5% statutory contributions. Option 2 — intra-corporate transfer (ICT): the assignee is exempt from Vietnam compulsory social insurance under Decree 158/2025 and may keep home-country cover, but the corporate chain must be proven with consular-legalised documents, so documentation cost and risk are higher. The detail is in work permit exemption and intra-company transfer.

How much does a PEO cost?

Nhân Kiệt prices each service separately so you pay only for what you need: work permit USD 650, Temporary Residence Card USD 450, entry business visa USD 250, notarised translation from USD 260, and PEO administration USD 35 per employee per month. These are inclusive of government fees, with only 8% VAT added. There is no fixed bundle — a company that already holds a visa and needs only the permit pays for that alone. The full menu with common combinations is in PEO cost in Vietnam.

What happens to tax after 183 days?

An assignee who stays in Vietnam more than 183 days in a 12-month period becomes a Vietnam tax resident and must declare and pay personal income tax in Vietnam. This holds even under Option 2, where payroll and social insurance may remain in the home country. A double-taxation agreement between Vietnam and the home country may relieve double taxation, subject to conditions. This is why a "keep everything offshore" plan does not work for a long assignment.

How is a PEO different from an EOR?

A PEO requires you to already have an entity and you remain the legal employer; an EOR is the opposite — it is for companies with no entity, and the provider is the employer. At Nhân Kiệt there is a second difference: PEO serves foreign nationals, EOR serves Vietnamese staff. The full comparison with a decision tree is in EOR vs PEO in Vietnam; the EOR model is explained in what is an EOR.

Next step

See the service scope, both routes and all conditions in PEO in Vietnam. 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), and is certified to ISO 9001:2015, ISO 45001 and ISO 14001. To discuss a specific case, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice.

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