Top 7 Payroll Outsourcing Companies in Vietnam for Foreign Businesses

1. Why Foreign Companies Outsource Payroll in Vietnam

For foreign companies unfamiliar with the local regulatory environment, even minor payroll errors can lead to financial penalties, legal exposure, and reputational risks. By partnering with experienced payroll outsourcing companies, they gain immediate access to local expertise, compliance assurance, and scalable payroll operations without the burden of building an in-house payroll function.

1.1. Regulatory Compliance

Vietnamese payroll compliance involves multiple regulatory layers, including:

• Personal Income Tax (PIT) with progressive rates from 5% to 35%
• Mandatory social, health, and unemployment insurance contributions
• Labor contract requirements under the Vietnam Labor Code
• Monthly, quarterly, and annual statutory filings

Payroll outsourcing companies continuously monitor regulatory changes and enforcement trends to ensure payroll accuracy and legal compliance.

1.2. Cost Efficiency

Establishing an internal payroll function in Vietnam requires significant upfront and ongoing investment. A recent study by Ernst & Young (EY) reveals that 20 percent of payroll has errors, and it costs an average of $291 to rectify each one. By choosing to outsource payroll, foreign companies replace fixed HR overheads with predictable service fees. This approach delivers professional payroll management while reducing administrative burden and maintaining high service quality.

1.3. Risk Reduction

Payroll errors can expose foreign companies to audits, financial penalties, and employee disputes. Common risks include incorrect tax calculations, inaccurate insurance contributions, and employee misclassification. By acting as a compliance buffer between employers and local authorities, payroll outsourcing providers help foreign businesses operate with confidence in Vietnam.

1.4. Scalability and Flexibility

Vietnam continues to attract offshore IT teams, innovation hubs, and R&D operations. Outsourcing payroll services enables foreign businesses to onboard employees quickly and adjust headcount as needs change. Teams can scale up or down without disrupting payroll operations or compliance processes.

1.5. Speed to Market

For companies entering Vietnam without a legal entity, payroll outsourcing, often combined with Employer of Record (EOR) or HR outsourcing models, allows firms to hire and operate immediately. Therefore, market entry timelines shorten, allowing businesses to begin operations in weeks rather than months.

2. Payroll Outsourcing Services in Vietnam

Foreign businesses should understand the scope of services typically included in a payroll outsourcing engagement, as it goes beyond salary processing. A trusted payroll outsourcing company in Vietnam typically offers: 

• Monthly salary calculation and payslip issuance: Accurate computation of gross-to-net salary, allowances, bonuses, overtime, and deductions.
• Personal Income Tax (PIT) calculation and filing: Monthly PIT declarations, tax payments, and employee tax optimization within legal frameworks.

• Social, health, and unemployment insurance management: Calculation, registration, contribution payment, and reporting to relevant authorities.

• Payroll reporting and statutory declarations: Monthly, quarterly, and annual payroll reports compliant with Vietnamese regulations.

• Compliance with Vietnamese labor law: Alignment with working hours, leave entitlements, minimum wage, and labor contract terms.
• Year-end tax finalization for employees: Mandatory PIT finalization and reporting, a critical compliance requirement for foreign employers.

Outsourced payroll providers also offer employee self-service portals, multilingual reporting, and audit-ready documentation.

3. Criteria for Evaluating Payroll Outsourcing Companies

Not all payroll outsourcing companies deliver the same level of compliance assurance or service quality. Selecting the right provider is critical for long-term operational success in Vietnam.

3.1. Local Compliance Expertise

Frequent regulatory updates and strict enforcement shape Vietnam’s payroll landscape. Therefore, it is essential to maintain payroll accuracy, timely filings, and full compliance with local authorities. Foreign companies should prioritize providers with certified payroll compliance practitioners who possess in-depth knowledge of Vietnamese labor law, tax regulations, and statutory reporting obligations. 

3.2. Experience with Foreign Clients

Payroll outsourcing providers should demonstrate a strong track record in supporting foreign-owned businesses. Proven experience with the following client profiles is significant:

• Multinational corporations (MNCs)
• Offshore development and IT teams
• R&D and innovation centers
• Companies operating without a local legal entity

This experience ensures the provider understands cross-border payroll expectations, international reporting standards, and the operational realities faced by foreign employers in Vietnam.

3.3. Data Security and Confidentiality

Payroll processing involves highly sensitive personal and financial information. Reputable payroll outsourcing companies implement robust data protection measures, including ISO-aligned security standards, secure payroll platforms with strict access controls, and clearly defined data confidentiality procedures. Strong data governance protects both employee privacy and corporate integrity.

3.4. Technology and Reporting Capabilities

Modern payroll outsourcing is technology-driven. Leading providers offer transparent payroll systems that deliver accurate, auditable data and detailed reporting. Customizable reports and integration with HRIS or accounting platforms improve visibility, control, and governance for regional or global headquarters, supporting informed decision-making.

3.5. Scalability and Long-Term Support

As foreign companies expand their presence in Vietnam, payroll requirements become more complex. A capable payroll provider should support rapid headcount growth, multiple payroll structures, and the scaling of offshore teams or R&D operations. Long-term scalability ensures payroll continuity and compliance as your business evolves.

4. Top 7 Payroll Outsourcing Companies in Vietnam

Below is a curated list of reputable payroll outsourcing companies that serve foreign companies, MNCs, and offshore teams in Vietnam.

4.1. Reco Manpower 

Reco Manpower stands out as a leading payroll outsourcing company tailored for firms expanding IT teams into Vietnam. Its services combine payroll processing, HR support, legal compliance, and recruitment solutions.

Strengths

• End-to-end payroll management with local compliance expertise
• Integrated HR support and statutory reporting
• Flexible services for R&D, tech teams, and hybrid workforces
• Dedicated payroll compliance practitioners familiar with Vietnamese labor law

Best For: Foreign entities seeking a full payroll + HR compliance solution in Vietnam

4.2. PwC Vietnam

PwC Vietnam is part of the global PwC network and offers robust payroll outsourcing combined with tax and legal advisory services. Known for its strong regulatory knowledge and risk management capabilities, PwC helps multinational clients navigate Vietnam’s complex payroll and tax environment.

Strengths

• Deep expertise in tax compliance and statutory requirements
• Comprehensive payroll documentation and audit support
• Strategic advisory on payroll risk, labor law, and international reporting

Best For: Large MNCs and regulated industries with high compliance needs

4.3. Deloitte Vietnam 

Deloitte Vietnam delivers outsourced payroll services backed by global standards in governance and compliance. Its solutions focus on accuracy, transparency, and robust reporting, suitable for companies with complex payroll structures or multi-jurisdictional operations.

Strengths

• Strategic payroll governance frameworks
• Detailed reporting and analytical insights
• Integration with broader tax, finance, and HR transformation services

Best For: Enterprises with sophisticated payroll models and compliance requirements

4.4. TMF Group 

TMF Group is a widely recognized provider of global payroll outsourcing and compliance services. Its Vietnam operations support foreign companies with payroll processing, statutory filings, and cross-border reporting. TMF’s local expertise is particularly valuable for organizations expanding across multiple Asian markets.

Strengths

• Multi-country payroll experience
• Strong statutory compliance approach
• Scalable services for growing international teams

Best For: Companies with regional operations or plans to scale beyond Vietnam

4.5. Forvis Mazars Vietnam 

Forvis Mazars Vietnam offers a broad range of services, including audit, accounting, tax, advisory, HR, and payroll outsourcing to both local and foreign clients. The firm has operated in Vietnam since 1994 with offices in Hanoi and Ho Chi Minh City.

Strengths

• Integrated payroll within a broader outsourcing and compliance framework, linking payroll to tax, accounting, and statutory reporting.
• Flexible and scalable solutions designed to improve efficiency while controlling costs.
• Access to local specialists backed by a global professional services network covering audit, advisory, tax, and legal services.

Best For: Mid-sized foreign enterprises and multinational companies seeking integrated payroll processing with strong links to tax and financial compliance.

4.6. Manpower Vietnam

Manpower Vietnam, part of the global ManpowerGroup, provides payroll outsourcing as part of its workforce and staffing solutions. Its services are often bundled with recruitment and workforce management.

Strengths

• Global brand with local payroll capabilities
• Strong support for large or flexible workforces
• Integration with staffing and talent solutions
• Experience across multiple industries

Best For: Companies with large headcounts or fluctuating workforce needs

4.7. BDO Vietnam

BDO Vietnam offers payroll outsourcing services supported by its accounting and tax advisory expertise. Its approach emphasizes accuracy, compliance, and financial alignment.

Strengths

• Payroll is closely integrated with accounting and tax services
• Substantial compliance and reporting focus
• Audit-ready payroll documentation
• Global network support

Best For: Finance-driven organizations seeking accounting-aligned payroll outsourcing

5. Reco Manpower – Reliable Payroll Outsourcing Company in Vietnam

Reco Manpower’s payroll services are designed to align with Vietnam’s evolving labor laws, tax regulations, and social insurance requirements. By combining local expertise with practical HR solutions, we help foreign employers operate confidently without the need to build an in-house payroll function.

Our Payroll services include: 

• Salary calculation and monthly payroll processing: Accurate gross-to-net salary calculations aligned with local labor regulations.
• Payslip preparation and distribution: Clear, compliant payslips provided to employees on time each month.
• Personal Income Tax (PIT) calculation and filing: Proper application of progressive PIT rates and timely tax declarations.

• Social, health, and unemployment insurance management: Registration, contribution calculation, and statutory submissions in line with Vietnamese law.

• HR and payroll administration support: Ongoing support for employee payroll records, adjustments, and payroll-related HR processes.

• Regulatory compliance and statutory reporting: Full compliance with Vietnamese labor law, tax regulations, and reporting obligations.

6. Conclusion

Vietnam remains one of the most attractive destinations in Southeast Asia for foreign investment, offshore development, and innovation hubs. However, managing payroll in Vietnam requires strict compliance with labor law, tax regulations, and statutory reporting, where errors can be costly. 

Working with experienced payroll outsourcing companies allows foreign businesses to reduce risk, control costs, and accelerate market entry. Reco Manpower offers the local expertise, compliance assurance, and flexibility needed to hire and grow with confidence.

Looking to hire reliable and highly qualified tech professionals in Vietnam? Reach out to Reco Manpower today for tailored recruitment solutions that match your business needs.

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