If you are evaluating an EOR (Employer of Record) or PEO (Professional Employer Organization) provider in Vietnam, the initial quote may not show the full cost picture. Some items are easy to overlook when they sit inside insurance, exchange rates, onboarding, offboarding or handover terms.
This article sets out four areas to check in a quotation, with hypothetical numbers and questions to ask a provider up front. The examples are not a market survey or a quotation from any named provider.
Here, PEO refers to outsourced payroll and HR administration for a client that already has a Vietnam legal entity and remains the legal employer. Truzand calls this Outsourced Payroll Services. Under EOR (Employer of Record), the client can hire without its own local entity and continues to direct daily work, performance and business priorities. The agreed employment and administration responsibilities should be confirmed before comparing fees.
1. Private health insurance: a common markup point
Private health insurance can be included in a bundled quote or billed separately. Compare the insurer, coverage limits, exclusions, geographical coverage and any administration fee before comparing premiums.
A hypothetical comparison:
- An insurer quotes US$300 per employee per year for a specific policy.
- A provider quotes US$1,000 for the same policy plus its administration. Ask for a breakdown of the US$700 difference.
A difference in price may reflect administration or additional services. It should be explained clearly enough for the client to compare like for like.
What to ask a provider. To understand the quoted premium, request the insurer's actual quote and benefit table. Cross-check with the insurer or an independent licensed broker if anything looks unusual.
2. Exchange rate markups: small percentage, large absolute cost
Currency conversion affects the full amount funded, so compare the invoice rate with the agreed reference rate. The following rates are hypothetical, not current bank quotes.
- Illustrative reference rate: approximately 26,350 VND per USD
- Exchange rate applied on the invoice: 25,296 VND per USD
- Rate discount: 4%; resulting USD funding cost increase: approximately 4.17%
Because the client pays in USD while payroll is funded in VND, a lower VND/USD rate means more USD for the same VND payroll every month.
| Monthly payroll (VND) | Additional USD funding cost | Annual cost |
|---|---|---|
| 100,000,000 | about US$158 per month | about US$1,898 per year |
| 300,000,000 | about US$474 per month | about US$5,693 per year |
| 500,000,000 | about US$791 per month | about US$9,488 per year |
The additional cost is calculated as VND payroll divided by the invoice rate, minus VND payroll divided by the reference rate. For a growing team the cost increases with every hire and every raise, often without being itemised on the invoice.
What to ask a provider. Which exchange rate is used for payroll conversion, how often it is updated, and whether it is benchmarked against a published reference rate on a specific date each month.
3. Onboarding and offboarding fees for EOR employees
An EOR engagement should clearly describe onboarding and offboarding responsibilities. These activities may be included in the monthly fee or charged separately under the agreed contract. Compare the annual cost using your expected hires and leavers, not the monthly fee alone.
What to ask a provider. Confirm whether onboarding and offboarding are within the standard monthly fee or billed per event, and get it in writing in the agreed scope.
4. Fees for contract handover at termination
When a client ends a service engagement, whether moving to an internal team or another provider, there is a handover of employee records, payroll history, insurance documentation and other operational data. The scope, file formats, timing and any charges for this work should be agreed in the service contract.
What to ask a provider. Clarify at signing what the exit process looks like if the contract ends, including whether any handover support is billed separately.
Why these gaps exist
None of this is necessarily deliberate misconduct by any specific provider. In many cases the gaps persist because clients lack the visibility or market knowledge to question them, and pricing that is not clearly itemised makes it hard to see where the actual cost sits versus the quoted cost.
The practical takeaway: ask for clarity on these four areas, in writing, before signing. A provider that can answer clearly is a good signal; vague answers are worth treating as a warning.
How Truzand approaches pricing
At Truzand the exchange rate used for payroll conversion, onboarding and exit terms, and end-of-contract handover responsibilities are defined up front within the scope agreed with each client, depending on the services contracted. The aim is that clients understand exactly what they are paying for before the relationship begins, not after the first invoice.
If you are evaluating Outsourced Payroll Services, EOR (Employer of Record) or HR Compliance & Setup in Vietnam, contact Truzand to discuss a defined scope, practical outputs and fee breakdown. To estimate the cost of a hire first, use the Employment Cost Calculator.
What this does not cover
The scenarios in this article are hypothetical and are not current market price benchmarks. Actual pricing depends on the provider, employee profile, insurer, exchange rate policy and agreed service scope.