Quick answer: It is possible to have people working in Vietnam without establishing a company through labor supply, labor leasing (licensed entity, maximum 12 months per person), or EOR. However, business activities such as signing sales contracts, issuing invoices, or importing goods still generally require proper legal status, so consultation is needed before choosing a model.
Establishing a legal entity in Vietnam requires time, capital, location, and many procedures. For foreign businesses exploring the market, newly starting businesses, or short-term projects, the practical question is: is it possible to have someone working in Vietnam without setting up a company? The answer is yes in many situations, through a labor supply provider, a leasing company, or a full outsourcing model (EOR). However, each model has its own conditions and limitations.
Three workforce models that do not require setting up a company
| Model | Who the employee signs a contract with | suitable when |
|---|---|---|
| Labor supply | Labor supply provider (Nhân Kiệt) | To add personnel as required by position, season, or project |
| Staff leasing | Leasing company (with a license) | Work that falls under the category of replacement or sudden increase; maximum 12 months/person |
| EOR (Outsourced personnel) | EOR provider, working for foreign clients | Foreign businesses that want to have personnel working in Vietnam without establishing a legal entity |
The EOR model is presented at EOR Vietnam; the solution comparison is available at Hiring labor in Vietnam without establishing a company.
When this model is reasonable
- Market exploration: test sales, trial operation before major investment.
- Short-term projects: with a clear deadline, no need for long-term staffing.
- Legal entity preparation stage: needing people to work immediately while the establishment paperwork is in process.
- Seasonal demand: production, sales, logistics with peak seasons.
Legal limits to know
Not needing to establish a company to have people working does not mean all activities can be carried out without a legal entity. Please note:
- Business activities (signing sales contracts, issuing invoices, importing goods, being listed on licenses, etc.) usually require having the appropriate legal status according to investment and enterprise laws. Outsourcing personnel does not replace this.
- Labor leasing is a conditional industry: leasing enterprises must have a license (Article 52), the maximum period is 12 months for one worker (Article 53), and the work must be on the list, according to the Labor Code 2019 and Decree 145/2020/NĐ-CP.
- Foreign personnel working in Vietnam must comply with specific regulations regarding work permits or confirmation of exemption from permits; see Foreign work permits: conditions, documents.
- Tax and insurance obligations still arise; the supplying unit is responsible for the parts related to the employees they contract.
Businesses should seek separate legal advice regarding the model suitable for their industry and business plan.
Process to get started
- Submit a request: position, quantity, duration, location, purpose of use.
- Survey and model consultation: Nhân Kiệt proposes supply, lease back, or other models.
- Quotation and negotiation.
- Sign the contract in writing.
- Implementation of supply: selection, signing labor contracts, handover.
- Training, management, assignment: coordinated by both parties.
- Care and handling of arising issues.
- Finalize work, reconcile, and confirm at the end of the month.
- Payment, salary disbursement, insurance contribution.
Full description of the 10 steps can be found at Labor supply and leasing in Ho Chi Minh City.
When to establish a company instead of outsourcing
When operations are stable, direct management is needed, the number of personnel is large, or there are long-term business plans, establishing a legal entity is usually more economical. Enterprises can also transition from outsourcing to establishing a planned company; see Transition from EOR to a private company: personnel transfer.
Quick comparison of three models according to decision criteria
| Criteria | Labor supply | Staff leasing | EOR |
|---|---|---|---|
| Typical subjects | Enterprises with a legal entity needing additional personnel | Enterprises needing replacements or sudden increases | Foreign enterprises that have not established a legal entity |
| Duration | According to service contract | Maximum 12 months/person | According to EOR contract, flexible |
| Legal conditions | Service contract | License, list of jobs | The EOR provider is legal, with limited operations |
| Suitable jobs | Common, technical, seasonal | Jobs in the category | Office staff, business, professional |
Self-check questions before choosing
- Does my business have legal status in Vietnam?
- What business activities will the employee perform: manufacturing, sales, services, support?
- Expected duration: less than 12 months or longer?
- Do I need someone on-site or working remotely for a foreign company?
- Who will be responsible for contracts, insurance, and work safety?
Answers help choose the model; if still uncertain, consult legal advice.
Roadmap from outsourcing to setting up a company
- Exploration phase (0-6 months): use supply or EOR, verify market demand.
- Preparation phase: carry out legal entity establishment procedures in parallel.
- Transition phase: transfer personnel to the new company according to the agreed procedure.
- Stabilization phase: recruit and manage directly; maintain supply for fluctuating needs.
Comparison: set up your own company or outsource manpower in Vietnam
| Criteria | Set up your own company and then recruit directly | Outsource through a supply unit |
|---|---|---|
| Time to have people working | Must complete legal entity procedures, register insurance, recruit | Can start after signing the service contract |
| Initial cost | Capital, location, administrative staff structure | Mainly cost depends on the number of people and duration of use |
| Flexibility | Reduce staff according to contract termination procedures | Adjust quantity according to the service contract |
| Managing records, salaries, insurance | Handled by the company itself | Handled by the supplying unit |
| suitable when | Stable, long-term operations | Exploratory, seasonal, project-based, replacement |
For foreign investors, choosing the location to place personnel (Ho Chi Minh City, Hanoi, industrial zones) determines the labor supply, cost, and implementation time; so it is advisable to survey a few locations before making a decision.
90-day roadmap when starting with outsourcing
| Phase | Main tasks |
|---|---|
| Day 1-7 | Send requests, survey, choose the model, provide quotation |
| Day 8-14 | Negotiate, sign contract, hand over the first team |
| Day 15-30 | Training, stabilize operation, finalize first work |
| Day 31-60 | Adjust quantity according to reality, establish reconciliation process |
| Day 61-90 | Evaluate results, decide whether to continue outsourcing, switch to direct recruitment, or establish a company |
The roadmap is for illustration; actual time depends on quantity, requirements, and agreements of each enterprise.
Read more in Q&A format
If you are looking for a direct answer to the question "what needs to be done," see the article Hiring labor in Vietnam without establishing a company: what needs to be done? with a 10-step map, legal boundaries, and Nhân Kiệt contact methods.
Contact Nhân Kiệt
Hotline/Zalo 0901 557 456, email hoanvu@nhankiet.vn or leave information at Contact; Nhân Kiệt responds with consultation within 24 hours according to the information on the website.
Frequently asked questions
Can you hire people to work in Vietnam without establishing a company? Yes, within legal models such as labor supply, labor leasing, or EOR, but each model has conditions and limitations; business operations may still require a legal entity.
Is there a time limit for labor leasing? Yes. The leasing period for a worker is a maximum of 12 months according to the 2019 Labor Code.
Who does the worker sign the contract with? For supply, leasing, or EOR, the worker signs a contract with the supplying/leasing/EOR provider and receives salary and social insurance from this unit.
Who should be consulted about the suitable model? Discuss with the supplying unit and, if necessary, independent legal advice; Nhân Kiệt provides free consultation on labor models in Vietnam.
Contact
Send a request at Labor supply and lease service or Contact. Hotline 0901 557 456.