Characteristics of human resource needs by project
Short-term projects (system construction, deployment, events, market research) often need personnel for a clearly defined period of time, with no need for long-term maintenance after the project ends.
Solution 1: Labor contract with a definite term
Suitable when the business has a legal entity in Vietnam and the project lasts more than 3 months — can sign a fixed-term contract (up to 36 months) matching the project duration.
Solution 2: EOR for projects of businesses without legal entities
If a foreign business does not have a legal entity in Vietnam but needs to implement a short-term project, EOR allows hiring legal human resources without having to establish a company just for a limited-term project.
Solution 3: Collaborator/service contract (be careful)
Only suitable when the nature of the work is truly independent, without direct management and supervision elements such as labor relations. Using this form incorrectly to avoid social insurance obligations may be arrears when the nature of the relationship is re-determined.
Quickly compare three solutions
| Solution | suitable when | Risk |
|---|---|---|
| Fixed-term contract | Already have a legal entity or project for over 3 months | Low if the process is correct |
| EOR | No legal entity yet, need to deploy quickly | Low, the EOR provider is liable |
| Collaborators/services | Truly independent work | High if used in the wrong nature of relationship |
Advice when choosing a solution
You should properly evaluate the nature of the work (whether there is direct management or supervision or not) before choosing the contract form, instead of just choosing according to the project term to avoid future legal risks.
If the project takes longer than expected, can the contract be extended? Yes, a fixed-term contract can be extended according to regulations (maximum 1 renewal with the same type of fixed-term contract before having to switch to an indefinite term).
Is EOR suitable for projects that only last 2-3 months? Yes, EOR is flexible for even short-term projects, as long as the term and terms of ending the service contract are clearly agreed with the EOR provider.