Hire in Vietnam Without a Legal Entity: Staff Leasing & EOR Explained

Overview

You have found great talent in Vietnam — but you do not have a Vietnamese company. Setting one up takes weeks of licensing, capital registration and ongoing accounting. For many international businesses, the faster route is staff leasing, also known as PEO (Professional Employer Organisation) or EOR (Employer of Record) services.

This guide explains how the model works, when it beats entity setup, and what to check before choosing a provider like Vietpard's staff leasing service.

How Staff Leasing / EOR Works

Under the EOR model, a licensed local company becomes the legal employer of your Vietnamese staff, while you keep full day-to-day direction of their work:

• The EOR signs the Vietnamese labour contract with your employee.
• The EOR runs payroll, PIT withholding and SHUI contributions every month.
• The EOR administers leave, benefits, and statutory reporting.
• You manage the employee's tasks, targets and performance directly.

You receive one consolidated monthly invoice; your employee receives a fully compliant local employment relationship.

EOR vs Setting Up Your Own Entity

• Time to hire: days with an EOR, versus typically 4–8 weeks of licensing before your own entity can employ anyone.
• Upfront cost: a service fee only, versus capital contribution, licensing fees and an office lease.
• Ongoing admin: handled by the provider, versus running your own accounting, tax filing and audits.
• Best for: EOR suits market testing and small teams; an entity suits long-term operations with larger headcount.

Many companies start with an EOR, prove the market, then incorporate later and transfer employees to the new entity.

What About Foreign Employees?

An experienced provider can also employ foreign professionals in Vietnam, managing their work permits and visas alongside the labour contract. This is useful when you want to relocate a manager to Ho Chi Minh City or Hanoi without establishing a company first.

Choosing the Right Provider

Before signing, verify that the provider:

1. Holds proper local licensing for labour outsourcing activities.
2. Runs payroll in-house, including SHUI and PIT — payroll depth matters more than sales polish. (See our guide to payroll outsourcing.)
3. Offers transparent pricing with no hidden onboarding or offboarding fees.
4. Supports your language and time zone for HR queries.
5. Can grow with you, from leasing into entity setup and corporate training as your team expands.

Vietpard brings 10+ years of experience serving 200+ organisations across 5 service regions, with direct teams in Vietnam, Hong Kong and Mainland China — so cross-border employers get support in their own language.

Frequently Asked Questions

Q: Is EOR legal in Vietnam?

A: Yes. Labour outsourcing is a licensed activity in Vietnam, which is exactly why you should confirm your provider's licence.

Q: Who owns the intellectual property my leased employee creates?

A: IP assignment is written into the employment and service agreements so that work product belongs to your company.

Q: Can I convert leased staff to my own entity later?

A: Yes. A common path is EOR first, then transferring employees to your newly incorporated Vietnamese company.

Conclusion

Staff leasing lets you hire in Vietnam this month instead of next quarter, with full labour-law compliance and none of the entity overhead.

Learn more about our staff leasing / EOR service, or contact Vietpard via WhatsApp at +84 886 006 400 or email hello@vietpard.com to discuss your hiring plan.