Is the labor outsourcing service legal in Vietnam?

Date: 2025.11.28

Vietnam is emerging as an ideal destination for foreign enterprises — especially from Japan — to optimize costs and streamline operations through labor outsourcing services. However, one common question arises: Is labor outsourcing legal in Vietnam? This article clarifies the legal framework, implementation requirements, and practical advantages of this business model.

1. Legal framework in Vietnam: Is labor outsourcing allowed?

According to Vietnam’s Labor Code 2019 and Decree 145/2020/NĐ-CP, the labor dispatch model — in which one company provides employees to work for another — is legal if conducted in compliance with regulations.

Key points:

– Applicable to only 18 specific job positions, such as interpreters, assistants, administrative staff, accountants, and customer service personnel.

– Labor dispatch companies must have:

+ A valid license issued by the Ministry of Labor, Invalids, and Social Affairs

+ Minimum legal capital of VND 2 billion

+ At least 2 years of stable operation

⚠️ Note: If using a service contract (B2B subcontract) instead of labor contracts, ensure it does not violate the law by being a “disguised employment relationship.”

2. Common outsourcing models in Vietnam

Depending on business goals, companies can choose among several models:

– Back Office BPO (Business Process Outsourcing): Administrative, accounting, data processing, HR, and reporting services.

– Labor Dispatch (Haken model): Suitable for short-term or large-scale workforce needs in general labor roles.

– Executive or IT Outsourcing: Hiring skilled professionals (IT, finance, marketing, operations) either remotely or onsite under project-based contracts.

3. Benefits for Businesses

✔ Cost efficiency
Outsourcing HR operations in Vietnam can reduce costs by 30–60% compared to direct employment.

✔ Workforce flexibility
Easily adjust staff levels according to business cycles — without the complexities of recruitment or termination procedures.

✔ Compliance and risk reduction
With support from a licensed HR service provider, companies don’t need to worry about payroll, social insurance, PIT, or labor contracts.

4. Risks of improper implementation

If a company operates without a licensed HR provider or manages outsourcing illegally:

– It can face fines of up to VND 150 million.

– It may be considered as evading labor obligations, harming its business reputation.

– There is a risk of back taxes, insurance liabilities, or labor disputes.

5. Safe and compliant solution: Legally certified labor outsourcing

Help All provides fully legal and transparent HR outsourcing services in Vietnam, trusted by numerous Japanese and international enterprises.

🔹 Key services include:
📌 General Affairs – Administration – Office Management
📌 HR – Recruitment – Employment Contracts
📌 Assistant – Translation – Scheduling – Team Coordination
📌 Payroll – Social Insurance – Labor Compliance
📌 Invoicing – Accounting – Financial Records

📜 Legal and operational commitments:

– Clear and compliant service contracts following Vietnam’s Labor Code and Enterprise Law.

– Full adherence to legal requirements for labor management and service operations.

– Flexible structure tailored for Japanese companies, scalable at each business stage.

Conclusion

Labor outsourcing in Vietnam is entirely legal when implemented correctly with the right licensed partner. Amid digital transformation and cost-optimization trends, this model has become a strategic key for many Japanese enterprises operating in Vietnam. Partnering with a legally compliant, experienced provider ensures long-term efficiency and safety.

📩 Contact Help All for expert consultation:
📞 Zalo: 0888 642 299 (Japanese, English, Vietnamese support)
📧 info@helpall247.com
Line ID: helpall247