Is Outsourcing Human Resources in Vietnam Legal?

Date: 2025.08.21

Vietnam is rapidly emerging as an ideal destination for foreign enterprises, especially from Japan, to optimize costs and streamline operations through outsourcing services. But one common question raises: Is outsourcing legal in Vietnam?
This article clarifies the legal framework, implementation conditions, and practical benefits of this model.

1. Legal framework in Vietnam: Is outsourcing allowed?

According to the 2019 Labor Code and Decree No. 145/2020/NĐ-CP, labor dispatching—where one company supplies personnel to another—is legal if it complies with relevant regulations.

Key highlights include:

– Only applicable for 18 specific job categories such as interpreters, assistants, administrative staff, accountants, and customer service staff.

– Labor dispatching companies must:

+ Possess a license issued by the Ministry of Labor, Invalids and Social Affairs.

+ Maintain a minimum charter capital of VND 2 billion.

+ Have operated stably for at least 2 years.

⚠️ Note: If using contract-based services instead of labor contracts, ensure it does not violate disguised employment regulations.

2. Common outsourcing models in Vietnam

Depending on business objectives, companies may choose from:

– Back Office BPO Services: Reporting, bookkeeping, data processing, HR, accounting, etc.

– Labor Dispatch (Haken): Ideal for blue-collar roles, high-volume, or short-term needs.

– Executive/IT Outsourcing: For roles in IT, finance, marketing, or operations – typically remote or onsite experts assigned per project.

3. Key benefits for Businesses

✔ Significant cost savings

Outsourcing HR in Vietnam can reduce expenses by 30–60% compared to direct hiring.

✔ Scalable workforce flexibility

Easily scale manpower based on business stages—no complex hiring or termination processes.

✔ Optimized compliance management

With trusted service providers, companies can offload legal obligations related to social insurance, personal income tax, and labor contracts.

4. Risks of improper implementation

If a company conducts outsourcing without proper licensing or partners with unqualified vendors:

– Fines of up to VND 150 million may apply.

– The company could be flagged for evasion of labor responsibilities, damaging its reputation.

– Risk of tax, insurance back-payments, or labor disputes.

5. A safe & effective solution: Outsourcing services by Help All

Help All is a trusted provider of back-office outsourcing in Vietnam, serving many Japanese enterprises currently operating in the country.

🔹 Our Core Services:

✅ HR, General Affairs, and Labor Management
✅ Recruitment support, payroll, contract drafting, translation & interpretation
✅ Customer care & assistant services
✅ Legal entity setup and staff support in Vietnam

📜 OUR SERVICE COMMITMENTS

🔹 Compliance – Accuracy – Timeliness

We strictly follow Vietnamese and Japanese legal standards, ensuring each task is accurate and on time.

🔹 Absolute data confidentiality

All HR, financial, and legal data is securely protected and used strictly for operational purposes.

🔹 Cost optimization – Operational efficiency

We help you reduce internal resource usage and stay focused on core activities while ensuring smooth administrative and HR operations.

🔹 Dedicated long-term support

More than a vendor, we are a strategic partner supporting Japanese enterprises from company setup to stable long-term operations in Vietnam.

Conclusion

Outsourcing in Vietnam is legal when done properly with the right partner.
In the digital transformation era, this model is becoming a strategic key for Japanese companies seeking cost savings and flexible operation in Vietnam.
Choose a qualified and compliant service provider to ensure long-term benefits and risk-free operations.

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