Hire before entity setup
Place an initial employee or small team while validating the market and planning a longer-term presence.
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Hire and operate in Vietnam
Build an initial team before establishing a local entity. After confirming the lawful service structure, Wacontre coordinates employment contracts, payroll, statutory insurance, PIT and day-to-day HR administration.
Employer of Record is a general service term for an arrangement in which a Vietnam-based entity becomes the contractual employer and supports a foreign company with local employment administration. A company may explore hiring before forming its own entity, but the actual structure depends on the role, workplace, direction and supervision, contract duration and applicable licensing requirements.
Place an initial employee or small team while validating the market and planning a longer-term presence.
Coordinate employment documentation, payroll, statutory insurance, PIT and employee lifecycle processes.
When the operation grows, plan company formation and a documented transition to direct employment.
The proposal and contract identify whether Wacontre or an eligible partner entity will act as the contractual employer, together with the roles, service structure and activities that can lawfully be supported.
These services solve different problems. The right model depends on whether you already have a Vietnam entity, the number and type of roles, the expected duration and the level of operational control required.
| Item | EOR | Company formation | HR BPO | Offshore lab |
|---|---|---|---|---|
| Primary purpose | Start hiring and employment administration without your own entity | Establish and operate your own Vietnam company | Outsource HR administration for an existing entity | Receive development services from a dedicated team |
| Contractual employer | Vietnam entity identified in the contract | Your newly established entity | Your existing entity | Development service provider employs and manages its team |
| Local entity | Can be considered without your own entity | A new entity is established | Normally requires an existing entity | No client entity required |
| Work management | Objectives and collaboration are agreed; lawful direction and supervision are designed for the engagement | Managed under your own corporate structure | Client remains the employer and decision maker | Client sets requirements and priorities; provider manages the team and delivery |
| Main administration | Contracts, payroll, insurance, PIT, onboarding and offboarding | Registration, licensing, accounting, tax, labor and governance | Payroll, attendance, insurance, PIT, policies and HRMS | Recruitment, development environment, team management and software delivery |
| Best suited to | Market testing, early hires and small teams | Long-term operations requiring a local contracting entity | Established companies improving back-office operations | Ongoing IT and product development |
Confirm roles, headcount, workplace, start date and entity plan.
Review structure, licensing, supervision and statutory requirements.
Document salary, employer costs, expenses, fees and accountability.
Use RPO support when candidates have not yet been selected.
Finalize conditions, documents, start date and approval process.
Run attendance, payroll, statutory processes and employee support.
The total cost is not limited to the employee’s gross salary. A proposal separates salary and allowances, statutory employer costs, benefits and expenses, recruitment costs where applicable, and the EOR management fee. Pricing depends on role, compensation, headcount, workplace, contract duration and required procedures.
Companies without their own local entity are the primary use case. The role, work arrangement, supervision and duration must still be reviewed before confirming the available structure.
No universal assumption should be made. If an arrangement falls within regulated labor subleasing, licensing and permitted-job requirements apply. Wacontre reviews the role before proposing a structure.
Under HR BPO, your Vietnam entity remains the employer and outsources payroll or HR administration. Under EOR, the Vietnam entity identified in the contract is the contractual employer.
Yes. Recruitment Process Outsourcing can be combined with EOR when candidates have not yet been selected. The recruitment scope and fee are stated separately.
A transition can be planned after company formation. Contract-end conditions, employee consent and handover procedures should be documented in advance.
Legal notice: EOR is a general service term. This page provides general information and is not legal advice. The actual employment or service model is determined after reviewing Vietnam’s Labor Code, regulated labor subleasing provisions, social insurance rules, the role involved and the licenses of the contracting parties.
References: Labor Code No. 45/2019/QH14, Decree No. 145/2020/ND-CP, and Law on Social Insurance No. 41/2024/QH15. Updated July 28, 2026.
We compare EOR, company formation, HR BPO and offshore development based on your roles, headcount, timing and operating plan.
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