Labour outsourcing and dispatch in Vietnam

What is labour outsourcing (labour sub-leasing) in Vietnam?

Labour outsourcing in Vietnam is, in legal terms, labour sub-leasing: a company that holds a sub-leasing licence employs the worker on its own labour contract, then places that worker to perform work under a client enterprise’s day-to-day direction, while the labour relationship — payroll, social insurance, the contract itself — stays with the licence-holder.1 The terms “labour dispatch,” “employee leasing,” “manpower outsourcing” and “staffing” all describe this same regulated activity, defined by the Labour Code 2019 (Art. 52) and detailed by Decree 145/2020/ND-CP.2

The structure separates the legal employer (the licensed company) from the enterprise that actually directs the work (the client) — which is why Vietnam licences and caps it rather than leaving it open. For the wider background, see Vietnam’s labour law and the two employment-contract types and how an EOR is lawful in Vietnam and its two routes.

The sub-leasing licence: a VND 2 billion deposit

A company cannot simply offer labour outsourcing — it must hold a labour sub-leasing licence, and the conditions are deliberately high. Under Decree 145/2020 (Art. 21) the licence requires a refundable deposit of VND 2 billion lodged at a licensed Vietnamese bank, and a legal representative who is a manager with at least three years (36 months) of relevant sub-leasing or labour-supply experience in the preceding five years, with a clean record.2 The deposit is security, not a fee — it can be drawn on to meet the licence-holder’s obligations to workers.

The licence runs for up to 60 months and can be renewed, each renewal again for up to 60 months.2 A credible provider can show its own valid licence; a “staffing” offer from a company that cannot name the licensed entity behind it is a warning sign, because the deposit and licence are what protect the worker if the arrangement fails.

Which jobs can be outsourced? The 20 permitted occupations

Labour sub-leasing is permitted only for a closed list of 20 occupations set out in Appendix II to Decree 145/2020; placing a worker in any role outside that list is unlawful.2 The list is weighted toward support, technical and service roles. Examples on it include:

• interpretation, translation and stenography;
• secretarial and administrative-assistant work, and reception;
• tour-guide and sales-support work;
• programming of computer systems;
• operation, maintenance and repair of machinery and equipment;
• cleaning, and document editing and handling;
• security and protection services;
• telemarketing and customer care, and driving.

Because telemarketing and customer-care roles sit on the permitted list, contact-centre work is one area where licensed dispatch is genuinely used — though providers employing agents long-term still use direct employment; see BPO and call-centre hiring in Vietnam. If your role is not on the list, labour sub-leasing is simply not available for it, and a provider offering it anyway is outside the law.

The 12-month cap per worker — the key limit for a long-term EOR

The single most important constraint is the duration cap: a sub-leased worker can be placed with the same client for a maximum of 12 months (Labour Code 2019, Art. 53).1 The law is written for temporary needs, not standing teams, which makes labour outsourcing a poor fit for a permanent hire.

Crucially, the Labour Code is silent on whether back-to-back placements of the same worker can be renewed once the 12 months expire. As of October 2026 that is unsettled, so stacking placements to keep a worker long-term through sub-leasing carries regulatory risk — confirm any such structure with Vietnamese counsel first. For this reason most “EOR Vietnam” services do not run ongoing roles through sub-leasing; they use direct employment, which is not bound by the 12-month cap. We explain both routes in whether an EOR is legal in Vietnam.

Equal treatment, permitted uses and the client’s duties

Even within the 12 months, protections apply. A sub-leased worker must be paid no less than the client’s own employees of equal qualification doing the same or similar work, and must not face discrimination in working conditions (Labour Code 2019, Arts. 56–57)1 — so outsourcing is not a route to cheaper labour for the same job.

The permitted reasons are limited too: a sudden, temporary surge in demand, cover for an employee on maternity, accident or military-service leave, or a specialist skill the client lacks. It cannot be used to replace workers on strike or in a labour dispute, or staff let go for economic or restructuring reasons (Labour Code 2019, Art. 53).1

The client carries duties too: it must sign a written sub-leasing contract covering the workplace, duration, working hours, safety and accident liability; it cannot pass the worker on to a third party; and it must return the worker to the licensed employer at the end of the term (Labour Code 2019, Arts. 53–57).1

How this differs from a direct-employment EOR

The second lawful route — the one behind most ongoing “EOR” arrangements in Vietnam — is not sub-leasing at all. A Vietnam-registered entity directly employs the worker on an ordinary labour contract, runs payroll, withholds tax, pays the roughly 23.5% statutory employer contributions and registers the contract, then invoices the overseas client under a business-to-business service agreement.14 Because this is ordinary direct employment, it is not bound by the Art. 53 twelve-month ceiling or the 20-occupation list — a structuring approach, not a special EOR statute. See what an employer of record is in Vietnam.

Whichever route is used, Vietnamese law looks at substance, not labels: paid work, wages and someone directing the worker make it an employment relationship, whatever the paperwork says (Labour Code 2019, Art. 13).1 Dressing up real employment as a “service” or a disguised contractor can be reclassified from the start, with back-dated contributions of about 32% of gross plus administrative fines under Decree 283/2026/ND-CP (which replaced Decree 12/2022/ND-CP from 10 September 2026).34 An outsourcing or EOR provider also does not automatically remove a foreign company’s own tax-presence exposure — see permanent-establishment risk in Vietnam. For the full side-by-side, read EOR vs staffing agency in Vietnam.

Labour outsourcing vs recruitment agency, PEO and EOR

Four models are easily confused. The table below sets labour outsourcing beside a recruitment agency, a PEO and a direct-employment EOR — the difference being who is the legal employer.

How EOR Vietnam handles this for clients

For ongoing roles, EOR Vietnam’s employer-of-record service does not use the capped sub-leasing route. We employ your worker through a Vietnam-registered entity on an ordinary labour contract — so there is no 12-month ceiling and no 20-occupation restriction — and handle the contract, payroll, social, health and unemployment insurance, personal-income-tax withholding, onboarding and offboarding, with work-permit support for foreign hires.

Our service fee is a flat US$149 per employee per month for Vietnamese nationals — the same fee regardless of salary, seniority, role, location in Vietnam or headcount, as of October 2026; it is not a percentage of payroll. Foreign nationals who need a Vietnamese work permit are quoted separately, because that handling varies case by case. There are no setup, onboarding, offboarding, contract or payslip fees, and no hidden fees. A refundable security deposit equal to two months of the employee’s employment cost — gross salary plus the statutory employer contributions — is held for the engagement and returned at the end, less any unpaid amounts.

Everything else is passed through at cost as an employment cost rather than our fee: gross salary, the roughly 23.5% statutory employer contributions, and any statutory or agreed employment payments.4 See the 23.5% employer on-cost broken down and what an EOR actually costs in Vietnam, browse our Vietnam employer guides, or request a costed EOR Vietnam quote.