Employer of Record Service: Trends, Benefits & Solutions for 2025
07/08/2025
Why are foreign businesses increasingly interested in Employer of Record Services?
In today’s globalized world and the rapid growth of emerging markets, Vietnam has become a magnet for international companies. However, establishing a legal entity can take 3–6 months and require high setup costs for offices, accounting, and HR. Meanwhile, many businesses only need to run short-term projects or test the market. So what’s the solution to help them “enter Vietnam” quickly while staying compliant? – The answer is Employer of Record Service – a growing trend in Vietnam that enables foreign businesses to legally hire and manage employees without the need to establish a local entity.
What is Employer of Record (EOR) Service?
Employer of Record Service (EOR) is a solution where a third party, such as NIC Global, acts as the legal employer. They sign labor contracts and fulfill all legal obligations with Vietnamese authorities, while the foreign business retains operational control over the employees’ work.
In other words, you can hire staff, launch projects, pay salaries, and provide full employee benefits quickly and legally, without setting up a legal entity in Vietnam.
Global & Vietnam Market Trends in 2025
- The global EOR services market is expected to reach $6.6 billion by 2030 (according to Grand View Research).
- Vietnam is among Southeast Asia’s top FDI destinations, particularly in technology, e-commerce, fintech, and smart manufacturing.
- According to NIC Global’s data, 65% of new FDI businesses in Vietnam use Employer of Record Services in the first two years rather than immediately setting up a legal entity.
This shows that EOR is not only popular but also a strategic tool for accelerating international expansion.
Cost & Time Comparison: Legal Entity vs. Employer of Record Service
| Criteria | Legal Entity Setup | Employer of Record Service |
| Time to Launch | 3–6 months | 5–7 days |
| Initial Cost | $3,000–$10,000 | Flexible, based on headcount |
| Legal Obligations | Business & tax filings | Handled by NIC Global |
| HR Management | Handled by the company | Fully supported by NIC Global |
Conclusion: EOR helps businesses save up to 90% of their time and 70% of their costs compared to setting up a legal entity.
Strategic Benefits of Employer of Record Service
- Fast deployment, legal compliance
Operate in Vietnam within 5–7 days while ensuring 100% compliance with labor, tax, and insurance regulations. - Lower administrative costs
No need to maintain internal HR, legal, or accounting teams during the early stages. - Employee protection
Workers receive legal contracts, full social and health insurance, boosting satisfaction and retention. - Accelerated market expansion
Hire locally, test projects, or transfer talent from abroad without regulatory roadblocks.
Why NIC Global Is the Top EOR Choice in Vietnam
- Solid legal standing & transparent process
NIC Global is licensed to provide labor outsourcing and employee legalization under Vietnamese law. - 20+ years of HR industry experience
We’ve helped hundreds of FDI businesses and global corporations successfully launch projects in Vietnam. - Beyond EOR – Full HR solutions
In addition to labor legalization, NIC Global offers:- Payroll & tax services
- Executive & bulk recruitment
- HR outsourcing & strategic HR consulting
- Modern HR technology
Our cloud-based HR system allows real-time access to payroll, contracts, and reports. - Data security & compliance guaranteed
All employee and corporate information is protected by international-grade encryption standards.
Checklist Before Using Employer of Record Services
Clearly define your needs (headcount, timeline) Verify the service provider’s legal credentials and track record Ensure contracts outline responsibilities, liabilities, and confidentiality Confirm payroll, tax, and insurance processes are transparent
The Future of Employer of Record Services
In the next 5 years, labor legalization will integrate closely with HR tech, payroll outsourcing, and workforce management to form a complete HR ecosystem, helping global companies operate faster and more flexibly than ever.
Labor legalization is no longer just a short-term fix – it’s a smart, strategic solution for global companies seeking accelerated growth in Vietnam. With 20+ years of experience, NIC Global is committed to delivering fast, legal, and cost-optimized solutions to support your long-term success.
For contact and support:
Facebook: NIC Global – Human Resource Solutions
LinkedIn: NIC Global Sourcing JSC
Website: www.nicvn.com
Email: [email protected]
Hotline: (+84) 981.23.43.76
Address:
- Hanoi Office: No. 3A Thi Sach, Pham Dinh Ho Ward, Hai Ba Trung District, Hanoi, Vietnam
- Ho Chi Minh City Office: Dakao Center Building, 35 Mac Dinh Chi, District 1, Ho Chi Minh City, Vietnam
See more:
Payroll service
Staffing service
EOR service
