In recent years, the rise of the digital economy, the emergence of fast-moving projects operating under agile models, and the need to test markets before making long-term investments have pushed many international companies to look for a leaner operating model. EOR Services.

Particularly in Vietnam – a fast-growing tech market with a young, skilled workforce – foreign companies often need to run short-term projects such as R&D, product testing, expanding software development teams, or collaborating with local engineering groups for 3–12 months.

However, most companies face a major obstacle from the very first step: they cannot legally hire in Vietnam without establishing a legal entity. Setting up a company or representative office is time-consuming and costly, especially when the project lasts only a few months.

This is why the Employer of Record (EOR) model has become the most effective solution for short-term projects: it is legally compliant, cost-efficient, and enables rapid team deployment.

This article examines why EOR services are well-suited for short-term projects in Vietnam, how international companies leverage this model for flexible operations, and why NIC Global is a leading EOR provider for foreign businesses.

1. The biggest challenges when launching short-term projects in Vietnam

When entering Vietnam, foreign companies typically face three major issues:

1.1. Entity setup time is too long for the project lifecycle

It takes 2–4 months for a foreign company to complete legal procedures, open a bank account, register taxes, and establish labor systems. For short-term projects, this consumes most of the “golden period,” causing businesses to lose competitive advantage. Many companies waste one-third of the project timeline just completing legal procedures—an obvious inefficiency.

1.2. Inability to legally sign contracts with Vietnamese employees

Under Vietnamese law, a company must have a legal entity in Vietnam to sign valid employment contracts.

Without an entity, companies hiring developers, engineers, or consultants for short-term projects face:

• Legal risks related to employment relationships
  
• Difficulty processing payroll, insurance, and tax
  
• The risk of being considered “illegal employment” or “invalid salary payment”.
  

1.3. Inability to manage benefits, insurance, and compliance

Each country has its own labor regulations—Vietnam being particularly strict regarding social insurance, health insurance, personal income tax, and employee benefits. Any mistake in insurance contribution or tax calculation can result in back-payments or administrative penalties. All these obstacles lead companies to the same conclusion: without a legal entity, deploying personnel for short-term projects is extremely difficult.

2. EOR Service – A flexible solution that removes all barriers

Employer of Record (EOR) exists to solve all of the above challenges. With EOR services, companies can hire, manage, and pay employees legally in Vietnam without setting up a local entity.

The process is simple: NIC Global acts as the legal employer, while the client company retains full control over employees’ day-to-day work.

In other words, companies have people working for them without needing to establish a Vietnamese entity, making EOR the #1 solution for short-term project deployment.

3. Why EOR is the best choice for short-term projects & flexible operations

3.1. Start the project within days

No need to spend months establishing an entity. Once the EOR contract is signed, NIC Global can:

• Recruit talent based on the client’s requirements
  
• Prepare employment contracts
  
• Sign and onboard employees
  
• Set up payroll, insurance, and tax
  

Average deployment time is 5–10 days, enabling a near-instant project kickoff.

3.2. Save 70–80% of operating costs vs. opening a company

Setting up a local entity requires costs such as:

• Office
  
• Accounting & admin staff
  
• Legal consulting
  
• Entity maintenance fees
  
• Recurring tax submissions
  
• Labor, tax, and insurance reports
  
• Annual audits
  

For short-term projects, these costs are unnecessary. With EOR services, companies only pay a fixed fee per employee—no overhead.

3.3. Zero legal risk

NIC Global ensures:

• Legally compliant employment contracts
  
• Accurate payroll, insurance, and tax processing
  
• Transparent allowances, reimbursements, and bonuses
  
• Leave and public holiday compliance
  
• Proper contract issuance, renewal, and termination
  

Companies face almost zero risk and can focus entirely on project management.

3.4. Fast, flexible hiring

EOR service is especially suited for IT projects needing:

• Temporary developers/engineers
  
• Building a 5–20-person dev team within 1–2 months
  
• Remote or hybrid workers
  
• Short-term hires that can be offboarded easily when the project ends
  

This level of flexibility is unmatched by other models.

3.5. Easy exit—no entity shutdown procedures

Instead of spending 6–12 months dissolving a company, businesses simply end the EOR service. NIC Global handles all employment termination procedures safely and legally.

4. When should companies use EOR for short-term projects in Vietnam?

Although EOR is suitable for many use cases, three scenarios benefit the most:

4.1. Market testing projects (3–12 months)

Examples:

• User research
• Product testing
• MVP deployment
• R&D activities

EOR service allows fast entry without heavy investment.

4.2. Hiring temporary specialists or engineering teams

Many foreign companies need:

• Backend/frontend developers
• QA/QC engineers
• Data engineers
• Solution architects
• Temporary PM/BA roles

EOR service enables fast hiring, easy management, and seamless offboarding.

4.3. Hiring a team before deciding to establish a company

EOR service serves as a “bridge model.”
Companies can hire 3–10 employees first, then open a legal entity later and transition staff accordingly.

EOR Services – The smart solution for short-term projects & new markets

Vietnam is becoming Southeast Asia’s emerging tech hub, attracting global companies in technology, AI, e-commerce, and high-tech manufacturing.

In this context, EOR service is an essential tool enabling companies to:

• Hire quickly
• Achieve 100% legal compliance
• Scale up or down flexibly
• Avoid establishing a legal entity
• Optimize operating costs
• Launch projects immediately

For companies entering Vietnam or deploying engineering/expert teams for 3–12 month projects, NIC Global is a trusted, experienced EOR partner ready to ensure complete project success.

For contact and support:

Facebook: NIC Global – Human Resource Solutions
LinkedIn: NIC Global Sourcing JSC
Website: www.nicvn.com
Email: info@nicvn.com
Hotline: (+84) 981.23.43.76
Address:

• Hanoi Office: No. 3A Thi Sach, Hai Ba Trung Ward, Hanoi, Vietnam
• Ho Chi Minh City Office: Dakao Center Building, 35 Mac Dinh Chi, Sai Gon Ward, Ho Chi Minh City, Vietnam

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