Competitive hiring market Vietnam insights

When building a local workforce in Vietnam in 2026, businesses should first determine the nature of the position before deciding on the employment model. For long-term positions such as sales, finance, core operations, engineering, customer service team leaders, and core logistics personnel, formal employment contracts and long-term management are generally preferred. 

For peak season logistics, short-term projects, standardized customer service, and temporary positions, businesses can base their choice on workload to select fixed-term contracts, external support, or legally compliant seconded labor. Salaries, social insurance, and overtime pay must be appropriate to the position, shift, and actual labor relations; it cannot simply be legally binding on the contract while management practices are inconsistent and prolonged.

1. Outsourced and External Support Staff: Avoid Long-Term Outsourcing of Core Positions

In Vietnam, businesses can consider outsourcing or external support teams for warehousing, customer service, telephone support, short-term projects, and temporary execution positions. However, outsourcing is not a panacea; businesses need to assess whether a position is suitable for outsourcing based on Decree 145/2020/ND-CP and labor law regulations.

1.1 Which positions are better suited to flexible staffing?

• Supplemental warehousing staff during peak seasons;
• Personnel for sorting, packing, and loading during major promotional periods;
• Customer service via telephone using standard procedures;
• Temporary data entry;
• Short-term event support;
• Execution staff during peak project periods.

These positions share the common characteristic of talent shortage Vietnam 2026 sectors, having relatively standardized job content, little reliance on long-term experience accumulation, and a workload that fluctuates significantly depending on orders or projects.
 

Skills gap Vietnam workforce strategy

1.2 Which positions should not be outsourced long-term?

• Finance Manager;
• Human Resources Manager;
• Core Sales Manager;
• High-Authority Customer Service Manager;
• Platform Operations Manager;
• Warehouse Manager;
• Quality Manager;
• Core After-Sales Technician;

These positions not only perform labor tasks but also involve company authority, customer responsibilities, system data, record management, and external commitments. Long-term outsourcing will blur the lines of responsibility.

1.3 When using dispatched labor or external teams, three groups of documents should be reviewed:

• Service contracts between the business and the supplier; 
• Recruitment or assignment documents between the supplier and the worker;
• Internal company regulations regarding the authority, systems, timekeeping, and on-site management of these personnel.

2. Foreign Workers and Personnel Assigned to Vietnam: Should Not Be Treated Inconsistently with Local Workers

When foreign workers are employed in Vietnam, issues typically involve work permits, visas, temporary residence cards, the legality of their positions, and the duration of their assignment. Businesses need to refer to Decree 152/2020/ND-CP and subsequent amendments to determine the eligibility and employment plan for foreign workers after they enter Vietnam.

If labor market trends Vietnam foreign investors employs foreign managers, technical experts, regional managers, or project engineers, it is necessary to check additional regulations related to the management of foreign workers according to Decree 70/2023/ND-CP.
 

Competitive hiring market Vietnam insights

Foreign workers cannot be treated solely from a visa perspective; businesses also need to simultaneously assess work permits, the legality of their positions, the payers, the management relationship with the Vietnamese company, and the application of social insurance in Vietnam. Regarding residency status and work permit options after foreigners enter Vietnam, you can read more in skills gap Vietnam workforce strategy. 

3. Labor and On-site Safety Violations: Don't Wait Until Labor Disputes Occur Before Supplementing Regulations

Labor compliance in Vietnam also involves administrative penalties and on-site safety responsibilities. If a business fails to sign labor contracts as required, fails to pay social insurance as mandated, arranges overtime illegally, fails to maintain records of working hours, or fails to fulfill its labor safety obligations, the business may incur administrative liability under Decree 12/2022/ND-CP.

For positions in manufacturing, warehousing, engineering, electronics, new energy equipment, and project sites, businesses also need to pay attention to the Law on Occupational Safety and Health 84/2015/QH13, and establish regulations on position training, equipment operation, protective equipment, accident reporting, and site management.

When building a local workforce in Vietnam, the real challenge for businesses is not just preparing a labor contract template, but clarifying the position, contract, salary, social insurance, shifts, and HR management boundaries beforehand. Faro Vietnam can assist businesses in evaluating from four perspectives:

• Position stratification assessment: Differentiating core positions, execution positions, project positions, and peak-season supplementary positions in Vietnam; identifying which personnel need long-term employment and which can be transitioned through fixed-term contracts, EOR, seconded labor, or external support.
• Contract and salary structure design: Incorporating position responsibilities, working hours, performance rules, commissions and bonuses, allowances and subsidies, and overtime situations to help businesses design labor contracts and salary structures that align with actual operations, avoiding inconsistencies between contract wording and management practices.
• Social insurance and labor cost review: Based on employee type, work location, contract duration, and salary structure, we assist businesses in estimating social insurance, health insurance, unemployment insurance, overtime, minimum wage adjustments, and long-term recruitment costs.
• Establishing local management rules: We support businesses in designing mechanisms for timekeeping, overtime approval, leave, labor discipline, delegation of authority, employee handbooks, and handover upon termination, so that the Vietnamese team has a management foundation that can be implemented from the initial development phase.

>>>Read more: human resource services - Best hr services providers in  Vietnam

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