Every foreign company in Vietnam reaches the same question: should HR be handled by an outside partner, or by our own team? The honest answer is that it depends on your stage — and that the best setups usually change over time.
The problem with hiring a full HR team too early
A small office still needs recruitment, contracts, payroll, insurance, policies, performance reviews and compliance. One generalist rarely covers all of that well, and building a full team — HR manager, recruiter, C&B specialist, operations — before you have twenty employees is expensive and hard to keep busy.
When outsourcing fits best
- You are setting up and hiring your first 1–30 people.
- Headquarters is abroad and nobody locally knows Vietnamese labor law.
- You need senior HR judgement occasionally, not full-time.
- Hiring comes in waves (a new line, a new project).
When an in-house team fits best
- You have roughly 60–100+ employees and HR work is daily and steady.
- Culture, internal communication and employee relations need someone on site every day.
- You have stable systems — contracts, pay structure, performance process — that an internal team can run.
The hybrid most growing companies choose
Between those two points, a mix usually works best: one internal HR or admin person for daily contact, with an outside partner for payroll, compliance, senior advice and recruitment peaks. It keeps fixed costs low while giving you depth you could not afford in-house.
Compare on more than monthly cost
| Factor | Outsourced | In-house |
|---|---|---|
| Cost structure | Variable, scales with size | Fixed salaries, insurance, turnover risk |
| Expertise | Several specialists | Limited to the people you hire |
| Speed to start | Weeks | Months to recruit and train |
| Culture & presence | Needs a good partner | Strong, on site |
Plan the handover from day one
If you outsource now, agree on how the knowledge will come back to you: documented processes, templates you own, and a partner willing to help recruit and train your future HR team. At NEXORA we call this the last stage of our model — Start → Build → Scale → Transfer.
Questions to ask any HR partner
- Who exactly will work on our account, and how senior are they?
- Which documents and data do we own?
- How do you keep up with changes in labor and insurance law?
- Will you help us build our internal team when we are ready?
See how NEXORA's HR Solutions in Vietnam work or talk to us about your stage.
This article is general information as of November 2026, not legal advice. Rules change — confirm the latest requirements with the authorities or a licensed professional before acting.