For many Singaporean and regional startups, Vietnam has become one of Southeast Asia’s most compelling markets for expansion. With a labor force of 53 million people and a labor participation rate close to 69%, Vietnam offers both scale and capability for companies looking to build regional teams.
However, establishing a legal entity remains a major barrier. Incorporation can take three to six months, requires strict capital-contribution rules, and carries ongoing obligations such as annual audits, tax filings, and local compliance management. For early-stage companies, these administrative and financial commitments often outweigh the benefits of initial market testing.
This is why more startups are turning to Employer of Record (EOR) services—a smarter, low-risk alternative that allows companies to hire local talent without setting up a legal entity. Through an EOR model, a trusted local partner becomes the legal employer on your behalf, handling payroll, tax registration, labor contracts, social insurance, and compliance with Vietnam’s labor laws.
The startup retains full control of day-to-day work while avoiding incorporation costs, compliance risks, and lengthy setup timelines. Most importantly, EOR solutions enable companies to enter Vietnam in weeks instead of months, allowing founders to validate market potential quickly and scale only when ready.
For startups seeking a fast, compliant, and cost-effective expansion strategy, Cake Vietnam’s EOR service provides an ideal pathway—ensuring secure hiring, smooth onboarding, and full legal protection.
Explore how Cake Vietnam enables startups to enter Vietnam confidently and compliantly—without a local entity.
