Removal of Licensing Requirements for Employment Services and Labour Leasing from 1 July 2026

For many years, both employment services and labour leasing have been regulated as conditional business lines, requiring companies to obtain and maintain operating licences. Effective from 1 July 2026, businesses will no longer be required to obtain an Employment Service Licence or a Labour Leasing Licence before carrying out these activities.

Labour Leasing Services

Labour leasing activities are currently governed by Decree No. 145/2020/ND-CP. Although the Vietnamese Government is preparing a new regulatory framework to replace the existing regulations, the replacement legislation has not yet been officially issued.

In the meantime, from 1 July 2026, under Resolution number 66.18/2026, companies will no longer be required to apply for, renew, reissue, or maintain a Labour Leasing Licence. Instead, companies must notify the relevant labour authority (i.e., the Department of Home Affairs) before commencing labour leasing activities.

Importantly, the removal of the licensing requirement does not eliminate the security deposit requirement. Companies providing labour leasing services must continue to maintain a security deposit of VND 2 billion with a licensed bank operating in Vietnam.

Employment Services

Under the Employment Law 2025, companies providing employment services are required to obtain an Employment Service Licence. However, this licensing requirement will be removed from 1 July 2026 in accordance with the Resolution number 66.18/2026. Instead of applying for a licence, a company must notify the Department of Home Affairs at least five working days before commencing its employment service activities.

Companies providing employment services must also continue to maintain the statutory security deposit of VND 300 million. However, the procedures relating to the management of the security deposit have been significantly simplified. Companies will no longer be required to obtain prior approval from the competent authorities before carrying out transactions relating to the security deposit account maintained with the deposit bank.

The removal of these licensing requirements is a positive step towards reducing compliance costs and lowering market entry barriers for businesses operating in the HR and staffing sector. However, companies must continue to comply with other regulatory requirements, including notification obligations, reporting requirements, and applicable security deposit requirements.

Overall, these changes reflect the Government's shift from a licensing-based regulatory framework towards a more streamlined compliance and post-supervision model.