How to Start a Headhunting or Recruitment Agency in Vietnam – Full Guide for Foreign Investors

1. Introduction

Vietnam has become a prime destination for foreign investors seeking to start a headhunting or recruitment agency. With its fast-growing economy, young and skilled workforce, and increasing demand for talent acquisition services, Vietnam offers strong potential for international HR businesses. This step-by-step guide will walk you through everything you need to know about how to set up a legally compliant headhunting company in Vietnam — whether you’re an individual investor, a global recruitment firm, or an HR entrepreneur entering the Vietnamese market.

2. What is a Headhunting Company?

A headhunting company in Vietnam—also referred to as a recruitment agency or executive search firm—is a specialized service provider that helps businesses identify and hire top-tier talent. These companies focus on sourcing highly qualified candidates for mid-level, senior management, and specialized positions. Foreign investors and multinational companies often rely on headhunting firms in Vietnam to build strong local teams using tailored recruitment strategies that align with their business goals.

3. Legal Framework for Headhunting Companies in Vietnam

Establishing a headhunting or recruitment agency in Vietnam requires strict compliance with local employment and business laws. The following legal documents form the foundation for licensing and operating a legally compliant headhunting company in Vietnam:

• Employment Law 2013 – Regulates all employment-related activities, including recruitment services and labor contracts.

• Decree No. 23/2021/ND-CP – Provides detailed guidelines on the licensing, conditions, and operations of employment service providers, including headhunting and recruitment firms.

• Enterprise Law 2020 – Outlines the general legal framework for business registration, corporate structure, and legal representation in Vietnam.

Foreign investors planning to open a recruitment agency in Vietnam must fully understand and comply with these laws to ensure proper licensing, ongoing compliance, and smooth business operations.

4. Business Code and Industry Classification

To legally register a headhunting company or recruitment agency in Vietnam, foreign investors must select the correct Vietnam Standard Industrial Classification (VSIC) code that aligns with recruitment and employment services. The applicable industry code is:

• VSIC Code 7810 – Activities of Employment Placement Agencies
  This code includes services related to job placement, talent sourcing, and executive search for companies across various industries.

When registering your business, this VSIC code must be clearly listed in your Enterprise Registration Certificate (ERC). It officially designates your company as a licensed recruitment service provider in Vietnam, allowing you to legally operate in the human resource and talent acquisition sector.

5. Step-by-Step Procedure to Establish a Headhunting Company

Establishing a headhunting or recruitment agency in Vietnam as a foreign investor involves several legal and administrative steps. Below is a comprehensive, SEO-optimized guide to the process:

Step 1: Investment Registration Certificate (IRC)

Foreign investors are required to apply for an Investment Registration Certificate (IRC) from the Department of Planning and Investment (DPI) in the province or city where the company will be based.

• The IRC outlines the investment project, including business objectives, operational scope, investment capital, and investor information.

• This is a mandatory step before setting up any foreign-owned business in Vietnam.

Step 2: Enterprise Registration Certificate (ERC)

Once the IRC is issued, the next step is to obtain the Enterprise Registration Certificate (ERC) to officially incorporate your company in Vietnam.

• The ERC includes key details such as your company name, legal representative, head office address, and the VSIC code 7810 for recruitment activities.

• This certificate legally recognizes your business as an enterprise under Vietnamese law.

Step 3: Recruitment License Application

After your headhunting company is registered, you must obtain a Recruitment Service Operation License from the Department of Labor, Invalids and Social Affairs (DOLISA). This license allows your company to legally engage in employment and job placement services.

Important note for Ho Chi Minh City:
Due to administrative restructuring in 2025, DOLISA in Ho Chi Minh City has been merged into the Department of Home Affairs. As such, all recruitment license and work permit applications in HCMC are now handled by the Department of Home Affairs.
In other provinces and cities, DOLISA remains the competent authority for issuing recruitment licenses.

Step 4: Public Announcement

Within 20 working days of receiving your Recruitment License, your company must make a public announcement of its operational details.

• This requirement can be fulfilled by publishing the announcement on your company’s official website or in a printed publication such as a local or national newspaper.

• The announcement should include key information such as your company name, license number, scope of services, and contact details.

6. Conditions to Obtain a Recruitment License in Vietnam

To legally operate a headhunting or recruitment agency in Vietnam, foreign investors must obtain a Recruitment Service Operation License issued by the competent authority (DOLISA or Department of Home Affairs in Ho Chi Minh City). Below are the mandatory conditions your company must fulfill to qualify for this license:

1. Physical Office Lease Requirement

Your company must have a legally leased office or branch office in Vietnam, which serves as the official place of business for recruitment activities.

• The lease contract must have a minimum duration of 36 months (3 years) at the time of application.

• The office must be commercially zoned and suitable for business registration under Vietnamese regulations.

• The lease agreement must be valid, notarized (if required), and submitted along with your license application.

This condition ensures that the recruitment company has a stable and professional working environment for providing employment services.

2. Financial Deposit Requirement

To demonstrate financial capacity and regulatory compliance, your company must place a security deposit of VND 300 million (approximately USD 12,000) in a licensed bank in Vietnam.

• The deposit must be made at either:

  • A Vietnamese commercial bank, or

  • A legally established branch of a foreign bank operating in Vietnam.

• A certificate of deposit issued by the bank is required as part of your application dossier.

• This deposit serves as a financial guarantee and may be used by the authorities to settle potential obligations to jobseekers or employees in the event of disputes or company closure.

3. Qualified Legal Representative (Director or Manager)

Your company must appoint a legal representative or manager who meets the following professional and legal qualifications:

• Education or Experience:

  • Hold at least a bachelor’s degree (university level), OR

  • Have a minimum of 24 months of experience directly related to employment services, human resources, or labor supply management within the last five (5) years.

• Legal Status:

  • Must not be under criminal investigation or prosecution.

  • Must not be currently serving a prison sentence.

  • Must not be subject to any form of administrative detention or restrictions that would impair their ability to manage the business.

The legal representative is a key individual responsible for the company’s compliance with Vietnam’s labor laws and must have a clean background and relevant qualifications.

7. Post-License Obligations

Once your company has successfully obtained the Recruitment Service Operation License in Vietnam, there are several ongoing compliance obligations that must be fulfilled to ensure your business remains legally operational and avoids penalties. These obligations apply to both foreign-owned recruitment agencies and local enterprises.

1. Public Disclosure of Licensing Information

Within 20 working days from the date the recruitment license is issued, your company is required to make a public announcement of its licensing and business information.

• This announcement must include your company’s name, license number, date of issuance, registered office address, and authorized services.

• The announcement can be published via:

  • Your company’s official website, or

  • A printed publication such as a national or local newspaper.

This public disclosure ensures transparency and demonstrates compliance with Vietnam’s labor service regulations.

2. Record-Keeping and Compliance Inspections

Your company must maintain accurate and complete records related to recruitment service operations. These include:

• Copies of employment contracts arranged through your agency.

• Profiles and resumes of job candidates.

• Signed service agreements with corporate clients and hiring companies.

• Documentation of fees collected, job offers made, and placements completed.

These records must be kept up to date and readily available for inspection by the Department of Labor, Invalids and Social Affairs (DOLISA) or other relevant authorities.

3. Recruitment License Validity and Renewal

The Recruitment Service License in Vietnam is valid for a period of 60 months (5 years) from the date of issuance.

• Your company must submit a renewal application before the expiration date to continue operating legally.

• The renewal process requires confirmation that your business has consistently complied with Vietnamese laws and that no violations or unresolved disputes exist.

Failure to renew the license on time may lead to administrative penalties or suspension of operations.

4. Periodic Reporting Requirements

Headhunting and recruitment agencies in Vietnam are required to submit regular reports to the authorities detailing their operational activities. These reports help ensure ongoing compliance and provide statistical data on the recruitment sector.

• Reports must be submitted twice per year:

  • Semi-annual report (covering January to June)

  • Annual report (covering the entire year)

• Reports must follow the standard format issued by the Ministry of Labor, Invalids and Social Affairs and be submitted to the local DOLISA (or equivalent authority).

Special Note for Ho Chi Minh City

Due to the administrative merger in 2025, the Department of Labor, Invalids and Social Affairs (DOLISA) in Ho Chi Minh City has been integrated into the Department of Home Affairs.

• Therefore, all responsibilities related to post-licensing compliance, report submissions, and license renewals are now handled by the Department of Home Affairs in HCMC.

• In all other provinces and cities, these responsibilities remain with the local DOLISA.

8. Frequently Asked Questions (FAQs)

Q1: Can a foreigner be the legal representative of a headhunting company in Vietnam? Yes, as long as the individual meets the education or experience requirements and is not subject to any legal restrictions.

Q2: How long does it take to set up a recruitment company in Vietnam? Typically, the entire process takes 4 to 6 weeks, depending on document readiness and government processing times.

Q3: Is it necessary to have a Vietnamese partner? No. 100% foreign ownership is allowed in recruitment services under current regulations.

9. Conclusion

Establishing a headhunting company in Vietnam offers high potential in a fast-growing market. However, it is crucial to understand and comply with local legal requirements. From obtaining an IRC and ERC to meeting recruitment license conditions, each step requires careful planning. With the right guidance and professional support, foreign investors can efficiently launch and grow a successful recruitment firm in Vietnam.

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