Full-Cycle HR Outsourcing vs. Basic Payroll in Vietnam

Jan 20, 2026

Blog, EOR, HR Outsourcing

Basic Payroll vs. Full-Cycle HR Outsourcing: Which is Right for Your Vietnam Business?

When a business first enters Vietnam, the immediate goal is usually simple: “We need to pay our employees on time and stay legal.” This often leads companies to seek a basic payroll service. However, as the workforce grows and the 2026 legal landscape becomes more complex, many leaders realize that “just payroll” isn’t enough to prevent operational friction. If you are looking for more than just a calculation service, it’s time to understand the value of Full-cycle HR Outsourcing.

Table of Contents

What is Basic Payroll?

Basic payroll is a transactional service. You provide the raw data (hours worked, salary, and bonuses), and the provider gives you the calculations.

Focus: Data processing.
Scope: Calculating Gross-to-Net, withholding Social Insurance (SHUI), and generating payslips.
The Gap: You are still responsible for the “human” side—handling onboarding, managing labor contract renewals, and navigating complex employee disputes or terminations.

What is Full-Cycle HR Outsourcing?

Full-cycle HR Outsourcing is a comprehensive partnership that covers the entire employee journey, from the first interview to the final exit interview. At Netviet HRS, this means we aren’t just your “calculator”—we are your HR department.

Phase 1: Strategic Talent Acquisition: We don’t just find names; we benchmark salaries against the 2026 market and ensure your offers are competitive yet budget-conscious.
Phase 2: Seamless Onboarding: We handle the administrative “paperwork” of hiring, ensuring that every labor contract complies with the latest 2026 Labor Code updates from day one.
Phase 3: Active Lifecycle Management: This includes tracking probation periods, managing leave entitlements, and ensuring that contract addendums are signed whenever a promotion or salary change occurs.
Phase 4: Expert Payrolling & Compliance: We manage the monthly payroll, but we also handle the “heavy” statutory reporting and the 2026 PIT finalizations that a basic service might leave to your internal team.

The Comparison: Why “Full-Cycle” Wins in 2026

In 2026, Vietnam’s regulatory environment is moving toward total digital transparency. A siloed approach (Recruitment firm A + Payroll firm B) creates “data gaps” that increase your risk of an audit.

Feature	Basic Payroll	Full-Cycle HR Outsourcing
Recruitment Support	None	End-to-end Hiring
Contract Management	Client handles	Provider handles
Compliance Risk	Moderate (Shared)	Low (Provider Managed)
Onboarding/Offboarding	Client handles	Provider handles
Advisory & Consulting	Minimal	Proactive Strategic Advice

Strategic Benefits of the Full-Cycle Model

By choosing Full-cycle HR Outsourcing, your business gains three key advantages:

Single Source of Truth: Your recruitment data flows directly into your payroll data. There are no “lost in translation” errors regarding allowances or special bonuses promised during the hiring stage.
Regulatory Agility: A full-cycle partner proactively updates your strategy, not just your software.
Reduced Overhead: You no longer need to hire an internal HR Generalist to manage the “gap” between the recruiter and the payroll firm.

Make the Strategic Switch with Netviet HRS

Basic payroll keeps you running, but Full-cycle HR Outsourcing helps you scale. With over 20 years of experience in the Vietnam market, Netviet HRS provides the integrated infrastructure you need to turn HR from a cost center into a competitive advantage.

Don’t just pay your people—manage their success. Contact Netviet HRS today to transition to a full-cycle model and future-proof your Vietnam operations for 2026.

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