Vietnam offers one of Southeast Asia’s most dynamic and fast-evolving talent pools with a population of over 101 million, more than half of whom are under the age of 35*. In 2024, its labor force surpassed 52 million*, fueled by rising education levels and growing technology, manufacturing, and services expertise.
This skilled workforce, combined with a business-friendly government and strategic location, makes Vietnam a prime destination for global companies looking to scale their teams, a strategic move perfectly aligned with global hiring trends 2026.
Hiring trends in Vietnam, 2025
- Vietnam offers attractive labor costs, with average monthly salaries of VNĐ5.5 million (US$261)
- Vietnam’s information and communications industry’s revenue is projected to reach approximately $169.3 billion* in 2025
- Vietnam is advancing towards becoming a leader in science, technology, and digital transformation by 2030*
- Vietnam’s young labor force reached nearly 52.5 million people* in the first half of 2024
For foreign companies hiring employees in Vietnam, this guide provides clear, practical steps to hiring in-house or through an Employer of Record (EOR) — so you can build and scale your team here confidently and easily.
Why businesses hire teams in Vietnam
Vietnam offers the right mix of affordability, access, and talent.
Key advantages include:
- Lower labor costs than Thailand and the Philippines
- The central ASEAN location enables smooth access to regional markets
- Rising tech talent pool in IT, engineering, and business services
- Government-backed innovation push to lead in digital transformation by 2030
- Ideal for scaling teams in manufacturing, services, and technology sectors
Before hiring: Understand compliance, costs, and other concerns
Despite the advantages, businesses will encounter several challenges when hiring in Vietnam. These include:
- Navigating local labor laws: Vietnam has labor regulations as per the Employment Act and Labor Code 2019.
- Cultural differences: Adapting to Vietnam’s culture and work ethic can be challenging for foreign companies; overlooking local nuances may lead to misunderstandings and strain team dynamics
- Language barriers: Young professionals are increasingly fluent in English, but many candidates still prefer speaking Vietnamese.
- Competition for talent: As Vietnam’s economy grows, so does the competition for skilled workers. Companies must offer excellent compensation and competitive benefits packages to secure top talent.
Typically, companies may need an experienced and dedicated team to manage the mandatory employment contracts, working hours, minimum wages, overtime, rest breaks, and employee benefits.
How much does it cost to hire an employee in Vietnam?
Average salaries
Labor costs in Vietnam are still relatively low, but wages are gradually rising. As of July 2024, Vietnam raised the minimum wage by 6%. The common minimum wage in Vietnam (mainly used in state-owned businesses) is VND 2,340,000 (about $93), while the regional minimum wage (applies to employees in private businesses) varies by location.
Here’s an approximation of the average monthly salary for six different positions according to Michael Page and ERI (Economic Research Institute):
- Software Engineering Manager. VND138,000,000
- Accounting Manager. VND70,000,000
- Full Stack Developer. VND 687,354,524
- Product Manager. VND 660,695,210
Mandatory contributions
Beyond base salary, employers in Vietnam must factor in overtime, bonuses, and a 23.5% contribution to mandatory benefits. This includes:
- Social insurance: 17%
Calculated on salaries up to VND 46,800,000/month - Health insurance: 3%
Capped at VND 46,800,000/month - Accident insurance: 0.5%
Typically follows the same cap: VND 46,800,000/month - Trade union fee: 2%
Capped at VND 46,800,000/month - Unemployment insurance: 1%
Based on 20× regional minimum wage, capped at VND 99,200,000/month
Administrative costs
In addition to these mandatory contributions, companies must also budget for administrative overhead, local payroll processing, and legal consultancy fees to adhere to evolving regulations, especially when they don’t have on-the-ground expertise in Vietnam.
That’s why many global companies turn to an Employer of Record (EOR) like Multiplier. It’s a faster, more cost-effective way to hire in Vietnam — without setting up a local entity or navigating labor laws alone.
What is an EOR and how does it simplify hiring in Vietnam?
An EOR simplifies hiring, ensures compliance, and speeds up market entry. But what does that look like in practice? Let’s break down the recruitment process in Vietnam — step by step — and compare how it plays out when you hire directly vs when you partner with an EOR.
Step-by-step process to hire in Vietnam
Here’s a breakdown of how to approach hiring in Vietnam:
Step 1: Register your local entity and obtain a business license
To hire employees directly in Vietnam, you must first establish a legal entity — typically a Limited Liability Company (LLC) or Joint-Stock Company (JSC). This involves:
- Applying for an Investment Registration Certificate (IRC)
- Obtaining an Enterprise Registration Certificate (ERC)
- Registering with local tax and labor authorities
The entity registration process can take several weeks to months and requires in-country legal and administrative support. Costs involve share capital requirements (although not mandatory), notary and legal fees, and annual maintenance costs.
How an EOR helps
With an EOR, you avoid the costs and hassles of setting up a local company. An EOR like Multiplier acts as the legal employer, allowing you to hire employees and operate compliantly in Vietnam from day one.
Step 2: Define roles, source talent, and evaluate candidates
Before hiring, clearly define the role and identify the best sourcing channels for talent in Vietnam.
- Start by clarifying employment type. Define whether your employee will work full-time, part-time, or as an independent contractor. Ensure the role is classified correctly to meet Vietnam’s labor code requirements (we explain this more in step 4)
- Write localized, clear job descriptions. Clarify expectations and statutory entitlements.
- Choose sourcing channels based on role and location:
Top cities for hiring:
▸ Ho Chi Minh City, Hanoi, Da Nang
Top universities (great for fresh grads):
▸ Vietnam National University
▸ Ho Chi Minh City University of Technology
▸ RMIT Vietnam, FPT University, and others
Popular job platforms:
▸ VietnamWorks, CareerBuilder, Careerlink, Mywork.com, Vieclam24h, Indeed - Evaluate candidates through structured interviews and skill-based assessments. Avoid personal or sensitive questions that may be considered discriminatory under Vietnamese law.
- Discuss benefits: Employers typically discuss benefits packages during the final interview or extended offer. In Vietnam, a well-defined benefits package can give you a distinct advantage in recruiting.
- Ensure lawful background verification. In Vietnam, you must get informed consent from your employees before conducting a background check. PDPC (Personal Data Protection Commission) rules govern all background check protocols in Vietnam.
How an EOR helps
While an EOR typically does not help you source talent, it helps your HR teams move quickly and compliantly by removing administrative headaches, including compliant background verification. It also gives you an edge by helping you design budget-friendly, compliant, and competitive benefits packages within minutes.
Step 4: Draft and sign compliant employment contracts
Vietnam mandates that employment contracts be:
- In writing (except for short-term work under 1 month),
- In Vietnamese, or bilingual (with Vietnamese prevailing),
- Aligned with the Labor Code 2019, including clear terms on compensation, working hours, probation, benefits, leave, termination, and more.
How an EOR helps
With an EOR, you draft compliant contracts that avoid the risk of misclassification and non-compliance within minutes.
Step 5: Register and contribute to Vietnam’s social security system
Both employers and employees contribute to the social security system, with rates set by the government. They must contribute from the first day of the employment contract; failure to comply can lead to fines and back payments.
The Social Security fund is insurance to reduce financial risks during unemployment, sickness or injury, pregnancy, and childbirth. As of 2024, the cap for social and health insurance is VND 36 million.
Type of Tax | Employer Contribution (%) | Employee Contribution (%) | Total Contribution (%) |
Social Insurance | 17.5% | 8% | 25.5% |
Health Insurance | 3% | 1.5% | 4.5% |
Unemployment Insurance | 1% | 1% | 2% |
Union Fee | 2% | N/A | 2% |
How an EOR helps
Your EOR registers employees for social insurance and manages all required contributions, ensuring accurate and timely submissions to Vietnamese authorities.
Step 5: Set up local payroll and provide statutory benefits
Vietnam mandates specific payroll practices, including:
- Salary payments in VND: Vietnamese employees must be paid in Vietnamese Dong or VND, even if they work for a foreign company. For foreign employees, salaries can be set in either Vietnamese Dong or a foreign currency, but when it comes to social insurance, taxes, and trade union fees, everything must be converted into VND using the official government exchange rate.
- 13th-month salary or Tet bonus: Unlike the Philippines or Indonesia, a 13th month pay is not mandatory in Vietnam. However, it is highly encouraged. Most employees expect this bonus (which local calls ‘Tet’ bonus) either at the end of the year or during the Tet holiday (Vietnamese New Year)
- Personal income tax (PIT): Progressive and withheld monthly by employers.
- Issue monthly pay slips and keep records: Pay slip records must be available in Vietnamese and kept for inspection.
- Withholding and remitting taxes and social contributions
- Statutory benefits like annual leave, sick leave, and public holidays.
In Vietnam’s competitive employment landscape, we recommend that employees go beyond statutory benefits to attract and retain talent. This includes:
- Non-taxable allowances for remote employees — such as stipends for equipment, internet, transport, and co-working spaces.
- Additional benefits like meal allowances, utility reimbursements, health insurance stipends, or perks like gym memberships and entertainment fees.
How an EOR helps
With an EOR, you don’t need to build local payroll systems or track regulatory changes. An EOR like Multiplier runs payroll in Vietnamese Dong (VND), withholds taxes, calculates mandatory contributions, and disburses payments to local authorities. Employees receive all statutory benefits — including leave entitlements, public holiday pay, and bonuses like the Tet bonus — fully aligned with Vietnam’s labor laws and norms.
Step 6: Onboard and manage your employees compliantly
Once you’ve hired your employee, onboarding is more than just paperwork — it’s your first opportunity to set expectations, build trust, and help them integrate smoothly, especially if they’re working remotely.
In Vietnam, employers are required to:
- Register new hires with the Social Insurance Authority
- Maintain up-to-date personnel files (employment contract, ID, qualifications, etc.)
- Submit labor reports to the Department of Labor, Invalids and Social Affairs (DOLISA)
- Provide employees with an orientation on company policies, job responsibilities, and labor rights
- Clearly communicate leave policies, performance expectations, and benefits entitlements
For remote employees, onboarding should also include:
- Setting up access to communication tools (e.g. Zoom, Slack, internal systems)
- Clarifying working hours and availability expectations, especially across time zones
- Delivering role-specific training or documentation
- Assigning a local point of contact or HR coordinator to support them during the first few weeks
How an EOR helps
An EOR like Multiplier handles onboarding documentation, contract storage, insurance registration, and local reporting. Your new hires get a compliant and structured start — while your team focuses on culture, performance, and engagement from day one.
Now that we’ve covered all the steps involved in compliantly hiring and onboarding employees in Vietnam, the question remains: should you build your own in-house HR operations — or partner with an Employer of Record (EOR) to simplify the process? Here is a quick recap to help you decide
Quick view: In-house HR vs. EOR for hiring in Vietnam
In-house hiring works better for businesses with long-term plans and local presence. If you’re entering Vietnam for the first time, need speed, or lack local HR infrastructure, an EOR like Multiplier is ideal — it simplifies hiring, ensures compliance, and reduces risk.
Benefits of using an EOR like Multiplier for hiring in Vietnam
An EOR offers several advantages for businesses looking to hire in Vietnam:
- Compliance: EORs ensure 100% compliance with all local labor laws. You reduce the risk of penalties, misclassification, or mistakes in legal paperwork.
- Faster hiring: With Multiplier, you can quickly onboard employees without setting up a local entity or navigating complicated legal procedures.
- Fully managed payroll: EORs calculate taxes, process payments in VND, issue pay slips, and ensure accurate filings — so your team is paid on time, every time.
- Work permits made easy: When you want to onboard foreign employees, EORs handle the entire work permit process — application, renewals, and ongoing compliance — saving time and avoiding legal delays.
Vietnam offers a young, skilled, and affordable talent pool. But building a compliant, high-performing team here requires navigating complex labor laws, taxes, and cultural expectations.
Ready to hire in Vietnam efficiently, compliantly, and competitively?
Book a demo to see how Multiplier can help.
Frequently asked questions
Can I hire employees in Vietnam without my own legal entity?
Yes, you can hire employees in Vietnam without setting up a legal entity by partnering with an Employer of Record (EOR). An EOR takes care of compliance, payroll, taxes, and benefits while allowing you to manage your team’s day-to-day operations.
What are the minimum wages in Vietnam?
There are two kinds of minimum wages in in Vietnam. The common minimum wage (VND 2,340,000) is used in state-owned businesses. Private businesses pay the regional minimum wage, which varies by location or zone.
- Zone 1: VND 4,960,000 per month
- Zone 2: VND 4,410,000 per month
- Zone 3: VND 3,860,000 per month
- Zone 4: VND 3,450,000 per month
Can a foreigner get a job in Vietnam?
Yes, foreigners can work in Vietnam, but they typically need a work permit unless they qualify for an exemption. The process involves securing a job offer from a Vietnamese employer, obtaining a work visa, and fulfilling certain legal requirements. Some industries have restrictions on hiring foreign employees, so it’s essential to check Vietnam’s specific regulations.
What are the rules and costs for overtime in Vietnam?
If your employees work overtime, you must ensure:
- You have consent from the employee
- The employee’s daily overtime working hours do not exceed 50% of normal daily working hours
- Weekly overtime working hours do not exceed 12 hours
- Monthly overtime working hours do not exceed 40 hours
- Annually, overtime working hours must not exceed 200 hours (with some exceptions for employees who can work up to 300 hours)
- Employees must have at least one day of rest per week or four rest days per month.
Calculate overtime pay as:
- 150% of salary on normal weekdays
- 200% of salary on weekends
- 300% of salary on public holidays
What are the mandatory benefits I must provide a Vietnamese employee?
- 13th-month pay or Tet Bonus. Though not mandatory, paying a Tet bonus is a common practice, and your Vietnamese employees will expect it.
- Annual leaves. After one year of service, a Vietnamese employee is eligible for paid annual leave (exclusive of public holidays) depending on their working conditions. Employees also have one additional day of leave for every five years of service.
There is no specific regulation regarding carrying over unused leaves. While some employers allow this until a certain date during the next year, others payout the unused leaves in cash. - Sick leave. In Vietnam, sick leave is covered by the social insurance fund and not the employer. If an employee takes sick leave, they usually provide a medical certificate to support their leave. In general, Vietnamese employees may take 30-60 days of sick leave per year, depending on the length of their social insurance contribution.
- Under normal conditions
▸ <15 years: 30 days
▸ 15–30 years: 40 days
▸ >30 years: 60 days - Under hazardous conditions
▸ <15 years: 40 days
▸ 15–30 years: 50 days
▸ >30 years: 70 days
- Under normal conditions
- Maternity leave. Like sick leaves, social security fund covers maternity leaves. Generally, female employees are entitled to six months of maternity leave and an additional month of leave for every additional child in case of multiple births. Women are also entitled to five paid prenatal checks-up; which can be extended to 12 paid days if the fetus is unstable.
As of July 2019, the maximum salary or remuneration during maternity leave was capped at 20 times the base salary (VND 29.8 million). The employer usually covers the remaining balance if the employee’s gross salary base is higher than this amount. - Paternity leave. A male employee whose wife has given birth is entitled to take 5-14 days of paid leave, depending on certain factors:
- Natural birth of one child: 5 days
- Cesarean section birth of one child: 7 days
- Natural birth of twins: 10 days
- Cesarean section birth of twins: 14 days
- Other leaves. Vietnamese employees are also entitled to other leaves at the discretion of the employee and employer, which include the following:
- 3 days marriage leave
- 1 day leave for child’s marriage
- 3 days personal leave (includes leave for death of family members)
- Insurance and social security: As per Vietnamese law, both the employee and employer contribute to the social, health, and unemployment insurance funds.
- Employer contributes 23.5% of the employee’s base salary
- Employee contributes 10.5% of the employee’s base salary
What other benefits or allowances can Vietnamese remote employees be given?
While not mandated by law, providing non – taxable allowances for your remote employees is a common practice. These include stipends for business and equipment expenses, internet and telecom allowances, and even transportation allowance – if your remote employee works from a co-working space.
To gain a competitive advantage, some Vietnamese companies will offer more annual and sick paid leaves and provide their own supplemental health coverage for their employees. Alternatively, they provide an insurance allowance or stipend for their employees.
Other common benefits for Vietnamese employees include:
- Meal allowance up to VND 700,000 (USD 30) per month
- Utility payments (e.g. petrol, transportation, phone bills, etc.)
- Sports membership for a group of employees
- Entertainment fees
Are probation periods necessary in Vietnam?
A probation period is a common practice in Vietnam. Both the employer and employee must agree to the probation period and write a probationary contract detailing the rights and responsibilities of both parties during this period.
- The probation period cannot extend beyond the contract
- Each position can only have one probationary period.
- Employees who are working under seasonal labor contracts are not subject to probation.
The probation period can range from 6-180 days, depending on the work’s complexity and the job’s nature. For example:
- Enterprise manager: 180 days
- College-level or higher specialized/technical roles: 60 days
- Intermediate skill positions (e.g. technician, industry worker): 30 days
- Unskilled positions (no training required): 6 days
During the probation period, neither party must make social security contributions. The probationary salary cannot be lower than 85% of the normal salary for the same job. Either party may terminate the employment relationship during the probationary period without providing prior notice or paying compensation.
How do I pay a Vietnamese remote employee?
The easiest way to pay your Vietnamese remote talent would be through EOR platforms like Multiplier to handle payroll and compliance with local taxes and labor laws.
Vietnam does not have a strict payment cycle, and employers can choose to pay their employees bi-monthly or monthly on an agreed-upon payday. The employer and employee must agree to the payment cycle beforehand.
In case of prescribed force majeure events with no remedial actions available, salary payment can be delayed for one month. Should payment be delayed for more than 15 days, an interest rate on the salary will apply.
The interest rate is computed as follows: The overdue amount multiplied by the ceiling interest rate for one-month deposits set by the State Bank of Vietnam (SBV) at the time of payment.
Can Vietnamese remote employees be paid in foreign currencies?
As a general rule, salaries paid to Vietnamese employees must be paid in Vietnamese Dong (VND). Even transactions, labor contracts, and agreements should be referenced with Vietnamese Dong and written in Vietnamese.
For foreign companies hiring Vietnamese remote employees, an EOR like like Multiplier can help. Multiplier will enable regular payment cycles in VND and ensure labor law and taxation compliance for you.
By paying your Vietnamese remote employees in their local currency, you’ll be able to avoid fluctuations in conversion rates, which will make tax calculations and contributions to healthcare and social security easier.
How do I terminate a Vietnamese remote employee?
While not particularly common due to its complexities and arduous processes, it is possible to unilaterally terminate a Vietnamese remote employee if:
- The employee’s contract has expired
- The employee has reached retirement age and applies for a pension
- The employee consistently does not fulfill their duties as defined by the labor contract
- The employee is sick with no foreseeable recovery after they have received treatment for a specific period
- The employer must reduce their workforce and production due to natural disasters or fires
- The company ceases to operate
A Vietnamese remote employee, on the other hand, can unilaterally terminate a contract for the following reasons:
- The employee’s contract has expired
- The employee has reached retirement age and applies for a pension
- The employer consistently does not deliver on what has been stated in the contract (e.g. wage, job description/duties, working conditions, etc.)
- The employee is abused or sexually harassed at work, or is insulted to the point that their physical and mental conditions are negatively affected
In most other cases, bilateral termination is applied. The notice period for termination is as follows:
- Seasonal contract (less than one year of employment): 3 days
- Definite contract (1-3 years of employment): 20 days
- Indefinite contract (More than 3 years of employment): 45 days
Vietnamese labor law requires employers to pay severance to terminated employees who have worked for the employer for 12 months or more. Severance pay is equivalent to half a month’s worth of salary for each year of employment.
Severance pay can be withheld for the following reasons:
- At the time of the termination, the employee has worked for the company for less than 12 months.
- The employee illegally and unilaterally terminates his or her employment contract.
- The employee is dismissed for breaching the company’s internal labor rules.
- The employee retires on a pension.
As of 1 January 2021, in addition to the above reasons, you will not need to pay severance if the employee is absent from work without a justifiable reason for five consecutive working days or more.
Similarly, if the employer made contributions to the unemployment insurance fund, they needn’t pay severance for the time period the employee participated in the unemployment insurance fund.
When termination is due to changes in the structure or technology, or due to economic reasons, job loss allowance shall be applied in this case with the rate of one month’s salary for each year of work, and at least equal to two months’ salary.
