Vietnam has consistently been the hot spot for many companies from MNCs to startups looking to set up remote tech teams. The population is particularly tech-savvy and has a vast amount of high-performing computer science students. In Vietnam, it is expected that data science, data analytics and business intelligence will be in-demand roles. Vietnam also remains strong in the manufacturing sector from supply chain management to sales and marketing (Robert Walter 2020 Salary Survey).
Vietnam produces more than 100,000 graduates per year. Its heavy investment in science, technology, engineering, and math education over the last 15 years, combined with improved internet connectivity and a young, low-cost workforce, has spawned a thriving IT industry. Vietnamese students often gain exposure to computer science and training at a young age, and earn high scores in math and science on international exams.
English-speaking talent can be found in the major economic hubs like Ho Chi Minh, Hanoi and Saigon. Tech talent can be found across their tech-hubs such as Ho Chi Minh, Hanoi and Da Nang.
Certificates are not a major consideration for hiring due to the prevalence of technical expertise, with recruiters preferring to utilize technical tests for hiring. Due to the buoyant market in Vietnam, employers need to take additional steps to secure loyalty and longer tenure. More information of recruitment processes can be found here.
Vietnam’s GDP per Capita is about US$2,500. The 75th percentile of wages is at $1,800 and the 50th percentile is at $700. Notably the 99th percentile is at $3,500.
FPT University is the main incubator for tech talent in Vietnam with Ho Chi Minh with Ho Chi Minh City University of Technology, Hanoi National University of Technology and Science and Saigon Technology University being other main institutions for tech talent.
More information on salaries in Vietnam can be found on Robert Walters’ 2020 salary guide.
Candidates would expect an increment of around 15% when moving jobs and majority of employees expect a 7-15% increment in annual salary.
More information about job portals in Vietnam can be found here.
More information about recruitment agencies in Vietnam can be found here.
Income subject to SI and HI contributions is each capped at 20 times the basic salary for SI and HI contributions. Effective from 1 July 2019, the basic salary is VND 1,490,000 per month. The basic salary is subject to change each year.
Income subject to UI contribution is capped at 20 times the minimum regional salaries for UI contributions. Effective from 1 January 2020, the minimum regional salaries vary from VND 3,070,000 to VND 4,420,000 per month. The minimum regional salaries are subject to change each year.
The employer is also expected to pay the employee withholding tax. Links to the source for employer payroll tax.
Vietnam follows a progressive income tax model. Link to Employee Income Tax.
Link to Employee Payroll Tax.
VND 3.070 million to 4.47 million dependent on region
Link to Vietnam Minimum Wage
Monthly or bi-monthly dependent on contract
13th month salary a.k.a Tet Bonus
Not mandatory but Vietnamese custom to pay 13th month bonus known as Tet bonus
Not more than 48 hours a week
Overtime hours cannot exceed 30 hours per month and 200 per year
Women in their seven month or later of pregnancy or a baby of less than 12 months are not allowed to work overtime
10 public holidays can be found here.
12 days paid leave plus additional 1 day for every 5 years of service
Maternity Leave: 6 months of paid-leave
Prenatal Leave: up to 5 days
Paternity Leave: 5 to 14 days
The termination process is relatively simple with reasonable notice period to be given as well as 1/2 month of pay for each year worked as severance pay. Some instances, such as enterprise operation cessation, do not need a filing.
Severance allowance of 1/2 months worth of salary for each year of employment
6 to 60 days depending on qualification and education of employee
A separate probation agreement can be signed
Probationary period applied to managerial positions of enterprise can be up to 180 days