Vietnam is known for scenic beaches, spectacular landscapes, rice terraces, and beguiling cities. The country’s major economic contributor is the services sector, occupying 41.63% of their GDP. Vietnam holds the position of18th among 39 countries in the Asia–Pacific region for its economic development.
Hanoi, Ho Chi Minh City, Hoi An, Ha Long
Data Analysts and Scientists, Software Engineers, Finance and Banking
The table below mentions the top local universities of Vietnam with world rank:
Local: 1
World : 939
Local: 2
World : 1722
Local: 3
World : 2176
Local: 4
World : 2340
Local: 5
World : 2614
The average salary in Vietnam is mentioned below
Job Title | Average Monthly Salary (VND) | Average Monthly Salary (USD) |
Project Manager | 19,200,000 VND | 812 USD |
Accountant | 11,700,000 VND | 495 USD |
Accounting Manager | 25,600,000 VND | 1,083 USD |
Business Development Manager | 27,700,000 VND | 1,172 USD |
Developer / Programmer | 17,500,000 VND | 740 USD |
Information Technology Manager | 29,700,000 VND | 1,256 USD |
Indeed, Vietnamworks, CareerBuilder
6,812,000
While onboarding an individual from Vietnam, the employer must know about the labor laws, deductions, benefits, and allowances. This section provides all the information to help employers.
Employee Contracts in Vietnam must be written in purely Vietnamese or dual language (Vietnamese and preferably English). The contract must contain all the employer’s details along with terms and conditions, benefits, leaves, and allowances.
Probation Period as provided at Article 25 of Labor Code 2019 are:
Only manger level positions are eligible for 6 months of probation.
Date | Name | Type |
1 Jan | International New Year’s Day | National holiday |
9 Feb | Vietnamese New Year’s Eve | National holiday |
10 Feb | Vietnamese New Year | National holiday |
11 Feb | Tet holiday | National holiday |
12 Feb | Tet holiday | National holiday |
13 Feb | Tet holiday | National holiday |
14 Feb | Tet holiday | National holiday |
18 Apr | Hung Kings Festival | National holiday |
30 Apr | Liberation Day/Reunification Day | National holiday |
1 May | International Labor Day | National holiday |
2 Sep | Independence Day | National holiday |
Type of Leave | Time Period | Mandatory |
Annual/Earned Leave | 12 days | Yes |
Sick Leave | 30 days | Yes |
Maternity Leave | 24 weeks | Yes |
According to Vietnam Labour law, Article 21, the employers must organize the following;
Failure to provide the above, the employer shall be fined from VND 1,000,000 to VND 3,000,000 per each employee, but not exceeding VND 75,000,000.
The payroll cycle in Vietnam is generally Monthly.
The minimum wage varies per region. It ranges from 3,250,000 VND to 4,680,000 VND per month.
A 13th-month pay is not mandatory in Vietnam. But it is customary to pay a TET bonus or Lunar Year bonus given before the New year holiday.
Below are some of the benefits offered to Vietnamese employees:
Category | Contributions |
Social Insurance | 17.5% |
Health Insurance* | 3% |
Unemployment Insurance | 1% |
Trade Union | 2% |
Category | Contributions |
Social Insurance | 8% |
Health Insurance | 1.5% |
Unemployment Insurance | 1% |
Annual Taxable Income (in million VND) | Tax Rate (%) |
From 0 to 60 | 5 |
From 60 to 120 | 10 |
From 120 to 216 | 15 |
From 216 to 384 | 20 |
From 384 to 624 | 25 |
From 624 to 960 | 30 |
More than 960 | 35 |
The standard VAT in Vietnam is 10%.
The termination process would include a reasonable notice period to be given by either of the terminating party. Some instances, such as enterprise operation cessation, do not need a filing. Below are some other requirements base on the reason for dismissal
Reason for Termination | On the last day of employment |
Expiry of the labour contract | No notice needed |
Lawful unilateral termination by the employee | 30 days for (definite contract) or 45 days (indefinite contract) |
Vietnamese employees that are under their probationary period are to observe a notice period of up to 30 days when terminating their contract. For employees after their probationary period, the notice period will be up to 45 days.
The severance allowance of 1/2 month worth of salary for each year of employment.
There are two types of Vietnam work visas that foreign employees must comply with in order to work in the country: LD1 and LD2 visas. For the LD2 visa, the employer must also apply for a work permit. LD1 visa is an exemption for foreign workers in Vietnam from securing a work permit.
The overtime pay in Vietnam is as follows:
Period of Overtime | Additional Hourly Rates |
Normal weekdays | 150% |
Weekend | 200% |
Public holidays | 300% |
Weekdays, during night-time | 30% on top of the above-mentioned rates |