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Basic Economic Summary


Vietnam is set to become one of the most efficient nations of FY22 due to its strong performance in FY21 and the fiscal measures in place for supporting small businesses and lower-income households. The nation’s GDP is heavily dependent on the manufacturing sector and exports.

The country boasts one of the lowest unemployment rates amidst the developing nations. In 2019, a meagre 2.04% of the entire workforce were without a job, while the employment-to-population rate was 68.9%. Vietnam is a world leader when it comes to cost-effective manufacturing and sourcing. Many MNCs are investing in Vietnam and banking on the country’s skilled workforce for diversifying and expanding its business.

Basic Information

  • Local Languages: Vietnamese (Official), Chinese (mainly in North Vietnam)
  • Major Economic Hubs: Hanoi, Ho Chi Minh City, Hoi An, Ha Long
  • Capital: Hanoi
  • Currency: Vietnamese Dong (VND)
  • Population: 98.5 million (as of 2021)
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 2,655
  • Exchange Rate (VND/USD): 0.000044
  • PISA Ranking: Not ranked overall in PISA 2018 (13th in reading, 24th in math and 4th in Science)
  • Number of University Graduates (2019): 218,300

Local Universities

Renowned Local Universities:

University Rankings
Vietnam National University, Hanoi Ranking in Vietnam: 1, World Ranking: 1679
Hanoi National University of Science and Technology Ranking in Vietnam: 2, World Ranking: 3430
University of Economics Ho Chi Minh City Ranking in Vietnam: 3, World Ranking: 3132
Can Tho University Ranking in Vietnam: 4, World Ranking: 3333
University of Da Nang Ranking in Vietnam: 5, World Ranking: 3468

Salary Data

Average Salary of Jobs:

Job Title Average Salary Range (VND) Average Salary Range (USD)
Accounting Manager 13,100,000 – 39,500,000 570.56 – 1720.38
Fullstack Developer 9,290,000 – 27,300,000 404.62 – 1189.02
Data Scientist 15,300,000 – 42,900,000 666.38 – 1868.47
UX Designer 6,120,000 – 17,600,000 266.55 – 766.55
Product Manager 13,900,000 – 38,800,000 605.40 – 1689.90
Business Development Manager 12,700,000 – 44,000,000 553.14 – 1916.38

Talent Sourcing Tips


Employer Payroll Tax

Type of Tax Contribution (%)
Social Insurance 17.5%
Health Insurance 3%
Unemployment Insurance 1%
Trade Union 2%

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.

Employee Monthly Income Tax

Net Taxable Income (Million VND)Contribution (%)
0 to 55
5 to 1010
10 to 1815
18 to 3220
32 to 5225

Vietnam follows a progressive income tax model. Link to Employee Income Tax.

Employee Payroll Tax

Type of Tax (i.e. Social Insurance)Contribution (%)
Social Insurance8
Health Insurance1.5
Unemployment Insurance1

Link to Employee Payroll Tax.

Minimum Wage & Payroll

Minimum Wage

VND 3.070 million to 4.47 million dependent on region

Link to Vietnam Minimum Wage

Payroll Cycle

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

Working Hours & Statutory Leave

Maximum working hours

Not more than 48 hours a week

Maximum overtime hours

Overtime hours cannot exceed 30 hours per month and 200 per year

Overtime pay

Period of overtimeHourly salary paid (%)
Normal weekdays1.5
Public holidays3

Women in their seven month or later of pregnancy or a baby of less than 12 months are not allowed to work overtime

Public Holidays

10 public holidays can be found here.

Annual Leave

12 days paid leave plus additional 1 day for every 5 years of service

Sick Leave

Years of Social Insurance contributionLeave days/yearPaid hospitalisation leave
< 15 years3015
15 to 30 years4030
More than 30 years6045

Parental Leave

Maternity Leave: 6 months of paid-leave

Prenatal Leave: up to 5 days

Paternity Leave: 5 to 14 days

Offboarding & Termination

Termination Process

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.

Reason for TerminationOn the last day of employment
Expiry of the labour contractNo notice needed
Lawful unilateral termination by the employee30 days for (definite contract) or 45 days (indefinite contract)

Notice Period

Contract TypeNotice Period
Seasonal Contract ( <1 year of employment)3 days
Definite Contract ( 1 to 3 years)20 days
Indefinite Contract45 days

Severance Pay

Severance allowance of 1/2 months worth of salary for each year of employment

Probation period

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


The standard VAT in Vietnam is 10%.

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