White expand arrow icon
Back to TalentWiki

Vietnam

Basic Economic Summary

Overview

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.

Common front-end languages include HTML, CSS and Javascript while a wide variety of backend languages are utilized, including Java and PnP-Net. C++. Coding languages like YII and Python are considered to be less common than in other countries.

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.

Basic Information

  • Local Languages: Vietnamese (Official), Chinese (mainly in North Vietnam)
  • Major Economic Hubs: Hanoi, Ho Chi Minh City, Hoi An, Ha Long
  • Currency: Vietnamese Dong (VND)
  • Population: 97.34 million (as of 2020)
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): $2,567
  • Exchange Rate (VND/USD): 0.000043
  • PISA Ranking: Not ranked overall in PISA 2018 (13th in reading, 24th in math and 4th in Science)
  • Number of University Graduates (2017): 319,000

Local Universities

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.

Renowned Local Universities:

UniversityNumber of Graduates (Undergraduates)Niche
Vietnam National UniversityInformation unavailableScience and Technology
Hanoi National University of Science and TechnologyInformation unavailableScience and Technology
Ho Chi Minh City University of TechnologyInformation unavailableEngineering and Computer Science
University of Economics Ho Chi MinhInformation unavailableBusiness, Science and Technology
University of Da NangInformation unavailableInformation Technology, Engineering
RMIT Vietnam13,500 since 2001Science and Technology
FPT UniversityInformation unavailableScience and Technology
Saigon Technology UniversityInformation unavailableScience and Technology

Salary Data

Average Salary of Jobs:

Job TitleAverage Salary Range (VND)Average Salary Range (USD)
Accounting Manager46,247,000 – 69,370,5002,000 – 3,000
Fullstack Developer57,808,750 – 92,494,0002,500 – 4,000
Data Scientist138,741,000 – 231,235,0006,000 – 10,000
UX Designer40,466,125 – 69,370,5001,750 – 3,000
Product Manager69,370,500 – 138,741,0003,000 – 6,000
Business Development Manager77,078,333 – 115,617,5003,333 – 5,000

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.

Talent Sourcing Tips

More information about job portals in Vietnam can be found here.

More information about recruitment agencies in Vietnam can be found here.

Taxes

Employer Payroll Tax

Type of TaxContribution (%)
Social Insurance17.5%
Health Insurance3%
Unemployment Insurance1%

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

Bonus

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
Weekend2
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

VAT

10%

Any queries or suggestions?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Employ anyone from anywhere with Multiplier

Book a Demo