Explore our vision: a world without limits

Watch now

Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.

Explore Multiplier EOR

Book a demo

Expand your global workforce in Vietnam

Your guide to the employment landscape, working customs and local labor laws in

Capital

Hanoi

Currency

Vietnamese Dong (VND)

Languages

Vietnamese (official), Chinese (mainly in North Vietnam)

GDP per Capita

$4,924.77

Employer Tax

23.5%

Payroll Frequency

Monthly or Bi-Monthly

Talent overview

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.

Major economic hubs:

Hanoi, Ho Chi Minh City, Hoi An, Ha Long

Skills in demand:

Data Analysts and Scientists, Software Engineers, Finance and Banking

Top local universities in Vietnam

Uni1 7

Vietnam National University, Hanoi

RANKING

Local: 1

World : 939

Uni2 6

Hanoi National University of Science and Technology

RANKING

Local: 2

World : 1722

Uni3 6

Ho Chi Minh City University of Technology

RANKING

Local: 3

World : 2176

Uni4 5

University of Da Nang

RANKING

Local: 4

World : 2340

Uni5 3

National Economics University

RANKING

Local: 5

World : 2614

Top Local Job Boards:

Indeed, Vietnamworks, CareerBuilder

Number of LinkedIn users:

6,812,000

Top Recruitment Agencies:

Adecco, 9cv9, Vietsourcing HR

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

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

 

Employ in Vietnam

Employing in Vietnam

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 Contract:

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

Probation Period as provided at Article 25 of Labor Code 2019 are:

  • Not exceeding 180 days for the person holding managing positions;
  • Not exceeding 60 days for the positions requiring college level or above; or
  • Not exceeding 30 days for the positions requiring intermediate level.

Only manger level positions are eligible for 6 months of probation.

Public and Provincial Holidays

Date Name Type
January 1 International New Year’s Day National Holiday
January 25 Tet Holiday National Holiday
January 26 Tet Holiday National Holiday
January 27 Tet Holiday National Holiday
January 28 Vietnamese New Year’s Eve National Holiday
January 29 Vietnamese New Year National Holiday
January 30 Tet Holiday National Holiday
January 31 Tet Holiday National Holiday
February 1 Tet Holiday National Holiday
February 2 Tet Holiday National Holiday
April 7 Hung Kings Festival National Holiday
April 26 Working Day for May 2 National Holiday
April 30 Liberation Day/Reunification Day National Holiday
May 1 International Labor Day National Holiday
May 2 International Labor Day Holiday National Holiday
September 1 Independence Day Holiday National Holiday
September 2 Independence Day National Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 12 days Yes
Sick Leave 30 days Yes
Maternity Leave 6 months Yes

Health Examination Clause

According to Vietnam Labour law, Article 21, the employers must organize the following;

  • Employees performing hazardous occupations should have a health checkup at least once a year. 
  • For disabled, elderly, or minor employees, health checks are performed twice a year, or once every six months. 
  • Female workers must be provided with obstetric care and occupational disease testing. 
  • Health check-up, assignment or transfer to heavier, riskier, or more toxic occupations, and testing once they return. Unless the Medical Assessment Council has determined that their ability to work has decreased. Unless, there are conclusions of the Medical Assessment Council on their ability to work has decreased

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.

Leave Compliance

Payroll in Vietnam

Tw Payroll Img1

Payroll cycle

The payroll cycle in Vietnam is generally Monthly.

Tw Payroll Img2

Minimum wage

The minimum wage varies per region. It ranges from VND 3,450,000 to VND 4,960,000 per month.

Read more

Tw Payroll Img3

Overtime pay

The overtime pay in Vietnam is as follows:

Read more

How taxes work

Employer Payroll Tax

Scheme Contribution
Retirement and survivor allowance  14%
Labor Accident and Occupational Disease Insurance Fund 0.5%
Sickness and Maternity 3%
Health Insurance 3%
Unemployment

Employee Payroll Tax

Scheme  Contribution
Retirement and survivor allowance  8%
Labor Accident and Occupational Disease Insurance Fund
Sickness and Maternity
Health Insurance 1.5%
Unemployment 1%

Employee Income Tax

Tax grade Average yearly taxable income

(Vietnamese dongs, VND)

Average monthly taxable income

(VND)

Tax rate (%)
1 Up to 60,000, 000 Up to 5,000, 000 5
2 60,000,000 up to 120,000,000 5,000,000 up to 10,000,000 10
3 120,000,000 up to 216,000,000 10,000,000 up to 18,000,000 15
4 216,000,000 up to 384,000,000 18,000,000 up to 32,000,000 20
5 384,000,000 up to 624,000,000 32,000,000 up to 52,000,000 25
6 624,000,000 up to 960,000,000 52,000,000 up to 80,000,000 30
7 Over 960,000,000 Over 80,000,000 35

VAT

The standard VAT in Vietnam is 10%.

Bonus

13th Month Pay:

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.

Employee Benefits:

Below are some of the benefits offered to Vietnamese employees:

  • Health insurance
  • Retirement benefit
  • Maternity benefits

Employee offboarding

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.

Tw Visa Img

Visa and
immigration

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 visa. LD1 visa is an exemption for foreign workers in Vietnam from securing a work permit.

Expand into
150+ countries

Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.

Expand into150+ countries