Payroll Cycle
Minumum Wage
Overtime Pay
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
Visa Immigration

Talent Wiki - Vietnam

Your quick guide on talent and labor compliance norms in Vietnam
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Capital
Hanoi
Currency
Vietnamese Dong (VND)
Languages
Vietnamese (official), Chinese
Payroll Frequency
Monthly or Bi-Monthly
GDP per Capita
$4,187
Employer Tax
23.5%

Supplementary Guide for Employment and Expansion in Vietnam

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 of 18th 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

Local Universities

The table below mentions the top local universities of Vietnam with world rank.

Vietnam National University, Hanoi

RANKING

Vietnam : 1

World : 1679

Hanoi National University of Science and Technology

RANKING

Vietnam : 2

World : 3430

University of Economics Ho Chi Minh City

RANKING

Vietnam : 3

World : 3132

Can Tho University

RANKING

Vietnam : 4

World : 3333

University of Da Nang

RANKING

Vietnam : 5

World : 3468

Salary Data

The average salary in Vietnam is mentioned below

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

Talent Sourcing Tips

Top Local Job Boards

Indeed, Vietnamworks, CareerBuilder

Number of LinkedIn users

4,442,000

Top Recruitment Agencies

Adecco, 9cv9, Vietsourcing HR

Employing in Vietnam

While onboarding an individual from Vietnam, the employer must know about the labor laws, benefits, 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

New employees in Vietnam are to undergo a probationary period of up to 6 months.

Public and Provincial Holidays

Date Name Type
1 Jan International New Year's Day National holiday
2 Jan New Year's Day Holiday National holiday
3 Jan Day off for International New Year's Day National holiday
31 Jan Vietnamese New Year's Eve National holiday
1 Feb Vietnamese New Year National holiday
2 Feb Tet holiday National holiday
3 Feb Tet holiday National holiday
4 Feb Tet holiday National holiday
5 Feb Tet holiday National holiday
10 Apr Hung Kings Festival National holiday
11 Apr Day off for Hung Kings Festival National holiday
30 Apr Liberation Day/Reunification Day National holiday
1 May International Labor Day National holiday
2 May Day off for Liberation Day/Reunification Day National holiday
3 May Day off for International Labor Day National holiday
1 Sep Independence Day Holiday National holiday
2 Sep 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 24 weeks Yes

Payroll

Payroll Cycle

The payroll cycle in Vietnam is generally Monthly.

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Minimum Wage

The minimum wage varies per region. It ranges from 3,070,000 VND to 4,420,000 VND per month.

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Overtime Pay: 

Click on the link below to know more about the overtime pay in Vietnam is as follows:

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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.

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
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Taxes

Employer Payroll Tax:

Category Contributions
Social Insurance 17.5%
Health Insurance 3%
Unemployment Insurance 1%
Trade Union 2%

Employee Payroll Tax:

Category Contributions
Social Insurance 8%
Health Insurance 1.5%
Unemployment Insurance 1%

Employee Income Tax:

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

VAT

The standard VAT in Vietnam is 10%.

Offboarding & Termination

Termination Process

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)

Notice Period

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.

Severance Pay

The severance allowance of 1/2 month worth of salary for each year of employment.

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

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