Vietnam Employment Guide
Your essential guide to the workforce, working customs, and labor rules in Vietnam
Hanoi
Vietnam Standard Time UTC+ 7
Vietnamese Dong (VND)
Vietnamese, English
Monthly
23.5%
Talent Landscape
Major Economic Hubs
Skills In-Demand
Working Culture
Hierarchical
In Vietnamese culture, there is strong emphasis on status, achieved through seniority and education. Leaders make decisions while employees execute action plans, maintaining utmost respect for seniors – both in rank and age.
Non-confrontational
Vietnamese culture is rich in respect, which means disagreements are handled subtly and rejections may be conveyed through third parties. During discussions, moments of tension can be met with silence until the conversation simmers down naturally.
Conscientious
As part of taking their work seriously, Vietnamese employees are responsible and dependable. Punctuality is expected. They are also resourceful and stick to the task until it is complete.
Communication Barrier
Fresh Vietnamese tech developers may not have strong English communication skills as compared to their seniors, so they may take longer to deliver their ideas in a clear, logical manner. However, they are quick to learn and patient when communicating, resulting in a pleasant working experience.
Average Salary
| Job Position | Avg Monthly Salary (USD) | |
|---|---|---|
| Tech Engineering | ||
| Software Engineer | $1,450 | S$1,972 |
| AI Engineer | $1,600 | S$2,176 |
| Business Development & Sales | ||
| Business Development Officer | $900 | S$1,224 |
| Sales Manager | $1,050 | S$1,428 |
| Job Position | Avg Monthly Salary (USD) | |
|---|---|---|
| Product | ||
| Product Manager | $1,400 | S$1,904 |
| Data | ||
| Data Analyst | $1,100 | S$1,496 |
| Data Scientist | $1,500 | S$2,040 |
| Job Position | Avg Monthly Salary (USD) | |
|---|---|---|
| Marketing & PR | ||
| Marketing Associate | $700 | S$952 |
| Marketing Manager | $1,200 | S$1,632 |
| Public Relations Manager | $1,000 | S$1,360 |
| Job Position | Avg Monthly Salary (USD) | |
|---|---|---|
| Corporate Services | ||
| Human Resources Generalist | $600 | S$816 |
| Accountant | $800 | S$1,088 |
| Administrative Officer | $600 | S$816 |
Hiring Guide in Vietnam
This guide highlights the fundamental rules employers must know to hire compliantly, covering pay structures, leave policies, termination procedures, and compliance requirements.
For details, browse the topics through the tabs below.
Payroll in Vietnam
Payroll Cycle
Salary and OT paid within 15 days after salary period.
Minimum Wage
Vietnam adopts a four-tier regional minimum wage system, distinguishing major cities from rural areas. Rates apply to employees working under labor contracts and vary by regional economic development.
Overtime Pay
- Standard hours: 48 hours per week; 8 hours per day; at least one weekly rest day required. - Daily overtime may not exceed 50% of regular daily hours. - Overtime limits: 40 hours per month and 200 hours per year (up to 300 hours in specific cases).
- Weekday overtime: Hourly Rate × 1.50 × Overtime Hours. - Weekly rest day: Hourly Rate × 2.00 × Overtime Hours. - Public holiday or paid leave day: Hourly Rate × 3.00 × Overtime Hours. - Night work adds 30% of normal hourly pay; night overtime adds a further 20% of the daytime overtime rate.
Bonus
13th Month
Vietnam does not require a 13th month salary. A Tết or year end bonus becomes payable when promised in the employment contract, collective agreement, published bonus regulation, or consistent employer practice.
No statutory 13th month formula. Any separate annual bonus follows the amount or formula in the applicable contract, collective agreement, or binding employer scheme.
Eligibility follows the employer’s announced bonus regulation, which may use business results, employee performance, disciplinary record, and service length. The employer must publicly announce the bonus regulation after consulting the employee representative organisation at the workplace where one exists.
Employees Benefits
| Types of Benefit | Details |
|---|---|
| Mandatory | |
| Social Insurance | Mandatory social insurance covering sickness, maternity, labor accidents, occupational diseases, retirement, and death. Employer contributes 17.5%, employee contributes 8% of gross monthly salary. Provides comprehensive protection including pension benefits, sick leave payment (75% salary), and maternity leave payment (100% salary). Managed by Vietnam Social Insurance. Sick leave and maternity leave are paid by Social Insurance Fund, not employer. [Cross-reference: See Employer Tax table for employer contribution details (Social Insurance). See Individual Tax table for employee withholding details (Social Insurance - Employee Contribution).] |
| Health Insurance | Mandatory health insurance providing medical examination and treatment coverage at public and registered private healthcare facilities. Employer contributes 3%, employee contributes 1.5% of gross salary. Covers inpatient and outpatient care, medications, and medical procedures. Ensures affordable healthcare access for all Vietnamese workers. [Cross-reference: See Employer Tax table for employer contribution details (Health Insurance). See Individual Tax table for employee withholding details (Health Insurance - Employee Contribution).] |
| Unemployment Insurance | Mandatory insurance providing financial support and job search assistance for workers who lose employment. Employer contributes 1%, employee contributes 1% of gross salary. Benefits include monthly unemployment allowance (up to 12 months), job counseling, and vocational training support. Helps workers transition between jobs. [Cross-reference: See Employer Tax table for employer contribution details (Unemployment Insurance). See Individual Tax table for employee withholding details (Unemployment Insurance - Employee Contribution).] |
| Trade Union Fee | Mandatory contribution to support trade union activities and worker representation. Employer contributes 2% of total payroll fund. Trade unions represent workers' interests, negotiate collective bargaining agreements, and ensure labor rights protection. Required for all Vietnamese enterprises with employees. [Cross-reference: See Employer Tax table for details (Trade Union Fee). 100% employer-funded] |
| Optional | |
| Tet Bonus / 13th Month Salary | While not contractually mandated by law, it is common practice to offer a 13th month bonus or Tet bonus to all employees. Tet (Lunar New Year) is the most important holiday in Vietnam, and this bonus helps employees celebrate. Amount typically equals one month's salary but may vary based on company performance and individual performance. Employer-discretionary but culturally expected. |
| Performance Bonus | Additional bonuses based on company earnings and individual performance. May be paid quarterly, bi-annually, or annually. Amount varies by company profitability and employee contribution. Employer-discretionary, used to motivate and reward high performers. |
| Meal Allowance | Daily or monthly meal allowances to support employee daily expenses. May be provided as cash allowance or meal vouchers. Common benefit in Vietnamese workplaces to supplement employee income. Employer-discretionary, varies by industry and location. |
| Transportation Allowance | Monthly allowance or company-provided transportation for employees. May include shuttle services, motorbike fuel allowances, or public transport subsidies. Employer-discretionary, common in areas with limited public transport. |
| Housing Allowance | Monthly housing or accommodation allowance, particularly for expatriate employees or those relocating for work. Helps offset rental costs in expensive urban areas like Hanoi or Ho Chi Minh City. Employer-discretionary, often part of expatriate packages. |
| Phone and Internet Allowance | Allowance for mobile phone and internet expenses for employees who need connectivity for work. May include company-provided phones or monthly reimbursements. Employer-discretionary, common for sales, management, and remote roles. |
| Private Medical Insurance | Supplementary private health insurance beyond mandatory health insurance. Provides access to private hospitals, international clinics, and better healthcare services. May include family coverage. Employer-discretionary, increasingly common as competitive benefit. |
| Training and Development | Investment in employee skills development through training programs, courses, certifications, or workshops. May include tuition reimbursement or company-sponsored professional development. Employer-discretionary, supports employee growth and company capability building. |
Taxes
Country Tax
Vietnam's country tax is known as Value-Added Tax (VAT) 10% standard rate
Individual Tax
| Tax Component | Contribution Rate (%) | Details |
|---|---|---|
| Income Tax Structure | ||
| Resident Tax Rates | 5%–35% | Monthly progressive tax brackets for employment income. |
| Non-Resident Tax | 20.00% | Flat tax applied with no deductions allowed. |
| Taxable Income Adjustments | ||
| Personal Deduction | VND 15,500,000/month | Monthly personal allowance reducing taxable income. |
| Dependent Deduction | VND 6,200,000/month per dependent | Deduction for qualifying dependents. |
| Employee Insurance Contributions | Actual contributions | Employee contributions to social, health, and unemployment insurance reduce taxable income. |
| Taxable & Exempt Components | ||
| 13th Month Salary | Fully taxable | Common and taxable annual bonus. |
| Bonuses | Fully taxable | Including Tet bonus. |
| Overtime | Non-taxable | Tax-exempt income (including night work pay, overtime pay, unused annual leave payouts) |
