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Vietnam Employment Guide

Your essential guide to the workforce, working customs, and labor rules in Vietnam

Access essential insights to manage employment smoothly, stay compliant, and build a thriving team
Capital

Hanoi

Time Zone

Vietnam Standard Time UTC+ 7

Currency

Vietnamese Dong (VND)

Languages

Vietnamese, English

Payroll
Monthly
Employers Tax

23.5%

Employer of Record (EOR)
Professional Employer Organization (PEO)

Employment Law

Payroll & Tax
Compensation & Benefits

Talent Landscape

Vietnam is pegged to be Southeast Asia’s fastest-growing digital economy in the next decade. Entrepreneurs have sprouted exponentially over the past years in Hanoi and Ho Chi Minh City, ranking the country third in the region when it comes to investments and funding for its greatly expanding startup scene. As a result, Vietnam's maturing local talent pool has been a hotbed for global startups looking to hire remotely, earning it the 6th most attractive country for offshore business services in 2021.

In-Demand Roles

Backend Developer

QA/Test Engineer

Frontend Developer

Full Stack Developer

Sales Manager

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)
*3-5 Years of Experiences
Tech Engineering
Software Engineer
$1,450
AI Engineer
$1,600
Business Development & Sales
Business Development Officer
$900
Sales Manager
$1,050
Product
Product Manager
$1,400
Data
Data Analyst
$1,100
Data Scientist
$1,500
Marketing & PR
Marketing Associate
$700
Marketing Manager
$1,200
Public Relations Manager
$1,000
Corporate Services
Human Resources Generalist
$700
Accountant
$800
Administrative Officer
$600
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Tech Engineering
Software Engineer
$1,450
AI Engineer
$1,600
Business Development & Sales
Business Development Officer
$900
Sales Manager
$1,050
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Product
Product Manager
$1,400
Data
Data Analyst
$1,100
Data Scientist
$1,318
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Marketing & PR
Marketing Associate
$700
Marketing Manager
$1,200
Public Relations Manager
$1,000
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Corporate Services
Human Resources Generalist
$700
Accountant
$800
Administrative Officer
$600

Payroll

Minimum Wage

As of July 2022, Vietnam increased the minimum wage by 6%, based on regions:

  • 4,680,000 VND: Region 1 (Urban areas)
  • 4,160,000 VND: Region 2 (Rural areas)
  • 3,640,000 VND: Provincial cities & districts
  • 3,250,000 VND: Certain remaining areas

Overtime Pay

Employees are entitled to overtime pay for work during:

  • Weekdays: 150% of salary
  • Weekends/Rest Days: 200% of salary
  • Public Holidays: 300% of salary

Additional pay includes:

  • Night Work (22:00-6:00): 30% extra for normal hours; 20% extra if combined with overtime.

Overtime Limits: Maximum of 50% of daily working hours, 40 hours/month, and 200 hours/year.

Employment Law

Employee Contracts

  1. Labor Contract: Covers work, salary, and working conditions.
    • Definite-Term Contract: Max duration of 36 months, renewable up to two times; further renewal must convert to an indefinite-term contract
    • Indefinite-Term Contract: No end date
  2. Service Contract: For specific tasks or projects, with payment based on service outcome
    • Types include definite-term, term upon agreement, and unlimited contracts

Working Hours

Regular hours are 8 hours/day and 48 hours/week

Probation Period

  • Based on job nature:
    • 180 days: For managerial roles
    • 60 days: For positions requiring a college degree
    • 30 days: For intermediate-level roles
  • Only managerial roles may have up to 6 months of probation

Holidays

Employees are entitled to 11 public holidays annually. Work on public holidays warrants extra pay or compensatory leave. Key holidays include:

  • Gregorian New Year
  • Lunar New Year
  • Victory Day
  • Reunification Day
  • Labor Day
  • Independence Day
  • Hùng Kings’ Festival

Employee Leave

Annual Leave

Employees with 3+ months of service qualify for annual leave:

  • 12 days: Average employee
  • 14 days: Under-18 or disabled employees
  • 16 days: For heavy, hazardous jobs
  • +1 day: For every 5 years of service
  • <12 days: For those with less than 12 months of service

Special Leaves

  • Maternity Leave: 6 months at 100% salary (from Social Insurance Authority)
  • Paternity Leave: 5-14 days at 100% salary
  • Parental Leave20 days/year at 75% salary until the child is 3 years old and 15 days/year at 75% salary until the child is 7 years old
  • Compassionate Leave: 3 days for family deaths
  • Marriage Leave: 3 days
  • Child’s Marriage Leave: 1 day

Medical Leave

  • 30 days/year at 75% salary
  • 60 days for serious conditions
  • 75% salary for sick leave funded by Social Insurance Authority
  • Medical certificate required for absences exceeding 48 hours

Taxes

Employer Tax

  • Corporate Income Tax: Fixed at 20% for most industries. For oil, gas, and natural resources, it ranges from 33-50%

Employee Tax

Employees are taxed based on their salary as follows:

Monthly Taxable Income (VND)
Tax Rate
Up to 5,000,000 VND
5%
Over 5,000,000 VND
to 10,000,000 VND
10%
Over 10,000,000 VND
to 18,000,000 VND
15%
Over 18,000,000 VND
to 32,000,000 VND
20%
Over 32,000,000 VND
to 52,000,000 VND
25%
Over 52,000,000 VND
to 80,000,000 VND
30%
Over 80,000,000 VND
35%

Service Contract

  • Tax: 10% on total income.

Foreign Employees

  • Foreign employees pay 20% income tax
  • Those with a work permit or a contract lasting 1 year or more must also contribute to social insurance
Contribution Type
Details
Employee Monthly Contribution
17% of monthly salaries, up to SGD 6,000
Skill Development Levy (SDL)
0.25% of total wages, with a minimum of SGD 2 and a maximum of SGD 11.25 per employee/month

Bonus

While a 13th-month bonus is not contractual, it is common practice to offer it to all employees. Employers may also provide a bonus based on earnings and performance

Termination

Termination with Notice

Employers must provide a 30-day notice when terminating a contract under these conditions:

  • Business suspension, transfer, or pivot
  • Operating losses or business contraction
  • Unsatisfactory employee performance

No notice is required if an employee:

  • Misrepresented facts at contract signing
  • Commits violence or grossly insults the employer
  • Breaches the labor contract or violates regulations
  • Damages company property or discloses confidential information
  • Is absent without cause for 3 consecutive days or 6 days in a month

Notice Period

  • During Probation: Immediate termination without notice
  • Indefinite-term Contract: 45 days
  • 12-36 months Contract: 30 days
  • Under 12 months Contract: 3 working days

Severance Pay

Eligible after 12+ months of service, ranging from 25% to 100% of monthly salary per year of service

Reasons for Dismissal

Absence without reason (5 days), failure to fulfill duties, unrecoverable illness, business closure, or reaching retirement age

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Working Culture
Relationship oriented
Taiwanese prefer personal connections before doing business. Building rapport is crucial for success in the workplace. Sincerity, respect, and genuine personal connections are highly valued. Investing time in relationships will lead to better professional outcomes.
Hardworking
Taiwanese employees are known for their dedication, often working long hours without complaint. The average work year is 2,116 hours, which is nearly 200 hours more than in other countries. This strong work ethic is part of Taiwan’s high productivity and global competitiveness.
Strong values & harmony
Taiwanese people value patience, humility, and respect. Family plays a major role in their lives, and rude behavior, or "losing face," is seen as shameful, not just to the person but to their family. Harmony is important, and maintaining good relationships is a priority.
Direct yet nuanced communication
Communication in Taiwan is subtle. Taiwanese avoid giving direct negative responses and rely heavily on non-verbal cues and context. When relaying negative information, they often say “we’ll try” instead of “no,” but they are otherwise clear and forthright with their ideas.

Ready to hire and grow your team in Vietnam?

Glints specializes in Southeast Asia, making us the ideal partner for your expansion. Let’s work together to simplify hiring and ensure compliance in Vietnam.