Hire in Vietnam
Socialist Republic of Vietnam — 100 million population, $4,320 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Vietnam.
Capital
Hanoi
Currency
Vietnamese Dong (VND)
Languages
Vietnamese
Time zones
UTC+7 (ICT)
Hiring overview
- Typical time to hire
- 1-3 weeks for contractor, 3-5 weeks for full-time
- Entity requirement
- Vietnamese LLC or JSC. Registration at Department of Planning and Investment. Foreign investment registration certificate required.
- EOR available
- Yes — from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes — from $39/worker/month
Employment law
- Standard workweek
- 48 hours
- Maximum weekly hours
- 48 hours
- Minimum annual leave
- 12 days (increasing by 1 day per 5 years of service)
- Public holidays
- 11 per year
- Maternity leave
- 6 months at 100% (paid via social insurance)
- Paternity leave
- 5-14 days depending on birth circumstances
- Notice period
- 30-45 days depending on contract type
- Severance
- 0.5 months salary per year of service for pre-2009 service. Post-2009: covered by unemployment insurance.
- Probation
- Up to 60 days (skilled work), 30 days (technical), 6 days (simple work)
- Overtime rules
- 150% (weekday), 200% (weekly rest day), 300% (public holiday/paid leave). Maximum 200 overtime hours/year (300 in some sectors).
Tax overview
- Income tax range
- 5% to 35% (progressive)
- Corporate tax
- 20%
- Social contributions
- Employer: ~21.5% (social, health, unemployment, accident). Employee: ~10.5%.
- VAT / GST
- 10% (standard); 5% reduced
- Tax year
- Calendar year
- Treaty network
- Over 80 tax treaties
Compliance landscape
- Worker classification
- Labour Code 2019 defines employment. Independent contractors governed by civil law. Social insurance authority may reclassify.
- Data protection
- Decree 13/2023 on Personal Data Protection (effective July 2023). Ministry of Public Security oversees. Cross-border transfer restrictions.
- Right to work
- Work permit required for foreigners. Employer must demonstrate local unavailability. Maximum 50% foreign workforce for some sectors.
- Non-compete
- Labour Code 2019 allows non-compete clauses. Must be compensated and reasonable.
- Collective bargaining
- Vietnam General Confederation of Labour (VGCL) is the sole legal union. ILO Convention ratification will allow independent unions by 2025.
Payment rails
NAPAS handles domestic interbank clearing. MoMo (mobile wallet) has 30M+ users. VND is not freely convertible. International transfers require State Bank of Vietnam approval.
Key considerations for hiring
- Vietnam is one of the world's fastest-growing manufacturing destinations (replacing China for some supply chains)
- Tet holiday (Lunar New Year) is a 7-day national holiday; many workers extend it to 2-3 weeks
- Ho Chi Minh City and Hanoi both have growing tech scenes with competitive developer salaries
- CPTPP and EVFTA trade agreements have accelerated Vietnam's integration into global supply chains
Business and cultural context: Vietnam
Business culture
Hierarchical and relationship-driven. Age and seniority are respected. Gift-giving and hospitality are important. Business decisions may involve consensus with senior leaders.
Key industries
Talent pool strengths
Historical context
Vietnam's economic transformation since Doi Moi (renovation, 1986) moved the country from central planning to a socialist-oriented market economy. Samsung's decision to base its largest global smartphone factory in Vietnam (producing 50% of Samsung phones globally) symbolises the country's emergence as a manufacturing powerhouse. IT outsourcing is growing rapidly, with Vietnam ranked among the top 5 software outsourcing destinations.
Ready to hire in Vietnam?
Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Vietnam for you.