Hire employees and contractors in Vietnam
Outstaffer’s guide to employing in Vietnam.
Facts & stats
Vietnam is a captivating paradise, filled with incredible contrasts in every corner. The country’s unique geography means this relatively small sliver of land sees intense equatorial conditions on the south coast, searing heat in the southern capital, and cooler misty conditions in the north. Similarly, Vietnam’s world-renowned food culture features a clash of influences from nearby Cambodia, China, Malaysia, and from their former French colonial rulers.
The incredible natural diversity of Vietnam, combined with a very low cost of living, makes this Southest Asian nation a magnet for digital nomads. Accommodation is cheap, and co-working spaces and communities are starting to build in Hanoi and Ho Chi Minh city in particular.
Home to one of Southeast Asia’s largest and fastest growing economies, Vietnam has witnessed rapid recovery since the days of the Vietnam War and has ramped up gains in the agriculture, transport, energy, and telecoms industries.
- Capital city
- Hanoi
- Currency
- Vietnamese đồng (₫, VND)
- Official Languages
- Vietnamese
- Population size
- 96,208,984 (est. 2019)
- Ease of doing business
- Easy
- Cost of living index
- 38.05 (2021)
- Payroll frequency
- Monthly
- VAT - standard rate
- 10%
- GDP - real growth rate
- 7.0 (2019)
Tech Talent in Vietnam
Vietnam has emerged as a rapidly growing hub for tech talent in Southeast Asia. The country boasts a vibrant community of skilled software developers, engineers, and IT professionals. Vietnamese universities produce graduates with strong technical skills, and cities like Ho Chi Minh City and Hanoi are witnessing a surge in tech startups and innovation centers. Vietnam's competitive cost of living and a government committed to fostering a tech-friendly environment make it an appealing destination for tech companies and entrepreneurs. Vietnamese tech talent is known for its resilience, innovation, and adaptability, playing a pivotal role in the country's transformation into a tech-savvy and competitive player in the regional and global tech landscape.
Grow your team in Vietnam with Outstaffer
Looking to employ workers in Vietnam? Companies hiring in Vietnam must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Outstaffer can employ your team in Vietnam on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Vietnam team. You can also pay contractors now in Vietnam with Outstaffer.
Minimum wage
The Vietnamese government mandates a two-tier minimum wage for skilled and unskilled workers across four distinct regions within the country.
- Region I: VND 4,420,000 ($192.80)
- Region II: VND 3,920,000 ($170.99)
- Region III: VND 3,430,000 ($149.61)
- Region IV: VND 3,070,000 ($133.91)
Skilled workers are entitled to a minimum wage that’s at least 7% higher than the base rate defined for unskilled workers.
Payroll cycle
All employee payments are made bi-monthly by Outstaffer.com on your behalf and passed through to you.
Onboarding time
We can help you get a new employee started in the Vietnam fast. The minimum onboarding time we need is only 20 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment. Please note, payroll cut-off dates can impact the actual first day of employment. We have a payroll cut-off date of the 10th of the month unless otherwise specified.
Employing in Vietnam
The 2021 Labor Code of the Republic of Vietnam defines provisions for employee protections and workers’ rights applicable to Vietnam’s workforce of 56.5 million. Employees in Vietnam enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off.
To employ workers in Vietnam, contact Outstaffer to learn more about your options.
Risks of misclassification
Public holidays
Jan 1
New Year's Day
Feb 12
Tết
May 3
Labour Day
Feb 11
Vietnamese New Year’s Eve
Arp 21
Hùng Kings' Festival
Sep 2
Independence Day
Feb 12
Lunar New Year
Sep 6
Reunification Day
Competitive benefits package in Vietnam
Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.
Our benefits packages in Vietnam are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Private health insurance
Supplemental dental insurance
Supplementary vision insurance
Supplemental maternity insurance
Supplemental screening & vaccine insurance
Additional paid holidays
Flexible work schedule
Employee engagement funds
Taxes in Vietnam
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Vietnam.
Employer
- 17.5%: Social Insurance
- 3.00%: Health Insurance
- 1.00%: Unemployment Insurance
- 2.00%: Trade Union Fund (Charged for corporate employers only)
Employee
- 8%: Social Insurance
- 1.5%: Health Insurance
- 1%: Unemployment Insurance
Personal income tax rates
- 5.00%: 0-60 million VND ($2617.13)
- 10.00%: 60-120 million VND (2617.13 - $5234.26)
- 15.00%: 120-216 million VND ($5234.26 - $9421.66)
- 20.00%: 216-384 million VND ($9421.66 - $16749.62)
- 25.00%: 384-624 million VND ($16749.62 - $27218.13)
- 30.00%: 624-960 million VND ($27218.13 - 41874.05)
- 35.00%: 960+ million VND ($41874.05+)
Types of leave
Paid time off
After working for an employer for 12 months, employees are entitled to 12 working days of paid vacation annually, with an additional day of paid vacation added every five years of employment. This increases to 14 days for minors, and 16 days for workers who do intensive, laborious, or dangerous work (mining is one example).
Employees who’ve been working for less than a year are entitled to paid vacation equivalent to their tenure with the employer, i.e., around 1 day off for every month worked.
Sick leave
Ailing employees can take anywhere from 30 to 60 days of paid sick leave (compensated at a rate equivalent to 75% of their normal wages) annually, depending on how long they’ve been making social security contributions.
Employees engaged in hazardous or heavy industries can take anywhere from 40 to 70 days of paid sick leave annually, limited by how long they’ve been paying into the social security fund.
Employees who’re convalescing after an illness are entitled to 25 – 40% of their normal wages.
Maternity leave
Female employers are entitled to six months of paid maternity leave, starting two months before delivery, with full wages.
Partner/paternity leave
Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.
Paternal/parental leave
Fathers are entitled to fully paid paternity leave, lasting anywhere from five to 14 days.
Parents can take up to 20 days of parental leave until their child turns three, and up to 15 days annually for children aged between four and seven. Parental leave is compensated at a rate equivalent to 75% of an employee’s normal wages, paid by the Vietnamese Social Insurance Authority.
Other leave
- Personal leave: Vietnamese labor law provides for employees to take paid personal leave for marriages and bereavements. Employees who are getting married can take three days off, while parents are entitled to one day of paid leave for a child’s wedding. Workers can take three days of bereavement leave in the event of the death of theirs or a spouses’ 1st degree relatives.
- Carer Leave: Parents and guardians can take up to 20 working days off annually to care for their ailing children or wards.
- Work Injury leave: Employees who fall sick or get injured on the job can take up to 10 days off to recuperate properly after receiving the appropriate medical attention.
- Adoption: Adoptive parents of children under six months of age are entitled to paid maternity leave until their child turns six months.
Employment termination
Termination process
Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or other work-related offences. That aside, notice should be provided in advance – provided both parties agree to it.
Notice period
Employers must provide prior notice three days in advance for employees bound by seasonal contracts (i.e., contracts lasting less than a year); 30 days for indefinite labor contracts (i.e., contracts lasting between one to three years); or 45 days for indefinite labor contracts.
Probation periods
Probation periods in Vietnam are not mandatory and can last anywhere from six to 60 days, depending on the skill level required for the position. Employees must be paid at least 85% of their normal wages during the probation period and should be notified of the probation outcome at least three days before the test period ends.
Severance pay
Employees are entitled to a severance package equivalent to half month’s wages for every year worked, or a month’s wages for every year, if the decision is due to redundancy, or economic.
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01. Book a call or sign up
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02. Add your people
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03. Dedicated onboarding
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