Hire employees and contractors in Vietnam

Remote’s guide to employing in Vietnam.

  • Capital city

    Hanoi

  • Currency

    Vietnamese đồng
    (, VND)

  • Population size

    96,208,984
    (est. 2019)

  • Languages spoken

    Vietnamese

  • Availability

    Remote-Owned Entity
    Coming in Q3 2022

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

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.

Map of Vietnam
  • Capital city

    Hanoi

  • Currency

    Vietnamese đồng
    (, VND)

  • Languages spoken

    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)

Grow your team in Vietnam with Remote

To employ in Vietnam, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Vietnam can get complicated, especially without established local relationships. 

Remote’s global employment solution makes it easy for your company to employ workers in Vietnam quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Vietnam, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

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 minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Vietnam.

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

Wages are disbursed bi-monthly or once monthly.

Competitive benefits package in Vietnam

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Vietnam are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Taxes in Vietnam

Learn how employment taxes 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.

Public holidays

There are 12 public holidays employees can take off work with full pay.

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.

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.

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.

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.

Build your team,
anywhere in the world.

Get started today