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Vietnam is a fast-growing talent hub in Southeast Asia, known for its young and tech-talented workforce and competitive labour costs. With a strong emphasis on STEM education and a rapidly evolving digital economy, Vietnam presents a dynamic environment for companies seeking to scale efficiently. Its strategic location, improving infrastructure, and increasing integration into global markets make it an appealing choice for businesses seeking to hire remote talent or expand operations in the region.
Located in the heart of Southeast Asia, Vietnam offers a dynamic and highly skilled workforce, especially in the fields of technology, engineering, and business services. Its competitive labour costs and growing digital economy have made it an attractive destination for international companies looking to expand. However, employers must be aware of local labour regulations governing employment contracts, minimum wages, working hours, social insurance contributions, and employee rights to ensure full compliance.
Discover more about salaries, employment costs, and legal requirements for hiring in Vietnam. Get the full hiring guide now!
In Vietnam, employment contracts must be in written form and comply with the Labour Code. Contracts can be either definite-term or indefinite-term and must clearly outline key employment terms, including job responsibilities, wages, working conditions, and social insurance provisions.
Notice periods: Ranging from 3 to 45 days.
Termination of employment: Notice periods vary depending on contract type and reason for termination.
Want to ensure compliance when hiring in Vietnam? Get our full template now!
Employers in Vietnam provide a combination of statutory and optional benefits to promote employee well-being and improve retention. While certain benefits are required by law, many employers enhance their offerings with additional perks to attract and retain top talent in a competitive market. Understanding both mandatory and common benefits is key to building a compliant and appealing workplace.
Want a full breakdown of all employee benefits available in Vietnam?
Vietnam has a structured tax system that applies to both individuals and businesses. Employers are responsible for withholding personal income tax and making social insurance contributions on behalf of employees. Companies must also comply with other tax obligations, including corporate income tax and VAT. A clear understanding of these requirements is essential for maintaining compliance and accurately managing employment-related costs.
Personal income tax rate: Progressive rates from 5% to 35% for residents; flat 20% for non-residents.
VAT: 10% or reduced rate of %5
Tax allowances: Basic personal allowance, dependent-spouse allowance and tax bonus on a child.
Curious to learn about Vietnam’s tax allowances and similar tax regulations?
Employers in Vietnam must process payroll in accordance with local labour laws and contractual agreements. Salaries are typically paid monthly and must comply with regional minimum wage standards. Employers are responsible for calculating and withholding personal income tax and social insurance contributions, as well as submitting timely reports to relevant authorities.
Salary payment deadline: Monthly, according to the date on the contract.
Taxes and contributions payment deadline: By the 20th of the following month.
Payroll declarations deadline: Last day of the third month following the tax year.
Payroll currency: VND
Vietnam’s labour framework is governed by the Labour Code, which regulates essential aspects of employment such as contract types, working hours, minimum wage, probationary periods, and employer responsibilities. Compliance with these legal requirements is critical for companies hiring local employees or managing distributed teams within Vietnam.
Total employment cost:
Minimum wage: 4,960,800 VND
Probation period: 60 to 180 days
In Vietnam, foreign employees must obtain a work permit to work legally. Employers initiate the application with the Ministry of Labour, Invalids, and Social Affairs or the local Department of Labour at least 15 days prior to the start of employment. Additionally, foreign employees need a residence visa, which is often linked to their work permit. These requirements ensure compliance with Vietnamese immigration and labour laws.
Types of permits: EU, US, and Kosovo nationals can get a five-year Unique permit; other foreign nationals may receive permits of varying lengths.
Process length: Up to 5 working days
Process cost: 1800€
Want to learn more about obtaining visas and work permits in Vietnam? Get our full country handbook now, or click here to find out more!
Using an Employer of Record (EOR) service in Vietnam allows you to hire talent legally without the need to establish a local legal entity. The EOR acts as the official employer on your behalf, assuming full responsibility for:
Utilising Professional Employer Organisation (PEO) services in Vietnam offers HR and administrative support while maintaining your legal employer status. PEO services are ideal for companies that already have a legal entity in Vietnam but require assistance in managing day-to-day workforce operations, such as:
Native Teams provides a payroll calculator adjusted per Vietnamese labour laws. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: August 11, 2025
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Freelancers and gig workers in Vietnam are typically considered self-employed and are responsible for registering with the local tax authorities. They must manage their own income tax obligations, which may include submitting quarterly tax declarations and paying personal income tax at applicable rates. As a client, you are generally not liable for their taxes or social contributions. Still, it is crucial to ensure that the working arrangement does not resemble formal employment to avoid the risk of misclassification.
A well-structured contract clearly outlining the scope of work, deliverables, deadlines, and payment terms is highly recommended to safeguard both parties.
