Hiring guide in Vietnam

Have the latest guide for hiring in Vietnam through Native Teams

What should I know about hiring in Vietnam?

While finding and hiring talented Vietnamese workers can be extremely rewarding, you should know a few things beforehand. First and foremost, it’s essential to know that Vietnam has worker-friendly labor regulations that provide excellent employee protections and perks. 

Because of this, it’s crucial to ensure compliance with the Labor Code’s requirements by being familiar with it. In addition, it can be pretty helpful for the hiring process if you know the regional traditions, cultures, and languages. 

In order to encourage loyalty and efficiency among your Vietnamese employees, prioritise developing great relationships with them and be ready to offer competitive remuneration packages.

Why is Vietnam a good choice for finding remote employees?

If you want your company to thrive and grow in Vietnam, you need to understand the employment customs and regulations mandated by Vietnamese law. Professionals in Vietnam are renowned for their reliability, discipline, and commitment to their jobs. 

In addition, the majority of Vietnamese people are also fluent in English, which facilitates interaction with foreign business partners and teams. 

Because of this, you may expect tremendous motivation and dedication from your Vietnamese remote workers. Moreover, the country is home to a sizable and expanding group of skilled experts in industries such as information technology, digital marketing, and customer service.

How can Native Teams help you hire in Vietnam

When it comes to the challenges of complying with local rules and regulations, cultural differences, and language barriers, Native Teams is at your service. Our Employer of Record services allows you to enhance your compensation and benefits packages to make them more market-competitive and attractive to top talent while navigating local laws and regulations.

 Hire your first Vietnamese employee with Native Teams.

Legal requirements for hiring in Vietnam

Minimum wage

The minimum wage in Vietnam can be broken down into two categories. 

1. The first is the “common minimum wage,” which is set at VND 1,490,000 per month and used to determine compensation for workers at state-owned organisations and enterprises and the “social contribution” paid by all businesses.

2. The second type of minimum wage is known as the Regional Minimum Wage, which is applied to all non-state firms based on zones that the government has established.

Contributions & taxes

Employer tax

Total employment cost is 21.50%.

Corporate tax

Vietnam’s corporate income tax rate is 20% for domestic and foreign businesses.

Employee tax

The total employee cost is 10.50%.

Income tax

Taxes on income earned by residents are subject to PIT at progressive rates ranging from 5% to 35%, while the same income earned by non-residents is taxed at a flat rate of 20%.

To calculate the salary and taxes in Vietnam please click here.

Payroll cycle

In Vietnam, full-time workers are paid on the last business day of the month or as specified in their employment contract.

Is there a 13th salary in Vietnam?

The 13th month’s salary is traditionally paid in Vietnam at the end of the year or on the Lunar New Year.

Labor rules

Probation period

A permanent employee’s probationary period in Vietnam can range from 6 months to 1 year, depending on the nature of the position and the candidate’s prior work experience.

Notice period 

Depending on the nature of the contract, notice periods in Vietnam might range from 30 to 45 days.

  • Less than a year of service: 3 business days for a short-term seasonal contract;
  • Between 1 and 3 years of service: 30 days for a fixed-term labor contract ;
  • 45 days for an indefinite employment contract.

Severance pay

Severance compensation is determined by the employee’s contract conditions and duration of service. For each year of service, a worker is entitled to statutory severance pay equal to 50%of their regular monthly income.  

Working hours

The Labor Code stipulates that regular working hours are limited to no more than 8 hours per day or 48 hours per week. The maximum amount of overtime that can be worked in a year is 200 hours, which breaks down to 12 hours per day, 40 hours per month, and 12 hours per week.

Leave and benefits

Public holidays

Vietnam has 6 national holidays totalling 11 days and a few local holidays depending on the employee’s location.

  1. New Year’s Day: 1 day
  2. Lunar New Year: 5 days
  3. Hung King’s Festival: 1 day
  4. Reunification Day: 1 day
  5. Labour Day: 1 day
  6. Independence Day: 2 days

Sick leave

Each employee is eligible for up to 30 days of paid sick leave per year, increasing to 60 days under certain conditions.

Maternity leave & paternity leave

A pregnant worker is eligible for maternity leave of 6 months, with the possibility of an additional 1 month in case of complex or multiple births. Fathers are suitable for 5 to 14 days of compensated paternity leave.

Other leave (marriage, bereavement, exam leave)

Bereavement leave

A worker is eligible for 3 days of paid leave in case of a death in the immediate family.

Parental leave

Vietnam’s parental leave policy allows for up to 20 days of leave per year for childcare until the child turns 3 and then up to 15 days per year until the child turns 7. 

Marriage leave

In the event of a marriage, employees are eligible for up to 3 days off, and parents are eligible for one day off for each of their children’s weddings.

What are the minimum vacation days?

Employment contracts in Vietnam stipulate a minimum of 12 days of paid leave per year, with an additional day added for every 5 years of service.


Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*


Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Vietnam, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Vietnam?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

  • No paperwork: We will handle all the necessary paperwork for you.
  • Save on taxes: We help you handle your taxes.
  • No company set up: You can expand your business using our company entitles.
  • Online onboarding: We’re here to ensure your onboarding process is trouble-free.
  • No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
  • Increase your profit: We assist you in growing your business and maximizing your profits.
  • Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
  • Local support: We can assist you in understanding and complying with the relevant local laws.
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*Note: The provided information was accurate at the time of writing.

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