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Compliantly hire and expand your business in Vietnam

When it comes to employing and managing employees in Vietnam, there are specific procedures and regulations that must be followed.
vietnam map
Vietnam is a country at the eastern edge of mainland Southeast Asia, with the world’s fifteenth-most populous country. Vietnam shares land borders with China to the north, and Laos and Cambodia to the west. It shares maritime borders with Thailand through the Gulf of Thailand, and the Philippines, Indonesia, and Malaysia through the South China Sea. Its capital is Hanoi and its largest city is Ho Chi Minh City (formerly named Saigon).




GDP per Capita

$433.356 billion

Total GDP


Total Population


Human Development Index


Time Zone


Official Language

Vietnamese Đồng (VND)


331,344.82 km2 (127,932.95 mi2)

Land Area

Here's what you need to know

Overall, employing workers in Vietnam requires careful attention to the specific requirements and regulations. Working with a local expert in employment and payroll can help ensure that you’re meeting all the legal requirements and providing a positive employment experience for your staff.
Employment contracts are mandatory in Vietnam and must be written in Vietnamese. They should clearly outline:

Job title, duties, and responsibilities

Salary and benefits (including bonuses)

Working hours and overtime pay

Leave entitlements (annual leave, sick leave, etc.)

Termination terms (notice period, severance pay)

Confidentiality clauses (if applicable)

Minimum Wage

Vietnam has a regionalized minimum wage system. Rates are set by the government and vary depending on location (four zones). You can find the latest minimum wage figures on the Ministry of Labor, Invalids and Social Affairs (MOLISA) website.

Payroll Terms

Salaries are typically paid monthly by bank transfer on the last working day of the month or within the first few days of the following month. Payslips with details of gross pay, deductions, and net pay are mandatory.


Personal Income Tax:

Vietnam uses a progressive income tax system. Employees pay income tax based on their annual earnings, with rates ranging from 5% to 35%. Employers withhold income tax at source and remit it to the tax authorities along with social security contributions.

Corporate Income Tax:

Companies are subject to corporate income tax on their profits. The current rate is 20%.

Social Security

Vietnam has a social security system that covers health insurance, unemployment insurance, and pension benefits. Both employers and employees contribute a set percentage of the employee's salary towards these programs.

Vietnam has a standardized leave policy:

Annual Leave

Minimum of 12 days per year, increasing with service duration (up to 14 days).

Sick Leave

Up to 15 days of paid sick leave per year with doctor's certification.

Maternity Leave

Up to 6 months of paid maternity leave for female employees, followed by an optional unpaid parental leave (up to 1 year).

Paternity Leave

14 days of paid paternity leave for male employees.

Public Holidays

Tet (Lunar New Year) holiday is the most significant, along with 10-11 other national holidays per year.

Probationary Period

The maximum probationary period in Vietnam is 3 months.

Termination of Employment

Termination of employment should follow the terms outlined in the contract or the Labor Code. Notice periods and potential severance pay vary depending on the reason for termination and the employee's length of service.

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