Vietnamese Dong (VND)
Cost of Living
(US 69.92)
Time (UTC)
UTC +7
Socialist Republic with a one party system

Hire in Vietnam without an entity and fully compliant with local labor laws

Vietnam is the 18th-largest country in Asia. It's also the 15th-most populated and the 67th-largest country in the world. The 96 million residents of this Southeast Asian nation are highly educated, active, and considered the country's most valuable economic asset. 

Vietnam’s is approximately 82% the size of California.

Get to know Vietnam

Stunningly beautiful and safe, Vietnam has a rich heroic history. The country, a popular tourist destination, is known for its beaches, rivers, Buddhist pagodas, and bustling cities. 

Vietnam's robust public education system contributes to the 94.52% national literacy rate. Chinese culture heavily shaped traditional Vietnamese society, although Western influences increased during the 20th century. Since the 1980s, there's been more exposure to capitalist lifestyles and a resurgence of cultural traditions.

The World Bank classifies Vietnam as a lower-middle-income economy with the following trade agreements and alliances: 

Trade Agreements:

  • APEC - Asia-Pacific Economic Cooperation
  • ASEAN - Association of Southeast Asian Nations
  • RCEP - Regional, comprehensive economic partnership
  • TPP - Trans-Pacific Partnership


  • ADB - Asian Development Bank
  • Non-Aligned Movement
  • UN - United Nations
  • WTO - World Trade Organization

“Must know” if you’re hiring in Vietnam without an employer of record

Entity requirements
Mandatory hiring contracts & clauses
Different compliance risks for full-time vs. contractor employees
Mandatory probationary periods
Allowable working hours & overtime wage laws
Timecard and attendance records
Required employer payroll, labor insurance, and tax payments
Discrimination protection
Notices & termination regulations

Budgeting for Vietnamese employees

Hiring remote Vietnamese professionals is smart and economical, assuming you’re fully compliant with local tax, labor, and wage laws.
Employee Classification–Full-time vs Contractor

In recent modifications, the Vietnamese Labor Code expanded the definition of an employee to include anybody who performs services for an employer under a contract while being compensated, managed, and supervised by the employer.

The labor laws of Vietnam do not make any distinctions between different classes of workers. However, they do apply to:

  • Employees
  • Trainees
  • Apprentices
  • Other workers without labor relations
Employment Contracts

Vietnam law requires an employee provides the employer with certain personal information before beginning employment, such as:

  • Full name
  • Date of birth
  • Gender
  • Place of residence
  • Educational background
  • Vocational skills
  • Health condition
  • Any additional details the employer requests directly linked to fulfilling the employment contract
Probation Period
  • Professional or technical college qualification = 60 days 
  • Intermediate-level qualification or trained staff = 30 days 
  • Positions with no training requirements = six days
Standard Working Hours & Overtime

Employees working under normal working conditions:

  • 8 hours per day 
  • 48 hours per week

For employees working in hefty, hazardous, or toxic working conditions:

  • 6 hours per day 
  • 36 hours per week
Payroll Frequency


Wages & Bonuses
  • Minimum monthly wage = $269.442
  • High-skilled employees = $466.246 a month
  • Low-skilled employees = $231.37 a month
Payroll Taxes & Employer Contributions
  • 20% standard corporate income tax (CIT)
  • Social insurance (SI) contributions: (1) 17.5% Employer Rate, (2) 8% Employee Rate
  • Paid vacation
  • Maternity allowance and entitlements
  • Paternity Leave
  • Sick Pay
  • Overtime

Health Insurance 

  • Local and Foreign Employees:
  • 1.5% Employer Rate
  • 3% Employee Rate

Paid leave


  • 1 – 3 months of pregnancy = 20 days 
  • 3 – 6 months of pregnancy = 40 days 
  • Pregnancy over 6 months = 50 days 


  • Normal delivery = 5 days
  • Delivery through Cesarean section = 7 days
  • Twin births = 10 - 14 days
  • Multiple births = 3 days for each baby after the 3rd one

Vacation/PTO days

  • Employees in regular working conditions = 12 days
  • Employees in hazardous occupancies = 14 - 16 days

Sick Days

  • Paid social insurance for less than 15 years = 30 days
  • Paid social insurance for 15 - 30 years = 40 days
  • Paid social insurance for more than 30 years = 60 days

Additional Leave

  • Bereavement Leave
  • Immediate family member = 3 days

Additional Benefits

  • Meal vouchers
  • Medical insurance
  • Transport vouchers for regular employees


Vietnam celebrates 17 national (public) holidays and multiple observances a year. Some have fixed dates set on the Gregorian calendar and others are based on the Lunar calendar, and thus observed on different dates each year. 


The most important fixed-date holidays are:

  • New Year Holiday (1 January)
  • Victory Day (30 April)
  • International Labour Day (1 May)
  • National Day (2 September)
  • War-invalids and Martyrs Day (27 July)

The most important Lunar calendar holidays are:

  • Lunar New Year (January or February)
  • Commemorative Celebration of Vietnam’s Forefather – King Hung (March)
Termination & Severance

Notice Periods

  • Indefinite term employment = 45 days
  • Fixed-term employment = 30 days
  • Employment contracts with less than 12 months = 3 days

Severance Payments are half of one month's wages for each year of employment. Note, the following situations are exempt from severance pay requirements: 

  • The employee has worked for the business for less than a year
  • The employee unilaterally and illegally ends the work contract
  • The employee is terminated for violating the company's internal labor laws
  • The employee retires and qualifies for a pension
  • The employee missed at least five consecutive working days without a valid excuse
  • The employee is a foreigner who (a) was deported from Vietnam or (b) worker's work permit is about to expire

A few fun facts about Vietnam

  • The words Viet and Nam date back at least a thousand years before the common era.
  • Known as "The King Of Cashews," Vietnam produces more than 55% of the world's cashew nuts and generates $ 2 billion annually.
  • You can get a custom suit or dress for less than $100 in the beach city of Hoi An. 
  • The world's largest cave, Hang Son Doong is three miles long and wider than a Boeing 747. An entire New York city block would fit in some of the chambers!

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