How to Hire Employees in Vietnam

Foreign companies must use a local entity, an Employer of Record, or a registered contractor arrangement to hire legally in Vietnam.

The key compliance layer is Labour Code 2019 (No. 45/2019/QH14), which governs contracts, termination, and working conditions. Employers also face mandatory social insurance at a 21.5% employer contribution rate and work permit requirements for every foreign hire.

This guide covers employment contracts, payroll, taxes, statutory benefits, work permits, and termination rules under Vietnamese law.

Gloroots acts as the Employer of Record in Vietnam, managing payroll execution, statutory filings, and contract compliance so your team focuses on managing the hire directly.

Job Market and Hiring Trends in Vietnam

Vietnam's manufacturing and tech sectors drove GDP growth of 5.05% in 2023 (GSO), with FDI-linked manufacturing jobs concentrated in the Hanoi-Hai Phong and Ho Chi Minh City corridors.

Senior tech and engineering roles remain hard to fill despite a large overall labor supply, creating real competition for specialized talent.

• Hanoi-Hai Phong metro labor force: 12.7 million workers, approximately 22% of the national total (Vietnam Briefing).

• Ho Chi Minh City metro labor force: 10.6 million workers, approximately 19% of the national total (Vietnam Briefing).

• Da Nang metro: 2.1 million workers, representing 3.8% of the national labor force (Vietnam Briefing).

• Manufacturing employed over 21% of the workforce by 2022, driven by export-oriented foreign direct investment (GSO 2022).

• 60% of Vietnamese employers cite talent competition as a key challenge, with health benefits and career development as the top retention factors.

The Hanoi-Hai Phong corridor carries peak-season turnover risk in manufacturing. Ho Chi Minh City leads in white-collar tech and finance talent, making it the primary market for professional hiring.

Your Options for Hiring in Vietnam: Entity vs. EOR vs. Contractor

Employers entering Vietnam have three main paths: establish a local entity, engage independent contractors, or use an Employer of Record. Each option carries different setup timelines, costs, and compliance obligations.

Setting up a local entity requires obtaining an Enterprise Registration Certificate, drafting a company charter, and maintaining ongoing HR and payroll compliance under Labour Code 2019.

Contractors offer flexibility for project-based work. However, misclassification under Vietnamese labor law exposes companies to back-payments and financial penalties.

An EOR like Gloroots employs workers on the client's behalf, managing payroll, social insurance contributions, and employment contracts without requiring a local entity. To understand the mechanics behind this model, see how does EOR work. When evaluating providers, the guide to the best employer of record covers key selection criteria.

Path	Setup Time	Cost	Compliance Burden	Best For
Entity	2–4 months	High	High	Long-term, large-scale operations
Contractor	Days	Low	Medium (misclassification risk)	Short-term, project-based work
EOR	Days to weeks	Predictable monthly fee	Low (managed by EOR)	Fast, compliant entity-free employment

Employees vs. Contractors in Vietnam

Misclassifying a worker in Vietnam triggers back-payment of social insurance contributions, a 20% personal income tax penalty on underpaid amounts, and fines ranging from $77 (VND 2 million) to tens of millions per offense.

Vietnam's classification test focuses on three practical factors: employer control over work schedule, tools provided, and exclusivity of the working relationship. A genuine contractor sets their own hours, uses their own equipment, and works for multiple clients at the same time. A worker who operates under employer direction on all three factors is treated as an employee under Vietnamese labor law, regardless of how the contract is labeled.

Late social insurance and personal income tax payments also attract 0.03% daily interest. Systematic tax evasion can result in criminal liability for company officers.

Dimension	Employee	Contractor
Control	Employer directs schedule, tools, and methods	Worker sets own schedule and methods
Benefits and social security	Mandatory SI, HI, and UI contributions	Not entitled to statutory benefits
Taxation	Progressive PIT withheld by employer	Self-declared PIT; no employer withholding
Contractual agreement	Labour Code employment contract	Civil code service contract
Exclusivity	Typically exclusive to one employer	Works for multiple clients

Cost to Hire an Employee in Vietnam

The total employment cost in Vietnam includes gross salary plus mandatory employer contributions totaling 23.5%, covering social insurance, health insurance, unemployment insurance, and a trade union fee.

Employer contributions to Social Insurance and Health Insurance are capped at 20 times the reference minimum wage, set at $90 (VND 2,340,000) per month as of July 2024. Unemployment Insurance contributions are capped at 20 times the applicable regional minimum wage. Understanding these caps is essential for accurate payroll budgeting. For a broader view of what employment costs look like across markets, see our guide on employer of record cost.

Contribution	Employer Rate	Employee Rate	Notes
Labour, Accident and Occupational Disease Fund	0.5%	0%	Employer only
Retirement and Death Gratuity	14%	8%	Capped at 20x reference minimum wage
Sickness and Maternity	3%	0%	Employer only
Health Insurance	3%	1.5%	Capped at 20x reference minimum wage
Unemployment Insurance	1%	1%	Capped at 20x regional minimum wage
Trade Union Fee	2%	0%	Employer only
Total	23.5%	10.5%

Foreign employees holding work permits under labour contracts of at least one year are subject to compulsory Social Insurance. Unemployment Insurance does not apply to foreign employees. Foreign employees who are internally transferred and have reached statutory retirement age are exempt from Social Insurance obligations.

Compliance Risks While Hiring in Vietnam

Non-compliance in Vietnam carries financial penalties, operational suspension, and in serious cases criminal liability under the Labour Code 2019.

• Worker misclassification: Employers face a 20% Personal Income Tax penalty on underpaid tax, 0.03% daily interest on outstanding amounts, fines ranging from $77 (VND 2 million) to tens of millions, and potential criminal sanctions for repeated or severe violations.

• Work permit non-compliance: Employers can be fined up to approximately US$3,300, face a three-month operational suspension, and any undocumented foreign worker must be deported within 15 days of detection.

• Payroll contribution errors: Incorrect or late Social Insurance, Health Insurance, or Unemployment Insurance contributions trigger mandatory back-payment of all outstanding amounts plus accrued interest.

• Incorrect contract type: Using a fixed-term contract beyond one permitted renewal converts it automatically to an indefinite-term contract under Vietnamese labour law.

• PIT filing errors: Monthly Personal Income Tax declarations are due by the 20th of the following month. Late filing triggers interest charges and administrative penalties.

• Permanent establishment risk: Foreign companies that grant local employees signing authority or use local agents may trigger a 20% corporate income tax liability in Vietnam. Limiting local signing authority and maintaining clear documentation are the primary mitigation steps.

Key Labor Laws in Vietnam

Vietnam's primary employment legislation is the Labour Code 2019 (No. 45/2019/QH14), which took effect in January 2021. The Ministry of Labour, Invalids and Social Affairs (MOLISA) enforces it nationally, with provincial DOLISAs handling local compliance.

Employment contracts

Contracts must be in writing for any role lasting more than three months. Each contract must specify job duties, salary in Vietnamese Dong, working hours, workplace location, contract duration, safety conditions, insurance obligations, and benefits.

Fixed-term contracts can be renewed only once. After that single renewal, the contract converts to indefinite-term. If neither party acts within 30 days of expiry, automatic conversion applies. Probation periods run up to 60 days for technical roles, 180 days for senior management, and 30 days for other positions. Employees on probation must receive at least 85% of the agreed wage, and no severance is owed if employment ends during probation.

Working hours and overtime

The standard working week is 40 hours, at 8 hours per day. Overtime is paid at 150% on regular days, 200% on weekly rest days, and 300% on public holidays. The annual overtime cap is 200 hours, or 300 hours for sectors with approved exemptions. Employee consent is required before any overtime is assigned.

Minimum wage

Decree 74/2024/ND-CP, effective July 2024, sets four regional minimum wage zones. Region 1, covering urban Hanoi and Ho Chi Minh City, is $191 (VND 4,960,000) per month ($0.91 (VND 23,800) per hour). Region 2 is $169 (VND 4,410,000) per month ($0.81 (VND 21,200) per hour). Region 3 is $148 (VND 3,860,000) per month ($0.71 (VND 18,600) per hour). Region 4 is $133 (VND 3,450,000) per month ($0.64 (VND 16,600) per hour). A common minimum wage of $90 (VND 2,340,000) per month is used separately to calculate social insurance and health insurance contribution caps.

Leave entitlements

Employees are entitled to a minimum of 12 days of paid annual leave. Full details on sick leave, maternity leave, paternity leave, and personal leave are covered in the Employment Benefits section below.

What to Include in an Employment Contract or Offer Letter in Vietnam

Vietnamese employment contracts are legally binding documents under the Labour Code 2019. Missing mandatory clauses can expose employers to disputes and regulatory penalties.

• Job title, duties, and workplace location

• Salary in Vietnamese Dong (VND) and payment schedule

• Contract type and duration: indefinite, fixed-term (1 to 36 months), or seasonal

• Probation period, duration, and wage (minimum 85% of agreed salary)

• Standard working hours and overtime policy

• Annual leave entitlement (minimum 12 days) and public holiday schedule

• Notice period by contract type: 45 days for indefinite-term, 30 days for fixed-term, 3 days for contracts under 12 months

• Social insurance, health insurance, and unemployment insurance obligations

• Confidentiality and IP assignment clauses

• Governing law: Labour Code 2019 (No. 45/2019/QH14)

Contracts may be drafted in two languages, but the Vietnamese version governs in any dispute.

Payroll and Taxes in Vietnam

Vietnam payroll runs monthly in Vietnamese Dong. Weekly and biweekly cycles are permitted under the Labour Code but are rarely used in practice.

Foreign employers without a local entity must run payroll through an Employer of Record or a registered local entity. Direct cross-border salary payments do not satisfy Vietnamese payroll or social insurance obligations.

Employers withhold personal income tax (PIT) monthly and remit it by the 20th of the following month. Quarterly filing is available for smaller employers. Annual PIT finalization is due by the end of the third month after year-end for employers, and the fourth month for individuals.

Vietnam personal income tax rates

Income bracket (VND/month)	Rate
Up to $192 (VND 5,000,000)	5%
$192 (VND 5,000,001) to $384 (VND 10,000,000)	10%
$384 (VND 10,000,001) to $692 (VND 18,000,000)	15%
$692 (VND 18,000,001) to $1,230 (VND 32,000,000)	20%
$1,230 (VND 32,000,001) to $1,998 (VND 52,000,000)	25%
$1,998 (VND 52,000,001) to $3,075 (VND 80,000,000)	30%
Above $3,075 (VND 80,000,000)	35%

Tax residents (183 or more days in Vietnam) are taxed on worldwide income at the progressive rates above. Non-residents pay a flat 20% on Vietnam-sourced income only.

Several income categories are exempt from PIT: relocation allowances, annual airfare for expatriates, school tuition for expat children, overtime and night-shift pay differentials, and pension income.

The payroll calculation sequence runs as follows: gross salary, less employee social and health and unemployment insurance contributions (10.5%), less personal deductions, then PIT applied to net taxable income.

An amended PIT Law takes effect in January 2026. It adds new exempt categories, including carbon credits and startup investment income. For details on managing these obligations cost-effectively, see Gloroots pricing.

Employment Benefits in Vietnam

Vietnamese law mandates a defined set of statutory benefits. Employers in competitive urban markets such as Ho Chi Minh City and Hanoi typically supplement these with private health insurance, meal allowances, and performance bonuses to attract white-collar talent.

Paid time off and public holidays

Annual leave tiers are set by the Labour Code. Standard employees receive 12 days per year. Employees in heavy, toxic, or dangerous roles receive 14 days, and those in extremely hazardous roles classified by MOLISA receive 16 days. One additional day accrues for every five years of continuous service.

Personal leave entitlements are fixed by statute: 3 paid days for an employee's own wedding, 1 day for a child's wedding, 3 days bereavement for a parent, spouse, spouse's parent, or child, and 1 day bereavement for a grandparent or sibling.

Sick leave

Contribution period	Sick leave entitlement	Pay rate	Notes
Under 15 years	30 days/year	75%	Standard entitlement
15 to 30 years	40 days/year	75%	Increases with tenure
Over 30 years	60 days/year	75%	Maximum regular entitlement
Long-term illness (up to 180 days)	Up to 180 days/year	75%	For Ministry of Health-specified illnesses
Post-180 days treatment	Reduced rate	45% to 65%	For ongoing treatment

Sick leave pay comes from the Social Insurance Fund at 75%, not directly from the employer.

Maternity and paternity leave

Female employees receive 6 months of maternity leave, with up to 2 months taken before the expected delivery date. Vietnamese nationals receive 100% of their average salary from the Social Insurance Fund, based on the last 6 months of contributions and capped at 20 times the common minimum wage. Maternity pay for expatriates is agreed between employer and employee.

Birth type or condition	Paternity leave (days)
Natural birth	5
Cesarean section	7
Twins, natural birth	10
Twins, cesarean section	14
Each additional child beyond twins	+3 per additional child

Vietnamese nationals receive 100% of the previous month's salary from the Social Insurance Fund for paternity leave. For expatriates, compensation is agreed between employer and employee.

Public health insurance

Public health insurance contributions are compulsory for both employers and employees. Coverage applies to treatment at government hospitals, including examinations and hospitalization. Many employers add private health insurance for broader access, including private rooms and English-speaking doctors.

The Tet bonus is not legally required but is a near-universal cultural norm. Label it as a discretionary bonus in employment contracts to prevent it from being treated as guaranteed wages.

Work Permits and Visas in Vietnam

Foreign nationals working in Vietnam generally require a work permit issued by MOLISA. The process involves several pre-hire steps and a 10-business-day processing window.

Employers must announce the vacancy in a Vietnamese newspaper 30 days before hiring a foreign worker. A written request to MOLISA must follow at least 30 days before the start date, and the work permit application must be submitted 15 days before the employee begins. Permits are valid for two years with one renewal. Non-compliance carries fines up to US$3,300 and a three-month operation suspension.

Under Decree 152, certain categories are exempt from the work permit requirement:

• LLC members or owners with a capital contribution of at least $115,296 (VND 3 billion) (approximately US$130,400)

• JSC board members

• Internal transferees

• Short-term experts engaged for under 30 days or fewer than 90 days per year

• ODA project workers

• Lawyers holding a Vietnamese practice certificate

• Heads of representative offices

To apply for a work permit, the applicant must be at least 18 years old and submit: an application form, a health certificate issued within the past year, a police clearance under six months old, proof of manager, executive, or expert status, and a MOLISA acceptance letter. An "expert" is defined as holding a bachelor's degree plus three years of relevant experience, or five years with a practice certificate. A "technical worker" requires one year of training plus three years of experience, or five years of experience.

Visa Type	Purpose	Validity
Work Permit (LD visa)	Employment under a labour contract	Up to 2 years, renewable
Business Visa (DN)	Short-term business activities	Up to 12 months
Investor Visa (DT)	Capital contribution or ownership in a Vietnamese company	1 to 5 years depending on investment category (DT1–DT4)
E-visa	General entry including business	Up to 90 days

Onboarding New Hires in Vietnam

Onboarding in Vietnam is a compliance sequence as much as a welcome process. Missing steps create social insurance, tax, and contract exposure that can be difficult to unwind later.

Before Day One

• Execute a written employment contract in Vietnamese (and a second language if the contract is bilingual).

• Register the employee with MOLISA or DOLISA for social insurance, health insurance, and unemployment insurance within 30 days of hire.

• Obtain a work permit for any foreign national before the start date.

• Confirm payroll setup in VND with correct social insurance deduction rates applied.

Day One

• Provide the employee with a signed copy of the employment contract.

• Confirm probation terms in writing, including duration and a wage of at least 85% of the agreed salary.

• Register the employee with the enterprise-level trade union chapter if one is in place.

First Week

• Complete health and safety orientation as required under the Labour Code 2019.

• Confirm personal income tax registration and obtain the employee's tax code.

Ongoing

• Submit monthly social insurance, health insurance, and unemployment insurance contributions by the applicable deadline.

• Issue payslips each month.

• Track the probation end date and confirm or terminate the arrangement in writing before it expires.

NDAs, Confidentiality and IP Protection in Vietnam

NDA and confidentiality clauses are enforceable in Vietnam under the Civil Code 2015 and Labour Code 2019, provided they are reasonable in scope and duration.

Employment contracts should include explicit confidentiality obligations covering trade secrets, client data, and proprietary processes. IP assignment clauses should specify that work created during employment belongs to the employer. Non-compete clauses are permitted but must be reasonable in geographic scope and duration, and must be compensated to be enforceable. Vietnam's Personal Data Protection Decree (PDPD), effective July 1, 2023, requires employers to obtain employee consent before processing personal data and to implement data security measures.

Key clauses to include in every employment contract:

• Definition of confidential information and trade secrets

• IP assignment for work product created during employment

• Non-compete scope, duration, and compensation terms

• Employee data processing consent per PDPD (effective July 1, 2023)

• Governing law: Labour Code 2019 and Civil Code 2015

Termination and Offboarding in Vietnam

Valid grounds for dismissal under Labour Code 2019 include repeated performance failures, serious disciplinary violations, force majeure, and structural redundancy. Notice periods are 45 days for indefinite-term contracts, 30 days for fixed-term contracts, and 3 days for contracts under 12 months.

All wages, accrued leave, and severance must be paid within 14 days of termination. Severance pay is calculated at 0.5 months' salary per year of service, covering periods before 2009 when unemployment insurance coverage began.

Termination during probation requires no severance and no notice beyond what is agreed in the probation clause. Wrongful dismissal exposes the employer to reinstatement orders and back-pay liability.

Practical offboarding steps:

• Revoke system access and collect company equipment on or before the last working day

• Issue a termination letter citing valid grounds under Labour Code 2019 Article 34

• Complete SI/HI/UI de-registration with MOLISA/DOLISA within the required timeframe

• Provide the employee with their social insurance book and any outstanding benefit documentation

Business Culture in Vietnam

Vietnamese business culture is shaped by hierarchy, indirect communication, and a strong emphasis on relationship-building before any transaction takes place.

• Communication: Indirect communication is the norm. Avoid public criticism or direct confrontation. Deliver feedback privately and constructively to preserve face.

• Hierarchy: Seniority and organizational rank are respected. Use titles and last names in formal settings. Decisions flow top-down even when group consensus is sought.

• Relationship-building: Trust develops through consistent social interaction. Initial meetings typically focus on the relationship rather than the deal.

• Decision-making: Expect a collective, consensus-oriented process. Allow extra time for internal alignment before expecting a final answer.

• Performance management: Set explicit written expectations. Vietnamese employees may not proactively flag problems upward, so regular structured check-ins are more effective than open-door policies alone.

• Retention: Beyond salary, stability, clear career development paths, and recognition matter significantly. Tet bonus expectations are strong even when not contractually required.

• Work-life balance: Long working hours are common in manufacturing and startup environments. Urban white-collar workers increasingly value flexible arrangements.

Top Sectors to Hire From in Vietnam

Vietnam's economy spans several high-growth sectors, each with distinct talent profiles and in-demand roles for international employers.

• Manufacturing and electronics: Vietnam is the world's second-largest exporter of electronics after China. The sector employs approximately 11.8 million workers (GSO, 2022). In-demand roles include production engineers, quality control managers, and supply chain coordinators.

• Information technology and software: Vietnam ranks among the top 10 global IT outsourcing destinations (Kearney, 2023). Ho Chi Minh City and Hanoi together host more than 400,000 IT professionals. In-demand roles include software engineers, DevOps specialists, and data analysts.

• E-commerce and digital marketing: Vietnam's e-commerce market reached US$20.5 billion in 2023 (Statista). In-demand roles include performance marketers, UX designers, and marketplace managers.

• Financial services and fintech: Vietnam's fintech sector attracted US$400 million in investment in 2022 (Tracxn). In-demand roles include compliance officers, risk analysts, and mobile payment developers.

• Agriculture and aquaculture: Vietnam is the world's third-largest seafood exporter. In-demand roles include food safety specialists, logistics coordinators, and agri-tech engineers.

Employers targeting IT or digital roles may also find value in comparing talent availability across the region. For a parallel market with strong English proficiency and a growing tech workforce, see our guide on how to hire employees in Philippines.

Top Cities to Hire From in Vietnam

Vietnam's talent supply is concentrated in five cities, each with a distinct labor market profile. Matching your hiring target to the right city reduces sourcing time and salary overpayment.

• Hanoi: The capital city has a metro labor force of roughly 7 million. Vietnam National University and Hanoi University of Science and Technology anchor a strong pipeline for IT, engineering, R&D, and government-adjacent roles.

• Ho Chi Minh City (HCMC): The financial and commercial center of Vietnam, with a metro labor force of approximately 10.6 million. HCMC carries the highest white-collar salary benchmarks in the country and the deepest supply of finance, tech, digital marketing, and creative talent. Companies expanding across Southeast Asia often treat it as a regional base alongside hire employees in Singapore.

• Da Nang: A growing IT services hub anchored by Da Nang Software Park. Costs run below Hanoi and HCMC, making it practical for BPO, tourism tech, and mid-market software teams.

• Hai Phong: Vietnam's key industrial and maritime city. Talent here concentrates in manufacturing, logistics, and port operations, with proximity to major industrial zones including VSIP and Deep C.

• Binh Duong and Dong Nai: Industrial satellite zones south of HCMC. Both provinces hold large manufacturing and light-industry workforces, relevant for companies running factory or assembly operations.

Hire Compliantly in Vietnam with Gloroots

Gloroots acts as an Employer of Record in Vietnam, employing workers on behalf of clients and managing applicable employment administration, including employment contracts, social insurance contributions, personal income tax administration, payroll, and support with work-permit procedures for eligible foreign nationals. This allows companies to hire in Vietnam without establishing their own local employing entity.

The EOR model can be a practical fit for companies testing the Vietnamese market, building an initial local team, converting contractors to employees, or hiring specialized talent before deciding whether to establish a permanent local presence.

• No client-owned local entity required: Employ workers in Vietnam through an EOR structure without incorporating your own Vietnamese entity.

• Onboarding support: Gloroots coordinates the employment setup and required documentation, with start dates depending on the completion of applicable employment and immigration requirements.

• Local payroll and compliance administration: Social insurance, health insurance, unemployment insurance, personal income tax, and payroll can be administered within the agreed service scope.

• Location-based payroll: Employee compensation can be administered against the applicable Vietnamese regional minimum wage. From January 1, 2026, the monthly minimum wages are VND 5.31 million in Region I, VND 4.73 million in Region II, VND 4.14 million in Region III, and VND 3.70 million in Region IV.

• Dedicated support: Country-specific support for Vietnamese employment requirements, payroll administration, and applicable work-permit processes.

Companies with a growing Vietnamese workforce or plans for a broader revenue-generating operation can compare the ongoing economics and operational requirements of an EOR with establishing their own local entity. The appropriate structure depends on expected headcount, business activities, investment requirements, and long-term expansion plans.

Companies already scaling across Asia can also review what it takes to hire employees in China as a next step.

Frequently Asked Questions About Hiring in Vietnam

Can a foreign company hire employees in Vietnam without a local entity?

Yes. A foreign company can employ workers in Vietnam through a Global Employer of Record (EOR). The EOR becomes the legal employer on the client's behalf. It manages Labour Code 2019 compliance, payroll, and statutory contributions, removing the need to register a local entity before hiring.

What is the fastest route to hire in Vietnam?

Using an EOR is the fastest option. Onboarding through an EOR typically takes a few days. Setting up a local entity takes two to four weeks at minimum, plus additional time for tax and labor registration. For companies that need to place workers quickly, EOR is the practical path.

What are the employer social insurance contribution rates in Vietnam?

Employer contributions total 21.5% of gross salary, covering Social Insurance (17.5%), Health Insurance (3%), and Unemployment Insurance (1%). An additional 2% trade union fee applies. Social Insurance contributions are capped at 20 times the common reference wage per month.

What are the work permit requirements for foreign employees in Vietnam?

Employers must post a 30-day pre-hire announcement before recruiting a foreign national. The work permit application is submitted to MoLISA and processed within 10 business days. Permits are valid for two years. Certain categories, including internal transferees and those holding specific qualifications, may qualify for exemptions.

What are the minimum wage rates in Vietnam?

Vietnam sets minimum wages across four regional zones under Decree 74/2024. Region 1 (Hanoi and Ho Chi Minh City urban areas) is set at $191 (VND 4,960,000) per month. The common minimum wage, used as a reference for social insurance caps and public sector pay, is $90 (VND 2,340,000) per month.

What are the statutory leave entitlements in Vietnam?

Employees receive 12 days of paid annual leave per year. Workers in hazardous roles receive 14 or 16 days. Maternity leave is six months. Paternity leave ranges from 5 days for a natural birth to 14 days for a cesarean delivery of twins. Sick leave ranges from 30 to 60 days per year depending on tenure.

What are the notice periods and severance rules for termination in Vietnam?

Notice periods depend on contract type: 45 days for indefinite-term contracts, 30 days for fixed-term contracts of 12 to 36 months, and 3 days for contracts under 12 months. Severance pay equals 0.5 months of salary per year of service completed before January 1, 2009. Final wages must be settled within 14 days of termination.

What are the payroll and tax obligations for employers in Vietnam?

Employers run monthly payroll in Vietnamese Dong. Personal Income Tax (PIT) must be withheld and remitted to the tax authority by the 20th of the following month. PIT rates are progressive, ranging from 5% to 35% for residents. Non-resident employees are taxed at a flat rate of 20% on Vietnam-sourced income.