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Vietnamese Dong (VND)
EOR IN Vietnam
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A guide to employing and growing your team in Vietnam
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Vietnam is an upper-middle-income, socialist-oriented market economy and a major global manufacturing hub in Southeast Asia. With a population of over 102 million and a median age of around 33, it benefits from a large, resilient, and increasingly skilled workforce driving industries like electronics, textiles, machinery, and food processing. . Geographically, Vietnam offers striking contrastsfrom tropical southern coasts to cooler, misty northern regions. Its affordability, expanding co-working culture, and vibrant cities like Hanoi and Ho Chi Minh City make it an appealing destination for digital nomads. Backed by progressive labor protections under the 2021 Labor Code, Vietnam continues to strengthen worker rights while sustaining rapid economic growth across key sectors.
Employer Contributions
Social Insurance: 17.5%
Health Insurance: 3.00%
Unemployment Insurance: 1.00%
Trade Union Fund: 2.00% (Charged for corporate employers only)
Total Employer Contribution: 23.5%
Employee Payroll Taxes
Social Insurance: 8%
Health Insurance: 1.5%
Unemployment Insurance: 1%
Total Employee Contribution: 10.5%
Employee Income Tax Rates
Up to 60 million VND ($2617.13): 5%
60 – 120 million VND ($2617.13 – $5234.26): 10%
120 – 216 million VND ($5234.26 – $9421.66): 15%
216 – 384 million VND ($9421.66 – $16749.62): 20%
384 – 624 million VND ($16749.62 – $27218.13): 25%
624 – 960 million VND ($27218.13 – $41874.05): 30%
Above 960 million VND ($41874.05+): 35%
Statutory Leave
Employees are entitled to 12 working days of paid annual leave after completing 12 months of employment, with one additional day added every five years of service. Minors receive 14 days, while employees in hazardous or labor-intensive roles are entitled to 16 days. Those working for less than a year receive leave proportional to their tenure, roughly one day per month worked. In addition, employees are entitled to 12 paid public holidays annually. Employees can take 30 to 60 days of paid sick leave per year at 75% of their normal wages, depending on their social insurance contribution period. Those in hazardous or heavy industries are eligible for 40 to 70 days annually. Employees recovering after illness may receive 25% to 40% of their regular wages during convalescence.
Pregnancy and Maternity Leave
Female employees are entitled to six months of fully paid maternity leave, which can begin up to two months before childbirth.
Paternity Leave
Fathers are entitled to fully paid paternity leave ranging from 5 to 14 days.
Work-Related Injury Leave
Parental Leave
Parents can take up to 20 days of parental leave until their child turns three, and up to 15 days annually for children aged four to seven. This leave is compensated at 75% of normal wages and is paid by the Vietnamese Social Insurance Authority.
Personal Leave
Employees are entitled to paid personal leave for life events, including three days for their own marriage, one day for a child’s wedding, and three days for bereavement of immediate family members. Parents and guardians may take up to 20 working days annually as carer leave for sick children. Work injury leave allows up to 10 days off for recovery after medical treatment. Adoptive parents of children under six months old are eligible for paid leave until the child reaches six months of age.
Termination Process
Employers in Vietnam can terminate employees for reasons such as poor performance, prolonged illness, serious misconduct, or organizational restructuring. Retrenchments require a formal labor usage plan, consultation with employee representatives, and at least 30 days’ notice to both employees and provincial authorities. Misconduct-related dismissals (e.g., theft, violence, harassment) are permitted under the law. Employees with more than 12 months of service may be eligible for a job loss allowance unless covered by unemployment insurance, and wrongful termination can result in reinstatement and compensation. Employees are entitled to severance pay equal to half a month’s wages for each year of service, provided the termination is under valid grounds and does not involve employee misconduct or other legally excluded circumstances.
Notice Period
The statutory notice period depends on the type of labor contract:
3 days’ notice for seasonal or short-term contracts (less than 12 months)
30 days’ notice for fixed-term contracts (1 to 3 years)
45 days’ notice for indefinite-term contracts
Probation Period
Probation periods are not mandatory in Vietnam and typically range from 6 to 60 days depending on the role. During this period, employees must receive at least 85% of their regular wages and be informed of the probation outcome at least three days before it ends.