Employment taxes

• Personal Income Tax (PIT): Progressive rates from 5% to 35%
• Employee social security contributions: 10.5% of gross salary
  - Social insurance: 8%
  - Health insurance: 1.5%
  - Unemployment insurance: 1%
• Taxes are withheld monthly by the employer.

Leave policy

• Annual leave: 12 paid days per year, an increasing with tenure - for every five years you get 1 day additionally.
• Public holidays: Vietnam celebrates 6 national holidays with around 11 days in total.
• Sick leave: Up to 30 days. Sick leave is covered by the social security at 75% of the employee's salary.
• Maternity leave: 6 months of fully paid maternity leave covered by the social security.
• Paternity leave: 5 days of fully paid paternity leave covered by the social security.
• Parental leave: No law covers paternity leave in Vietnam.

Employment termination

• Legal grounds include: Termination due to performance, misconduct or due to redundancy, mutual agreement, etc.
• Notice period: The minimum notice period is 3 days for fixed-term contracts under 12 months, 30 days for fixed-term contracts of 12 - 36 months, and 45 days for indefinite contracts.
• Severance pay: All employees who have worked for over a year and are terminated are entitled to severance pay of half a month of salary per year of service. Severance pay doesn't apply if the termination is due to serious misconduct.

Hiring and contracts

• Contract types: Fixed-term contracts are allowed up to 36 months, indefinite contracts are also common.
• Contracts must include: Job title and duties, salary and payment schedule, working hours and location, leave and benefits, termination terms.
• Contracts can be written in English.
• Probation period is mandatory and can vary between 6 days and 180 days depending of the job type.

Payroll and salary payment

• Pay frequency: Monthly
• Currency: Vietnamese Dong (VND)
• Minimum wage varies by region from VND 3,700,000 - 5,310,000 (EUR 119 - 172 / USD 140 - 202)
• Payslips are mandatory and must include gross salary, deductions (tax & social insurance), and net pay.

Benefits

Mandatory

• Social insurance
• Health insurance
• Unemployment insurance
• Paid leave and public holidays

Optional

• Private health insurance
• Meal and transport allowances
• Housing allowance (expat roles)
• Performance bonuses
• Training budgets

Monthly living cost (Hanoi Edition)

• Rent (1-bedroom apartment in the city center): €400–800 | $440–880
• Utilities & internet: €50–90 | $55–100
• Food and groceries: €200–350 | $220–385
• Transport: €20–40 | $22–45
• Gym, coffee, eating out: €80–150 | $90–165

How to get a local ID number

• The Personal Tax Code (sometimes called a tax identification number) is a unique number issued by the Vietnamese tax authority to anyone who earns income in Vietnam.
• For foreigners, the Personal Tax Code effectively becomes your main official reference number in Vietnam.
• It’s required for: salary payments and payroll, personal income tax reporting, social insurance registration, opening and maintaining bank accounts (in many cases), and employment records.

Social security registration

• Employer registers employees with social insurance, health insurance, and unemployment insurance.
• The employer handles contributions monthly.

Banking

• To open a bank account in Vietnam, you will usually need a passport, a visa / residence card, and a local address.
• Popular banks include: Vietcombank, Techcombank, BIDV, ACB, HSBC (for international needs).

Housing and rental process

Renting in Vietnam is fast and flexible.

• Deposit is usually 1-2 months’ rent.
• Lease duration: Usually 12 months.
• Furnished apartments are very common.
• Tenant rights: Protected under civil law, but contracts matter.

Healthcare system

• Public healthcare is affordable, basic, and also crowded.
• Most expats use private healthcare + insurance.
• Private hospitals and clinics in major cities offer high-quality service, and you can find English-speaking staff.

Driving and public transport

• Motorbikes rule the streets in Vietnam.
• Ride-hailing apps (Grab, Be) are cheap and you can find them everywhere.
• Public buses exist but are limited.
• Expats usually use ride-hailing or convert or obtain a local driving license if staying long-term.

Emergency and important contacts

• Police: 113
• Fire: 114
• Ambulance: 115

Work permit and visa requirements

• To work and live legally in Vietnam, you typically need three things: a valid entry visa, an approved work permit, and a Temporary Residence Card that allows long-term stay.
• Most foreigners enter Vietnam first on a business or work-related visa, after which the employer completes the work permit application inside the country.
• The work permit is the key legal document that authorizes employment and is issued for up to two years based on an employer’s sponsorship and verified qualifications.
• Once the work permit is approved, your visa status is updated and you can apply for a Temporary Residence Card, which replaces short-term visas and allows multiple entries.
• The entire process usually takes several weeks and requires legalized documents, medical checks, and a clean criminal record, with the employer handling most of the paperwork.

Business culture and work norms

• Relationships matter. Trust comes before speed.
• Hierarchy exists, even in modern companies.
• Feedback is indirect. Saving face is important.
• Work can move fast, plans can change.
• Foreign professionals are valued for structure, experience, and global perspective.