Hiring in Vietnam: Complete Guide 2026
Everything you need to know about hiring and managing employees in Vietnam
Overview
Vietnam is one of Asia's fastest-rising technology hiring destinations, with strong government investment in digital skills and a large, young, technically-educated workforce. Ho Chi Minh City and Hanoi are growing tech hubs with deep software development talent and highly competitive salary levels relative to Singapore or the Philippines. Employment is governed by the Labor Code 2019 (effective January 2021), which introduced significant changes to fixed-term contract limits, overtime caps, and trade union requirements. An EOR provides the local legal employer infrastructure without requiring a Vietnamese FDI entity.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Vietnam
Vietnamese payroll runs monthly with salaries paid in VND. Employer social insurance contributions total approximately 17.5% — covering social insurance (14%), health insurance (3%), and unemployment insurance (0.5%). Employees contribute approximately 10.5% on their side. An EOR handles VSS (Vietnam Social Security) registration, monthly SI/HI/UI filings, PIT (personal income tax) withholding at progressive rates of 5–35%, payslip issuance, and the annual PIT finalization (quyết toán thuế) which must be completed by March 31st of the following year. Salaries are paid in VND, and any USD-indexed components must be structured through a licensed bank and converted at the SBV reference rate.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract required
- Fixed-term contracts max 2 renewals then indefinite
- Probation 6–60 days depending on role
Leave & Time Off
- 12 days annual leave minimum
- Sick leave covered by Social Insurance Fund
- Maternity leave 6 months
Termination Rules
- 30–45 days notice based on contract type
- Severance 0.5 month per year for first 12 years
- Unilateral termination without cause requires compensation
COMPLIANCE
Labor Compliance in Vietnam
Vietnam's Labor Code 2019 limits fixed-term contracts to two consecutive terms — after which the employment must convert to an indefinite contract. Probation periods are capped at 180 days for senior management and 60 days for standard roles. Overtime is capped at 40 hours per month and 200 hours per year (300 hours in certain industries with MOLISA approval). Termination without cause requires 30–45 days' written notice depending on contract type, plus severance equivalent to half a month's salary per year of service for the first 12 years. An EOR manages all contract renewals, probation tracking, overtime compliance, and termination procedures in full compliance with the Labor Code 2019 and its implementing decrees.
Key Challenges
- Fixed-term contracts limited to 2 renewals
- Social insurance registration complexity
- Language barrier outside major cities
- Payroll must be in VND — FX planning required
- Unilateral termination without cause triggers compensation
Country Highlights
Advantages
- Fast-rising tech hiring destination
- Very competitive engineering salary levels
- Strong government investment in digital skills
- Large young and educated workforce
- Ho Chi Minh City and Hanoi growing as tech hubs
Popular Industries & Roles
Technology
Avg. Salary: $12k-$28k
Ho Chi Minh City and Hanoi are fast-growing tech hubs with strong software engineering talent at competitive rates
Manufacturing & Supply Chain
Avg. Salary: $10k-$22k
Manufacturing operations and supply chain management are Vietnam's defining competitive advantage for foreign employers
E-commerce & Digital Marketing
Avg. Salary: $11k-$25k
E-commerce and digital marketing roles are booming as Vietnam's domestic consumer economy grows rapidly
Top 3 Providers in Vietnam
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Deel
- 150+ countries with owned entities
- Contractor and EOR in one platform
- Rich HRIS integrations including Slack
- AI-powered compliance automation
BIPO
- 170+ countries via partner network
- Workday Gold Certified integration
- Deep APAC and SEA expertise
- 460,000+ employees managed
Multiplier
- 150+ owned entities globally
- Transparent flat pricing at $400/month
- Strong APAC and emerging market depth
- ESOP and equity administration included
Find a better EOR — without risk
Compare EOR providers to gain insights on cost, coverage, and contract flexibility, ensuring compliance and payroll continuity.
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