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Compliance
Published:
May 20, 2026
Last updated:
May 20, 2026
Vietnam is one of APAC's most attractive expansion markets, and one of its most regulated. Between 1 July 2025 and 1 January 2026, three pieces of legislation changed the cost of every new hire: a new Law on Social Insurance, a 7.2% lift in the regional minimum wage, and a substantially more generous personal income tax allowance. At the same time, Decree 219/2025/ND-CP rewrote the Vietnam work permit framework with effect from 7 August 2025.
If your 2026 expansion budget was modelled on 2024 numbers, it is already wrong. This guide walks through the true employer cost: salary, statutory contributions, Vietnam personal income tax, Vietnam work permit and Vietnam work visa requirements, and the Vietnam employment law pitfalls that catch foreign employers most often.
Vietnam's headline appeal is well-rehearsed: China+1 manufacturing scale, 16 active Free Trade Agreements including CPTPP, EVFTA and RCEP, sustained 6–7% GDP growth, and a young demographic profile. Samsung, Intel, LG, Foxconn and the broader Apple supply chain have voted with their capital.
The less-discussed challenge is cost predictability. Vietnam's statutory load is high (23.5% for the employer), the rules change frequently, and the gap between the legal floor and the market expectation, particularly around Tet bonus and private health insurance, is wide. Aggregator-style EOR providers that rely on third-party partner networks in Vietnam often understate this gap at quoting stage, then absorb it back in opaque mark-ups or surface it at year-end true-ups.
A direct-entity EOR removes that uncertainty. Same employer of record, same compliance perimeter, no hidden margin on top of statutory contributions. For finance teams modelling APAC headcount budgets, this is the difference between forecast accuracy and forecast surprise.
Vietnam operates a four-region minimum wage structure, not a city-by-city one. Under Decree 293/2025/ND-CP, effective 1 January 2026, the regional minimum wage was raised by an average of 7.2%:
In the real market, however, Vietnam salary sits well above the floor. The Q4 2025 national average income was approximately VND 8.7mil/month, though this figure is heavily diluted by agricultural and rural employment.
The figures below reflect the gross monthly base salary for Ho Chi Minh City-based professionals at junior and senior levels across several industries looking to hire in Vietnam. Vietnam's offshore profile is more heavily weighted toward technology, engineering and finance back-office.
Hanoi typically sits 15–17% below HCMC for equivalent technology, engineering and management roles, while Da Nang sits roughly 20% below HCMC. Regional and seniority adjustments should be considered in actual application.
Ho Chi Minh City and Hanoi account for around 91% of the country's developer population between them, with Da Nang an emerging third hub. 2026 demand is concentrated in AI/ML, cloud and DevOps, cybersecurity, and data engineering, the same areas driving the steepest wage inflation. ICT contributes approximately 31.8% of sectoral GDP, and Vietnamese tech salaries at the senior end are now closing the gap with Bangkok and Kuala Lumpur.
Vietnam is increasingly used for finance and accounting back-office work, with growing demand around financial planning and analysis (FP&A), internal audit, and IFRS reporting for FDI subsidiaries. Big Four-trained and foreign-bank-trained talent commands a meaningful premium, and ACCA or CPA Australia certification combined with English fluency can lift senior salaries 30–50% above the local-only equivalent.
Sales roles in Vietnam are commission-heavy, so base salary alone significantly understates total compensation. Commission and incentive structures typically add 30–60% to on-target earnings (OTE) in commercial roles, and the gap between local-language and English-fluent business development talent is wider than in most APAC markets. B2B SaaS, fintech, and FDI distribution are pulling the strongest demand in HCMC.
Vietnam's deep FDI manufacturing base, including Binh Duong, Dong Nai, Bac Ninh, Hai Phong, produces a strong operations and supply chain talent pool, particularly in roles tied to electronics, footwear, textiles, and increasingly semiconductors. Voice-based customer support, by contrast, is a smaller offshore segment and tends to be deployed for the Asia region.
HR has matured significantly as Vietnam's FDI scale has grown. HR Business Partner roles in particular are scarce and well-paid, with bilingual HR talent (English plus Mandarin or Korean) commanding a clear premium in companies with regional HQ exposure. Talent acquisition specialists are in particularly high demand given the tightness of the senior tech and engineering markets.
Important context for total-cost modelling: None of the tables above include 13th month or Tet bonus. Approximately 90% of companies in Vietnam pay one month's base salary as a 13th month, and FDI and competitive sectors typically pay 1.5–3 months around Tet. To model accurate annual employer cost, add roughly 8–25% on top of the annual base shown above, depending on sector and seniority. Statutory contributions (~23.5% for Vietnamese hires, ~20.5% for foreign hires) sit on top of that again.
Sources: Recruitgo, Source of Asia, Talentnet
The full employer load on a Vietnamese hire is 23.5% of gross salary before any market-customary benefits. Four mandatory contributions, often abbreviated as SHUI plus the Trade Union Fee, governed by the Law on Social Insurance No. 41/2024/QH15 (effective 1 July 2025):
Social Insurance breakdown (employer 17.5%): Retirement and survivorship 14%, Sickness and maternity 3%, Occupational accident and disease 0.5%.
SI and HI are capped at 20× the Reference Salary (currently VND 2,340,000, giving a cap of VND 46.8M/month). UI is capped at 20× the applicable regional minimum wage. Salary above these caps is contribution-free. Foreign employees pay the same SI and HI rates as locals but are exempt from Unemployment Insurance, bringing their effective employer load to ~20.5%.
Late SHUI payment carries 0.03% per day interest, and severe non-compliance can trigger suspension of VAT invoice issuance, effectively freezing business operations. Vietnam Social Security and the tax authorities now cross-check payroll declarations against tax filings, so reconciliation discipline matters more than it used to.
13th month pay is not legally mandatory in Vietnam. However, Tet bonus is so deeply embedded in market practice that omitting it will materially damage retention. Approximately 90% of companies pay one month's base salary as a 13th month; FDI and competitive sectors pay 1.5–3 months around Tet.
Beyond statutory minimums, white-collar candidates in Ho Chi Minh City and Hanoi expect:
Vietnam personal income tax is governed by the new PIT Law and Resolution 110/2025/UBTVQH15, both effective from the 2026 tax period. Two changes materially improved net-pay competitiveness for local and expatriate hires alike.
Monthly deductions:
Both were raised from VND 11M and VND 4.4M respectively, effective 1 January 2026, improving net pay for mid- to senior-level Vietnamese hires without any change to gross cost for the employer.
The progressive bracket structure for residents was consolidated from seven bands to five, with the top marginal rate held at 35%. The top band threshold moved from above VND 80M/month to above VND 100M/month, which is a material benefit for senior expatriate hires.
Residency:
If the employee is physically present in Vietnam for more than 183 days and cannot prove that you are a tax resident of another country, the employee is considered a tax resident of Vietnam.
Employer obligations: Monthly PIT withholding and remittance, annual finalisation, and issuance of withholding certificates to leavers. PIT is one of the most actively audited areas under Vietnam's SHUI/tax cross-referencing regime.
The current framework is Decree 219/2025/ND-CP, effective 7 August 2025, which replaced Decree 152/2020. For employers hiring foreign nationals, three points matter most:
Eligibility (general conditions):
Penalties under Decree 12/2022/ND-CP:
The Vietnam work visa cannot be applied retrospectively. Build 2–3 months' lead time into hiring plans for foreign nationals.
AYP's all-in-one platform automates Vietnam payroll compliance from end to end, including SHUI calculations (SI, HI, UI), Trade Union Fee remittance, monthly Vietnam personal income tax withholding under the new Resolution 110 allowances, annual PIT finalization, and Vietnam work permit and Vietnam work visa sponsorship for foreign hires.
Being a direct Employer of Record (EOR) in Vietnam means contracts, contributions, and reporting are handled under our own compliance umbrella, with no aggregator mark-ups and no hidden costs. As Decree 293, Law 41/2024, Resolution 110 and Decree 219/2025 roll through, your team doesn't have to track regulatory changes manually.
Ready to hire in Vietnam? Speak to an AYP specialist today → [contact us]
This article is provided for informational purposes and reflects legislation and regulatory guidance current as of May 2026. It does not constitute legal or tax advice. Employers should seek qualified local counsel for jurisdiction-specific compliance decisions.
Under Decree 293/2025/ND-CP, effective 1 January 2026, the regional minimum wage is VND 5,310,000/month in Region I (Hanoi, HCMC, Hai Phong, Da Nang), with Regions II–IV at VND 4,730,000, VND 4,140,000 and VND 3,700,000 respectively. Workers with certified vocational training receive a 7% uplift on top.
Employers contribute 23.5% in total: Social Insurance 17.5%, Health Insurance 3%, Unemployment Insurance 1%, and Trade Union Fee 2%. For foreign employees, UI is exempt, bringing the total to approximately 22.5%.
Yes. Foreign workers with a work permit and an employment contract of at least one year contribute 8% (SI) and 1.5% (HI), the same as locals. They are exempt from Unemployment Insurance.
Under Resolution 110/2025/UBTVQH15, effective from the 2026 tax period, the personal deduction rises to VND 15.5M/month (from VND 11M) and the dependent deduction to VND 6.2M/month per dependent (from VND 4.4M). The PIT bracket structure was also consolidated from 7 to 5 bands.
No. Unlike the Philippines, 13th month pay is not legally required. However, the Tet bonus is so customary that omission will damage retention, particularly in FDI and competitive sectors.
A Vietnam work permit is the authorisation issued by the Department of Home Affairs (DOHA) allowing a foreign national to work legally in Vietnam. Under Decree 219/2025/ND-CP (effective 7 August 2025), most foreign workers in managerial, expert or technical roles require one, unless they fall within one of the clarified exemption categories — including foreigners working up to 90 cumulative days per year.
The LD2 is the employment-based work visa, valid for up to 2 years, issued after the work permit has been approved. Most LD2 holders then obtain a Temporary Residence Card (TRC) to avoid renewal cycles.
Use a direct-entity Employer of Record such as AYP, which acts as the legal employer in Vietnam, handling SHUI registration, payroll, PIT withholding, Trade Union Fee, and Vietnam work permit and work visa sponsorship, without your needing to incorporate.
