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Global Expansion Guide

Vietnam

Manage and pay your employees easily with BIPO in Vietnam and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Vietnamese Dong (VND)

employment guide_language

Language

Vietnamese

employment guide_capital

Capital

Hanoi

Employer of Record Vietnam

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Other Regulations

Probationary Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Vietnam

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  • Global Hiring Guide
  • Vietnam

Employer of Record Vietnam

Embark on your business expansion in Vietnam with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Vietnamese market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Contracts are required in written form with both the Vietnamese language and the native language of the foreign employee.

The fixed-term employment contract should not exceed thirty-six months and should be converted to indefinite employment contract once renewed.

The employment contact should include following contents:

  • The name and address of the employer, as well as the name and position of the person signing the contract on behalf of the employer
  • The name, date of birth, gender, residence place, citizenship card number, identity card or passport number of the person who signing the contract (employee)
  • Job description and the work location
  • Duration of the employment contract
  • Salary based on position or job title, method of salary payment, pay cycle, allowances and other subsidies
  • Promotion rules, provisions of salary increment
  • Working hours and rest time
  • Provision of Personal Protective Equipment for employees and workers
  • Details of social security, health insurance and unemployment insurance
  • Training, developments of professional levels and technical skills

Statutory Contributions

Item Detail Employer Contribution Employee Contribution
Social Security Social benefits (Cap: 46,800,000 VND) 17.5% 8%
Healthcare Insurance Medical benefits (Cap: 46,800,000 VND) 3% 1.5%
Unemployment Insurance Unemployment benefits (Max. Salary Cap: 99,200,000 VND) 1% 1%
Total About 21.5% About 10.5%

Foreign employees in Vietnam do not need contribute unemployment insurance.

Minimum Wage

Effective 1st of July 2024, the minimum wage of Vietnam is shown as follows:

Region VND / Month
Region I 4,960,000
Region II 4,410,000
Region III 3,860,000
Region IV 3,450,000

Public Holidays

The National Public Holidays in Vietnam in 2025 is shown as following. Please refer to announcement of Vietnam government.

Holiday Name Date
New Year’s Day 1 Janaury 2025
Chinese New Year Holiday 28 January 2025
Chinese New Year Holiday 29 January 2025
Chinese New Year Holiday 30 January 2025
Chinese New Year Holiday 31 January 2025
Chinese New Year Holiday 1 February 2025
Chinese New Year Holiday 2 February 2025
Chinese New Year Holiday 3 February 2025
Hung Kings Commemoration Day 7 April 2025
Reunification Day 30 April 2025
Labour Day 1 May 2025
National Day 1 September 2025
National Day 2 September 2025

Working Hours

Normal Working Hours

  • If the daily working hours of the employee are fixed: no more than 8 hours per day, 48 hours per week.
  • If the weekly working hours of the employee are fixed: no more than 10 hours per day, 48 hours per week.

Rest Time

  • A day shift employee who works 6 consecutive hours is entitled to a period of leisure of 30 minutes duration.
  • A night shift employee is entitled to a period of leisure of not less than 45 minutes duration.
  • If a shift lasts more than 6 consecutive hours, the rest time will be included in his or her working hours.
  • An employee is entitled to a rest day of at least 24 consecutive hours each week. In cases where it is not possible for an employee to take a weekly rest day due to the work cycle, the employer should ensure that he or she on average has at least 4 days off per month.
  • The employer can schedule employees’ weekly rest day either on Sunday or on another fixed day within a week, which shall be stated in his / her employment contract or work rules.

Night Work

  • Night working hours are between 10:00 pm one day and 6:00 am the next day.
  • An employee who works at night will be paid an additional premium of at least 30% of his or her normal salary rate.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.

  • Overtime Limit:

    • Not exceed 50% of employees’ normal daily working hours.
    • Not exceed 40 hours per month.
    • Not exceed 200 hours per annum; not exceed 300 hours in various fields such as manufacturing and processing of textiles, garments, electrical industry, agriculture and forestry, communications, refinery, supply etc.)
    • Any overtime shall grant the employees’ consent.

  • Overtime Payment:

    • On workdays: at least 150% of the employee’s normal salary rate.
    • On weekends: at least 200% of the employee’s normal salary rate.
    • On public holidays: at least 300% of the employee’s normal salary rate
    • During nights: an additional premium of at least 20% of the employee’s night work salary rate.

Other Regulations

  • Employers are not allowed to arrange female workers, who are in the seventh month of pregnancy or are raising babies under one year old, to work overtime, or on night shifts, or to go on long business trips outside the city.
  • When female workers engaged in heavy work enter their seventh month of pregnancy, they must reduce their workload or reduce one hour from their working hours in a day but receive normal salary.

Probationary Period

  • The probation period for positions required advanced professional level and technical skills or above shall not exceed 60 days;
  • The probation period for positions required average professional level and technical skills shall not exceed 30 days;
  • The probation period for other positions shall not exceed 6 working days.
  • The probation period is not applicable for employees who signed employment contracts for a period of less than one month.

Leave

Statutory leaves in Vietnam include:

Type Applicable To Details
Paid Annual Leave Employees employed ≥ 12 months 12-20 working days (varies by age, disability, and work hazard level)
Pregnancy and Maternity Leave Female employees

6 months + 1 month (if delivered more than one child)

Miscarriage, stillbirth: 10-50 days

Prenatal exam: 5 times, 1-2 working days

Leave for Recovery after Childbirth: 30 working days + extra 5-10 days
Paternity Leave Male employees whose children born within 30 days 5-14 working days (varies by delivery status and number of children)
Paid Sick Leave All employees 30 working days – 180 days (varies by contribution years of social security, industry & work hazard level, recovery status)
Menstruation Break Female employees who have severe menstrual cramps 30 minutes / working day
Breastfeeding Break Female employees with children under 1 year old 60 minutes / working day
Marriage Leave All employees

Employees: 3 days

Employees’ children: 1 day
Bereavement/Compassionate Leave All employees

Immediate family: 3 days

Non-immediate family: 1 day
Childcare Leave All employees

Children under 3 years old: Max. 20 working days

Children between 3 – 7 years old: Max. 15 working days
Adoption Leave Employees adopted children under 6 months old Until the adopted children reach 6 months old
Work Injury / Occupational Disease Recovery Leave All employees 5 – 10 days
Sterilisation Leave A employee who has undergone sterilisation surgery 5 – 7 days

Termination and Compensation

Notice Period

Either the employer or employee may terminate the employment contract by providing a 3 / 30 / 45 days’ notice varying by the contract type, industry, specialties or positions.

Compensation

  • Dismissal with notice: Employees completing twelve months of employment service are entitled to half-month salary for every year of service to the employer.
  • Layoff: Employees completing twelve months of employment service are entitled to one month’s salary for every year of service to the employer.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Vietnamese regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with Vietnam’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Vietnam’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Vietnam’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.
Services may vary across countries.

Benefits of BIPO Employer of Record Service in Vietnam

Unlock your growth potential with BIPO’s Employer of Record service in Vietnam. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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