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!

Currency

Vietnamese Dong (VND)

Language

Vietnamese

Capital

Hanoi

Employer of Record Vietnam

Employment Contract

Statutory Contributions

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Vietnam

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.

This guide was last updated on 16 March 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Labour contracts in Vietnam are classified as either fixed-term contracts (up to 36 months) or open-ended contracts.
All contracts must be in writing and prepared in two copies (one for the employer and one for the employee).
Oral contracts are only permitted for employment of less than one month.
Mandatory clauses in a labour contract include:
1. The employer’s name, address, and the name and position of the authorised signatory;
2. The employee’s name, date of birth, gender, residence, and ID card or passport number;
3. Job duties and workplace;
4. Term of the labour contract (if applicable);
5. Wage details, including the basis for calculation, payment method, payment cycle, allowances, and other supplementary payments;
6. Promotion and salary adjustment policies;
7. Working hours and rest periods;
8. Labour protection equipment provided to the employee;
9. Social, medical, and unemployment insurance;
10. Training, further education, and professional skill development.
For positions with access to commercial or technical secrets, the employer may enter into a separate written agreement with the employee, covering:
1. The content and duration of protection for commercial or technical secrets;
2. Employee rights and entitlements;
3. Compensation in the event of a contract breach.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Type of Social Insurance	Contribution Floor / Ceiling	Employee Contribution	Employer Contribution
Social Insurance	Floor: Reference Wage* Ceiling: Reference Wage x 20	8%	17.5% (14% for pension, 3% for sickness and maternity, and 0.5% for work injury and occupational diseases)
Medical Insurance		1.50%	3%
Unemployment Insurance		1%	1%

*Reference Wage: The government-determined monetary amount used to calculate contribution rates and benefit levels under the social insurance scheme. It is adjusted in line with the consumer price index, economic growth, and the financial capacity of the national budget and social insurance fund.

Minimum Wage

Effective 1 January 2026, the minimum wage of Vietnam is shown as follows:

Region	Hourly Minimum Wage (VND)	Monthly Minimum Wage (VND)
Region 1	25,500	5,310,000
Region 2	22,700	4,730,000
Region 3	20,000	4,140,000
Region 4	17,800	3,700,000

Public Holidays

The public holidays listed below are national public holidays observed across Vietnam. Please refer to official government announcements for the latest updates.

New Year’s Day
Lunar New Year / Tet Holidays
Hung Kings Commemoration Day
Reunification Day
Labour Day
National Day Holidays
Vietnam Culture Day

Notes:

In addition to the holidays listed above, expatriate employees are entitled to one day off for their home country’s traditional New Year and one day for their home country’s National Day.
If a public holiday falls on a weekly rest day, a compensatory rest day shall be provided on the next working day.
Overtime Compensation: 300% of the normal wage, excluding any wage already paid to daily-wage employees in accordance with the law.
Exemptions from Overtime Compensation on Public Holidays: The same exemptions as those applicable to regular overtime compensation shall apply.

Working Hours

Normal Working Hours

Category	Daily	Weekly
Calculated on a daily basis	8 hours	48 hours
Calculated on a weekly basis	10 hours	48 hours

For toxic or hazardous work, working hours shall be reduced in accordance with national technical standards and applicable legal provisions.

Rest Time

Work Breaks

At least 30 minutes for every six consecutive working hours; at least 45 minutes for night-shift employees.
A minimum of 12 hours’ rest between shifts.

Weekly Rest

At least one day (24 consecutive hours) per week.
If weekly rest is not possible due to special circumstances, employees must have an average of at least four rest days per month.

Overtime Work

Overtime Limits

On a daily basis: No more than 50% of normal working hours per day.
On a weekly basis: Total working hours (normal plus overtime) must not exceed 12 hours per day.
Monthly overtime: No more than 40 hours.
Yearly overtime: No more than 200 hours (up to 300 hours under special circumstances).

Overtime Compensation

Type of Work	Compensation Rate
Working Day	150% of normal wage
Weekend	200% of normal wage
Night Work	Additional 30% of normal wage
Night Overtime	Additional 20% of normal wage

Exemptions from Overtime Compensation

Employees performing mobilisation or conscription duties in accordance with the law to support national defence and security missions.
Employees performing work to protect human life or the property of institutions, organisations, or individuals in response to natural disasters, fires, serious infectious diseases, or major emergencies, provided there is no risk to the employee’s life or health in accordance with occupational safety and health regulations.

Leave

Annual Leave

Type of Employer: Single employer.
Eligibility: Employees under a continuous contract of at least 12 months.
Duration of Annual Leave (Nth year of employment):
- General case: 12 + (N–1)/5 days.
- Minors, persons with disabilities, and employees in arduous, dangerous, or hazardous work: 14 + (N–1)/5 days.
- Employees in particularly arduous, dangerous, or hazardous work: 16 + (N–1)/5 days.
Annual Leave Allowance: Full wage.
Annual Leave Cash-Out: Full compensation for any unused leave if the employee resigns.

Sick Leave

Eligibility: Employees must provide a medical certificate and participate in social insurance in accordance with the law.
Duration and Allowance of Sick Leave:

Working Conditions	Social Insurance Contribution Period	Sick Leave Duration	Sick Leave Allowance
General work	< 15 years	30 days	75% of the insurance contribution base
	15 – 30 years	40 days
	> 30 years	60 days
Arduous, dangerous, or hazardous work, or work in particularly challenging environments	< 15 years	40 days
	15 – 30 years	50 days
	> 30 years	70 days
Long-term treatment for occupational diseases recognised by the Ministry of Health		180 days	50% – 65% of the insurance contribution base
		> 180 days	50% – 65% of the insurance contribution base

Maternity Leave

Eligibility: Female employees who are pregnant and giving birth, and who participate in social insurance in accordance with the law.
Duration of Maternity Leave:
- A total of six months, of which no more than two months may be taken before the expected delivery date.
- An additional one month of leave for each subsequent child, starting from the second child.
Maternity Leave Allowance: 100% of the average social insurance contribution base over the previous six months.
Additional Maternity Leave: Following the expiration of statutory maternity leave, female employees may take an additional period of unpaid leave upon mutual agreement with the employer, if required.

Other Leave Types

Travel Leave: If an employee uses land, rail, or water transport during annual leave and the round-trip travel time exceeds two days, the time from the third day onwards may be counted as additional leave outside annual leave. This may be applied only once per year.
Marriage Leave:
- Three days of full wage for the employee’s own marriage.
- One day of full wage for the marriage of the employee’s child.
- One day of unpaid leave for the marriage of the employee’s parents or siblings.
Bereavement Leave:
- Three days of full wage for the death of the employee’s parents, spouse, or children.
- One day of unpaid leave for the death of the employee’s grandparents, maternal grandparents, or siblings.
Childcare Leave:
- 20 days per child per year for children under three years old.
- 15 days per child per year for children aged three to seven.
- The allowance is the same as for general sick leave.
Rehabilitation Leave: If sick leave lasts 30 days and the employee’s health has not been fully restored, rehabilitation leave may be taken within 30 days after the end of sick leave. The duration, agreed between the employer and the grassroots trade union, ranges from five to ten days. The allowance is 30% of the basic wage.
Prenatal Check-up Leave: A maximum of two days per visit, up to five visits in total. The allowance is 100% of the average social insurance contribution base over the previous six months.
Abortion / Induction of Labour / Stillbirth / Ectopic Pregnancy Leave: Based on gestational age:
- Up to 10 days for less than 5 weeks.
- Up to 20 days for 5–12 weeks.
- Up to 40 days for 13–21 weeks.
- Up to 50 days for 22 weeks or more.
- The allowance is 100% of the average social insurance contribution base over the previous six months.
Paternity Leave: Applicable to male employees participating in social insurance:
- Five days for the spouse’s natural childbirth; ten days for twins; an additional three days for each child starting from the third.
- Seven days for a caesarean section or premature birth (<32 weeks); 14 days for twins; an additional three days for each child starting from the third.
- The allowance is 100% of the average social insurance contribution base over the previous six months.
Adoption Leave: Applicable to employees participating in social insurance. For adopting an infant under six months, only one parent may take leave, while the other parent receives a one-time allowance equal to two times the insurance contribution base.
Contraceptive Leave:
- Seven days for female employees undergoing intrauterine device (IUD) insertion.
- Fifteen days for ligation or sterilisation surgery.
- The allowance is 100% of the average social insurance contribution base over the previous six months.

Termination and Compensation

Notice Period

Employee’s Unilateral Termination

Termination Circumstances		Notice Period
Reason	Type of Contract
No specific reason	Indefinite-term contract	45 days
	Fixed-term contract (12 – 36 months)	30 days
	Fixed-term contract (< 12 months)	3 days
The employer fails to assign work, designate the workplace, or provide the agreed working conditions as stipulated in the contract (except for lawful temporary reassignment). The employer fails to pay wages in full or on time (except where the delay is caused by force majeure). The employee is subjected to abuse, assault, insulting conduct or remarks, harm to health or personal dignity, or forced labour. The employee is subjected to sexual harassment in the workplace. A female employee has a medical certificate confirming that continuing to work would adversely affect the fetus. The employee reaches the statutory retirement age, unless otherwise agreed by both parties. The employer provides false information that affects the performance of the employment contract.		Immediate termination

Employer’s Unilateral Termination

Termination Circumstances	Notice Period (by Contract Type)
Termination Circumstances	Indefinite-term contract	Fixed-term contract (12 – 36 months)	Fixed-term contract (< 12 months)
The employee repeatedly fails to meet the performance standards established by the employer (such standards are determined by the employer in consultation with the employee representative organisation).	45 days	30 days	3 days
The employee is unable to work due to illness or accidental injury: Open-ended contract: Still unable to recover after 12 consecutive months of treatment; Fixed-term contract (12–36 months): Still unable to recover after 6 consecutive months of treatment; Fixed-term contract (<12 months): Still unable to recover after treatment exceeding half of the contract term. *Note: If the employee regains the ability to work, the employer should consider continuing the employment relationship.	45 days	30 days	3 days
Due to natural disasters, fire, dangerous epidemics, war, or government requirements to adjust or reduce production and business positions.	45 days	30 days	3 days
The employee fails to return to work within 15 days after the suspension period of the employment contract expires.	Immediate termination
The employee reaches the statutory retirement age, unless otherwise agreed by both parties.	45 days	30 days	3 days
The employee is absent from work for 5 consecutive days without a valid reason.	Immediate termination
The employee provides false information affecting the performance of the employment contract.	45 days	30 days	3 days

Compensation

Circumstances in Which Employees Are Entitled to Resignation Compensation:

Expiration of a fixed-term contract.
Completion of the work agreed in the contract.
Mutual agreement between the employee and employer.
The employee is unable to continue performing the contract due to a criminal judgment or is prohibited by law from performing the work specified in the contract.
The employee’s death, or being declared legally incompetent, missing, or deceased by a court.
The employer:
- If a natural person: dies, or is declared legally incompetent, missing, or deceased by a court.
- If a legal entity: terminates its business activities, or the enterprise registration authority under the provincial People’s Committee notifies that the legal representative cannot be identified or there is no authorised person to exercise the rights and obligations of the legal representative.
Unilateral termination by the employee.
Unilateral termination by the employer.

Details of Resignation Compensation:

Eligibility: Continuous employment of 12 months or more.
Compensation Amount: 0.5 month’s wage per year of service.
Seniority Calculation: Working time for compensation = total actual working time with the employer, minus periods during which the employee participated in unemployment insurance, and minus periods for which the employer has already paid resignation or unemployment compensation.
Base for Calculation: The employee’s average wage over the six consecutive months preceding resignation.

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)

What is an EOR company?

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

Who should engage our EOR service?

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

Why should you engage an Employer of Record?

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!

Business Continuity

Global Expansion Guide

Vietnam

Currency

Language

Capital

Employer of Record Vietnam

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Normal Working Hours

Rest Time

Overtime Work

Leave

Annual Leave

Sick Leave

Maternity Leave

Other Leave Types

Termination and Compensation

Notice Period

Compensation

BIPO as your Employer of Record

Benefits of BIPO Employer of Record Service in Vietnam

Stay up to date with the latest employment regulations.

Frequently Asked Questions (FAQ)

HRMS

Global Payroll Outsourcing

Employer of Record

Grants

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Company

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