Guide to Hiring in Vietnam

Key takeaways

• Compliance and legal foundations: Hiring requires strict adherence to Vietnamese labor law, including mandatory written employment contracts (for work over one month), registration of employees for social, health, and unemployment insurance, and a clear understanding of the penalties for misclassifying employees as independent contractors.

• Compensation and employer costs: Companies must comply with region-specific minimum wages and account for an employer burden rate on top of salaries, covering statutory social, health, and unemployment insurance contributions.

• Targeted hiring in key hubs: Vietnam’s large workforce is concentrated in major talent hubs, each specializing in different sectors, such as Ho Chi Minh City (technology, finance), Hanoi (education, professional services), and Hai Phong (manufacturing, logistics), allowing for focused hiring efforts.

Vietnam has a workforce of over 53 million people, making it an attractive destination for companies looking to expand globally. Most of Vietnam’s workforce is concentrated in metropolitan areas such as Ho Chi Minh City, Hanoi, and Da Nang, along with industrial hubs like Hai Phong. The country produces a large number of IT graduates annually. 

Before expanding into Vietnam, you’ll need to understand contracts, taxes, wages, benefits, and other employment laws. Our guide will tell you everything you need to know about hiring in Vietnam.

What to know before hiring in Vietnam

If you’re expanding your business into Vietnam for the first time, there are important legal requirements to be aware of. These norms and laws influence hiring practices in Vietnam and many aspects of the employer-employee relationship, including compensation and benefits. 

G-P Gia™, our AI-powered global HR agent, can answer your toughest compliance questions across 50 countries — including Vietnam — and all 50 U.S. states. Reduce your reliance on outside counsel and cut the time and cost of compliance by up to 95% with Gia.

Here are four things to know about hiring in Vietnam.

1. Languages in Vietnam

Vietnam’s official language is Vietnamese. Other common languages include French, Chinese, Khmer, and other languages from the country’s mountainous region. Consider hiring a professional Vietnamese translator and written interpreter if you’re unfamiliar with the Vietnamese languages.

2. Working hours and leave policies in Vietnam

Vietnam has 11 paid national holidays, including a five-day Tet Lunar New Year celebration. Employees get national holidays off, in addition to annual leave.

Employees get a minimum of 12 paid annual leave days after 12 months of service. This increases by one day every five years of service with the same employer. Those in hazardous jobs or under 18 years old get 14–16 days after 12 months of service.

The maximum working time in Vietnam is eight hours per day and 48 hours per week. Overtime is allowed within statutory limits: up to 12 hours per day, 40 hours per month, and 200–300 hours per year, depending on sector. Employees get at least 24 consecutive hours of rest per week. If operational needs prevent a weekly rest day, employees get at least four rest days per month.

Vietnam law provides for extra paid leave for personal reasons like marriage or death of immediate family. Unpaid leave is available upon mutual agreement. Employees covered by social insurance get paid sick leave. This is paid by the Social Insurance Fund.

Expecting employees get six months of paid maternity leave (with an extra month for twins or two extra months for triplets). This is paid by the Social Insurance Fund at 100% of the average salary used for social insurance contributions. Fathers contributing to social insurance get 5–14 days of paid paternity leave, depending on the circumstances: five days for a normal birth, seven for caesarean or preterm, and 10–14 for multiple births.

3. Employment contracts in Vietnam

Vietnamese law requires a written employment contract for any work relationship lasting one month or longer. Verbal contracts are only allowed for jobs under one month (with some exceptions). There are only two types of contracts:

• Indefinite-term (no end date) 

• Fixed-term (up to 36 months) 

Contracts have to include employer and employee identification details, job description and workplace, salary and compensation (in local currency), benefits and insurance, working hours, rest periods, holidays, termination and severance conditions, rights and obligations of both parties, probationary period (if applicable), and health and safety provisions. 

All of these are statutory requirements. The contract can be declared void or subject to penalties if you leave any clauses out. All contract amendments, including promotions and salary increases, have to be mutually agreed and documented in writing.

4. Compensation and benefits in Vietnam

Minimum wage in Vietnam is set by region. As of July 2025, these rates are:

• Region I: VND 4,960,000 

• Region II: VND 4,410,000 

• Region III: VND 3,860,000 

• Region IV: VND 3,450,000 

Employers and employees have to contribute to:

• Social insurance: 17.5% of salary (employer), 8% (employee) 

• Health insurance: 3% (employer), 1.5% (employee) 

• Unemployment insurance: 1% (employer), 1% (employee) 

Employers have to give health insurance to all employees. They must also provide annual health checks for employees. Extra benefits such as housing, transportation, and other allowances are common. These are generally taxable unless specifically exempted by law.

Top hiring hubs in Vietnam

Some cities in Vietnam are known for particular industries. Knowing what each city has to offer allows you to focus your hiring efforts in the right place and fill roles faster. 

The top talent hubs in Vietnam are:

• Ho Chi Minh City is the largest city and economic powerhouse. It’s known for industries like technology, manufacturing, finance, and services.

• Hanoi is the capital city and a major center for government, education, technology, and professional services.

• Hai Phong is a key port city and industrial hub in northern Vietnam. It’s strong in manufacturing and logistics.

• Da Nang is the largest city in central Vietnam. It has a growing tech, tourism, and manufacturing sector.

• Binh Duong and Dong Nai are provinces near Ho Chi Minh City. They’re major industrial zones, home to factories and export-oriented businesses.

Key industries in the Vietnam

Understanding Vietnam’s main industries allows you to benchmark salaries and benefits. You can use this insight to make smart choices about where to invest and grow your workforce. 

The main industries in Vietnam include:

• Manufacturing and export processing: Vietnam is a major global hub for electronics assembly and textile production.

• Logistics and supply chain: Logistics, warehousing, and transportation are key growth sectors.

• Agriculture and aquaculture: Vietnam is a leading exporter of rice, coffee, seafood (especially shrimp and fish), and other agricultural products.

• IT and software development: Vietnam’s IT sector is growing, with strong software development, digital services, and business process outsourcing.

• Tourism and hospitality: Vietnam’s natural beauty and cultural heritage make tourism a big contributor to the economy, supporting hotels, resorts, and related services.

Cost of hiring an employee in Vietnam

Whether you’re hiring one employee or an entire team in Vietnam, expenses are inevitable. Budget for the following:

• Entity setup (unless you partner with an employer of record)

• Job advertisements

• Labor costs for applicant review

• Payroll

• Taxes

• Salaries

• Benefits

• Bonuses

• Allowances

• Insurance

• Travel

• Translator

According to G-P Verified Sources fromGia, the employer burden rate in Vietnam, which includes costs triggered on top of salaries, is approximately 21.5%. 

What does a company need to do to hire employees in Vietnam?

Make sure you cover these essentials before expanding your team in Vietnam:

• File your official company name and register with the Department of Planning and Investment (DPI).

• Get an Enterprise Registration Certificate (ERC).

• Get a Taxpayer Identification Number (TIN).

• Open a local bank account using your ERC and TIN.

• Register with the local social insurance agency to enroll employees in social, health, and unemployment insurance schemes. 

• Register new hires with the local labor authority within 30 days of employment.

• Sign written employment contracts with each employee, in compliance with Vietnamese labor law.

Setting up a Vietnam subsidiary can take weeks or months. Use G-P EOR to hire full-time employees in Vietnam without setting up your own entity. Build your team in Vietnam at a lower cost and with peace of mind that you’re doing so compliantly.

Steps to hiring in Vietnam

The hiring process in Vietnam is similar to the one you’re likely familiar with in your own country. The hiring process follows five basic steps: advertising the job, evaluating applications, interviewing candidates, sending job offers, and onboarding new employees.

1. Advertise job vacancies in Vietnam

Clearly define the role, responsibilities, qualifications, and compensation package. Make sure the job description complies with Vietnamese labor laws. 

VietnamWorks, CareerBuilder, and TopCV are popular job sites in Vietnam. 

2. Evaluate applications in Vietnam

Collect applications and review resumes. Screen candidates based on their qualifications, experience, and fit for the role. If you do an initial screening, avoid asking candidates about their age, marital status, or health.

3. Interview candidates in Vietnam

Interview candidates who made it onto your shortlist. You can do these interviews in-person or virtually. Use structured, nondiscriminatory interview questions. Gia can help you create questions that follow antidiscrimination laws in Vietnam, so you can find the best fit for the role while complying with local regulations. 

4. Make job offers in Vietnam

Contact your chosen candidate to offer them a position with your company. Prepare a compliant employment contract. Both parties have to sign the contract before the employee starts work.

5. Onboard new employees in Vietnam

Now you can onboard new employees. Register your employee with the local social insurance agency for social, health, and unemployment insurance. Notify the local labor authority (DOLISA) of the new hire within 30 days.

If you’re working with an EOR like G-P™, you won’t have to worry about the administrative burden of onboarding. We’ll streamline the process, so you can focus on training your new hire and integrating them into your company culture. 

Hiring contractors in Vietnam

Working with independent contractors in Vietnam can be a cost-effective way to test the market and build a presence, without the commitment of full-time employees. Contractors based in Vietnam understand local consumer behavior, rules, and business practices. They’ll be ready to start working quickly with their own equipment and established work processes. 

Hiring contractors allows you to easily adjust your workforce based on your business needs, without the complexities and costs of employment. 

Before you enter an agreement with an independent contractor in Vietnam, consider the following:

1. Employees vs. independent contractors in Vietnam

It’s important to understand the difference between employees and independent contractors. In Vietnam, employers hire employees to do work and, in return, pay them a regular salary and benefits. Independent contractors provide services. Unlike employees, contractors set their schedules, use their own equipment, and work on specific projects rather than having an ongoing role.

2. Penalties for misclassification in Vietnam

Classifying someone as a contractor when they’re not can lead to severe penalties. If misclassification occurs, you’ll have to:

• Face administrative fines imposed by labor authorities for failing to properly classify and register employees.

• Pay all outstanding social, health, and unemployment insurance contributions that should have been made for the misclassified employee.

• Pay retroactive statutory benefits, such as paid leave, severance pay, and other entitlements under the labor code.

3. How to pay contractors in Vietnam

G-P Contractor™ takes away the messy, time-consuming process of hiring and paying international contractors. You can create and issue contracts and pay contractors with just a few clicks, all while ensuring a compliant process.

Hire employees and contractors in Vietnam with G-P

Our SaaS and AI-powered products – EOR, Contractor, and Gia – support companies as they build and manage global teams. 

G-P is the recognized leader in global employment with more than a decade of experience, the largest team of HR, legal, and compliance experts, and a global proprietary knowledge base.

Make your expansion to Vietnam easier with G-P. Contact us or book a demo today.

Frequently asked questions (FAQs)