As of March 2024, the estimated population of Vietnam is 98.8 million.
The currency in Vietnam is the Viet Nam Dong (VND). The currency symbol is ₫.
In Vietnam, the provisions for permanent employment are outlined under the designation of indefinite employment. It is defined as a permanent employment contract in which the 2 parties do not specify the duration and time at which the contract terminates. The Labor Code provides specific benefits for employees with an indefinite term contract - they are entitled to long-term sick leave of 12 months and a notice period of 45 days. If a fixed-term contract continues even after its expiry, it is converted to an indefinite-term contract.
Employment contracts must be made in writing, except for contracts with a duration of under 1 month, in which case an oral employment contract may be used. Employment contracts may be concluded electronically on a platform compliant with the E-Transaction Law. They must include the following: Job description, location, and term Wages Working hours, breaks, and holidays Social and health insurance Training and skills improvement provided A copy of the employment contract must be provided to the employee and the employer. The conditions for the probationary period may be included in the employment contract or made into a separate probationary contract.
In Vietnam, temporary or seasonal work is defined as work performed for a duration of under 12 months. There are no extensive stipulations for temporary work within the Labor Code. Signing a seasonal or specific-job employment contract for a term of under 1 year for regular work that lasts 12 months or more is prohibited, except to replace an employee temporarily. Employers can utilize labor dispatch agencies to hire temporary employees under a contract for a maximum duration of 12 months. Temporary employees cannot be hired to replace another employee during a strike or settlement of labor disputes. Temporary employees cannot be hired at a lower compensation than comparable permanent employees in the user's company.
A probationary period may only be used once per employment contract and is not renewable. Probation is not allowed if the employee works under an employment agreement with a duration of less than 1 month. The duration of probationary period depends on the type of job. Employees must be paid at least 85% of the agreed salary while on probation. During the probationary period, either party has the right to terminate the concluded probation contract or employment agreement without prior notice and compensation obligation.
The regular working hours cannot exceed 8 hours per day (up to 10 for those on a weekly schedule) and 48 hours per week. The working hours of employees under 15 cannot exceed 4 hours per day and 20 hours per week, and employees from 15 to under 18 cannot exceed 8 hours per day and 40 hours per week, and cannot perform night work or hazardous work. The statutory hours for a workweek may not be above 48 hours, but the state encourages employers to implement a 40-hour workweek. The working hours of employees under 15 cannot exceed 4 per day and 20 per week.
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2027
Employees are entitled to fully paid annual leave after 12 months of service with an employer: 12 working days for employees who work in normal working conditions 14 working days for minors and persons working in heavy or dangerous jobs 16 working days for workers doing extremely heavy or hazardous work Annual leave increases by 1 day for every 5 years of employment with the same employer. Employees who have worked for less than 12 months are entitled to paid leave proportional to the number of months worked. In the case of employment termination, job loss, or other reasons, an employee who has not used or not entirely taken their annual leave is entitled to receive compensation for the unused leave days. Employees who work during their annual leave are entitled to their normal wages for the work performed and cash compensation for the unused annual leave days, calculated at the employee’s contractual daily wage. This results in a payment equivalent to 200% of the normal daily wage. Overtime during paid leave is paid at a rate of 300% of the normal daily wage.
Annual sick leave (with proof from a doctor) is as follows: 30 days - if contributions to the social insurance fund were made for less than 15 years 40 days - if contributions are between 15 and 30 years 60 days - contributions over 30 years 180 days for extended treatment For those working in heavy or hazardous occupations, the sick leave duration increases by 10 days for every category. Sick leave is compensated by the Social Insurance Agency. Sickness allowance is equal to 75% of the employee's wages. There is also a provision of convalescence leave of 5-10 days, and the sickness benefit during this time is 30% of the basic salary. If the sickness continues even after 180 days of extended leave, the benefit is reduced to 65% of the wages for employees who have paid social security contributions for 30 years or more, 55% for employees who have paid for 15-30 years, and 50% for employees who have paid for less than 15 years.
Employees who have paid social insurance premiums for 6 months or more within 12 months before childbirth are entitled to 6 months of paid maternity leave. In the case of multiple births, the mother is entitled to one additional month off for each child from the second child onwards. Maternity leave cannot begin earlier than 2 months before the expected date of delivery. Employees adopting a child younger than 6 months of age are entitled to take paid maternity leave until the child turns 6 months old. Employees are also entitled to paid leave when they experience miscarriage, abortion, or stillbirth. An employee can return to work before the end of the maternity leave period with approval from her employer if she has taken at least 4 months' leave.
Male employees who have paid social insurance premiums for at least 6 months in the 12 months preceding childbirth or adoption are entitled to a fully paid paternity leave as follows: 5 days, under normal circumstances. 7 working days when the wife gives birth to a child requiring surgery or gives birth to a child under 32 weeks old 10 working days, in case the wife gives birth to twins, an additional 3 working days for each infant from the third child onward 14 working days when the wife has multiple births and requires surgery Fathers are also entitled to 6 months of leave in case of adoption if the mother is not eligible for leave.
An employment contract may be terminated at any time by either party by giving written notice to the other party in advance, as follows: A minimum of 45 days for an indefinite-term employment contract A minimum of 30 days for a definite-term employment contract with a fixed term of 12-36 months A minimum of 3 working days for seasonal work employment contracts or for specific tasks with a duration of under 12 months A party that fails to comply with the notice period provisions is required to pay compensation worth the employee's salary for the remaining notice period from the termination date to the other party. An employee who does not comply with the notice period requirements must pay half a month's salary to the employer.
Employees who have worked at the same company for over 12 months are entitled to a severance payment of half a month's salary for each year worked. In the case of redundancy, 1 month's wage is paid for each year of employment, with a minimum of 2 months’ salary. Severance benefits are not paid if the employee terminates the contract unilaterally or is dismissed due to misconduct or during probation.
The Social Insurance Law provides retirement benefits to eligible employees. The normal retirement age is determined in accordance with the Labor Code and is being gradually increased. As of January 2026, the retirement age for employees in normal working conditions is 61 years and 6 months for men and 57 years for women, with at least 15 years of social insurance contributions required to qualify for a monthly pension. Since 2021, the retirement age has increased by 3 months per year for men and 4 months per year for women. Certain employees in vulnerable groups may retire earlier than the normal retirement age. The monthly retirement pension of qualified employees is equivalent to 45% of the average monthly salary used for social insurance contributions, corresponding to 15 years of contributions for females and 20 years for males, plus 2% for each additional year of paying social insurance contributions, subject to a maximum pension rate of 75%. For male employees with 15 to 20 years of contributions, the pension rate starts at 40% for 15 years and increases by 1% for each additional year up to 20 years. The pension amount is reduced by 2% for each year the pension is claimed before the statutory retirement age. Employees who have contributions exceeding the number of years corresponding to the 75% pension rate may also be entitled to a lump-sum allowance calculated as half a month’s salary for each additional year of paid contributions. Employees who have reached retirement age but have not made the required number of contributions or who have made the required number of contributions but have not reached retirement age may be entitled to a lump-sum retirement grant based on their average salary and the number of contributions made.
In Vietnam, survivors of a deceased insured employee are entitled to receive benefits: If the deceased employee had paid social insurance contributions for 15 years or more If the deceased person was on a retirement pension If the death was caused by a labor accident or an occupational disease The employee received a monthly labor accident or occupational disease allowance for the working capacity decrease of at least 61%. Eligible survivors include children under 18 years of age, as well as children aged 18 or older who suffer from a working capacity decrease of at least 81%; spouses who have reached the statutory retirement age, or spouses below that age who have a working capacity decrease of at least 81%; and parents or other family members whom the deceased was legally obligated to support. The monthly survivors' pension for each relative is equal to 50% of the basic salary of the deceased employee, or 70% of the basic wage for relatives who have no guardians or parents. In case of death caused by a labor accident or an occupational disease, the deceased employee's relatives are entitled to a lump-sum allowance equal to 36 times the basic salary.
Under the Social Insurance Law of Vietnam, employees are entitled to disability benefits if they have a disability that decreases their working capacity by 61% or more. The monthly pension is paid as 45% of the average monthly salary, corresponding to 15 years of contributions, plus 2% for each additional year of paying social insurance contributions. The pension is reduced by 2% for each year the pension is claimed before the insured's retirement age. Once granted, this pension continues after the insured reaches retirement age. The social insurance scheme also provides coverage in the case of labor accidents and occupational diseases. In case of temporary disability, employees are offered a daily allowance equal to their daily wages until full recovery. For permanent disability, an employee must have at least a 5% decrease in working capacity to be eligible for benefits. Employees with a 5% to 30% decrease in working capacity receive a lump-sum benefit, while employees with a 31% or more reduction in working capacity receive a monthly pension. Employees with a working capacity decrease of 81% or more also receive a monthly attendance allowance. There is a social assistance benefit for people who are severely disabled and do not qualify for a social insurance pension. As of 2026, an allowance of VND 750,000 (Vietnamese dongs) is paid per month to people with severe disabilities, VND 1,000,00 is paid to people with particularly severe disabilities, VND 1,250,000 per month is paid to people with extremely severe disabilities or the elderly with a severe disability.
The tax assessment year runs from January 1 to December 31. Applicable to 2025, Vietnamese residents are taxed on their worldwide income at rates ranging from 5% to 35%; non-residents are taxed only on Vietnamese-source income at a flat rate of 20%. Income from all other sources besides employment is taxed at rates ranging from 5% to 25% for both residents and non-residents. For the 2026 tax year, Vietnam has enacted a new Personal Income Tax Law that will take effect on July 1, 2026, with key provisions relating to employment income and business income applied for the entire 2026 tax year. Under this reform, the progressive rate structure for resident salary and wage income is revised into fewer, broader brackets beginning in 2026 (from 7 to 5) and tax rates still ranging from 5% to 35%. Deductions for personal and dependent allowances are increased, and business income (including income from independent professional activities and digital platform/ e-commerce activities) is more clearly separated and taxed under its own rules with rates ranging from 1% to 5%.
There are multiple visa categories in Vietnam, depending on the purpose of the visit:
Foreign nationals who wish to work in Vietnam require a work permit issued by the People's Committee. Applicants must provide the following documents: A written employment contract A health certificate (issued in the employee's home country or in Vietnam) as prescribed by the Ministry of Health A criminal record conducted within 6 months of the application date Any supporting documents that demonstrate the employee will be employed as a manager, executive officer, expert, or technician Valid passport or travel document 2 photographs The maximum duration of a work permit is 2 years, with a possible 2-year extension.
