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Vietnam is Southeast Asia's fastest-growing tech talent market — strong engineering culture, competitive costs, and a young workforce. Rippling EOR handles SHUI contributions, 13th month bonus, and Vietnamese Labour Code compliance.
Vietnam has a rapidly growing technology talent market, with Ho Chi Minh City, Hanoi, and Da Nang as primary hubs. The country has a young, educated, tech-savvy population with strong software engineering, data, and digital marketing capabilities, and competitive salary expectations relative to Singapore or Australia. Vietnam is one of Southeast Asia's most important nearshore markets for Australian, European, and US companies.
Vietnamese employment law (Labour Code 2019 — Law No. 45/2019/QH14) governs employment relationships. The defining feature of Vietnamese employment compliance is the SHUI (Social, Health, and Unemployment Insurance) contribution system. Termination is managed through BIPARTITE processes, labor arbitration, and People's Courts. EOR is particularly valuable for companies entering Vietnam without a local entity given the SHUI, trade union, and PIT withholding complexity.
Establishing a Vietnamese FDI company (Công ty TNHH or Công ty Cổ phần với vốn đầu tư nước ngoài) requires National Business Registration, Department of Planning and Investment registration, tax registration, BHXH enrollment, and labor notification to DOLISA — typically 4–8 weeks. Minimum capital requirements vary by sector. EOR is the right choice for 1‐10 employees, initial market entry, or where legal entity capital requirements are a barrier. Vietnam's SHUI and trade union contribution complexity makes EOR particularly valuable.
Social insurance (BHXH): 8% of salary (capped at 20× national base salary — VND 36,000,000/month from July 2024). Health insurance (BHYT): 1.5% of salary. Unemployment insurance (BHTN): 1% of salary (capped at 20× regional minimum wage). Total SHUI employee contribution: approximately 10.5% of salary up to the ceiling. Personal income tax (thuế thu nhập cá nhân — TNCN): progressive rates 5%–35% depending on monthly taxable income. Non-taxable allowances (cần khấu trừ gia cảnh): VND 11,000,000/month personal deduction + VND 4,400,000/month per dependent.
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Social insurance (BHXH): 17.5% of salary; health insurance (BHYT): 3%; unemployment insurance (BHTN): 1%. Total SHUI employer contribution: 21.5% of salary (capped at 20× national base salary). Trade union fund: 2% of total payroll (mandatory, remitted to VGCL — Vietnam General Confederation of Labour, regardless of whether employees are union members). Total employer on-cost: approximately 23.5% of salary (SHUI + trade union). Tết bonus provision (thưởng Tết — culturally expected, typically 1–3 months' salary) is an additional effective cost.
Vietnamese personal income tax (TNCN) on employment income: progressive monthly rates — 5% up to VND 5M; 10% VND 5–10M; 15% VND 10–18M; 20% VND 18–32M; 25% VND 32–52M; 30% VND 52–80M; 35% above VND 80M. Personal deduction: VND 11,000,000/month. Dependent deduction: VND 4,400,000/month per registered dependent. PIT withheld monthly by employer; annual PIT return (quyết toán thuế) filed by March 31 of the following year. Rippling EOR manages monthly TNCN withholding and GDT (General Department of Taxation) remittances.
Annual leave: 12 working days/year minimum (after 12 months); increasing by 1 day per 5 years of service. Public holidays: approximately 11 national holidays plus Tet holidays (total typically 5 days for Tet — varies by calendar year). Sick leave: covered by BHXH from day 1 (employer pays normal salary; employee claims BHXH reimbursement). Maternity leave: 6 months (4 months post-birth for typical single birth); BHXH pays 100% of average salary. Paternity leave: 5–14 working days (BHXH-paid at 100% of average salary, depending on birth circumstances). Annual leave encashment: employees can cash out unused leave on termination.
Labour Code 2019: employer can terminate with notice for specified reasons (Art. 36 — employee repeatedly fails to complete work; prolonged illness; natural disaster forcing downsizing; employee not present after leave; organizational restructuring). Notice periods: at least 45 days for indefinite contracts; 30 days for fixed-term contracts 12–36 months; 3 working days for fixed-term contracts under 12 months. Severance (trợ cấp thôi việc): 0.5 month's salary per year of service for years worked before January 1, 2009 (BHTN covers post-2009 years). Illegal termination: employee can claim reinstatement or 2 months' salary + notice pay. Rippling EOR manages the full termination process.
Vietnamese citizens: unrestricted right to work. Foreign nationals: Work Permit (giấy phép lao động) required from DOLISA. Work permit requires: employer sponsorship; criminal background check; health certificate; educational credential verification; immigration entry permit. Valid for maximum 2 years (renewable). Some exemptions for experts and managers in specific categories. Processing: 4–8 weeks. Rippling EOR can support work permit applications through its Vietnamese entity.
Statutory benefits: SHUI (Social, Health, and Unemployment Insurance) — social insurance (BHXH) employer 17.5% + employee 8%; health insurance (BHYT) employer 3% + employee 1.5%; unemployment insurance (BHTN) employer 1% + employee 1%. All capped at 20× the national base salary (ương cơ sở) for contribution purposes. Mandatory trade union contribution: 2% of payroll (paid by employer to VGCL, even without union members).
Market standard: supplemental health insurance (Bảo hiểm sức khỏe — private top-up, common for professional employees); Tết bonus (thưởng Tết — culturally mandatory, typically 1–3 months' salary; not legally required but effectively a retention requirement); performance bonus; internet and equipment allowance for remote workers; and meal/transport allowance.
Rippling EOR Vietnam operates through a local FDI entity. Key configuration: SHUI enrollment (BHXH, BHYT, BHTN) with VSS from day one; trade union fund 2% payroll contribution (quarterly remittance to VGCL); TNCN monthly withholding; Tết bonus planning (budget 1–3 months per employee annually); and Vietnamese-language employment contract. Typical onboarding: 2–3 weeks. Tết bonus timing and trade union contribution are the most commonly missed obligations for international companies entering Vietnam.
SHUI (Bảo hiểm Xã hội, Bảo hiểm Y tế, Bảo hiểm Thất nghiệp) covers: Social Insurance (BHXH — retirement, sickness, maternity, work accident, and survivors benefits; employer 17.5% + employee 8%); Health Insurance (BHYT — public healthcare access; employer 3% + employee 1.5%); and Unemployment Insurance (BHTN; employer 1% + employee 1%). All are mandatory and must be enrolled from the first day of employment. Contributions are capped at 20× the national base salary. Rippling EOR manages all SHUI registrations and monthly remittances to the Vietnam Social Security (VSS).
The Tết bonus (thưởng Tết — Lunar New Year bonus) is not legally mandatory in Vietnam but is culturally essential and effectively a retention requirement. Most Vietnamese employees expect a minimum of 1 month's salary as Tết bonus, with senior roles typically receiving 2–3 months. Employees who do not receive an adequate Tết bonus often resign shortly after the holiday. The bonus is typically paid 1–2 weeks before the Lunar New Year (late January or early February depending on the calendar). Rippling EOR manages Tết bonus planning and payment timing.
Vietnam requires employers to contribute 2% of their total payroll to the Vietnam General Confederation of Labour (VGCL) trade union fund, regardless of whether their employees are union members or whether a trade union exists at the company. This 2% fund is distinct from the employer's SHUI contributions and is remitted separately. Many foreign companies are unaware of this obligation and fail to budget for it. Rippling EOR includes the trade union fund contribution in payroll calculations and remits it quarterly.
Vietnam's regional minimum wages (mức lương tối thiểu vùng) are set by four regions: Region I (Ho Chi Minh City, Hanoi — VND 4,960,000/month from July 2024); Region II (major cities in other provinces — VND 4,410,000/month); Region III (provincial cities — VND 3,860,000/month); Region IV (rural areas — VND 3,450,000/month). The minimum wage for professional tech roles significantly exceeds these floors. Rippling EOR applies the correct regional minimum wage for each employee's work location.
