PAYROLL GUIDE FOR FOREIGN BUSINESSES IN VIETNAM

This payroll guide provides foreign businesses with a practical overview of employment regulations and payroll requirements in Vietnam, helping ensure compliant and efficient workforce operations.

Navigating payroll and employment compliance in Vietnam requires a clear understanding of local labor laws, tax obligations, and statutory benefits. This handbook is designed to help foreign companies manage payroll confidently by outlining key employment regulations, employee taxation, visa requirements, working conditions, and termination rules.

Key Takeaways

Core employment regulations and payroll requirements applicable to foreign businesses.
Personal income tax for employees is progressive, ranging from 0% to 35%.
Work visa processing typically takes 5–7 working days, depending on documentation and role type.
The minimum wage in Hanoi, Ho Chi Minh City, and Da Nang is VND 4,960,000 per month, with standard working hours of 8 hours per day, up to 5–6 days per week.
Employers must comply with termination regulations, mandatory contributions, and statutory employee benefits.
Payslips must include company details, employee information, a salary breakdown, and gross-to-net calculations.
Employees are entitled to regulated leave days under Vietnam’s labor code.

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FAQs

1. What is the purpose of the Vietnam Payroll Guide?

The Vietnam Payroll Guide provides foreign businesses with a concise overview of Vietnamese labor laws, employment regulations, taxation requirements, and payroll procedures. It is designed to help companies streamline payroll operations while ensuring full compliance with local legal requirements.

2. What are the personal income tax rates in Vietnam?

5. What are the visa and work permit requirements for foreign employees?