Recruiting Talent in Vietnam
In the era of digitization and automation, remote work and distributed teams have become prevalent. Many employers, attracted by advantages such as cost savings, increased work flexibility, and access to global talent, have transitioned from traditional hiring models to sourcing talent internationally. Vietnam stands out as a sought-after destination for overseas employers. In this article, we will delve into key aspects of employing talent from Vietnam, covering the hiring process, local labor laws, and more. Explore the FAQs below for a comprehensive understanding:
1. Why Choose Remote Talent from Vietnam?
- Vietnam boasts a relatively young and dynamic talent pool, with a labor force comprising over 50% of its 98 million population.
- The country witnesses an annual influx of more than one million young adults entering the workforce, including over 300,000 university students.
- Vietnam offers a competitive advantage with lower minimum wages, particularly in fields like computer science, information technology, and supply chain management.
- The country's economy has experienced significant growth, attracting foreign investors and fostering a tech-savvy workforce, making it an ideal location for setting up remote tech teams.
2. Where to Find Remote Talent in Vietnam?
- Key regions for hiring include Ho Chi Minh City (Saigon), Hanoi, and Da Nang, which have higher economic activity and robust tech hubs.
- Top universities for sourcing talent include Vietnam National University, Hanoi National University of Technology and Science, and Ho Chi Minh City University of Technology.
- Platforms like Vietnam Works, Careerbuilder, and Indeed are popular for posting job listings, while recruitment agencies can also facilitate the hiring process.
3. Average Salary of Vietnamese Remote Employees
- Monthly salary ranges for various positions are provided in the table below, offering insights into the cost of hiring in Vietnam.
| Job Title | Average Monthly Salary Range (VND) | Average Monthly Salary Range (USD) |
|---|---|---|
| Accounting Manager | 46,247,000 – 69,370,500 | 2,000 – 3,000 |
| Fullstack Developer | 57,808,750 – 92,494,000 | 2,500 – 4,000 |
| Data Scientist | 138,741,000 – 231,235,000 | 6,000 – 10,000 |
| UX Designer | 40,466,125 – 69,370,500 | 1,750 – 3,000 |
| Product Manager | 69,370,500 – 138,741,000 | 3,000 – 6,000 |
| Business Development Manager | 77,078,333 – 115,617,500 | 3,333 – 5,000 |
- Most Vietnamese employees expect a 7-15% increase in annual salary and approximately 15% when changing jobs.
4. Income Tax Computation in Vietnam
- Vietnam follows a progressive income tax model, as outlined in the table below.
| Annual Net Taxable Income (VND) | Tax Rate |
|---|---|
| 0 – 60 million | 5% |
| 60 – 120 million | 10% |
| 120 – 216 million | 15% |
| 216 – 384 million | 20% |
| 384 – 624 million | 25% |
| 624 – 960 million | 30% |
| More than 960 million | 35% |
- Professional Employer Organizations (PEOs) can assist in ensuring compliance with local tax laws for freelancers or independent contractors.
5. Working Hours in Vietnam
- Vietnam's labor laws stipulate that regular working hours should not exceed 48 hours per week, with a recommended 40-hour work week for a healthier work-life balance.
- Overtime is subject to specific criteria, including consent from the employee and limitations on daily, weekly, monthly, and yearly overtime hours.
6. Legal Requirements and Benefits for Vietnamese Employees
- Employers must adhere to legal requirements, including providing benefits such as the 13th month pay, annual leave, sick leave, and family leaves.
- Vietnamese law mandates contributions to social, health, and unemployment insurance funds by both employers and employees.
7. Additional Benefits for Vietnamese Remote Employees
- While not mandatory, non-taxable allowances such as stipends for business expenses, internet and telecom allowances, and transportation allowances are common.
- Employers may offer supplemental health coverage, insurance allowances, or stipends to gain a competitive edge.
8. Working During Holidays in Vietnam
- Vietnam observes 10 public paid holidays, and if a holiday falls on a weekend, employees are entitled to the following day off.
- Overtime payment calculations, as mentioned in FAQ #5, apply if employees work on public holidays.
9. How to Hire a Remote Employee in Vietnam
- Employers outside Vietnam can simplify the hiring process by leveraging Professional Employer Organizations (PEOs) to handle payroll, compliance, and legal aspects.
10. Probation Periods in Vietnam
- Probation periods are commonly arranged, with durations ranging from 6 to 180 days, depending on the nature of the job.
- During probation, no social security contributions are required, and the salary must not be lower than 85% of the normal salary.
11. Payment Methods for Vietnamese Remote Employees
- PEO platforms offer a convenient way to handle payroll and compliance.
- Salaries are typically paid in Vietnamese Dong, as per regulations, to avoid fluctuations in conversion rates and simplify tax calculations.
12. Termination of Vietnamese Remote Employees
- Unilateral termination is possible under specific circumstances, including contract expiration, retirement, consistent failure to fulfill duties, or major events impacting the workforce.
- Severance payments are required for terminated employees working for at least 12 months, calculated as half a month's salary for each year of employment.
This comprehensive guide provides valuable insights for employers seeking to engage and employ talent from Vietnam, ensuring a thorough understanding of the legal and practical aspects involved.
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