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This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

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The Socialist Republic of Vietnam is located in southeast Asia. The official language is Vietnamese, although French is spoken as a secondary language. Hanoi, the country’s capital, is located in the north of the country while Ho Chi Minh City, Vietnam’s largest city, is in the south. The economy is based in agriculture, with rice, coffee, rubber, tea and coconut as major crops. Vietnam also exports antimony and phosphate. Its long coastline along the South China Sea attracts tourism and provides access to extensive marine resources. Strategic location, economic stability and vast potential allow for a prime base of operations to expand into Asia.

Employment contracts in Vietnam may be in writing or verbal. However, verbal contracts are only permitted for fixed-term contracts lasting up to one month. Employment contracts in Vietnam include:

  • name and address of employer and employee,

  • description of job,

  • working address,

  • duration of contract,

  • salary,

  • payment type,

  • date of payment,

  • allowances,

  • supplemental benefits,

  • salary review process,

  • working hours,

  • vacation benefits, and

  • details of social and medical insurance.

The standard work week in Vietnam is eight hours a day and 48 hours a week over six days, although this may be reduced in some industries. Employees are entitled to at least one day off a week. Overtime is allowed and employees are entitled to extra pay for work performed in excess of normal hours.

Employees receive between 30 and 70 days of paid sick leave in Vietnam depending on the number of contributions made to the social security system and the industry. Employees working in hazardous work environments and those employees who have made more contributions are entitled to more sick leave. Employees receive a percentage of their pay while on leave.

Female employees receive six months of paid maternity leave in Vietnam, plus 30 additional days for each additional child in the event of the birth of twins or multiples. Male employees receive five to 14 days paid leave depending on whether the baby was born naturally or by c-section and whether it is a single or multiple birth.

Employers in Vietnam are not required to pay employees bonuses but may choose to include bonuses as part of compensation packages. A 13th-month bonus and performance-based incentives are common.

Employees in Vietnam receive 12 days of paid annual leave after 12 months of service and then one additional day for every five years of employment with the same employer. Employees with less than 12 months of service receive vacation on a pro rata basis.

In Vietnam, the public holidays are:

  • International New Year’s Day

  • Vietnamese New Year’s Eve

  • Vietnamese New Year’s Day

  • Tet

  • Liberation Day, also known as Reunification Day

  • International Labor Day

  • Independence Day

  • Hùng Kings’ Temple Festival (10th day of the third lunar month)

Vietnam provides basic universal healthcare. Some employers choose to provide private health insurance.

Both employers and employees can terminate an employment contract in Vietnam by providing notice. The notice period is:

  • 45 days for indefinite-term contracts,

  • 30 days for fixed-term contract ranging between 12 to 36 months, and

  • three days for fixed-term contracts for less than one year.

Employers must pay severance to employees after 12 months of service, unless the employee is dismissed for violating company rules or for illegally or unilaterally terminating the contract. Severance is 1.5 month of salary for every year of service.

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

  • Partner with atlas logo

    Partnering with Atlas when expanding into Vietnam can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.

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