Overview

Capital
Hanoi
Currency
Vietnamese dong
Date Format
dd/mm/yyyy

Taxes

Employer
17% - Social Insurance
3% - Health Insurance
1% - Unemployment Insurance
Employee
8% - Social Insurance
1.5% - Health Insurance
1% - Unemployment Insurance
20% - Non-residents flat rate
5%-35% - Residents

Minimum Wage

General

The minimum wage is between 2,400,000VND to 3,500,000VND depending on the geographical location of the employee.

VAT

General

VAT is 10% standard rate, , with reduced rates of 0% (exports) or 5% (essential goods/services).

Mandatory Benefits

Pension Fund
 
Employee: contributes 8% of the gross income. There is no salary ceiling.
Advance Notice

If an employee is on a fixed term contract, he/she must provide 30 days notice, while an employee on an indefinite contract must provide 45 days of notice.

Severance Pay

Employees are entitled to severance pay if they have worked in the company for 12 consecutive months or more. If the employee during their employment time has contributed to the unemployment insurance fund, they are not entitled to any severance payments.

Health Insurance

Employer:  3%

Employee: 1.5%

Unemployment Insurance

Employer and employee both contribute 1%

Termination

Termination Process

The employer must provide its employees on a fixed contract with 30 days of notice and indefinite contracted employees with 45 days of notice.