Overview

Capital
Hanoi
Currency
Vietnamese dong

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
The employer contributes 18% of the employee’s gross income.
The 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.

Payroll

Additional Employee Withholding
1) Health Insurance
2) Unemployment Insurance
1) Employer contributes 3%
2) Employer contributes 1%
1) Employee contributes 1.5%
2) Employee contributes 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.