Vietnam · Hiring guide
Vietnam Hiring guide
Low labor cost, plenty of engineers and line workers, many FTAs; but labor law strongly protects workers, dismissal is very hard and strikes are sensitive — firms that budget carefully and follow process benefit most.
What it costs
what one hire really costsThe 2% trade-union fee is mandatory — you pay 2% of payroll even with no union. That’s why the employer side totals 23.5%, not the 21.5% most people assume.
How hard
can you get in and out?- ample engineers & line workers
- mature recruiting channels
- written contract, fixed-term ≤36 months, max 2 renewals
- lawful grounds only — no at-will firing
- 30–45 days notice
- severance 0.5 mo/yr (offset by UI)
- unlawful dismissal → reinstatement + back pay + damages
- Employee repeatedly fails to perform despite written assessment criteria.
- Employee is still not recovered after 12 months’ treatment (indefinite-term) / 6 months (fixed-term).
- Force majeure (disaster, fire) forces downsizing despite best remedial efforts.
- Employee is absent without valid reason for ≥5 consecutive working days.
- Serious misconduct (via the disciplinary procedure, with union involvement and a written record).
- 1.Confirm a lawful ground exists and keep written evidence (assessments, misconduct records, warning letters).
- 2.Advance written notice: indefinite ≥45 days / fixed-term ≥30 days / short-term ≥3 working days.
- 3.Disciplinary dismissal must follow the statutory procedure: union involvement, employee present to respond, written decision.
- 4.Settle wages, severance and social-insurance formalities within 14 working days of exit (up to 30 in special cases).
Severance = 0.5 month’s wage × years of service (based on the average wage of the last 6 months); service from 2009 covered by unemployment insurance is not double-counted.
Example: Wage ₫30,000,000, 4 years (assumed counted): 0.5 × 4 × 30,000,000 = ₫60,000,000; if that service is under unemployment insurance, the fund pays the benefit instead and employer severance can be 0.
- Not renewing a fixed-term within 30 days of expiry → auto-converts to indefinite-term, harder to end later.
- Unlawful dismissal → reinstatement + back pay for the suspended period + at least 2 months’ wage compensation.
- Consult the union before collective layoffs / changing terms, or risk strikes.
Source: Labor Code 2019, Art 36, 46–48
Supporting detail
How to start
first stepsWhat bites you
what others got wrongTransplanting home-country high-pressure management caused mass resignations.
What to do: Localize management; locals lead, expats support.
Vietnamese value life over work and resist forced overtime.
What to do: Use scheduling & incentives, not forced OT.
Vietnamese value rituals; events lifted belonging and retention.
What to do: Regular rituals + employer brand + competitive pay.
Firing without lawful grounds/process led to costly reinstatement.
What to do: Lawful grounds + due process + records; consult a local lawyer.
Vietnam caps probation length and requires ≥85% wage; overrunning it converted the hire into a full employee.
What to do: Respect the legal cap; confirm or lawfully end on time; pay ≥85%; document everything.
FAQ
What’s the all-in employer cost of one hire in Vietnam?
For a local employee on 30,000,000 ₫/month, employer monthly cost is about 37,050,000 ₫ (overhead +23.5%), ~444,600,000 ₫ annualized. Use the calculator for your actual wage.
How are employer social contributions paid in Vietnam?
Pension+health+unemployment: employer ~21.5% / employee ~10.5%
Can you "fire at will" in Vietnam?
No. You need a lawful ground + due process + advance notice (indefinite ≥45 days); unlawful dismissal means reinstatement + back pay + at least 2 months’ compensation.
How is overtime calculated in Vietnam?
Weekday ≥150%, weekend ≥200%, public holiday ≥300%, night shift +30%; capped at ≤40 hrs/month and ≤200 hrs/year (300 in certain sectors).
Deeply researched and verified against official bodies, auto-updated; rates and processes are for reference — for major decisions rely on each country’s authorities and local counsel.