Vietnam has a population of more than 96 million people, with key industries including electronics, food processing, and construction. There are many opportunities for expansion in Vietnam, but companies must be prepared for labor and payroll regulations to ensure compliance.
Several types of business entities can be set up in Vietnam, and the standard corporate tax rate is 20%. Companies in the oil, gas, and natural resources industries pay between 32% and 50% with payments made quarterly.
Some labor and payroll considerations in Vietnam include:
- Employers must provide basic details of the job in writing prior to contracts being signed
- The maximum work week is 48 hours, so any hours above the threshold will be considered overtime
- Collective Bargaining Agreements are determined at the sector level
- Minimum wages vary by region and range from VND 2,920,000 – 4,180,000 per month ($125 – $180 USD)
- Employers must register new employees for social, health, and unemployment insurance
- Employers and Employees must contribute to social, health, and unemployment insurance each month, with contributions and income tax withheld from employee payroll
- Foreign workers must obtain a residence visa and work permit after being approved by the Labor Department
Doing business in Vietnam can be complicated, but Blue Marble can help simplify payroll and compliance. Our cloud-based technology with customized reporting gives you real-time access to your payroll across all countries and currencies. Our in-country experts are here to help when questions come up so you stay ahead of new payroll regulations. Learn more about our integrated payroll solutions to simplify operations in Vietnam. Click here to get started