Hiring in Vietnam? Start with the model, not the paperwork.

Hiring & Recruitment

Recruiting Top Talent in Vietnam

Vietnam Top Talent

Finding and recruiting top talent in any overseas territory poses many potential issues for companies like yours that are planning to expand their international presence. You need your new staff to be up and running as quickly as possible. This certainly applies to Vietnam where employment is strictly governed by the Labor Code. Additionally, an already multi-layered tax regime was updated with the Tax Administration Law of July 2020 which implemented new regulations for tax filing.

You need a specialist to oversee the practical demands of staffing your new venture – and this is where Bradford Jacobs steps in. Our expertise in international recruitment is indispensable for expansion into the Vietnamese economy.

Bradford Jacobs leads the way with our Professional Employment Organisation (PEO) recruitment networks, with a worldwide reach that will find the highest quality staff, managers, and executives for your move into Vietnam.

The Recruitment Process in Vietnam

The first step in the international expansion process is recruitment and putting staff in place. It is vital to know where to locate the best talent who will be a ‘perfect fit’ for your company’s plans.

Vietnam is a leading target for expansion, having enjoyed astonishing growth over the past 30 years and transforming from one of the world’s poorest countries into a lower middle-income nation with a growing consumer base.

Since 2002 Gross Domestic Product (GDP) per capita increased by almost three times, approaching US$ 3,000. Vietnam bucked the global trend in 2020 to increase GDP by 2.9% and it was predicted to grow by 6.6% in 2021.

Vietnam’s rapid economic growth has seen an increased demand for hiring well-educated and motivated local staff. The labor force is boosted annually by close to one million flexible and hard-working young adults.

But while labor-intensive industries drive Vietnam’s economic growth, there is a skill and talent gap for high-tech and developing industrial sectors. International companies can find it hard to recruit top-level staff with the right skills and experience.

Migrating staff into Vietnam faces other barriers, as foreigners must have a work permit and a work visa before employment, and employers need prior approval of their foreign-worker demand from the competent authority. Work permits for foreign employees are now governed by Decree 219/2025/ND-CP (effective 7 August 2025), which replaced the foreign-worker provisions of Decree 152/2020 as amended.

You will have a lot of questions … and the answers do not come easily. Once the right employees are found, employers must fit in with various procedures for their new staff. These include:

• Withholding and remitting deductions to the Vietnam Tax Department (Tong cuc Thue)
• Remitting social security deductions to relevant funds via the Social Insurance Agency (SIA)
• The tax year runs from January 1 until December 31, or 12 months from date of arrival before reverting to the calendar tax year
• Paying provisional employment income tax on a monthly or quarterly cycle by the statutory deadlines
• Annual returns must be filed to the Vietnam Tax Department by the statutory deadline following the end of the chosen tax year
• Compiling periodic reports on employees’ working hours per the statutory reporting calendar
• Creating annual reconciliation reports on personal and corporate tax payments and advise on Business License Tax payment The recruitment process is time-consuming and requires dedication – a difficult task when faced with a host of other complicated issues involved in international expansion. By engaging Bradford Jacobs as your Employer of Record (EOR) we will provide all the answers . We will convert your expansion blueprint for Vietnam into an action plan with a few simple steps, including:
• Bradford Jacobs locates the ideal employees for your company, then steps in as EOR to ensure they comply with Vietnam’s employment contracts law, payroll, HR, visa requirements and permits (if required)
• We manage all work-related registration formalities and on-going employment issues while you have daily control of your employees
• The employees complete their time sheets, and any expenses claims, and we invoice you, the client. Once paid, we deduct all contributions to the relevant Vietnamese authorities and transfer the balance into the employees’ accounts Within a few days, your company has international presence in Vietnam – in a prime position to explore further expansion among other Asian markets without risking the expense or stress of setting up your own subsidiary or branch office in the country.

Legal Checks on Employees in Vietnam

The essential first check for employers is to check their new staff meet all visa and work permit requirements. It is mandatory for foreign workers to hold a valid work permit authorized by the relevant province’s labor authorities. Failure to comply not only risks severe fines – the employer’s business operations could be suspended with the employee facing deportation.

Previously, employers could request information directly relating to the position, including full name and proof of residence, gender, educational qualifications, relevant professional skills, and their health. The Labor Code did not apply specific restrictions on credit or criminal record checks before hiring and it was typically permissible to require this information.

However, the Ministry of Public Security drafted new regulations imposing strict obligations on employers requiring certain information from applicants for new positions or from existing employees.

Employers will have to register with the Personal Data Protection Commission (PDPC), detailing their measures to process and protect the information. This will particularly apply to matters concerning health and any criminal background checks.

• Discrimination: The Labor Code expressly forbids discrimination on the grounds of gender, ethnicity or race, social status, beliefs or religion, age, pregnancy, marital status or family responsibilities, disability, trade union or internal employee organization memberships.
• Health and Criminal Background: Questions on the applicant’s health or any criminal record are permissible only if the individual’s consent is obtained first. The employer should specify the reason for the requested information. Draft proposals from the Ministry of Public Security will require employers to register with the Personal Data Protection Commission (PDPC) before attempting to collect the information.
• Privacy: Employees’ privacy and the protection of their personal data will be strictly governed under proposals to be implemented by the Personal Data Protection Commission (PDPC). Employees must sign a consent form agreeing to the information being collected and the employer must have registered the request with the PDPC.
• Employment History: Collecting this information is allowed, with the applicant’s permission.

Basic Facts on Hiring in Vietnam

• Employers’ interview questions when hiring should always operate within Labor Code guidelines and relate directly to the position being applied for. Proposals from the Ministry of Public Security will require employers to register with the Personal Data Protection Commission (PDPC) before they are allowed to conduct background checks
• Terms and conditions of employment come under the umbrella of the Civil Code and Labor Code, supplemented by government regulations, statutes, and articles
• Employer and employee should each have a signed copy of the contract. The terms should be in Vietnamese for legal purposes, although the employee can request a translated version into a language they understand
• The contract must cover basic information, including full names and addresses of both parties including the position of the individual signing on behalf of the employer; job description and location; salary and payment schedule detailing any extra reimbursements; working hours, breaks and vacations; employee’s social, health and unemployment insurance provisions
• Employer and employees must be registered with the Vietnam Tax Department (Tong cuc Thue) and comply with compulsory procedures imposed by the Vietnam Social Insurance Agency (SIA) via the competent labour authority (since 1 March 2025, state management of employment, labour, wages and social insurance sits with the Ministry of Home Affairs — Bo Noi vu — under Decree 25/2025/ND-CP, superseding MOLISA). Additionally, employers must ensure they comply with employees guaranteed minimum entitlements and benefits. These include:
• Minimum wage: Regional. From 1 January 2026 (Decree 293/2025/ND-CP, replacing Decree 74/2024): Region I — VND 5,310,000/month (VND 25,500/hour); Region II — VND 4,730,000/month (22,700/hour); Region III — VND 4,140,000/month (20,000/hour); Region IV — VND 3,700,000/month (17,800/hour).
• Working hours: The Labor Code 2020 limits working hours to eight per day, 48 per week. Mutually agreed overtime cannot exceed four hours daily, 40 a month or 200 annually. Industries subject to seasonal variations, such as textiles, clothing, and electronics, have a 300-hour annual overtime maximum.
• Paid vacation: January 2021 amendments to the Labor Code guaranteed all employees receive a basic 12 days minimum annually. Employees working in hazardous, dangerous, or toxic surroundings receive either 14 or 16 days. Days are allowed pro rata for less than 12 months’ employment. Workers with same employer for more than five years take an additional day every five years. Workers are also paid for national holidays.
• Maternity allowance and entitlements: Maternity leave is six months for full pregnancy, with between 10 and 50 days for miscarriages or terminations. Under the Social Insurance Law 41/2024/QH15 (in force 1 July 2025), the monthly maternity benefit equals 100% of the average compulsory-social-insurance salary base of the six most recent contribution months before leave, subject to statutory eligibility. After giving birth (or adopting a child less than four months old) the mother is entitled to a lump sum of two months’ average salary. Women into the seventh month of pregnancy cannot work overtime, at night or undertake long-distance business trips. If they undertook heavy work, they should be transferred to lighter duties or work one hour less each day on the same pay. The paternity allowance is for five days paid leave.
• Termination and severance: Statutory notice and severance apply by contract type and length of service under the Labour Code. Where termination is due to business or technological change, statutory retrenchment allowances apply at the rates set by the Labour Code. Employment cannot be terminated during pregnancy or maternity leave.
• Sick Pay: Employees receive sick pay from the Social Insurance Fund, not from the employer, based on 75% of salary from which social insurance premiums were paid during the preceding month. Sick leave allowance per year depends on working days during the year. Entitlement scales with contribution history at statutory rates.
• Overtime: Overtime can be requested only with the employee’s agreement. The Labor Code stipulates those hours above the norm of eight hours per day and 48 each week are overtime. Compensation rates over and above the normal hourly pay are – weekdays – day time 150%; weekends – day time 200%; public holidays and paid leave days 300%; weekday night work 30% extra over above rates. Overtime cannot exceed 40 hours per month and there are other restrictions. Women into their seventh month of pregnancy or with children under one year old cannot work overtime.

Employment Contracts

Vietnamese Employment Contracts

Vietnam Contracts

International companies hiring employees for their expansion into Vietnam must comply with many layers of complex tax, employment, and social insurance regulations. Failure to comply risks fines, sanctions, and the possibility your staff could be deported, or business operations suspended.

The employer-employee relationship in Vietnam is governed by the Civil Code and Labor Code, which was amended in 2021 to bring in new worker guarantees. Additionally, proposals from the Ministry of Public Security will impose stricter obligations on employers regarding privacy and data protection.

Amendments to the Labor Code stipulated that contract can either be open-ended (indefinite) or fixed term, with no other options allowed, apart from probationary contracts.

When hiring new staff and drawing up their contracts, specific requirements from the Labor Code apply and must be considered. These include:

• Contractual terms and conditions come under the Labor Code, supplemented by government decrees, articles and statutes.
• Employer and employee should each have a signed copy of the contract.
• The terms should be in Vietnamese for legal verification and to guard against inconsistencies in translation. The employee can request a copy in a language they understand.
• By law, contracts must cover basic information. This includes the full names and addresses of both parties, specifying the position of the individual signing on behalf of the employer; job location and details of role; salary and payment schedule covering any extra reimbursements; working hours, breaks and vacation allowance; details of provisions for employee’s social, health and unemployment insurance.
• The new Labor Code accepts the validity of e-contracts related by data messaging.
• Employees’ roles, and any subsequent changes to them, must be declared to the competent labour authority within the statutory notification windows.
• Local employees must be paid in Vietnamese Dong; foreigners, whether resident or non-resident, can be paid in another currency.

Employment Contracts in Vietnam

Generally, a labor contract in Vietnam is effective from the date it is signed, not from when it is lodged with the labor authorities. The Labor Code, as amended in 2019 and coming into force from January 2021, recognizes two types of contracts, plus probationary agreements.

Open-ended, indefinite employment contracts: These are the most common type of contract and are terminated by agreement between the parties or resignation by the employee.

Fixed-term, definite employment contracts: These can be agreed for up to a 36-month period, but only two consecutive contracts are permitted. If employment continues after this the contract automatically becomes indefinite.

Probation or trial period employment contracts: Probationary or trial periods are agreed on a case-by-case basis depending on the type of job and the qualifications or experience of the new employee. The Labour Code 2019 (Art. 25) sets maximum probation periods that scale with the role’s qualification requirements; the agreed period is set in the contract within those statutory caps.

Foreigner employment contracts: These are generally for a maximum of 24 months, due to visa and work permit regulations.

Seasonal employment contracts: There is no specific contract type for seasonal workers as the amended Labor Code eliminated the categories of ‘seasonal or specific employment’ workers. Seasonal, temporary, or part-time workers are now treated as workers on a fixed-term contract, which has no minimum period but must not last longer than 36 months. Workers with these contracts now have the same benefits and entitlements as employees on indefinite contracts.

Collective and trade union agreements: The Vietnam General Confederation of Labor (VGCL) is the only employment group that can represent employee bodies in collective bargaining negotiations or agreements.