Guide to Remote Work
Vietnam
Your remote work compliance peace of mind starts here. Let us handle the risks while you deliver an amazing employee benefit.
Time Zone
UTC: +7:00
Capital
Hanoi
Population
99 million
Languages
Vietnamese
Currency
Vietnamese Dong (VND)
Table of Contents
Table of Contents
Offer workations as a key employee benefit
Empower your teams with safe and seamless workations. Our award-winning platform ensures compliance for start-ups to Fortune 500s.
Disclaimer
This country guide is for informational purposes only and should not be construed as legal advice. The content of this guide contains general information, and although we update this guide regularly, it may not reflect current legal developments. Work from Anywhere disclaims any liability for any actions you take or refrain from taking based on the content contained in this country guide.
General
How can I mitigate tax and compliance risks associated with employees working remotely in Vietnam?
Employers allowing remote work in Vietnam should ensure compliance with local regulations to avoid tax and legal risks:
Visa & Work Permit Requirements: Vietnam requires foreign remote workers to have an appropriate visa. A tourist visa does not permit employment. Work permits are mandatory for stays exceeding three months unless an exemption applies.
Tax Residency Considerations: Individuals staying in Vietnam for more than 183 days in a tax year are considered tax residents and are subject to progressive income tax rates ranging from 5% to 35%.
Permanent Establishment (PE) Risk: If an employee’s remote work significantly contributes to the company’s business operations in Vietnam, it could create a taxable corporate presence.
Payroll & Social Security Compliance: Employers may need to register for payroll tax withholding and contribute to Vietnam’s social insurance system for employees under local contracts.
Engage Local Experts: Seeking guidance from Vietnamese tax and legal professionals helps businesses ensure compliance with evolving labor laws and tax regulations.
What are the cultural considerations for working abroad in Vietnam?
Understanding Vietnam’s workplace culture enhances professional interactions and collaboration:
Respect for Hierarchy: Vietnamese business culture is hierarchical, with deference given to senior colleagues and decision-makers.
Business Etiquette: Handshakes are common in professional settings, often accompanied by a slight bow. It is customary to wait for the senior party to initiate greetings.
Communication Style: Direct confrontation is avoided to preserve “face.” Feedback is often indirect, and polite phrasing is preferred.
Workweek & Public Holidays: Vietnam follows a Monday-to-Friday workweek. Tet (Lunar New Year) is the most significant holiday and can impact business operations for weeks.
Networking & Relationship Building: Personal trust is crucial in Vietnamese business culture. Building relationships through social engagements, such as shared meals, fosters professional success.
What are the tax and employment compliance challenges of temporary remote working in Vietnam?
Employers and remote workers must consider key compliance factors:
Visa Restrictions: Tourist and business visas do not legally permit remote work. Individuals planning extended stays should obtain the correct work authorization.
Income Tax Liability: Staying in Vietnam for over 183 days triggers tax residency, requiring individuals to pay personal income tax on worldwide earnings.
Employer Payroll Responsibilities: Companies hiring remote workers in Vietnam may need to handle tax withholding, payroll registration, and social insurance contributions.
Permanent Establishment (PE) Risks: If an employee’s activities significantly contribute to business functions, the employer may be liable for corporate taxation in Vietnam.
Legal & Tax Advisory Support: Consulting local professionals ensures compliance with Vietnamese labor laws, preventing regulatory issues and financial penalties.
What are the best places to work remotely in Vietnam?
Vietnam offers diverse destinations catering to remote workers with strong infrastructure and community support:
Ho Chi Minh City (Saigon): A major business hub with coworking spaces, expat-friendly amenities, and a thriving startup scene.
Hanoi: The capital blends cultural heritage with a modern work environment, offering numerous coworking spaces and networking opportunities.
Da Nang: A rising digital nomad destination featuring beautiful beaches, fast internet, and an affordable cost of living.
Hoi An: A serene town with boutique coworking spaces and a relaxed pace, though internet reliability may vary.
Nha Trang: A scenic coastal city gaining popularity among remote workers for its affordable living and strong connectivity.
Da Lat: Offers a cooler climate, lush greenery, and a peaceful working environment ideal for focused productivity.
What are the corporate tax and payroll implications of an employee working remotely in Vietnam?
Employers should assess tax liabilities and payroll obligations when engaging remote workers in Vietnam:
Permanent Establishment (PE) Considerations: If an employer’s remote worker contributes significantly to business activities in Vietnam, corporate tax obligations may arise.
Tax Residency Rules: Employees classified as tax residents (183+ days in Vietnam) must pay income tax on their global earnings.
Payroll & Social Security Compliance: Employers hiring through a Vietnamese entity must register for payroll tax withholding and social insurance contributions.
Double Taxation Agreements: Vietnam has tax treaties with multiple countries to prevent double taxation, offering potential relief to remote workers.
Seek Professional Guidance: Consulting tax and legal advisors ensures businesses remain compliant with Vietnamese employment laws while optimizing tax obligations.
Where can I find the Double Tax Agreements for Vietnam to research the impact of remote work?
If you’re interested in exploring the fine print around Double Tax Agreements with specific countries, you can find a list of those agreements below.
Payroll Tax
Monthly taxable income (VND)
Rate of tax (%)
Up to 10,000,000
5%
10,000,001 to 30,000,000
10%
30,000,001 to 60,000,000
20%
60,000,001 to 100,000,000
30%
Over 100,000,000
35%
Vietnam taxes resident employment income using progressive PIT rates from 5% to 35%. Non-residents are generally taxed at a flat 20% on Vietnam-sourced employment income.
How do I manage payroll taxes for remote employees in Vietnam?
Managing payroll taxes for remote employees in Vietnam depends on the employee’s tax residency, work location, employer structure, and length of stay. Key focus areas:
- Tax residency: Determine whether the employee is a Vietnamese tax resident or non-resident.
- Payroll withholding: Employers may need to withhold Vietnamese personal income tax if local payroll obligations arise.
- Vietnam-sourced income: Non-residents are generally taxed on Vietnam-sourced employment income.
- Social insurance: Assess whether compulsory social insurance, health insurance, and unemployment insurance apply.
- Local registration: Review whether the company needs payroll registration or a local employer/EOR arrangement.
What are the reporting requirements for payroll taxes for employees working remotely in Vietnam?
Reporting requirements may include:
- PIT withholding filings: Employers may need to file personal income tax withholding returns.
- Monthly or quarterly reporting: Filing frequency depends on the employer’s tax status and local requirements.
- Annual finalisation: Employers may need to complete annual PIT finalisation for eligible employees.
- Social insurance reporting: Where applicable, employers must report and pay social insurance contributions.
- Employee declarations: Employees may need to provide tax codes, residency details, and dependent information.
What payroll tax documentation is required for remote employees working from Vietnam?
Employers should generally retain:
- Employment contracts and remote work agreements.
- Payroll records and payslips.
- Personal income tax withholding calculations.
- Employee tax residency documentation.
- Work location and travel records.
- Social insurance registration and contribution records.
- Tax filings, annual PIT finalisation records, and tax authority correspondence.
Are there any tax treaties or agreements that affect payroll taxes for international remote workers in Vietnam?
Yes. Vietnam has double tax treaties with many countries. These may help determine taxing rights and reduce double taxation risk.
Key focus areas:
- Tax residency: Treaties can help determine where the employee is treated as resident.
- Employment income article: Some treaties provide relief for short-term work if specific conditions are met.
- Permanent establishment risk: Employer presence in Vietnam should still be reviewed.
- Foreign tax credits: Employees may be able to claim relief where income is taxed in more than one country.
How do I ensure payroll tax compliance for remote workers in Vietnam?
To maintain payroll tax compliance:
- Confirm the employee’s physical work location and length of stay.
- Assess tax residency and Vietnam-sourced income exposure.
- Determine whether payroll withholding applies.
- Review social insurance obligations.
- Register with local authorities if required.
- Keep accurate payroll, tax, and travel records.
- Seek local tax advice for longer stays or complex cross-border arrangements.
Social Security
Contribution Type
Employer Rate
Employer Rate
Social Insurance
17.5%
8%
Health Insurance
3%
1.5%
Unemployment Insurance
1%
1%
Total
21.5%
10.5%
Rates shown are the standard contribution rates applicable to Vietnamese employees. Different rules may apply to foreign employees and specific categories of workers.
How do I manage social security contributions for remote workers in Vietnam?
Managing social security contributions for employees working remotely in Vietnam requires assessing the employee’s nationality, employment arrangement, and work location. Key focus areas:
- Social insurance coverage: Determine whether the employee is subject to Vietnam’s compulsory social insurance system.
- Foreign employees: Certain foreign employees working in Vietnam may be required to participate in Vietnam’s social insurance scheme.
- Employer obligations: Employers may need to register employees and make mandatory contributions to the relevant authorities.
- Payroll integration: Ensure social insurance contributions are calculated and deducted correctly through payroll.
- Cross-border arrangements: Review whether international agreements or employment structures affect contribution requirements.
Do I need to continue paying into the home country's social security system for employees working remotely in Vietnam?
Whether home-country social security contributions continue depends on several factors:
- The employee’s nationality.
- The duration of the assignment or remote work arrangement.
- Whether a social security agreement exists between Vietnam and the home country.
- The employee’s employment structure and work location.
Professional advice should be obtained to determine whether contributions are required in Vietnam, the home country, or both.
Are there any exemptions or exceptions to social security obligations for international assignments to Vietnam?
Yes. Exemptions may apply in certain situations, including:
- Employees covered by applicable bilateral social security agreements.
- Certain short-term assignments.
- Employees who do not meet the criteria for compulsory participation under Vietnamese law.
- Specific categories of foreign workers exempt from participation requirements.
The availability of exemptions depends on the employee’s circumstances and applicable regulations.
What documentation do I need to provide to ensure compliance with social security obligations for employees working temporarily overseas in Vietnam?
To support compliance, employers should generally maintain:
- Employment contracts.
- Work permits or immigration documentation where required.
- Payroll and contribution records.
- Employee registration documents.
- Assignment letters or remote work agreements.
- Documentation supporting any exemption claims.
- Records of payments made to social insurance authorities.
How do I ensure that remote workers in Vietnam receive the social security benefits they are entitled to?
Employers can support employees by:
- Registering eligible employees with the appropriate social insurance authorities.
- Making accurate and timely contributions.
- Maintaining up-to-date employee records.
- Providing employees with information about their entitlements.
- Monitoring changes to social insurance regulations.
Is a Social Security Certificate or Certificate of Coverage required for an employee temporarily working overseas in Vietnam?
Potentially. Where a bilateral social security agreement exists between Vietnam and the employee’s home country, a Certificate of Coverage or equivalent document may be required to demonstrate which country’s social security system applies.
Employers should review applicable agreements and local requirements before approving remote work arrangements in Vietnam.
Corporation Tax
Tax Types
Rate
Corporate Income Tax
20%
VAT
0%, 5%, 10%
Economic Employer Approach in place
No formal economic employer concept
Do remote employees in Vietnam impact our company's tax residency?
Having employees work remotely in Vietnam can potentially create tax obligations for foreign employers. While a remote employee will not usually change a company’s tax residency, their activities may create a taxable presence in Vietnam depending on their role, authority, and the nature of their work.
How does remote work in Vietnam impact permanent establishment risks?
A permanent establishment (PE) may arise where an employee habitually concludes contracts, performs key revenue-generating activities, or carries out management functions on behalf of the employer in Vietnam.
Key focus areas include:
- Authority to negotiate or conclude contracts.
- Duration and nature of activities in Vietnam.
- Use of a fixed place of business.
- Seniority and decision-making authority of the employee.
- Applicable tax treaty provisions.
A PE could result in Vietnamese corporate tax, registration, and reporting obligations for the employer.
Are there any tax treaties or agreements that affect the determination of permanent establishment in Vietnam?
Yes. Vietnam has an extensive network of double taxation agreements (DTAs) with numerous countries.
Key considerations include:
- Treaty-specific PE definitions.
- Dependent agent PE rules.
- Fixed place of business tests.
- Construction and project PE thresholds.
- Treaty relief from double taxation.
Employers should review the relevant treaty between Vietnam and the employee’s home country before approving long-term remote work arrangements.
What tax documentation is required for remote employees working in Vietnam?
Employers should generally maintain:
- Employment contracts and remote work agreements.
- Records of employee activities and responsibilities.
- Travel and work location records.
- Tax residency documentation.
- Payroll and compensation records.
- PE assessments and supporting analysis.
- Corporate tax filings and correspondence where applicable.
Visa & Immigration
Do I need to have the right to work when working remotely in Vietnam?
Yes. Individuals should ensure they have the appropriate immigration status before working remotely from Vietnam.
Foreign nationals cannot assume that tourist visas automatically permit remote work activities. Immigration requirements depend on the nature of the work, duration of stay, and visa category.
What are the visa and work permit rules for remote workers in Vietnam?
Visa and work permit requirements depend on the employee’s nationality, work activities, and duration of stay.
Key focus areas:
- Short-term stays: Immigration status should be reviewed before performing work activities from Vietnam.
- Work permits: Foreign employees working for entities in Vietnam generally require a work permit unless an exemption applies.
- Temporary residence: Longer-term stays may require residence permits or additional immigration approvals.
- Remote work arrangements: Requirements vary depending on the facts and circumstances of the arrangement.
Employers should seek local immigration advice before approving extended remote work arrangements in Vietnam.
Should an employee get health insurance coverage when working remotely in Vietnam?
Yes. Health insurance is strongly recommended for employees working remotely in Vietnam.
Key considerations:
- Private healthcare can be expensive, particularly in major cities.
- International medical coverage may be needed.
- Employer-sponsored insurance may not extend internationally.
- Emergency evacuation coverage may be beneficial for longer stays.
Is there a digital nomad visa for remote workers in Vietnam?
No. Vietnam does not currently offer a dedicated Digital Nomad Visa.
Remote workers typically rely on other visa categories depending on the purpose and duration of their stay. Immigration requirements should be reviewed carefully before working remotely from Vietnam.
How do I ensure compliance with immigration laws and regulations when allowing employees to work remotely in Vietnam?
To maintain compliance:
- Verify immigration and work authorisation requirements.
- Review visa conditions before approving remote work.
- Monitor employee travel dates and duration of stay.
- Maintain immigration documentation and records.
- Assess work permit requirements where applicable.
- Stay informed of immigration policy changes.
Employment Law / HR
Statutory Employee Benefits in Vietnam
| Statutory Benefit | Vietnam |
|---|---|
| Standard Work Week | 48 hours |
| Annual Leave | Minimum 12 days |
| Public Holidays | 11 paid public holidays |
| Maternity Leave | 6 months |
| Paternity Leave | 5–14 working days |
| Sick Leave | Subject to social insurance eligibility |
| Termination Requirements | Statutory procedures apply |
| Notice Period | 3–45 days depending on contract type |
What are the employment law and legal requirements for employees working remotely in Vietnam?
Employers should consider Vietnamese employment law requirements when employees perform work from Vietnam.
Key focus areas:
- Employment contract requirements.
- Working time regulations.
- Leave entitlements.
- Minimum labour standards.
- Health and safety obligations.
- Termination protections.
Local employment law exposure may arise even where the employer is based overseas.
What are the health and safety obligations for employees working remotely in Vietnam?
Employers should take reasonable steps to ensure employees have a safe working environment.
Focus areas include:
- Ergonomic workstations.
- Mental health and wellbeing.
- Safe use of equipment.
- Work-related injury procedures.
- Compliance with applicable occupational health and safety requirements.
Do employees retain the same employment rights and protections while remote working in Vietnam?
Potentially. Employees working from Vietnam may gain protections under Vietnamese labour law depending on the structure and circumstances of the arrangement.
Employers should assess local employment law exposure before approving remote work.
What are the implications for employee benefits, such as healthcare and retirement plans, when employees work remotely in Vietnam?
Remote work arrangements may affect:
- Healthcare coverage.
- Pension and retirement benefits.
- Social insurance participation.
- Employer-sponsored benefit plans.
- Tax treatment of benefits.
Employers should review benefit arrangements to ensure employees remain appropriately covered.
Are there Posted Worker obligations from an employee working overseas in Vietnam?
Vietnam does not operate a Posted Worker framework equivalent to the European Union. However, immigration, labour, and social insurance obligations may still arise depending on the nature and duration of the work arrangement.
Are employers of record compatible with labour law in Vietnam?
Yes. Employer of Record (EOR) arrangements are commonly used in Vietnam to employ workers without establishing a local legal entity.
However, employers should ensure:
- Local labour law compliance.
- Proper employment documentation.
- Payroll and tax compliance.
- Appropriate management of employee benefits and statutory entitlements.
Cyber Security
The cybersecurity risk is considered MEDIUM in Vietnam. While digital infrastructure continues to improve, employers should remain vigilant regarding phishing attacks, data protection risks, unsecured networks, and device security.
Some proactive steps employees can take include:
- Use a VPN (Virtual Private Network).
- Enable Multi-Factor Authentication (MFA).
- Keep devices and software updated.
- Avoid unsecured public Wi-Fi.
- Follow company data protection policies.
- Use encrypted storage and communication tools.
Some proactive steps for employees to mitigate against this risk:
- Use a VPN (Virtual Private Network)
- Enable Multi-Factor Authentication (MFA)
- Keep devices and software updated
- Avoid using public Wi-Fi without hotspot shielding
- Limit data sharing and device access
What are the cybersecurity risks of employees working remotely in Vietnam?
Remote employees in Vietnam may face cybersecurity risks including:
- Phishing and social engineering attacks.
- Unsecured public Wi-Fi networks.
- Device theft or loss.
- Malware and ransomware attacks.
- Weak password practices.
- Data leakage through personal devices.
Employers should ensure appropriate security controls are in place to mitigate these risks.
How do I ensure data security when employees are working remotely from Vietnam?
Employers can improve data security by:
- Implementing endpoint protection software.
- Requiring VPN access.
- Enforcing strong password policies.
- Using Multi-Factor Authentication.
- Limiting access based on employee roles.
- Encrypting sensitive data.
- Providing regular cybersecurity awareness training.
What steps should I take to ensure compliance with international data protection laws and regulations when employees work remotely in Vietnam?
Key focus areas include:
- Understanding Vietnam’s Personal Data Protection Decree (PDPD).
- Reviewing cross-border data transfer requirements.
- Implementing appropriate security measures.
- Maintaining data processing records.
- Obtaining required employee consents where necessary.
- Ensuring compliance with GDPR and other international privacy laws where applicable.
Employers should review both local and international privacy requirements before permitting employees to work remotely from Vietnam.
Other Asia Pacific Countries
Work From Anywhere and Remote Hiring Policy HR Guide for Australia
Work From Anywhere and Remote Hiring Policy HR Guide for Bangladesh
Work From Anywhere and Remote Hiring Policy HR Guide EOR for China
Work From Anywhere and Remote Hiring Policy HR Guide for Hong Kong S.A.R.
Work From Anywhere and Remote Hiring Policy HR Guide EOR for India
Work From Anywhere and Remote Hiring Policy HR Guide EOR for Indonesia
Work From Anywhere and Remote Hiring Policy HR Guide for Japan
Work From Anywhere and Remote Hiring Policy HR Guide for Kazakhstan
Work From Anywhere and Remote Hiring Policy HR Guide for Malaysia
Work From Anywhere and Remote Hiring Policy HR Guide for Nepal
Work From Anywhere and Remote Hiring Policy HR Guide for New Zealand
Work From Anywhere and Remote Hiring Policy HR Guide EOR for Pakistan
Work From Anywhere and Remote Hiring Policy HR Guide EOR for Philippines
Work From Anywhere and Remote Hiring Policy HR Guide EOR for Singapore
Work From Anywhere and Remote Hiring Policy HR Guide EOR for South Korea
Work From Anywhere and Remote Hiring Policy HR Guide for Sri Lanka
Work From Anywhere and Remote Hiring Policy HR Guide for Taiwan
Work From Anywhere and Remote Hiring Policy HR Guide EOR for Thailand
Work From Anywhere and Remote Hiring Policy HR Guide for Vietnam