Empower Your Business Expansion in Vietnam with Innovare

As one of the fastest-growing telecommunications and information technology hubs of Southeast Asia, companies look to Vietnam for business expansion today.

Strategic Recruitment Expertise

We understand the pivotal role that the right talent plays in the success of your business. Our approach to recruitment is tailored to meet the unique needs of each client, ensuring a perfect match between your organisation and our global talent pool.

Brief Overview

Innovare Vietnam

Innovare Vietnam, a dynamic arm of the Innovare Group, empowers seamless business expansion into Vietnam's flourishing market. Leveraging our comprehensive Employer of Record (EOR) services, we ensure your venture's smooth adaptation to the local business environment. Our deep-rooted expertise and unwavering commitment to compliance pave the way for your success in Vietnam.

  • Expert navigation through Vietnam's dynamic business landscape
  • Streamlined processes for employing foreign talent and managing payroll
  • Dedicated support for ensuring adherence to local laws and regulations
  • Specialised solutions for both expatriates and local professionals in Vietnam

Innovare helps you navigate Vietnam's excessive bureaucracy.

Worry-free compliance and licensing requirements for relevant sectors.

Fast-track the time-consuming setting up of business in Vietnam.

Let Innovare handle Vietnam's cumbersome tax filings for you.

Local Expertise

Country-Specific Solutions


In Vietnam, a written employment contract outlining key terms must be provided to new hires within three months of their start date. This contract fosters transparency by clearly defining:

  • Job duties and expectations.
  • Work schedules to ensure mutual understanding.
  • Salary and payment details for transparency.
  • Probationary period (if applicable).
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Payroll Services

The payroll cycle in Vietnam is monthly for full-time employees and is paid on the last working day or as agreed within the employment contract. Standard workweeks are 48 hours, with overtime capped at 40 hours per month. Timely tax filings are crucial, with specific deadlines for both hardcopy and electronic submissions.

  • Salary paid monthly by the last working day of the same month.
  • Standard workweek: 48 hours.
  • Overtime capped at 40 hours per month.
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Vietnam operates a progressive income tax system for residents and a flat rate for non-residents. All income derived from work performed in Vietnam is subject to taxation, regardless of payment location.

  • Residents: Progressive tax rates range from 5% to 35% in 2024, based on annual taxable income.
  • Non-Residents: Subject to a flat tax rate of 20% on gross salary income in 2024.
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Vietnamese employees enjoy statutory leave benefits that promote work-life balance and employee satisfaction. These include:

  • Annual Leave: Minimum of 12 days, increasing with seniority (up to 14 days after one year).
  • National Holidays: 11 days off per year, depending on specific holidays observed.
  • Sick Leave: Up to 30 days paid leave with a medical certificate, paid by Social Security Fund.
  • Maternity Leave: 6 months paid leave for childbirth, paid by Social Security Fund.
  • Paternity Leave: Male employees are also entitled to paid leave of 5 days for normal delivery, 7 days if the baby is born by Caesarean section. For twin births, the leave allowance is increased to 10 to 14 days. For multiple births, 3 working days off are permitted for each baby after the third one. Salary for paternity leave is paid by the Social Security Fund.
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Social Security Management

Vietnam's social security system provides financial security for employees in retirement, disability, unemployment, and death. Mandatory contributions are made monthly by both employers and employees, based on a percentage of salary capped at a set amount.

  • Social Insurance (SI): Covers retirement pensions, salary for mandatory paid leaves except annual leaves and national holidays, unemployment benefits, and death allowances.
    Employer Contribution: 17.5% of salary (capped).
    Employee Contribution: 8% of salary (capped).
  • Health Insurance (HI): Provides coverage for medical expenses.
    Employer Contribution: 3% of salary (capped).
    Employee Contribution: 1.5% of salary (capped).
  • Unemployment Insurance: Provides a financial cushion to employees while they hunt for new opportunities. Unemployment insurance is applicable for local employees only, and not applicable for foreign employees.
    Employer Contribution: 1% of salary (capped).
    Employee Contribution: 1% of salary (capped at regional minimum wage).
  • Trade Union
    Employer Contribution:
    2% of salary (capped).
    Employee Contribution: 0
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Early termination before expiry of fixed term or indefinite term contract is not allowed unless due to grievous misconduct. Employer has to get consent from Employee with notice period to be observed. Bilateral agreement on compensation amount is required to avoid dispute.  Vietnam adheres to a termination process requiring adherence to designated notice periods.

Notice Period

  • Employer: only applicable when Employer may not renew the current contract when it comes to expiry. 
    • 03 working days for seasonal or specific-job employment contracts with durations of less than 12 months.
    • 30 days for definite contract from 12-month to 36-month period.

Payment in lieu of notice is not allowed unless it is mutual agreement between Employer and Employee.


  • 03 working days for seasonal or specific-job employment contracts with durations of less than 12 months.
  • 30 days for definite contract from 12-month to 36-month period
  • 45 days for indefinite contract

Severance Payment

Vietnamese labour law requires employers to pay severance to legally terminated employees who had been regularly working for the employer for 12 months or more. The severance allowance is equal to one half of one month's wage for each year of employment. Applicable with conditions that:

  • Employee who has worked on a regular basis for a period of at least 12 months, AND
  • The qualified period of work as the basis for calculation of severance allowance shall be the total period during which the employee actually worked for the employer minus the period over which the employee participated in the unemployment insurance and the period for which severance allowance or redundancy allowance has been paid by the employer.

If Employer and Employee participated UI during the whole working period, Employer is not required to pay for Severance Allowance. Instead, Employee may claim his/her Unemployment Allowance from UI Fund provided that such claim is qualified under UI scheme. Otherwise, Employer will need to pay for such allowance or any shortfall, if applicable.

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Payroll Services
Social Security Management

Vietnam Market

Economic Powerhouse

Vietnam boasts a rapidly growing economy, fueled by a young and skilled workforce, increasing domestic consumption, and a robust manufacturing sector.

Strategic Location

Vietnam's strategic position in Southeast Asia makes it a gateway to the region, offering access to a vast and developing market for trade and investment.

Government Incentives

The Vietnamese government actively encourages foreign investment through competitive tax rates, the establishment of economic zones, and streamlined business registration processes.

Global Reach

Comprehensive Solutions, Tailored for You


You've got questions, and we have the answers.

1) What documents should the client have ready to avail EOR services from Innovare in Vietnam?

2) Do you assist clients with company incorporation in Vietnam? If so, to what extent do you provide support?

3) What does the process of getting started with Innovare for EOR services in Vietnam actually entail?

4) Does Innovare also support businesses with other aspects of setting up a business, such as becoming a member of a chamber of commerce or taking advantage of particular government schemes or grants in Vietnam? If yes, to what extent does that support extend?

5) How does Innovare assist clients with visa and work permit requirements in Vietnam? What documents do you require from clients to facilitate the visa application process?