Managing Payroll in Vietnam
In recent years, FDI flow into the country has been improving and an increasing number of foreign companies are establishing and operating businesses in Vietnam. A thorough knowledge of the Vietnamese salary structure is therefore vital to attracting, maintaining and more importantly motivating quality staff to stay and contribute to the growth of the company. Salaries paid to Vietnamese staff working for foreign companies must be denominated in Vietnamese dong. Foreign employers may base salary rates in Vietnamese dong or U.S. dollars. For salaries based in U.S. dollars, employers must convert the amount into Vietnamese dong following the average exchange rate on the inter-bank foreign currency market.
To read the full version of this article, please purchase the April 2010 issue of Vietnam Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may e-mail Dezan Shira & Associates at vietnam@dezshira.com for advice or visit www.dezshira.com.
