Human Resources & Payroll

Payroll Management in Vietnam – New Issue of Vietnam Briefing Magazine

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VB_2017_05_Payroll_Management_in_Vietnam_-_ImageThe latest issue of Vietnam Briefing Magazine, titled “Payroll Management in Vietnam”, is out now and currently available to subscribers as a complimentary download in the Asia Briefing Publication Store.

In this issue:

  • Vietnam’s Statutory Payroll Requirements
  • Emerging Challenges in Vietnamese Payroll
  • Expert Commentary: Understanding the Benefits of Payroll Outsourcing in Vietnam

As companies establish new operations in Vietnam, one of the first tasks for businesses is to put employees on the new entity’s payroll.

This will allow new market entrants to engage local workers and bring in managerial staff from overseas. But payroll administration can quickly become a significant undertaking, even for those who are well versed in market expansion. Payroll compliance and the ever-changing regulatory environment are a challenge for any expanding business.

From individual income tax calculation to ensuring proper social security contributions, companies are required to conduct a variety of monthly compliance tasks to ensure that they are up to take with their statutory obligations. These areas of compliance can often be quite complex and take significant time to master, navigate, and implement effectively.

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Managing Payroll in Vietnam

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By: Tam Nguyen, Business Advisory Manager at Dezan Shira & Associates

In recent years, foreign direct investment (FDI) flows into Vietnam have been on the rise as greater numbers of foreign companies decide to establish businesses in the country. To operate in Vietnam, a thorough knowledge of the country’s salary structure is vital to maintaining efficiency and to motivate quality staff to stay and contribute to your company’s growth for years to come.

Salary and wages

The salary of Vietnamese employees that work in foreign companies in Vietnam is determined through negotiations between the two parties, but it should be no lower than the minimum monthly salary rates as stipulated by the Vietnamese government.

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Vietnam’s New E-Visa: Eligibility and Applications Explained

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By: Dezan Shira & Associates 
Editor: Daniel Schaefer

With many countries already using the E-visa system, the time for Vietnam to jump on the bandwagon has finally arrived. In November 2016, Vietnam’s National Assembly approved a plan to issue E-visas and starting February 1st, 2017, Vietnam successfully implemented a 2-year pilot program which will allow citizens from 40 countries to be able to apply for an e-Visa.  The new pilot program will be carried out alongside Vietnam’s current visa process, which currently requires applicants to apply for a visa through a third party, which then contacts the Vietnamese embassy. The new e-visa allow eligible candidates to apply for a 30-day single-entry visa online, as well as allowing them to enter through any of the eight international airports (Hanoi, Ho Chi Minh City, Da Nang, Nha Trang, Hai Phong and Phu Quoc Island) and via any of the 13 international land border crossings. This Vids will exclusively be for 30-day single-entry visas.

DZS RELATED: Visa and Work Permit Services from Dezan Shira & Associates

Who is eligible for Vietnam’s E-Visa?

As of the date of this article being published, the Vietnamese government is allowing citizens from the following 40 countries to apply for an e-Visa:

Armenia, Argentina, Azerbaijan, Belarus, Brunei, Bulgaria, Chile, China, Columbia, Czech Republic, Cuba, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Kazakhstan, Luxembourg, Mongolia, Myanmar, Norway, Panama, Peru, Philippines, Poland, Romania, Russia, Slovakia, South Korea, Spain, Sweden, Timor Leste, United Kingdom, United States, Uruguay and Venezuela.

How to apply for Vietnamese E-Visas?

Before applying, the candidate must have prepared a scanned copy of one’s valid passport details as well as a scanned passport photo. It is important to note that the scanned passport photo being sent must have the applicant looking directly at the camera and not smiling.

Once the appropriate materials have been gathered, the inquirer must go to the following link and proceed with the following steps:

  1. Click on “for foreigners”
  2. Upload the passport details and passport photo files. It is important to note that both files must be uploaded separately.
  3. Fill in all the required information.
  4. Pay the US$25 application fee and submit the application. This fee is non-refundable, even if the application is denied.
  5. Once successfully submitted, the applicant will receive a registration code, which can be used to check on the status of the application.
  6. Wait the standard 3-5 business days and return to the website to find out if the application has been approved.
  7. If approval has been granted, print out the e-Visa as proof for travel.
Related Link Icon-VB RELATED: Vietnam’s Visa and Work Permit Procedures
Working out the Bugs

Due to this new initiative being a pilot program, there will no doubt be some kinks and bugs that will need to be worked out. Some particular difficulties that come with this form of visa is that the E-visa will only be available as a 30-day single-entry visa, and cannot be extended. If a visa extension is required, one must go through the previous method of obtaining a visa, which involves going through a third party, or the Vietnamese embassy itself (this visa is generally referred to as the Visa on Arrival).

Something else that must be remembered is that before applying for an E-visa, the border of entry must have already been determined. Once the visa is issued, the traveler cannot switch the point of arrival.

Applying for the E-visa does take longer than its Visa on Arrival counterpart. The application generally requires 3 business days, as oppose to the Visa on Arrival which can be done in two days or less. If any problems were to occur during the visa application process, it will be difficult to receive service support as there has yet to be a service support page established for it. Since its implementation, the website’s servers have also crashed due to access overload, which can make applying for it a bit cumbersome.


With Vietnam expecting to see a 15 percent increase in tourism over the previous year, the E-visa will allow citizens from those 40 countries to have a far smoother experience applying for Vietnamese visas. Those 40 countries were strategically picked as last year; Vietnam saw 2.2 million visitors from China, 1.2 million from South Korea, and 611,000 from Japan respectively. Despite the quirks that may arise from the early practice of this new program, it is proof that Vietnam is embracing its’ tourism industry and is taking proactive steps to adapt to 21st century tourism.


Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email or visit

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

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dsa brochureDezan Shira & Associates Brochure
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.

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An Introduction to Doing Business in Vietnam 2017
An Introduction to Doing Business in Vietnam 2017 will provide readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in this dynamic country.

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Managing Contracts and Severance in Vietnam
In this issue of Vietnam Briefing, we discuss the prevailing state of labor pools in Vietnam and outline key considerations for those seeking to staff and retain workers in the country. We highlight the increasing demand for skilled labor, provide in depth coverage of existing contract options, and showcase severance liabilities that may arise if workers or employers choose to terminate their contracts.

Permitted Contract Structures Under Vietnamese Labor Code

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By Dezan Shira & Associates
Editor: Maxfield Vandel Brown

All foreign enterprises seeking to staff operations in Vietnam will find the process regulated by the Vietnamese Labor Code of 2012 (Law No. 10/2012/QH13) and guided by several circulars which have clarified aspects of this legislation. Covering hiring, probationary periods, termination of contracts, and post-employment benefits, the nature of contracts should be studied closely to ascertain the most effective means of onboarding workers as well as ensuring the compliance requirements associated with these contracts.

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Managing Contracts and Severance in Vietnam – Latest Issue of Vietnam Briefing Magazine

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VB_2016_12_en_Managing_Contracts_and_Severance_in_Vietnam_-_CoverThe latest issue of Vietnam Briefing magazine, titled “Managing Contracts and Severance in Vietnam“, is out now and available to subscribers as a complimentary download in the Asia Briefing Publication Store.

In this issue:

  • Identifying Trends in Vietnamese Labor
  • Permitted Contract Structures Under Vietnamese Labor Code
  • Contract Termination and Severance Obligations

Vietnam is undergoing a significant transformation in economic development, moving from conventional production of low cost goods towards the output of more technologically intensive products. While presenting significant opportunities for foreign investors, this has simultaneously created a strain on domestic labor markets. With a finite pool of skilled labor, now more than ever before, investors are exposed to issues stemming from the sourcing of qualified talent and the retention of existing workers for the long term.

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Podcast: Recruiting Practices in Vietnam

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By Dezan Shira & Associates

Oscar Mussons, Associate of Dezan Shira & Associates’ operations in Vietnam, speaks with Jon Whitehead. Jon is the Country Manager for Robert Walters Vietnam – a global, specialist professional recruitment consultancy working with clients across the region and the world.  Together Oscar and Jon explore the Vietnamese landscape with regard to human resources, hiring and retaining Vietnamese workers, and Vietnam’s prospects for the years to come.  

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U.S. Visitors to Vietnam Now Eligible for 1 Year Visa

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By: Dezan Shira & Associates

New visa standards have come into effect extending US visas in Vietnam to one year. The extension comes as the result of a diplomatic agreement, which was negotiated between the United States and Vietnam in late 2015, made public in January, and passed by the National Assembly on April 9th. Following an official release on August 30th, the new policy has been rolled out as of September 4th. 

Professional Service_CB icons_2015 RELATED: Dezan Shira & Associates’ Payroll and Human Resources Services
Understanding US Vietnam Visa Updates

Visa updates between the United States and Vietnam replace a previous arrangement that had allowed both tourists and those doing business to enter the country for a maximum of 3 months with entry fees starting at US$ 25. Under the updated visa scheme, two new categories of visas have been introduced and are outlined below. These are to apply to both business visitors and tourists, allowing a significant expansion of maximum stay for US tourists. 

  • 6 months, multiple entry
  • 1 year, multiple entry

Fees: While the application fees will likely differ depending on the consulate or agency used, Vietnam has outlined a stamping fee of US$ 135 to be applied for one year visas across the board. It remains to be seen if this fee will be extended for six month visas as well. With details on the policy still forthcoming, it is also unclear if some of the shorter term and less costly visas will continue to be available for US citizens. 

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Managing Vietnamese Labor Disputes

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Labour dispute Management VietnamBy: Dezan Shira & Associates
Editor: Marquise Clarke

As more businesses begin to take off in Vietnam, job security has steadily begun to increase. With this rise in employment comes a lot of expectations from both employees and employers. As a result, operations can at times become exposed to strikes stemming from low wages, poor communication, disparity in internal promotion, and expectations failing to get fulfilled. If not managed properly, the occurrence of strikes risks adversely impacting the future of a company.

In recent years, Vietnam has experienced its fair share of strikes, with about 762 strikes during the global financial crisis of 2008 due to high inflation in the low-wage economy. This article seeks to explain how to detect when a strike will happen and the methods to combat it. If a strike does occur, those with an up to date understanding of the country’s policies and laws will be in an optimal position to protect their operations, both through assessing the legality of strikes and knowledge of the compensations expected. 

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An Introduction to Overtime in Vietnam

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Overtime VietnamBy: Eugenia Lotova

When companies turn to Vietnam to establish their manufacturing operations, it is important to not only consider the laws on regular wages, but also the policies on overtime that will be applicable to the workforce and style of a given operation.  One of the great benefits of Vietnam is that wages are low in comparison to the rest of the region, especially China. Overtime and night work policies in the socialist republic are essentially the same as those currently employed in China. The Vietnamese government enumerates all of these regulations in the Labor Law of 2012 (Law No. 10/2012/QH13), Decree No. 05/2015/ND-CP, and Circular No. 23/2015/TT-BLDTBXH. Understanding how these laws and guidance shape costs is of utmost importance for investors seeking to maximize Vietnam’s potential as a low cost destination for manufacturing. 

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Expat Employment in Vietnam: The Comprehensive Guide to Work Visas and Work Permits

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Screen Shot 2016-06-27 at 4.44.34 PMBy: Dezan Shira & Associates 
Editor: Marquise Clarke

In recent years, the number of expats coming to Vietnam has steadily increased. The majority of foreign workers that come to Vietnam are employees of foreign contractors, working for, or establishing foreign direct investment (FDI) projects.

When hiring foreign staff in Vietnam, there are a number of procedures and legal frameworks that must be understood. In this article, we discuss the documents necessary for a foreign worker in Vietnam, including:

  • Visas;
  • Work Permits;
  • Temporary Residence Cards.

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