One of the key obligations that an employer has in Vietnam is the payment of social security. In order to ensure smooth operations while in the country, it is crucial that foreign companies ensure that they fully understand the legal framework which provides for the rights and obligations of employers and employees with respect to social security.
Despite a still recovering economy, demand for workers in Vietnam is seeing strong growth. However, supply and skills have not kept up with this increasing need.
On July 8, 2014, after intense criticism from the expat community and foreign businesses, the Vietnamese government issued Resolution 47, which is intended to improve the work permit conditions for foreigners working in Vietnam.
Vietnam has brought out a new online Visa processing system. Foreigners will now be able to register and fill out visa application forms online. The official website can be found at: http://visa.mofa.gov.vn.
In Vietnam, Personal Income Tax (PIT) declaration and payment is carried out on a withholding basis. Employers are required to collect taxes on employee income for both foreign and local Vietnamese employees, and ensure the timely submission of employees’ tax declarations.
HANOI – In a recent survey by the Boston Consulting Group (BCG), Vietnam was found to have the fastest growing middle class in Southeast Asia. By 2020, the country is expected to have 30 million middle class and rich consumers. Vietnam’s per capita income is expected to increase to US$3,000 by 2020 from its current[…..]
HANOI – A recent survey conducted by the Boston Consulting Group (BCG) has found that the middle and affluent class (MAC) in Vietnam will greatly increase in size between now and 2020, from 2 million to 33 million. In order to project the growth of consumers and their spending, BCG’s Center for Consumer and Customer[…..]
By Marcelo Giovannetti Despite recently receiving aid package approval from the Asian Development Bank (ADB) for its tourism industry, Vietnam will have to improve its visa procedures if it wishes to compete against other ASEAN countries in attracting tourists, urges a recent Vietnam Business Forum report. Dec. 13 – Last week at the annual meeting[…..]
The government last week passed a new decree that will increase minimum wages throughout Vietnam as of December 31, 2013, which will be effective for enterprises, co-operatives, household businesses, foreign companies and international organizations operating in the country.
HANOI – As major businesses continue to prioritize investment into Vietnam as a strategy to diversify sourcing options and supplier portfolios outside of China, it is increasingly important to understand not only how businesses are taxed in Vietnam, but also individuals. Continuing our coverage of personal income tax (PIT), this article will examine exemptions, reductions[…..]