Vietnam is one of Southeast Asia’s fastest‑growing economies, offering access to ASEAN markets, a large and increasingly skilled workforce, and strategic manufacturing linkages. With favourable investment incentives, expanding infrastructure, and rising digital & tech sectors, Vietnam is an attractive destination for international firms establishing regional operations, production hubs or service centres.
Unlock growth opportunities in Vietnam with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Vietnam’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Vietnam, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Vietnam’s employment and tax laws, helping you scale confidently and compliantly.
A Joint-stock company is similar to a public joint stock company and is usually suitable for larger operations. A JSC can issue shares, be publicly listed, and is subject to enhanced corporate governance and disclosure requirements under the Law on Enterprises 2020. This type of legal entity requires at least three founding shareholders, with no maximum limit.
A Limited Liability Company is commonly used by small to medium-sized businesses where the ownership is restricted to members/shareholders, and transfer of ownership shares is more restrictive than a JSC. An LLC offers simpler management and fewer disclosure requirements, making it popular for closely held businesses or foreign investors.
A Branch Office is an extension of a foreign parent company operating in Vietnam. It does not have separate legal personality from its parent company but must comply with Vietnamese corporate, tax, and reporting regulations. This kind of entity is suitable for foreign companies seeking to conduct business without establishing a separate entity.
A JSC requires a Board of Directors, typically at least three members. There is no legal requirement for directors to be Vietnam residents, but having local representatives is often practical for banking, tax, and operational purposes.
In an LLC, there is no residency requirement for directors or members. A legal representative (usually one of the members or an appointed director) is required for signing contracts, registering for tax, and opening bank accounts.
Branch offices must appoint a Vietnam-resident legal representative with authority to act on behalf of the branch. This representative is responsible for all regulatory compliance and liaising with authorities.
Bank account setup in Vietnam follows strict procedures due to regulatory requirements:
Bank Account Setup in Vietnam: Process and Requirements
Before Incorporation:
After Incorporation:
A corporate account can only be opened after obtaining the enterprise registration certificate and TIN. The legal representative must usually appear in person for verification. Account setup typically takes one to three weeks depending on the bank’s internal review and KYC process.
Required documents include certificate of incorporation and Articles of Association, extract from the Vietnam Enterprise Registration Portal (MER), board resolution authorizing account opening, identification documents for directors, shareholders, and beneficial owners, proof of registered office address in Vietnam, Tax identification number (TIN) issued by the General Department of Taxation, business plan or supporting documentation of business activity in Vietnam.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. Banking and account activation timelines vary by bank and the completeness of documentation; allow several business days to a few weeks in practice.
Employment in Vietnam is primarily governed by:
Employment contracts must be in writing, typically in Vietnamese (with translation if necessary), and must specify essential details such as the parties, job, salary, duration, etc.
Standard details included in a written employment contract:
The different types of employment relationships are:
Permanent Employment
The standard form of employment is an indefinite (open‑ended) contract. Employees in indefinite employment benefit from full labour protections including rights to annual leave, social insurance coverage, and termination safeguards.
Fixed‑Term Employment
Fixed‑term contracts (for a specified term) are allowed but are subject to limits under law. For example, under the Labour Code, fixed‑term contracts can cover seasonal or definite task work and may not exceed a total of 36 months, including renewals, for many types of work. Beyond that, the relationship may convert into an indefinite contract.
Part‑Time Employment
Contracts where employees work fewer hours than full‑time employees. Part‑time employees are still covered by social insurance and labour protections, but benefits and entitlements are proportionate to hours worked.
Temporary / Contract Employment
Temporary employment (through employment agencies or for specific assignments) is regulated by specific provisions of the Labour Code. Workers engaged via agencies must receive equal basic conditions compared to direct employees after certain durations.
Depending on the complexity of the role, probation period in Vietnam ranges from 6 to 180 days.
The standard working week in Vietnam is 48 hours, however, employers may adopt a 40‑hour week by agreement or internal policy.
Overtime
Overtime is permitted beyond standard hours but must comply with limits and be compensated appropriately.
Notice periods in Vietnam depend on the employee’s length of service and type of contract:
According to Article 48, Labor Code 2019, only lawful termination qualifies an employee to:
Foreign nationals may live and work in Vietnam by obtaining the appropriate authorization. The process depends on nationality, type of employment, and length of stay.
Work Visa & Permit Options in Vietnam
Work Visa for Long-Term Employment
For foreign nationals with a confirmed job offer from a Vietnamese employer.
Temporary Residence Card (TRC)
For foreign investors, executives, and professionals with long-term assignments in Vietnam.
Highly Skilled Worker Visa
Vietnam offers preferential treatment for professionals in priority sectors such as technology, R&D, healthcare, and education.
Investor Visa
For foreigners making substantial investments in Vietnamese enterprises.
Key Requirements
Vietnam continues to streamline visa and work permit routes for skilled professionals and investors to attract foreign talent, particularly in technology, innovation, and high-value industries.
Permanent employees are entitled to 12 working days of paid annual leave per year for a standard 6-day workweek (or 10 days for a 5-day workweek).
Annual leave increases with seniority: after 5 years of service, employees are entitled to 14–16 days, and certain industries (e.g., hazardous jobs) may grant additional days.
Female employees are entitled to 6 months (180 calendar days) of maternity leave under Vietnam law. It is divided into:
Male employees are entitled to 5 to 14 working days of paid paternity leave depending on the collective labor agreement or enterprise policy. Additionally, leave must be taken within 30 days of childbirth.
Employees are entitled to paid sick leave as follows:
Maximum paid sick leave is generally 30 to 180 days, depending on severity and Social Insurance guidelines. Additionally, only medical certificates from licensed medical practitioners are accepted.
Vietnam observes the following statutory public holidays:
Additional regional holidays may apply depending on local customs.
The most common pay frequency is monthly.
Employers must provide payslips showing gross salary, statutory deductions (social insurance, personal income tax), and net pay.
Vietnam law does not require a statutory year-end bonus, but many companies provide a “13th-month salary” or discretionary performance-based bonuses.
Vietnam has a mandatory social insurance system, funded by both employers and employees:
Other voluntary benefits may include private health insurance, lunch allowances, transportation, and performance bonuses.
Accounting in Vietnam follows Vietnam Accounting Standards (VAS) for most domestic companies. Public companies and entities seeking international capital market access are required or encouraged to use International Financial Reporting Standards (IFRS).
Companies in Vietnam must submit annual financial statements and corporate tax returns to the General Department of Taxation (GDT) and Department of Planning and Investment (DPI).
Statutory audit is required for:
Companies below thresholds may undergo voluntary audits or review by a licensed accountant.
The standard corporate income tax (CIT) rate in Vietnam is 20%.
The standard VAT rate is 10%.
Companies must file annual tax returns by 31March of the following year.
Penalties for late filing and tax non-compliance can include monetary fines, interest on late payments, and a specific “non-declaration” penalty applied by tax authorities during an audit.
Vietnam aligns transfer pricing rules with OECD guidelines:
Key aspects include:
Vietnam’s Country-by-Country (CbC) regime aligns with BEPS Action 13 and is fully effective:
Vietnam mandates three-tier transfer pricing documentation in line with OECD standards:
Master File
Local File
Vietnam’s data privacy framework is governed by Law on Cybersecurity (2018) and Law on Personal Data Protection (drafted 2023, alignment with GDPR ongoing).
Vietnam’s AML framework is governed by Law No. 129/2019 on AML and CFT, and follows FATF recommendations. The competent authority is the State Bank of Vietnam (SBV) and the AML Control Department.
Obligated entities:
Banks, insurers, securities firms, payment providers, accountants, auditors, tax advisors, real estate agents, lawyers for certain transactions, casinos, gold and precious stones dealers.
Key requirements:
Penalties:
Non-compliance can result in significant administrative fines up to VND 1–5 billion for legal entities and criminal penalties including imprisonment for serious violations, also potential revocation of business licenses for repeated non-compliance.
Reasons you should setup legal entity in Vietnam:
Cerity Global ensures your business expansion in Vietnam is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Vietnam business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Vietnam.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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