Outsource to Vietnam

Outsource Top Talents in Vietnam

Discover the unmatched efficiency and innovation that top Vietnamese talents bring to the table. Our bespoke outsourcing solutions connect you with the best in the field, ensuring your projects thrive in the hands of dedicated professionals.


Vietnamese Dong (₫)


Vietnamese (tiếng Việt) / English

Payroll cycle



98.19 million


$408.8 billion

Ease of Doing Business

70th Ranked / easy

Outsourcing to Vietnam

Outsource staff in Vietnam

Over the last decade, Vietnam has evolved from a manufacturing hub to a key player in the Software IT and Business Process Outsourcing (BPO) sectors, thanks to government support, technological advancements, and a skilled workforce. The country’s focus on tech education and infrastructure development has enabled it to offer diverse and high-quality outsourcing services. With policies favoring business growth and a commitment to digital security, Vietnam has established itself as a reliable and attractive destination for global outsourcing needs.

vietnam map - outsourcing in Vietnam - iScale Solutions

Benefits of Outsourcing to Vietnam

Highly Skilled Workforce

Vietnam’s diverse talent pool excels in delivering quality IT and BPO services with creativity and commitment.

English Proficiency

The younger Vietnamese workforce is proficient in English, ensuring effective communication in global business settings.

Business-Friendly Policies

Vietnam’s government offers tax incentives and streamlined processes, making it an attractive destination for outsourcing.

Economic Stability

With one of Asia’s fastest-growing and most stable economies, Vietnam provides a secure environment for business operations.


The competitive operational costs in Vietnam allow for affordable yet high-quality outsourcing solutions.

Cultural Adaptability

Vietnamese professionals are culturally adaptable, smoothly integrating with international teams and practices.

Hiring Process in Vietnam

In Vietnam, the hiring process starts with defining job roles and using various channels like online portals and university services to attract candidates. Screening focuses on qualifications and language skills, leading to interviews that may involve skill assessments. The process often includes multiple interview stages, culminating in a job offer and formal contract signing, adhering to local labor laws. Understanding local culture and regulations is essential throughout this streamlined recruitment journey.

Key Aspects of Vietnam Employment Laws

Vietnam’s employment laws provide a solid foundation for both employers and employees, ensuring a fair and equitable work environment. Employment contracts in Vietnam are typically categorized into fixed-term and indefinite term, offering flexibility to meet the business needs of companies while protecting employee rights.

Employment Types and Contracts

Employment contracts in Vietnam are typically categorized into three main types, each with its own set of regulations and characteristics. These categories are designed to accommodate various employment needs and scenarios, providing flexibility for both employers and employees. The three main categories of employment contracts in Vietnam are

Employment Contracts

Full-time contracts

The most common type of employment contract and typically involve a standard 40-hour workweek.  These contracts often provide employees with a comprehensive package of benefits and protections.

Part-time contracts

It’s less common than full-time contracts and involve fewer working hours.  These contracts may offer fewer benefits and protections compared to full-time contracts.

Temporary Contracts

It’s used for specific projects or assignments with a defined duration.  These contracts typically offer the least level of benefits and protections compared to full-time and part-time contracts.

Key Contractual Elements for Clarity and Compliance

Nature of Employment
Clearly specify the type of employment to set the right expectations and legal framework, whether it’s regular, probationary, project-based, seasonal, or fixed-term.
Duration and Scope
For non-regular employment, define the duration of the contract or the scope of the project/season, including potential conditions for extension or termination.
Compensation Details
Outline the salary, benefits, and any other compensations like bonuses or allowances. Include payment methods and schedules.
Job Description and Responsibilities
Provide a clear description of the role, including duties and responsibilities, to ensure mutual understanding of job expectations.
Terms and Conditions
Detail the terms of employment, including work hours, office location, confidentiality agreements, and any company-specific policies.
Termination Clauses

Clearly state the conditions under which the contract may be terminated, including notice requirements and any applicable severance pay.

Working hours in Vietnam

Working hours in Vietnam are regulated under the Labor Code to ensure a balanced work-life for employees while meeting the operational needs of employers. 

Standard Working Hours

The standard working hours for full-time employees are 8 hours per day and 48 hours per week. However, most businesses and government regulations have adopted a 40-hour workweek, typically from Monday to Friday, with 8 hours per day.

Overtime and Compensation

Overtime is permitted under certain conditions, with the consent of the employee. It is subject to limits to ensure the well-being of workers. The total overtime should not exceed 50% of the normal working hours in a day, 30 hours in a month, and 200 hours in a year. In exceptional cases approved by the government, such as in the textile, garment, and footwear industries, the annual overtime limit can be extended to 300 hours.

Health and Wellness Breaks

Employees are entitled to a break after a continuous working period, typically a lunch break of 1 hour in an 8-hour workday.  There is a mandatory rest period between two shifts, ensuring employees have sufficient time to rest.

Weekly Rest Days

Employees are entitled to at least one day off per week, usually on Sunday, providing a full 24-hour rest period.

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Taxes and Social Contributions

Overview of Taxes in Vietnam

In Vietnam, taxes and social contributions are key components of the employment landscape, affecting both employers and employees. The system is designed to fund public services, social insurance, and healthcare, contributing to the welfare of the workforce and society at large. Here’s an overview of the main taxes and social contributions in Vietnam:

  • Employees are subject to Personal Income Tax on their salary and other forms of compensation. The PIT rates are progressive, ranging from 5% to 35%, depending on the income level.
  • Taxable Income includes wages, bonuses, allowances, and income from capital investments, among others.
  • Deductions and Allowances are available, including a personal deduction for the taxpayer, deductions for dependents, and other allowable expenses that can reduce taxable income.

Taxable Income Thresholds and Rates [2023]

In 2023, Vietnam continues to refine its tax structure to foster economic growth and provide a fair taxation system for its residents. The country’s progressive tax system is designed to ensure that individuals contribute to the national revenue based on their ability to pay, with higher earners facing higher tax rates.
  1. Up to 5 million VND (about 215 USD): 5%
  2. Over 5 million VND to 10 million VND (about 215 to 430 USD): 10%
  3. Over 10 million VND to 18 million VND (about 430 to 775 USD): 15%
  4. Over 18 million VND to 32 million VND (about 775 to 1,380 USD): 20%
  5. Over 32 million VND to 52 million VND (about 1,380 to 2,240 USD): 25%
  6. Over 52 million VND to 80 million VND (about 2,240 to 3,450 USD): 30%
  7. Over 80 million VND (over about 3,450 USD): 35%

Corporate Income Tax (CIT)

Employers are also subject to Corporate Income Tax on their profits, with the standard rate being 20%. Certain incentives may apply, reducing the rate for businesses in specific sectors or regions.

Value-Added Tax (VAT) Threshold

While not directly related to employment, VAT affects the cost of goods and services. The standard VAT rate in Vietnam is 10%, with certain essential goods and services subject to a reduced rate or exempted.

Social Contributions for Employee Welfare

Social Insurance in Vietnam covers sickness, maternity, labor accidents, occupational diseases, retirement, and death. Both employers and employees contribute to the social insurance fund.

  • Employers typically contribute around 17.5% of the employee’s salary to the social insurance fund.
  • Employees contribute about 8% of their salary.

Health Insurance Contributions

Health Insurance provides coverage for medical treatment and hospitalization. It is mandatory for both employers and employees.

  • Employers contribute around 3% of the employee’s salary.
  • Employees contribute 1.5%

Leave Entitlements in Vietnam

Mandatory Leave Entitlements

Leave entitlements in Vietnam are governed by the Labor Code, which sets out the minimum standards for annual leave, public holidays, and other types of leave available to employees. These entitlements are designed to ensure workers have adequate rest and personal time, contributing to a balanced work-life environment. 

  • Annual Leave: Employees who have worked for at least 12 months are entitled to a minimum of 12 days of annual leave. The leave entitlement increases with the length of service, with an additional day granted for every 5 years of work.
  • Sick Leave: Employees are entitled to sick leave if they are unable to work due to illness or injury. The amount of paid sick leave depends on the length of service and the social insurance contributions. Generally, employees can receive up to a certain percentage of their salary from the social insurance fund during their sick leave.
  • Maternity Leave: Female employees are entitled to 6 months (approximately 26 weeks) of maternity leave. This is one of the most generous maternity leave entitlements globally. During maternity leave, women receive 100% of their salary, funded by social insurance.
  • Paternity Leave: Male employees are entitled to paternity leave, the duration of which can vary depending on the specific circumstances, such as the health of the baby and the mother, and whether it’s a single or multiple birth. The entitlement is generally a few days, up to a maximum of 14 days.
  • Personal Leave: Employees are also entitled to take leave for personal reasons, such as marriage, the death of a close family member, or other significant personal events. The duration of leave and whether it is paid or unpaid can depend on the employer’s policies and the labor contract.
  • Special Leave: There are provisions for special leave in certain circumstances, such as for participation in union activities or for fulfilling civic obligations (e.g., jury duty).

Optional and Company-Provided Leaves

In addition to the statutory leave entitlements mandated by the Vietnamese Labor Code, many companies choose to offer optional and company-provided leaves as part of their efforts to create a more supportive and flexible work environment. These types of leaves are not required by law but are provided at the discretion of the employer to enhance employee benefits and work-life balance. 

Optional Leaves

  1. Compassionate Leave: Offered to employees during times of family bereavement or serious illness, allowing them to take time off beyond the statutory entitlements for personal emergencies.
  2. Study Leave: Some companies provide leave for employees to pursue further education or professional development courses, recognizing the long-term benefits of continuous learning and skill enhancement.
  3. Volunteer Leave: Encouraging employees to engage in community service or volunteer work, some employers offer dedicated leave for such activities, promoting corporate social responsibility.
  4. Parental Leave: Beyond the statutory maternity and paternity leave, some companies offer additional parental leave to support employees in balancing work and family responsibilities, especially during the early years of parenthood.
  5. Sabbatical Leave: For long-serving employees, companies might offer sabbatical leave—a prolonged period off work, often unpaid, allowing individuals to pursue personal projects, travel, or rest.

Company-Provided Leaves

  1. Birthday Leave: A day off on or around an employee’s birthday is a gesture some companies make to recognize and celebrate their employees’ personal milestones.
  2. Marriage Leave: In addition to the statutory personal leave, companies may offer additional days off for an employee’s wedding, acknowledging the importance of this life event.
  3. Wellness Leave: Recognizing the importance of mental health, some employers provide days off specifically for mental health and well-being, encouraging employees to take time off to recharge.
  4. Emergency Leave: For unforeseen circumstances not covered by other types of leave, such as natural disasters or urgent family matters, companies may offer emergency leave.
  5. Cultural Leave: Understanding the diverse cultural background of their workforce, some companies in Vietnam offer leave for employees to observe important religious or cultural ceremonies.

These optional and company-provided leaves are part of a broader strategy to attract and retain talent, promote employee satisfaction, and foster a positive corporate culture. While not mandated by law, these benefits can significantly impact employee morale and loyalty, making them a valuable tool for companies looking to stand out as employers of choice in Vietnam’s competitive job market.

Holidays in Vietnam

Vietnam celebrates a variety of public holidays that reflect the country’s rich cultural heritage and important historical milestones. These holidays are observed nationwide and are a blend of traditional Vietnamese festivals and significant international commemorations. Here’s an overview of the major public holidays in Vietnam:

DayName of the holiday
Jan 1 – MonNew Year’s Day
Feb 9 – FriLunar New Year
Feb 10 – SatLunar New Year
Feb 11 – SunLunar New Year
Feb 12 – MonLunar New Year
Feb 13 – TuesLunar New Year
Feb 14 – WedLunar New Year
Feb 15 – ThursLunar New Year
Apr 18 – ThursHung Kings Commemoration Day
Apr 30 – TuesReunification Day
May 1 – WedInternational Labour Day
Sept 2 – MonIndependence Day day
Sept 3 – TuesIndependence Day day off

Employment Benefits in Vietnam

In Vietnam, employment bonuses and benefits play a crucial role in attracting, retaining, and motivating employees. These financial incentives and perks are designed to enhance job satisfaction, support employee welfare, and foster a positive workplace culture. Here’s an overview of common employment bonuses and benefits in Vietnam:

Employment Bonuses

  1. Mandatory Social Insurance: Covers sickness, maternity, labor accidents, occupational diseases, retirement, and death benefits. Contributions are made by both employers (approximately 17.5% of the salary) and employees (8%).

  2. Health Insurance: Mandatory for all employees, with contributions from both employers (3%) and employees (1.5%), providing access to healthcare services.

  3. Unemployment Insurance: Offers financial support in case of job loss, with contributions from employers, employees, and the government.

  4. Annual Leave: Employees are entitled to a minimum of 12 days of paid annual leave, increasing with the length of service.

  5. Public Holidays: Vietnam observes several public holidays, including the Lunar New Year (Tet), during which employees are entitled to time off with pay.

  6. Maternity and Paternity Leave: Generous maternity leave of up to 6 months is provided, along with paternity leave, to support new parents.

Additional Perks

  1. Private Health Insurance: Some employers offer supplementary health insurance plans for broader or more comprehensive coverage.

  2. Meal and Transportation Allowances: To ease daily expenses, companies may provide meal vouchers, free meals, and transportation allowances or services.

  3. Professional Development: Opportunities for training, workshops, and further education are available to help employees advance their skills and careers.

  4. Flexible Working Hours and Remote Work: To promote work-life balance, some employers offer flexible working arrangements, including the option to work from home.

  5. Wellness Programs: Initiatives like gym memberships, sports facilities, and regular health check-ups encourage a healthy lifestyle among employees.

Termination of Employment in Vietnam

Termination of employment in Vietnam is governed by the Labor Code, which outlines the conditions under which employment can be terminated, the rights and obligations of both employers and employees, and the procedures that must be followed. Understanding these regulations is crucial for both parties to ensure compliance with the law and to protect their respective rights.

Types of Employment Termination

  1. Termination by Mutual Agreement: Both the employer and the employee agree on the termination of the employment contract, often with terms that may include compensation, notice period, and other conditions.
  2. Unilateral Termination by the Employer: Employers can terminate employment contracts under specific conditions, such as redundancy, continuous underperformance despite warnings, or serious disciplinary violations. The Labor Code requires employers to follow strict procedures, including providing advance notice and severance pay in some cases.
  3. Unilateral Termination by the Employee: Employees can also terminate their employment contracts unilaterally, typically by providing advance notice as specified in the contract. Valid reasons for such termination can include not being paid on time, working conditions not conforming to the contract, or being mistreated.
  4. Termination Due to Expiration of Fixed-term Contracts: Employment contracts that reach their agreed-upon expiration date are automatically terminated, provided that the expiration of the contract was not used to circumvent the laws on permanent employment.

Notice Period

The required notice period depends on the type of contract and the reason for termination. For indefinite contracts, the notice period is typically 45 days for managerial positions and 30 days for other positions. For definite contracts, the notice period is usually 30 days.

Severance and Unemployment Allowance

  • Severance Allowance: Employees terminated due to redundancy or certain other conditions not related to misconduct are entitled to a severance allowance, generally equivalent to half a month’s salary for each year of service.
  • Unemployment Insurance: Employees who have contributed to the unemployment insurance fund and are terminated under qualifying conditions may be eligible for unemployment benefits.

Dispute Resolution

In cases of dispute over the termination, either party can bring the matter to the labor authorities for mediation. If mediation fails, the dispute can be escalated to the labor court.

Special Considerations

  • Certain categories of employees, such as pregnant women, employees on maternity leave, and people raising children under 12 months old, enjoy special protection against termination.
  • Employers are required to follow a legal process for termination, which includes proving the validity of the reason for termination and ensuring that all procedural requirements are met.

Termination of employment in Vietnam involves a complex set of regulations designed to protect the rights of both employers and employees. It’s advisable for both parties to seek legal advice or consult with labor authorities to ensure compliance with the law and to understand their rights and obligations fully.

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From Home-Based Freedom to Full-Fledged Office-Based Setup

Boost your business with a team that molds to your work style, from the quiet of your home office to the buzz of a corporate setting. Our outsourcing solutions bring you the flexibility to expand and the expertise to excel, ensuring your success is always supported, no matter where you work.

Home-based Staff

Our home-based staff consists of talented professionals who excel in working remotely. They are equipped with the necessary tools and resources to efficiently collaborate with your team from any location. With a focus on productivity and communication, they ensure seamless integration into your projects while delivering high-quality results.

Hybrid Staff

Our hybrid staff members are adept at blending remote and in-office work to meet your specific requirements. They offer the best of both worlds, combining the flexibility of remote work with the collaboration opportunities of in-person interactions. Whether it’s attending meetings virtually or collaborating on-site, they ensure seamless coordination to achieve your business goals.

Office-based Staff

Our office-based staff members are dedicated professionals who thrive in a traditional office environment. They bring a strong sense of teamwork and camaraderie to your projects, fostering a supportive work culture. With access to on-site resources and facilities, they ensure efficient collaboration and seamless project execution.
Common Questions About Outsourcing to the Vietnam


Can foreign investors own and operate their outsourcing companies in Vietnam?

Yes, foreign investors can own and operate their outsourcing companies in Vietnam. The country has liberalized its investment laws, allowing 100% foreign ownership in many sectors, including IT and outsourcing services. This openness, combined with a supportive regulatory environment, makes Vietnam an attractive destination for foreign investors looking to establish or expand their outsourcing operations.

The Vietnamese government actively supports the outsourcing industry through favorable policies, including tax incentives, investment in tech education, and infrastructure improvements. These measures aim to bolster the sector’s growth and attract foreign investment, positioning Vietnam as a leading destination for outsourcing services globally.

Businesses can ensure successful outsourcing partnerships in Vietnam by conducting thorough due diligence on potential partners, clearly defining project scopes and expectations, and fostering open communication. Additionally, understanding cultural nuances and investing in relationship building are key to navigating the local business environment effectively. We at Iscale Solutions, always make sure that we build a positive relationship to our partners.