Hiring in Vietnam: Complete Guide for Global Employers in 2025

Vietnam is rapidly becoming a top hiring destination for global companies seeking cost-efficiency and skilled labor. As international organizations expand in Southeast Asia, Vietnam offers unique advantages for team building. Whether you’re hiring remote developers or setting up a local office, this guide will walk you through everything needed to hire in Vietnam smoothly and legally.

1. Why Vietnam Is an Attractive Hiring Destination

Vietnam offers global companies a cost-effective and skilled labor force, making it one of the most appealing hiring destinations in Southeast Asia. Competitive salaries, a rapidly growing tech industry, and a government welcoming foreign investment all contribute to its appeal.

The country’s young, educated workforce, many fluent in English, is eager to work in international environments. With modern infrastructure and innovation hubs in cities like Ho Chi Minh and Hanoi, Vietnam provides ideal conditions for building strong and scalable teams.

Education plays a key role in workforce readiness. Vietnamese universities have improved significantly in quality, offering programs in technology, finance, and foreign languages that align well with global market demands. This ensures a steady pipeline of talent for international employers.

Additionally, Vietnam’s political stability and growing participation in trade agreements like the CPTPP and EVFTA have positioned the country as a competitive choice for regional headquarters and outsourcing centers. These factors collectively make Vietnam not only attractive but also sustainable for long-term hiring strategies.

Read more: What Is IT Headhunting and Why Does It Matter in Tech Hiring

2. What You Need To Know Before Hiring in Vietnam

Hiring in Vietnam requires more than just identifying qualified candidates. A nuanced understanding of the employment culture and labor expectations is key to recruiting and retaining top talent. One prominent trend is job-hopping, especially among young professionals who prioritize rapid career growth over long-term loyalty.

Clear salary structures and benefits are critical when presenting job offers. Vietnamese candidates often compare offers not just by base salary but also by long-term development prospects, workplace flexibility, and health or performance-related incentives. Transparency and competitive packages are essential to securing top-tier talent.

Employee loyalty can be improved through structured career advancement plans and consistent internal communication. Providing mentorship and clear performance reviews can make employees feel valued and engaged. Moreover, companies that foster inclusive environments and encourage work-life balance tend to retain staff longer.

Vietnamese employees also value regular team bonding activities and a positive work atmosphere. Employers should invest in onboarding, training, and employee recognition programs that demonstrate a commitment to personal and professional growth.

Recruiters should also consider regional differences. While major cities attract top-tier candidates, second-tier cities like Da Nang or Can Tho are becoming attractive for companies due to lower operational costs and growing talent pools. Remote working opportunities can be a way to access skilled workers outside traditional business centers.

3. How the Hiring Process Works in Vietnam: Step-by-Step

3.1. Define Your Hiring Strategy

Businesses hiring in Vietnam must select the most suitable recruitment method based on their specific goals. Building an internal HR team is ideal for companies that already have a local presence and understand the regulatory landscape. This method allows more control over the recruitment and onboarding process.

For businesses new to Vietnam, working with local recruitment agencies can significantly reduce time-to-hire. These agencies offer a wide network and understand market trends, which helps in targeting the right candidates. However, they may not always provide the deep screening required for niche roles.

Outsourcing to a headhunting partner like TechHub offers a more strategic approach. TechHub aligns recruitment with your business goals by sourcing candidates based on culture fit, technical skills, and availability. This method is especially beneficial when hiring in competitive or specialized fields.

3.2. Set Up Local Operations (If Required)

Before hiring employees directly, companies may need to establish a legal presence in Vietnam. One option is to open a Representative Office, which allows for staff hiring but restricts commercial activities such as invoicing or sales. This model suits businesses focused on research or liaison functions.

Alternatively, forming a local entity provides full operational capabilities. A company with legal status in Vietnam can sign labor contracts, run payroll, and handle taxes directly. This option requires more setup time and compliance but offers full control over local business operations.

Choosing the right structure is essential for maintaining compliance and ensuring a smooth hiring process. Companies must consider their long-term goals, expected hiring volume, and industry-specific legal constraints before proceeding.

Companies should also budget time and resources for business registration, bank account setup, and office leasing. These steps, while not overly complex, require attention to legal timelines and may take up to 45–60 days for full operational readiness.

3.3. Run a Culturally Relevant Recruitment Process

To attract Vietnamese talent effectively, companies must localize their hiring approach. Job postings should be detailed and written in both Vietnamese and English when targeting bilingual candidates. Highlighting company values, work culture, and employee benefits can significantly increase application rates.

The interview process should be respectful, clear, and well-organized. Vietnamese candidates appreciate timely responses and transparency in feedback. It’s also helpful to explain the interview stages in advance, especially for candidates unfamiliar with international recruitment practices.

Offering competitive salaries and clear promotion paths will make your positions more appealing. Many candidates are also drawn to training opportunities, mentorship programs, and international exposure. Including these elements in your recruitment strategy can significantly improve your success rate.

Recruitment platforms like VietnamWorks or ITviec are popular for advertising vacancies. Additionally, leveraging employee referrals and university partnerships can help build a sustainable talent pipeline. Networking events, career fairs, and social media engagement are also effective in reaching passive candidates.

3.4. Let TechHub Optimize the Process

TechHub provides an end-to-end hiring solution tailored for foreign companies entering Vietnam. Our process begins with understanding your hiring goals and then sourcing candidates from our localized database, vetted for cultural alignment and job readiness.

We assist with legal document preparation, contract drafting, and employee onboarding to ensure compliance with labor regulations. Our team also manages the candidate experience, reducing drop-off rates and ensuring smoother transitions.

With TechHub, businesses gain access to insights such as real-time salary benchmarks and talent availability reports. This data-driven approach enables better hiring decisions while saving time and costs.

We also offer ongoing support post-hire, including probation monitoring, team performance evaluations, and retention strategy consulting. Our goal is not just to fill vacancies, but to help you build high-performing, long-lasting teams in Vietnam.

4. Legal Requirements for Hiring in Vietnam

4.1. Understanding Vietnamese Labor Contracts

Labor contracts in Vietnam must be signed in writing and must clearly outline the responsibilities and entitlements of both parties. Contracts should specify the job title, job scope, salary, benefits, working hours, and any probationary terms.

There are two main contract types: definite-term (1 to 3 years) and indefinite-term. Companies must ensure that contract types comply with Vietnamese law and reflect the nature of the job. Any amendments or renewals must also be documented appropriately.

Termination clauses must follow the Labor Code strictly. Employers are advised to consult with legal experts or a partner like TechHub when drafting or updating contracts to avoid future disputes.

4.2. Tax, Payroll, and Social Insurance Responsibilities

Employers must register their employees with government bodies for tax and insurance purposes. This includes filing for Personal Income Tax (PIT), Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI). These deductions are mandatory and calculated based on gross monthly salary.

Payroll in Vietnam requires monthly reporting and accurate calculations. Employers must pay both the employee and employer portions of the required contributions. Mistakes in submission or payment may result in penalties or audits by the labor authority.

Managing payroll efficiently often requires partnering with local experts or using specialized HR software that complies with Vietnamese regulations. Companies unfamiliar with local tax structures should avoid handling payroll in-house.

4.3. Managing Probation, Leave, and Termination

Probation periods in Vietnam are based on the job type, usually ranging from 6 to 60 days. Salaries during probation are typically 85% to 100% of the full salary agreed in the labor contract. Both parties can terminate the contract with shorter notice during probation.

Employees are entitled to at least 12 days of paid annual leave, plus official public holidays. Additional leave, such as maternity, paternity, and sick leave, is governed by law and must be strictly followed. Employers must also keep track of leave records for legal and HR audits.

Termination must be justified and properly documented. Common termination grounds include performance issues, business restructuring, or violation of company rules. Severance and final payments must be processed on time, and employees must receive official termination letters.

Read more: Top Headhunting Agency Services in Vietnam: Executive Hiring in Vietnam

5. Challenges Foreign Employers May Face

Hiring in Vietnam involves challenges that go beyond administrative tasks. Language differences may affect communication, especially during recruitment and onboarding. Misunderstandings can arise if company values and expectations aren’t clearly explained to local staff.

Navigating business registration, work permits, and tax requirements can be time-consuming. Even minor errors can lead to costly delays. Legal interpretations may also vary slightly by region, making consistency a challenge for nationwide hiring.

Cultural differences impact management styles. Vietnamese professionals tend to favor clear roles and structured environments. Remote work adoption is growing, but not all industries are ready for it. Employers must adapt and communicate expectations thoughtfully.

Retaining top talent is another concern, particularly in fast-moving sectors like tech and digital marketing. Foreign companies should prioritize building trust, offering growth paths, and maintaining fair, transparent compensation.

Finally, time zone differences and communication preferences can slow coordination between Vietnamese teams and international offices. Establishing communication protocols and assigning local coordinators can help bridge this gap.

6. TechHub Can Help You Hire in Vietnam: Here’s How

TechHub supports foreign employers throughout the recruitment lifecycle. Our candidate sourcing process prioritizes technical skills, soft skills, and alignment with company culture. Each candidate is pre-screened and presented with detailed assessment reports.

We provide salary benchmarks based on industry and region to help companies offer competitive packages. This ensures your offers meet or exceed market expectations, increasing your chances of landing top talent.

Our legal team assists in drafting labor contracts that are compliant with Vietnamese law. We also help with payroll setup, tax registration, and social insurance contributions, removing administrative burdens from your team.

Beyond recruitment, we offer onboarding consultations that guide employers in setting up welcome kits, training schedules, and feedback loops. We also help shape your employer brand to attract qualified applicants through local job boards, social media, and professional networks.

By partnering with TechHub, you gain local insights, reduce time-to-hire, and build a stronger employer reputation in Vietnam’s growing job market.

Conclusion

Hiring in Vietnam is a strategic move for businesses aiming to scale in Southeast Asia. With its skilled labor force and favorable cost structure, Vietnam will continue to attract global companies in 2025.

However, successful hiring requires an understanding of local laws, cultural expectations, and smart partnerships. With a partner like TechHub, your company can confidently expand in Vietnam, ensuring every hire contributes to long-term success.