Vietnam Employment Guide

Essential Guide to Hiring in Vietnam: An HR Perspective

Expanding your business into Vietnam requires a nuanced understanding of local employment practices. As an international HR specialist, I'll guide you through the critical aspects of compliant and effective recruitment in this dynamic market.

Navigating Vietnam's Labor Compliance Framework

Legal adherence forms the foundation of successful hiring in Vietnam. Foreign enterprises must prioritize understanding regulatory requirements before initiating recruitment.

Establishing Proper Employment Credentials

1. Companies must complete local registration as a foreign-invested enterprise or representative office before hiring directly. Unregistered entities typically require partnership with licensed local HR service providers like SailGlobal.
2. Foreign employee quotas generally cap at 10% of workforce, with work permits mandatory for managerial/technical roles. Priority hiring should focus on Vietnamese nationals for standard positions.

Contractual Requirements

1. Written contracts in Vietnamese language are mandatory, specifying job scope, compensation, working hours, and social insurance. Contracts may include foreign language translations but Vietnamese text prevails legally.
2. Probation periods vary by contract type: maximum 2 months for 12-36 month contracts, extending to 6 months for indefinite-term contracts. Probationary salaries cannot fall below 85% of agreed wages.

Optimizing Recruitment Strategies for Vietnam

Adapting your hiring approach to local preferences significantly improves candidate engagement and quality.

Effective Recruitment Channels

1. Leverage dominant local platforms like VietnamWorks and CareerBuilder Vietnam, supplemented by social media channels including Facebook professional groups. For specialized roles, consider established partners like SailGlobal who understand regional talent landscapes.
2. Recognize platform limitations: LinkedIn primarily serves multinational corporations and highly-educated professionals, while blue-collar positions often require community-based recruitment methods.

Structuring Competitive Compensation

1. Salaries must be paid in Vietnamese Dong (except approved foreign currency cases) and meet regional minimum wage standards.
2. Compensation packages should include base salary (social insurance calculation basis), allowances (transportation, housing), and performance bonuses, all structured compliantly.

Conducting Legally-Compliant Background Checks

1. Verification of employment history and education requires candidate consent, avoiding protected categories like religion or marital status.
2. Thoroughly confirm employment status, as concurrent employment or unresolved contractual obligations occasionally occur in Vietnam's evolving labor market.

Cultural Intelligence in Vietnamese Hiring

Understanding workplace dynamics prevents misunderstandings and builds productive teams.

Anti-Discrimination Compliance

1. Vietnamese law prohibits discrimination based on gender, age, religion, or disability.特别注意避免询问女性候选人的生育计划，并保障法定产假权益。

Workplace Communication Norms

1. Hierarchical respect is paramount—address candidates using title plus name. Communication tends toward indirectness, requiring attention to nonverbal cues.
2. Emphasize team cohesion in job descriptions, as collectivist values often outweigh individual achievement in Vietnamese workplace culture.

Mitigating Employment Risks

Proactive planning minimizes legal exposure in termination scenarios.

Termination Procedures

1. Vietnamese labor law imposes strict termination requirements. Without justified cause, severance payments range from 1-12 months' salary based on tenure. Implement clear performance metrics to support disciplinary actions.

Understanding Union Dynamics

1. Workplaces with 10+ employees may establish unions. Consult them regarding significant changes like compensation adjustments or restructuring to prevent disputes.

Engaging local labor law experts or specialized HR consultancies like SailGlobal during planning stages significantly reduces compliance risks. Vietnam's emphasis on procedural correctness makes thorough preparation invaluable for sustainable operations.