HRsolution » COUNTRIES » Vietnam

Population

Vietnam has a population of approximately 100 million people (as of 2023). The majority of the population consists of ethnic Vietnamese (about 85%), but there are also 53 recognized ethnic minorities, including the Tay, Thai, Hmong, and Khmer. Vietnam is a predominantly rural country, with about 70% of the population living in rural areas, and it has a relatively young population.

Capital

The capital of Vietnam is Hanoi, a city with a long history and cultural significance. Hanoi is the political center of the country, home to numerous government buildings, embassies, and cultural institutions. However, Ho Chi Minh City (formerly Saigon) is the largest city and the economic hub of the country.

Economic Strength

Vietnam has one of the fastest-growing economies in Southeast Asia. The economy relies heavily on the production of electronics, textiles, and agricultural products such as rice, coffee, and rubber, as well as the export of machinery and mobile phones. The country has become a key global manufacturing hub, especially for foreign companies taking advantage of its competitive labor costs. Tourism is also a significant growth sector. The Vietnamese government continues to promote economic reforms and free trade agreements to further boost the economy.

Culture

Vietnamese culture is a blend of indigenous traditions and influences from China, France, and other countries. Confucianism, Buddhism, and ancestor worship play central roles in daily life. Important festivals such as Tết (Vietnamese New Year) and the Mid-Autumn Festival are celebrated across the country. Vietnamese cuisine, known for its diversity and balance of flavors, is an essential aspect of cultural life.

Currency

The official currency of Vietnam is the Vietnamese Dong (VND). The Dong is a relatively weak currency compared to international standards, but Vietnam benefits from its low production costs, which make it an attractive destination for investment.

Health Insurance and Social Security System

Vietnam has a state health insurance system that provides basic healthcare services to all citizens. The Vietnam Social Security (VSS) oversees the health and social security system. Both employers and employees contribute to the system. Public health insurance covers essential health services in public hospitals, but many people opt for private supplementary insurance to access better healthcare. The social security system includes pension, disability, and unemployment insurance.

Employer Costs

Employers in Vietnam are required to contribute to social security, with a typical contribution of 17.5% of an employee’s gross salary. This contribution covers pension, health insurance, and unemployment insurance. Employees contribute about 10.5% of their salary to the system. Employers are also responsible for managing these contributions and ensuring they are paid to the government.

Salary and Bonuses

The minimum wage in Vietnam varies by region, ranging from 3.25 million VND to 4.68 million VND per month in 2023. Wages vary widely depending on the industry, qualifications, and location. Many companies offer a 13th-month salary, commonly referred to as a “Tết bonus”, though it is not legally required. Performance-based bonuses and additional benefits are common in larger and international companies.

Payslip

Salaries in Vietnam are generally paid monthly. Employers are required to pay wages on time and make the appropriate deductions for taxes, social security, and other legally required benefits. Payslips include detailed information on the gross salary, deductions, and net pay.

Public Holidays

Vietnam has 11 public holidays, including:

  • Tết Nguyên Đán (Vietnamese New Year) – the most important holiday, lasting several days (January/February)
  • Reunification Day (April 30)
  • International Workers’ Day (May 1)
  • National Day (September 2)

Employees are entitled to paid time off on public holidays. If they work on these days, they are entitled to overtime pay.

Working Hours

The standard working hours in Vietnam are 8 hours per day or 48 hours per week. Many companies operate on a 5-day workweek. Overtime is allowed but must be compensated at a rate of at least 150% of the regular hourly wage. For night shifts or work on public holidays, higher rates apply.

Leave

Employees in Vietnam are entitled to at least 12 days of paid annual leave per year, depending on the length of service. The leave entitlement increases with seniority, with an extra day added for every five years of service. Employees are also entitled to paid special leave for occasions such as weddings, childbirth, and funerals.

Sick Leave

In the event of illness, employees are entitled to paid sick leave, which is covered by the social security system. The entitlement depends on the duration of employment and the contributions made. Employees must provide a medical certificate to claim sick leave benefits. The amount of sick pay is based on the employee’s salary and the duration of the illness.

Termination/Severance

The termination of employment in Vietnam must comply with the Labor Code. Employees are generally entitled to a notice period of 30 days for indefinite contracts and 45 days for fixed-term contracts. Severance pay is required if an employment relationship is terminated for business reasons or without the employee’s fault. The severance payment is typically half a month’s salary for each year of service.

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