Vietnam Policy Updates & Regulations
Vietnam's regulatory environment has undergone rapid modernization since the Doi Moi (economic renovation) era. This page covers the most important policy areas for travelers, investors, and foreign workers: visa regulations, investment law, labor code, and tax policy. All information is sourced from official Vietnamese government publications and translated for international audiences.
Vietnam E-Visa Policy (2023 Reform)
The most significant change to Vietnam's visa policy in decades took effect on August 15, 2023, dramatically expanding access for international travelers.
Key Changes Under Resolution 07/2023/QH15
| Feature | Before Aug 15, 2023 | After Aug 15, 2023 |
|---|---|---|
| Eligible nationalities | ~80 countries | ALL countries and territories |
| Maximum validity | 30 days | 90 days |
| Entry type | Single entry only | Single or multiple entry |
| Processing time | 3 business days | 3 business days (unchanged) |
| Government fee | $25 USD | $25 USD (unchanged) |
| Valid entry points | 33 checkpoints | All 33 international checkpoints (13 airports, 16 land borders, 13 seaports) |
Source: Vietnam Immigration Department; Resolution No. 07/2023/QH15, National Assembly of Vietnam (June 24, 2023)
Visa-Free Entry Expansion
Alongside the e-visa reform, Vietnam also extended unilateral visa exemptions. As of 2024, citizens of 25 countries enjoy visa-free entry (up from 13), with stays of 15-90 days depending on bilateral agreements. Notable additions include citizens of the UK, France, Germany, Italy, Spain, Japan, and South Korea (45 days visa-free). ASEAN citizens continue to enjoy 30-day visa-free stays.
The 15-day visa exemption for citizens of the UK, France, Germany, Italy, Spain, Denmark, Sweden, Norway, Finland, Belarus, and Russia was upgraded to 45 days effective August 15, 2023. Japan and South Korea already enjoyed 15-day visa-free access, which was also extended to 45 days.
Source: Vietnam Ministry of Foreign Affairs; Decree 07/2023/QH15
Foreign Investment Regulations
Vietnam has become one of Southeast Asia's most attractive destinations for foreign direct investment, with FDI inflows reaching $23.18 billion in disbursements in 2024 (source: Vietnam Ministry of Planning and Investment).
Law on Investment 2020
The Law on Investment 2020 (Law No. 61/2020/QH14), effective January 1, 2021, replaced the 2014 investment law and introduced significant improvements for foreign investors:
- Foreign ownership up to 100% in most sectors (manufacturing, services, retail, real estate development)
- Streamlined business registration -- combined investment and enterprise registration procedures
- Negative list approach: only restricted sectors are listed; all others are open
- Investment incentive zones: economic zones, industrial parks, high-tech parks with preferential tax rates
Source: Law No. 61/2020/QH14; Vietnam National Assembly
Restricted Sectors (Foreign Ownership Caps)
While most sectors allow 100% foreign ownership, the following maintain restrictions under Vietnamese law and WTO commitments:
| Sector | Cap |
|---|---|
| Banking | 30% per institution |
| Telecom (network services) | 49% |
| Aviation | 34% |
| Media / Publishing | Limited (case-by-case) |
| Public securities | 49% (50% for some listed firms) |
| Logistics | 49-51% (varies by sub-sector) |
Source: Decree 31/2021/ND-CP; Vietnam WTO Schedule of Commitments
Investment Incentive Zones
Vietnam offers significant tax incentives for investments in designated zones and encouraged sectors:
- Economic zones: CIT rate of 10% for 15 years, with 4 years tax-free and 9 years at 50% reduction (e.g., Van Don, Phu Quoc, Bac Van Phong)
- High-tech parks: Saigon Hi-Tech Park (SHTP) and Hoa Lac Hi-Tech Park offer 10% CIT for 15 years plus land rent exemptions
- Industrial parks: 17% CIT rate for 10 years; 400+ industrial parks nationwide with pre-built factories and streamlined customs
- Socioeconomically disadvantaged areas: Additional CIT reductions and land rent exemptions for investment in rural and mountainous regions
Source: Decree 218/2013/ND-CP (amended); Law on Investment 2020
Labor Law Key Points
The Vietnam Labor Code 2019 (Law No. 45/2019/QH14), effective January 1, 2021, governs employment relationships for both Vietnamese nationals and foreign workers.
Work Permits for Foreign Workers
- Work permits are required for all foreign workers in Vietnam, valid for up to 2 years (renewable)
- Application must be filed by the employer at least 15 working days before the intended start date
- Required documents: health certificate, criminal background check (apostilled), university degree (apostilled), and 2+ years of relevant work experience
- Exemptions: intra-company transfers for less than 30 days, foreign lawyers with Vietnamese law practice certificates, members of LLCs with capital contribution
Source: Decree 152/2020/ND-CP; Vietnam Labor Code 2019
Working Conditions
- Working hours: Maximum 8 hours/day, 48 hours/week; overtime capped at 40 hours/month and 200 hours/year
- Overtime pay: 150% on weekdays, 200% on weekends, 300% on public holidays
- Annual leave: Minimum 12 days/year; 11 public holidays per year
- Maternity leave: 6 months at 100% salary; paternity leave of 5-14 days
- Retirement age: Gradually increasing to 62 for men (by 2028) and 60 for women (by 2035)
Source: Vietnam Labor Code 2019 (Law No. 45/2019/QH14)
Regional Minimum Wages (Effective July 1, 2024)
| Region | Areas Covered | Monthly (VND) | ~USD |
|---|---|---|---|
| I | Hanoi, HCMC urban districts | 4,960,000 | $198 |
| II | Major provincial cities | 4,410,000 | $176 |
| III | District-level towns | 3,860,000 | $154 |
| IV | Rural areas | 3,450,000 | $138 |
Source: Decree 74/2024/ND-CP (effective July 1, 2024)
Tax Policy Overview
Vietnam's tax system is administered by the General Department of Taxation under the Ministry of Finance, governed primarily by the Law on Tax Administration 2019 (Law No. 38/2019/QH14).
Corporate Income Tax (CIT)
- Standard rate: 20% (since January 1, 2016)
- Preferential rates: 10% (high-tech, software, education, healthcare, economic zones); 17% (industrial parks, disadvantaged areas)
- Oil & gas / rare resources: 32-50% depending on project location
- Global Minimum Tax: 15% for multinational groups with consolidated revenues exceeding EUR 750M (effective January 1, 2024)
Source: Law on Corporate Income Tax (amended 2014); Resolution 107/2023/QH15
Value Added Tax (VAT)
- Standard rate: 10% (most goods and services)
- Reduced rate: 5% (essential goods)
- 0% rate: Exported goods and services, international transportation
- Exempt: Financial services, insurance, healthcare, education
- Temporary reduction: Government periodically reduces VAT to 8% to stimulate the economy
Source: Law on Value Added Tax (amended 2013); Decree 44/2023/ND-CP
Personal Income Tax (PIT)
Vietnam applies a progressive PIT rate for resident individuals on employment income:
| Annual Taxable Income (VND) | Rate |
|---|---|
| Up to 60M | 5% |
| 60M - 120M | 10% |
| 120M - 216M | 15% |
| 216M - 384M | 20% |
| 384M - 624M | 25% |
| 624M - 960M | 30% |
| Over 960M | 35% |
Non-residents are taxed at a flat 20% on employment income. Personal deduction: 11M VND/month; dependent deduction: 4.4M VND/month per dependent.
Source: Law on Personal Income Tax 2007 (amended 2012, 2014)
Foreign Contractor Tax & Transfer Pricing
- Foreign Contractor Tax (FCT): Applies to foreign entities earning income from Vietnam. Rates: 5% VAT + 5% CIT for services; 3% VAT + 2% CIT for goods
- Transfer pricing: Vietnam's rules (Decree 132/2020/ND-CP) are aligned with OECD guidelines
- Double tax treaties: 80+ DTAs signed including with the US, UK, Japan, South Korea, China, Australia
- E-commerce tax: Since 2022, foreign digital platforms must register and pay tax in Vietnam
Source: Circular 103/2014/TT-BTC; Decree 132/2020/ND-CP; Law on Tax Administration 2019
Frequently Asked Questions
When did Vietnam open e-visa to all nationalities?+
Vietnam opened its e-visa program to citizens of ALL countries and territories on August 15, 2023, under Resolution No. 07/2023/QH15. Previously, only citizens of approximately 80 countries were eligible. The new policy extended e-visa validity from 30 days to 90 days and introduced multiple-entry options.
Can foreigners own 100% of a company in Vietnam?+
Yes, under the Law on Investment 2020, foreign investors can own 100% of a company in most business sectors. However, certain sectors have ownership caps: banking (30%), telecommunications (49%), aviation (34%), and media/publishing (restricted).
What is the minimum wage in Vietnam?+
As of July 1, 2024, Vietnam's regional monthly minimum wages are: Region I (Hanoi, HCMC): 4,960,000 VND (~$198); Region II: 4,410,000 VND (~$176); Region III: 3,860,000 VND (~$154); Region IV: 3,450,000 VND (~$138).
What is the corporate tax rate in Vietnam?+
Vietnam's standard CIT rate is 20%. Preferential rates of 10% and 17% are available for encouraged sectors or designated economic zones. Tax holidays of up to 4 years exemption and 9 years at 50% reduction are available.
Do foreign workers need to pay social insurance in Vietnam?+
Yes, since December 1, 2018, foreign workers with work permits and labor contracts of one year or more must participate in compulsory social insurance. Workers contribute 8% for retirement, 1.5% for health insurance.