Brief History of Vietnam – Global PEO

Located in Southeast Asia, Vietnam is officially known as the Socialist Republic of Vietnam. It is 311 699 square kilometers in size and is situated on the furthest eastern tip of mainland Southeast Asia (120,348 sq mi). With an estimated 96,000,000 residents, it ranks as the sixth most populous country on Earth. China to the north, Laos and Cambodia to the west, and the South China Sea separating Vietnam from Thailand, the Philippines, Indonesia, and Malaysia. Ho Chi Minh City is the largest city, whereas Hanoi is the capital.

Vietnam’s history of human habitation dates back to the Paleolithic era. In the first millennium B.C., the Red River Delta, which is today in northern Vietnam, was the center of some of the oldest documented nations. The Han dynasty reigned over northern and central Vietnam from 111 BC until the first dynasty was created in 939. A series of dynastic states that eventually reached the Mekong Delta were influenced by Chinese Confucianism and Buddhism. In 1887, the French conquered the country from the last imperial dynasty, the Nguyn. Ho Chi Minh, a communist revolutionary, led the Viet Minh, a group of nationalists, to proclaim independence from France in 1945, after the August Revolution.

Protracted fighting plagued Vietnam for most of the 20th century. Vietnam won the First Indochina War in 1954, which had been started by France as an effort to regain colonial control of Indochina after World War II. As a result, the Vietnam War broke out not long after, splitting the nation between the communist North, supported by the Soviet Union and China, and the anti-communist South, supported by the United States. In 1976, after the Communist Party of Vietnam had consolidated power after the North Vietnamese triumph in 1975, Vietnam was once again a united socialist state. War with Cambodia and China, as well as the inadequacy of the government’s handling of the economy, didn’t help matters. In 1986, the Communist Party initiated political and economic changes that would eventually lead to a market economy.

Because to the changes, Vietnam has become more integrated into international economic and political systems. While it is still a developing nation with a lower-middle-income economy, Vietnam is anticipated to catch up to the GDP of several affluent nations by 2050, making it one of the fastest-growing economies of the twenty-first century. It participates in a variety of global and intergovernmental forums, including the UN, ASEAN, APEC, CPTPP, Non-Aligned Movement, Organization of Islamic Cooperation (OIC), and World Trade Organization (WTO). It has served on the UN Security Council twice.

Recruiting top-notch individuals in a short time frame is a difficult challenge. In order to concentrate on other parts of foreign expansions, such as project management and inventory management, partnering with an Employer of Record (EOR) in Vietnam is the ideal alternative. The EOR handles all the legal and regulatory concerns, and they also assist you speed up the recruiting process by employing their familiarity with local employment norms and digital means of onboarding. Top EORs also often include options for electronic signatures to facilitate speedier onboarding.

Varieties of Vacation Time

Benefits of paid vacation time

Employees are eligible for 12 days of paid vacation after 12 months of employment, with an extra day added for every 5 years of service. Workers with less than 12 months of service will have their vacation time prorated. Employees may be compensated for unused annual leave if it is accumulated at the end of the year.

Holidays that the whole public is free to celebrate

A total of 14 official holidays are celebrated throughout the year in Viet Nam.

Invalid days

Depending on their level of participation in the Vietnamese social security system and their industry, employees might get between 30 and 70 days of paid sick leave. There should be extra sick days for employees who have contributed more and for those who work in hazardous settings. Leave pay is a percentage of the employee’s normal wage and is paid while they are out on leave.

Placement on leave for expecting mothers

Female workers are entitled to six months of paid maternity leave in the event of the birth of twins or multiples, plus an additional 30 days for each successive child. Male workers are eligible for anywhere from five to fourteen paid days off after the birth of a child, depending on factors such as the mode of delivery (vaginal vs. C-section) and the number of children delivered to the couple.

Time off for Dad

In the United States, paternity leave is not required by law.

Leave for Parents

Vietnam’s legal code makes no mention of parental leave beyond the maternity leave regulations previously discussed.

Reasons for Leaving a Job

Means of Discontinuation

An employment agreement may be terminated at will by either the employer or the employee. The length of time between notices may range from three to forty-five days, depending on the specifics of the contract and the party giving notice. In certain situations, advance warning is not required.

Unless the employee is fired for violating company standards, retires with a pension, or cancels the contract unlawfully or unilaterally, the employer is obligated to provide severance to workers with at least 12 months of service. There will be a severance package of half a month’s salary for every year of service.

Time of Notice

The Vietnam Labor Code states that in order to terminate a fixed-term contract, the employer must provide 30 days’ notice, whereas the notice period for an indefinite contract is 45 days. Contrarily, employers need valid reasons to terminate workers’ employment before doing so.

Time spent on probation

It is common practice in Vietnam to give new hires a trial term. Probationary periods cannot exceed 60 days for highly technical or specialized jobs and 30 days for other kinds of jobs.

Benefits for a premature termination

Half a month’s salary plus extra benefits, if any, are owed to employees with more than a year of service as severance compensation. Severance payments are due no later than seven days after termination.

6. Time in the Office

Timeliness of Work in General

Some industries in Vietnam may operate on a shorter five-day workweek than the regular eight-hour day and forty-eight-hour week that is the norm in Vietnam. Every worker is guaranteed at least one day off each week with pay.


In order to adopt overtime, it is necessary to have agreement from both the employer and the worker. No more than half of a regular workday may be spent on overtime. The maximum amount of overtime an employee may work in a year is 300 hours, with a cap of 30 hours each month and 200 hours total.

On a typical workday, overtime compensation is 1.5 times the hourly rate. Weekend overtime compensation is double the hourly rate. Overtime hours worked on a holiday are paid at triple their usual rate. Night shift overtime shall be compensated at a rate of at least two times the standard rate.

7 Dollars Per Hour

The following pay scales reflect the lowest possible earnings for inexperienced workers in each respective area.

A minimum salary of VND 4,420,000 per year is in effect in Region I. The bare minimum pay in Region II is VND 3,920,000 per month. The regional minimum salary in Region III is VND 3,430,000. The lowest pay in Vietnam is VND 3,070,000 per month, and that’s the amount in Region IV.

Trained workers should be guaranteed a starting compensation that is at least 7 percent higher than the minimum base income in their location.

An Employer of Record Vietnam

In order to recruit staff in Vietnam, you’ll need to spend time, money, and energy establishing a legal presence there. Strong employee protections may be found in Vietnam’s labor legislation, but complying with them requires careful attention to detail and familiarity with local best practices. INS Global facilitates easy and painless entry into the Vietnamese market. Without the burden of setting up a foreign branch office or subsidiary, we can help you hire your desired staff, manage HR and payroll, and ensure compliance with local regulations. You can rest easy knowing that our PEO and Global Employer of Record (EOR) solutions in Vietnam are taking care of the administrative burdens of operating a business while you concentrate on growing your company.