Operating a Business

flag Vietnam Vietnam: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited Liability Company
Number of partners: 1 shareholder and 1 minimum manager; maximum 50. This form of society does not require the presence of an associate of Vietnamese nationality.
Capital (max/min): The minimum capital amount differs depending on the industry.
Shareholders and liability: Limited to capital for partners.
Joint-stock company
Number of partners: Minimum of three partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited to capital for members / shareholders.
Limited partnership
Number of partners: At least 2 shareholders, one of whom is Vietnamese.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited to capital for sleeping partners, unlimited for managing partners.
General partnership
Number of partners: At least two co-owners.
Capital (max/min): No minimum capital required.
Shareholders and liability: Unlimited to all partners.
The Competent Organisation
The State Committee for Co-operation and Investment handles foreign direct investments.
 
Setting Up a Company Vietnam East Asia & Pacific
Procedures (number) 8.0 7.3
Time (days) 16.0 29.7

Source: Doing Business.

 
Business Setup Procedures
Business consulatation website, Information of the procedures to start a Business in Vietnam
Company registration office

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The Active Population in Figures

201820192020
Labour Force 57,028,65857,307,61956,542,377

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 82.66%83.21%83.09%
Men activity rate 86.38%86.69%86.52%
Women activity rate 78.92%79.71%79.63%

Source: International Labour Organization, ILOSTAT database

 
For Further Statistics
General Statistic Office
For Further Information About the Labour Market
Ministry of Labour

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Working Conditions

Legal Weekly Duration
People usually work 48 hours a week spread over five and half days. Employees in the Administrative Sector work 40 hours a week.
Retirement Age
55 years old for women and 60 years old for men.
Working Contracts
There are two types of labour contracts:

- An indefinite term labour contract: the two parties do not determine the term and the time for termination of the validity of the contract;

- A definite term labour contract: the two parties determine the term and the time for termination of the validity of the contract as a period of twelve (12) to thirty six (36) months; or a labour contract for a specific or seasonal job with a duration of less than twelve (12) months.

Labour Laws
Consult Doing Business Website, Obtain a summary of the labour regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
According to the National Wage Council, the average minimum wage varies from one province to another. In 2020, it was VND 4,420,000 per month in Hà Nội and HCM City, VND 3,920,000 per month in Cần Thơ, Đà Nẵng and Hải Phòng, in Bắc Ninh, Bắc Giang and Hải Dương provinces it was VND 3,430,000 per month and finally, the rest of the country's minimum wage was VND 3,070,000 per month. 
Average Wage
In 2019, the monthly gross average wage was VND 6,714,500 according to the ILO (last available data).
Social Contributions
Social Security Contributions Paid By Employers: 23.5% of wages including 17.5% for social insurance, 3% for health insurance, 1% for unemployment insurance and 2% for the Trade Union Fund (corporate employers only).
Social Security Contributions Paid By Employees: 10.5% of wages including 8% for social insurance, 1.5% for health insurance and 1% for unemployment insurance.

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Social Partners

Social Dialogue and Involvement of Social Partners
The General Confederation of Labour co-ordinates provincial and local trade unions with regards to problems concerning labour and companies supervision for labour conditions.
Unions
Vietnam General Confederation of Labour
Unionisation Rate
The rate of unionisation is close to 100%.
Labour Regulation Bodies
Ministry of Labour

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Latest Update: October 2022