Living and Working in Vietnam
Work in Vietnam is relationship-first and hierarchical: high-context and indirect, mindful of face and harmony, with Confucian respect for age and seniority and a flexible sense of time.
Vietnam draws a varied international population: retirees stretching the purchasing power of their pension, people working remotely for foreign employers, people living on private income, and professionals seeking a more affordable setting. Most of these profiles live on foreign-source income rather than a local salary, which entirely changes how the cost-of-living, tax and stay chapters read. This guide speaks first to that reader, without overlooking those who might consider working locally.
Three centers concentrate most of the international presence. Hanoi, the administrative capital in the north, keeps a more institutional atmosphere. Ho Chi Minh City, still commonly called Saigon, is the economic hub of the south, the densest and the most expensive. Da Nang, on the central coast, offers a compromise between the seaside, a lower cost and developing infrastructure. The choice of city shapes the budget, the pace and the network you can build.
Beyond the practical framework, settling in Vietnam means engaging with a work culture of Confucian tradition, marked by respect for hierarchy, the importance of the personal bond and communication in which the implicit holds a large place. The positions presented below, drawn from cross-cultural management research, illuminate these structural dimensions to help avoid the most common misunderstandings between international professionals and their Vietnamese counterparts.
Living, Working and Doing Business in Vietnam
Before the cultural codes, here are the concrete decisions that shape a move to Vietnam: where to live and on what budget, which visa to choose, how to work there, taxes, real estate and residency formalities.
1. Cost of living: a very affordable local budget, contrasting by city
For a reader earning income in a strong foreign currency, Vietnam offers markedly greater purchasing power. Price levels, rents and everyday services are among the most affordable in Southeast Asia, without reducing the country to a marketing formula. A monthly budget of USD 600 to 1,100 is commonly cited for an expatriate depending on the city and lifestyle, a range that covers very different realities between a modest local setup and a way of life closer to Western standards.
The contrast between cities is real. Ho Chi Minh City remains the most expensive, ahead of Hanoi, while Da Nang and secondary cities bring the bill down noticeably. As a rough guide, a one-room city-center apartment runs around 12 to 17 million VND in Ho Chi Minh City, 10 to 14 million VND in Hanoi, and 6 to 8 million VND outside the center in Da Nang. These market reference points move quickly in a country where urban prices rise with growth; they should be checked at the time of the project.
The reading differs fundamentally by profile. For a retiree or a remote worker whose income comes from abroad, that same income covers a comfortable way of life, the gap with the cost of living back home working in the reader's favor. For anyone instead planning to live on a Vietnamese salary, the reasoning reverses: local pay, described in the Sectors and salaries section, remains in absolute terms well below Western levels.
2. Residence and stay routes: from the e-visa to the temporary residence card
The entry framework depends on the intended length of stay and on nationality. A visa exemption applies for a stay not exceeding 45 days, entry and exit days included, for eligible nationalities and regardless of the purpose of travel, with a passport valid for at least six months on the date of entry. This exemption cannot be extended or renewed on the spot. Beyond 45 days, the national immigration portal issues an e-visa for a stay of up to 90 days, single or multiple entry.
For a long stay or an activity, other categories come into play. The DN visa covers business purposes and the DT visa foreign investors, with sub-categories tied to the amount invested. One point is strictly applied by the authorities: holding a business visa does not permit salaried employment. Beyond 90 cumulative days in the year, a foreign worker must in principle hold both a work permit and an LD work visa. The temporary residence card, or TRC, issued by the Immigration Department, serves as a visa during its validity, usually two to five years depending on the underlying category, for foreign nationals staying one year or more with a legal sponsor.
This framework has seen recent changes worth keeping in mind. Decree 219/2025, in force since 7 August 2025, overhauls the rules for issuing work permits and exempts from a permit foreign nationals working up to 90 cumulative days per calendar year. The TRC application can now be made online, and registration of the VNeID digital identity has been made mandatory for its holders since July 2025. The 45-day exemption threshold itself results from an extended measure, which may be renewed, modified or broadened.
These routes are not mutually exclusive: a typical plan often combines a first entry under the exemption or an e-visa for a scouting trip, then a long-stay visa paired with a TRC once the sponsor and the purpose of stay are established. The passport required for a TRC application must remain valid for at least thirteen months.
This information is provided for educational and factual purposes and does not constitute immigration advice. Determining the residency route suited to your situation is a matter for a qualified professional. The thresholds and procedures mentioned were revised recently and should be checked with official sources before any departure.
3. Working in Vietnam: language, local market and work authorization
The dominant working language is Vietnamese. English is common in multinationals, technology companies and the tourism sector, while French survives only residually, mainly in some academic or institutional circles and among older generations. For a foreign professional, command of English opens most international environments, but learning a few basics in Vietnamese greatly eases daily life and the building of the personal bond that is decisive in the local work culture.
The Vietnamese labor market is growing steadily, driven by manufacturing, IT, finance, real estate and tourism. Local pay remains, in absolute terms, well below Western levels: as a national benchmark, the average monthly salary stood at around 8.7 million VND at the end of 2025, with annual growth of about 9% to 10%. Skilled roles in Hanoi and Ho Chi Minh City sit higher, with IT reaching the top ranges. The sector breakdown is in the Sectors and salaries section.
On formalities, employing a foreign national in principle requires a work permit and an LD visa beyond 90 cumulative days per year, within the framework set by Law No. 47/2014/QH13 and recast by Decree 219/2025/ND-CP. The distinction between a business visa and a work visa is strictly applied: a DN visa does not allow you to work. A reader whose income comes from remote work for a foreign employer or clients is in a different configuration, one that calls for a careful check of their residency status and their tax position, addressed in the Taxes section.
4. Taxes: the 183-day rule and the progressive scale
Tax residency rests on a presence test. A person is a tax resident if present in Vietnam for 183 days or more in a calendar year, or over a 12-month period from the date of arrival, or if they have a habitual place of residence or a rented home in Vietnam. Below that threshold, non-resident status applies. This point is central for anyone living on foreign income, as it determines the scope of taxation in Vietnam.
Vietnamese law provides that a tax resident is taxed on worldwide income, wherever it is paid, under a five-band progressive scale: 5%, 10%, 20%, 30% and 35%, the last being the top marginal rate, applied to taxable income after deductions. The monthly personal deduction was raised to VND 15,500,000 from 1 January 2026. A non-resident, for their part, is taxed at a flat rate of 20% on Vietnam-source income only. This sets out a legal framework, not a tax-optimization scheme. This taxation of worldwide income sets Vietnam apart from Thailand, where foreign-source income is taxed only when remitted.
Vietnam is also party to double-taxation treaties that govern how taxation is allocated between countries. France, for example, signed a treaty with Vietnam in Hanoi on 10 February 1993, in force since 1 July 1994 and still applicable. Whether a treaty covers your situation depends on your country of residence. A reform of Vietnam's personal income tax law is also under discussion, which is the parameter most likely to change.
Tax residency: 183 days or more in the calendar year or over 12 rolling months from arrival, or a habitual home in Vietnam. Below that, non-resident status.
Resident: worldwide income: Taxed on worldwide income under a five-band progressive scale, from 5% to 35%, after deductions.
Non-resident: Flat rate of 20% on Vietnam-source income only.
Personal deduction: Raised to VND 15,500,000 per month from 1 January 2026.
France-Vietnam tax treaty: Signed 10 February 1993, in force since 1 July 1994, aimed at avoiding double taxation. Still applicable.
This information is provided for educational and factual purposes and does not constitute tax advice. Assessing your tax residency, your reporting obligations and how any applicable tax treaty applies to your situation is a matter for a qualified professional: a tax lawyer or a chartered accountant. The scale and deductions were revised recently and a reform is under discussion.
5. Real estate: right of use, quotas and the 50-year lease
The defining point of Vietnamese real estate lies in the land regime. A foreign national cannot own land: land remains the property of the State, which grants only a right to use the land. This rule clearly sets Vietnam apart from markets where outright land ownership is open to non-nationals, and it shapes the whole reading of a purchase plan. What a foreign national can acquire is condominium apartments or houses located in approved commercial projects.
This acquisition takes the form of a long-term lease, capped at 50 years and renewable, with the land remaining with the State. Quotas apply at the project level, not nationally: foreign nationals cannot hold more than 30% of the units in a single condominium building, and for houses or villas the limit is 10% of the units per project, or 250 houses per administrative area of 10,000 inhabitants. The applicable framework stems from the 2023 Housing Law and the 2024 Land Law, in force since 1 August 2024.
These recent laws clarified the regime, but their implementing decree, which details the quotas and the practical arrangements, is still being finalized. A purchase plan therefore calls for checking the approval of the property development, the availability of the foreign quota in the targeted building and the exact terms of the lease at the time of the transaction. The tax effects of holding property are assessed against the Taxes section.
This information is provided for educational and factual purposes and does not constitute legal advice. Checking a project's approval, the available foreign quota and the lease terms is a matter for a qualified professional: a lawyer or a notary. The implementing decree for the 2023 and 2024 laws is recent and still being finalized.
6. Residency formalities and legal framework: registration, safety and caution
A foreign national's stay comes with a reporting obligation. Every foreign national must have their temporary stay declared to the local police, the responsibility falling on the accommodation provider, hotel or landlord, who generally passes on the information within 12 hours in urban areas and 24 hours in remote areas. This framework stems from Law No. 47/2014/QH13 and Circular No. 53/2016/TT-BCA. For a long-term rental, it is useful to make sure the landlord carries out this formality, since failing to do so exposes them to administrative fines.
On safety, ordinary crime is described as low in most regions, with some petty crime developing in Hanoi and more markedly in Ho Chi Minh City, as well as in tourist regions: bag-snatching often committed from mopeds, pickpocketing and scams. Urban traffic, dense and linked to loose observance of the highway code, is reported as a source of accidents; wearing a motorcycle helmet is mandatory and driving at night is not advised. These points are practical information, with no judgment on the country.
Finally, the legal framework has points worth knowing before departure, presented here in strictly factual terms. Gambling is prohibited and severely punished. Rules on importing pharmaceutical products are strict: travelers on medication are advised to carry a named prescription and sufficient doses. The general rule remains informational caution: research the regulations in force before departure and consult a qualified professional for any personal decision. The corresponding residency routes are detailed in the Visas section.
Settling in Vietnam calls for weighing three readings together: a budget that, for income earned in a strong foreign currency, stretches much further; a residency and work framework in the midst of regulatory change; and a tax system governed by the 183-day rule and by double-taxation treaties. Understood in advance and checked with official sources and qualified professionals, these rules lay the groundwork for a smooth move to a country whose work culture rewards patience and the personal bond.
Key sectors & salaries in Vietnam
Cultural dimensions in Vietnam
Understand the professional cultural codes that shape everyday work in Vietnam.
Communication
Vietnam sits on the high-context side of Hall's framework: a significant share of meaning travels through the implicit, the unsaid and the relationship rather than through explicit statement. This orientation extends a Confucian tradition and a marked collectivism, where preserving the group's harmony leads people to favor hints and reading between the lines. A Vietnamese counterpart often expects the other person to grasp what is left unsaid, from status, the situation and the shared relational history. The positioning nonetheless stays a notch below the most implicit poles of East Asia, because a genuine tolerance for uncertainty also allows a pragmatic frankness in concrete exchanges. For professionals used to a more direct, low-context style, the challenge is to learn to listen to the context as much as the words. In the region, Vietnam remains a little less implicit than Thailand, where context and harmony weigh even more.
Do
- Pay attention to tone, silences and what is not stated explicitly
- Restate the key points and confirm in writing after a meeting
- Invest time in the relationship before expecting very direct exchanges
Avoid
- Take every word literally while ignoring the relational context
- Read an evasive answer as the absence of a position
- Demand blunt frankness upfront, at the risk of making your counterpart uncomfortable
Real-world scenario
A Vietnamese colleague may signal that a deadline is unworkable not by saying so directly but through a silence, a “we will see” or a hesitation to commit. Reading that implicit signal avoids believing in an agreement that does not exist.
Feedback
Feedback in Vietnam is rather indirect: criticism is voiced with care to preserve everyone's face. In a collectivist and cooperation-oriented culture, a relatively “feminine” culture in Hofstede's terms, that readily resolves matters through negotiation and involvement, blunt negative feedback is avoided because it weakens the group's harmony and exposes the person receiving it. Criticism often travels through a third party, through hints or through a positive framing that softens the message. This positioning nonetheless stays short of the extreme, as that same cooperative orientation also allows a certain plainness of tone in well-established relationships. A foreign manager does well to give feedback in private, to acknowledge first what is working, then to suggest adjustments rather than to hammer them home.
Do
- Deliver negative feedback in private and with careful forms
- Start by acknowledging what works before suggesting an adjustment
- Go through a trusted intermediary if needed for a delicate message
Avoid
- Criticize someone in front of the group or in an open meeting
- Use a curt tone believing it shows efficiency
- Mistake the absence of criticism for the absence of disagreement
Real-world scenario
Pointing out a mistake directly in a meeting would cause loss of face and leave lasting hurt. The same message, delivered one-on-one and carefully framed, will be heard far better.
Persuasion
The Vietnamese register of persuasion leans inductive and pragmatic: people readily start from concrete cases and experience rather than setting out broad theoretical principles first. In Galtung's reading of intellectual styles, this orientation favors application and example, a tendency reinforced by a high tolerance for uncertainty that puts practice before principles. Ambiguity is well accepted, and a demonstration often proceeds by accumulating tangible elements. The positioning stays inductive without being extreme, because the Confucian scholarly heritage keeps a real place for the general framework and the authority of knowledge. To convince, it is generally more effective to show results, precedents and concrete benefits than to unfold an abstract argument.
Do
- Back a proposal with examples, precedents and tangible results
- Show the benefit concretely before setting out the theory
- Stay flexible in the face of ambiguity and let the case build step by step
Avoid
- Open with a long exposition of abstract principles detached from cases
- Demand a complete theoretical framework before any practical decision
- Overlook the authority conferred by recognized knowledge and established experience
Real-world scenario
A concrete pilot and field figures win support more easily than a chain of principle-first reasoning. Showing that a solution has already worked elsewhere weighs more than a conceptual argument.
Leadership
Vietnamese work culture is distinctly hierarchical: authority relations, seniority and age strongly structure the organization. High power distance reflects an acceptance of status inequality, a marked respect for the superior and the elder, and initiatives that readily come down from the top. The Confucian frame reinforces this deference to authority and experience. The positioning is firmly hierarchical, in line with high power distance, without reaching the regional peaks observed elsewhere in Southeast Asia. A foreign executive does well to recognize titles and seniority, to respect the chain of command and not to bypass a manager, while staying mindful that authority here is exercised with a paternalistic and protective dimension.
Do
- Respect the chain of command and address the right level of responsibility
- Show deference to the age and seniority of your counterparts
- Own your role as decision-maker clearly when your position calls for it
Avoid
- Bypass a manager by going straight to their team
- Treat the levels as interchangeable in the name of flatness
- Expect subordinates to openly contradict a superior
Real-world scenario
Sending a request to a team member without going through their manager can be seen as a lack of regard. Respecting the hierarchical order makes cooperation smoother.
Decision-making
Decision-making in Vietnam is rather top-down, but tinged with a search for collective buy-in. High power distance steers the decision toward the top, with the leader ruling after consulting the team. Yet the marked collectivism and the culture's cooperative orientation, where decisions are made through involvement, soften the pure top-down pattern: the group's buy-in and an outward agreement are sought before anything is settled. The positioning therefore sits in the upper-middle range, between the leader's authority and the importance of collective assent. In practice, a decision can seem slow to arrive because it matures in informal exchanges, then formalizes quickly once buy-in is secured. A foreign counterpart does well to identify the real decision-maker while cultivating the agreement of the stakeholders around them. This search for assent sets Vietnam apart from neighboring Cambodia, where decisions descend more systematically from the top.
Do
- Identify the real decision-maker while tending to the buy-in of those around them
- Allow time for the informal exchanges that prepare the agreement
- Confirm a decision once the outward consensus is established
Avoid
- Force a quick decision while neglecting the group's need for assent
- Believe that an agreement in principle in a meeting is an immediate firm commitment
- Ignore the leader's role by betting on a purely collective decision
Real-world scenario
A meeting often formalizes an agreement already built behind the scenes, and the final word rests with the manager. Preparing the ground beforehand counts for more than the public discussion.
Trust
Trust in Vietnam rests first on the relationship: the personal bond precedes and conditions the deal. The country's pronounced collectivism, among the most marked in the region, makes trust a relational asset built over time, through loyalty to the group, the network and reputation, ahead of competence or the transaction alone. The shared meal, the bond formed outside the strict professional setting and the recommendation within the network are decisive in opening doors. The positioning is strongly relationship-oriented, consistent with high collectivism. For a foreign executive, this means investing social time before expecting results, and accepting that the first meeting serves as much to size each other up as to address the substance of the matter.
Do
- Invest time in meals and shared informal moments
- Cultivate the relationship over time before expecting commitments
- Tend to your reputation and rely on recommendations from the network
Avoid
- Move straight into negotiation without having built the bond
- Treat the relationship as a minor preamble to rush through
- Constantly change your point of contact, at the risk of starting from scratch
Real-world scenario
Business rarely moves forward before personal trust is established, often over a meal. The time invested in the relationship is not lost: it conditions everything that follows.
Disagreement
Disagreement in Vietnam is rather avoided in public: open confrontation threatens the group's harmony and everyone's face. In a collectivist and cooperative culture, head-on disagreement is little valued and is handled in private, through an intermediary or by indirect means, rather than voiced in a meeting. Because Vietnam is not among the societies surveyed by the GLOBE project, this positioning rests on the Hall and Hofstede frameworks, with the logic of harmony characteristic of high-context cultures serving as the basis, GLOBE being drawn on only as a regional reference point for Confucian Asia. The positioning sits on the avoidance side, without being extreme. A foreign executive does well not to provoke open confrontation, to leave honorable exits and to handle sensitive points one-on-one.
Do
- Raise sensitive points in private rather than in an open meeting
- Leave your counterpart an honorable way out that preserves their face
- Read the indirect signals of disagreement behind a polite approval
Avoid
- Seek direct confrontation believing it clarifies the debate
- Push a counterpart to contradict themselves publicly in front of their peers
- Take a polite “yes” for real agreement on the substance
Real-world scenario
A head-on exchange in a meeting would cause loss of face and stall the relationship. Handling the point of friction one-on-one, gently, preserves both the agreement and the bond.
Time
The relationship to time in Vietnam is rather flexible and polychronic: several threads are run at once, the schedule adapts and the relationship often takes precedence over the agenda. In Hall's monochronic-polychronic framework, this flexibility is reinforced by a high tolerance for uncertainty, which reflects a genuine ease with the unforeseen and with changes of plan. The positioning sits on the flexible side, but it is tempered by the habits of the urban centers: in Hanoi, Ho Chi Minh City and Da Nang, punctuality is expected for business appointments, particularly in international environments. A foreign executive therefore does well to arrive on time for formal meetings while keeping flexibility on the flow, the deadlines and the unexpected, and not to be irritated by a schedule that readjusts along the way.
Do
- Arrive on time for formal business appointments in the urban centers
- Keep flexibility on the flow, the deadlines and the unexpected
- Confirm important appointments the day before to secure the slot
Avoid
- Treat any delay or schedule change as a lack of seriousness
- Lock in a rigid agenda with no room for contingencies
- Neglect the punctuality expected in formal and international settings
Real-world scenario
People arrive on time for a formal business appointment, but the flow can reorganize and run over according to priorities. Staying punctual without being rigid about the rest is the right balance.
How Vietnam compares
| Dimension | Typical Anglo-American practice | Vietnam |
|---|---|---|
| Communication | Low-context and explicit: meaning sits in the words | High-context: much of the meaning sits in the implicit, in status and the relationship |
| Feedback | Direct and explicit, criticism voiced openly | Indirect: criticism is softened to protect face |
| Persuasion | Applications-first: evidence and explicit argument lead | Inductive and pragmatic: concrete cases and experience first |
| Hierarchy | Relatively flat, managers are accessible | Markedly hierarchical: authority, seniority and age structure the organization |
| Decision-making | Managers decide, often after consulting the team | Rather top-down, but shaped by a search for collective buy-in |
| Punctuality | Linear time, meetings start and end on schedule | Flexible sense of time, with real punctuality for formal urban meetings |
| Trust | Task-based: built through reliable work and results | Relationship-based: the personal bond precedes and conditions the deal |
| Disagreement | Open disagreement acceptable if kept civil | Avoided in public: confrontation threatens harmony and face |
Practical advice
Your first weeks in Vietnam
- Confirm that your temporary stay is declared to the local police, through your host, as soon as you settle in
- Open up to the relationship before business: accept invitations, share a meal, learn a few words of Vietnamese
- Map the hierarchical codes of your environment by observing who decides, who relays and whom to address
- Adapt your rhythm: be punctual for formal appointments while keeping flexibility on deadlines and the flow
Building a partnership with a Vietnamese company
- Invest the first meeting in building the personal bond before addressing the substance of the matter
- Back your proposals with concrete cases, precedents and tangible benefits rather than abstract principles
- Identify the real decision-maker while cultivating the buy-in of those around them, as the decision often matures behind the scenes
- Handle points of friction one-on-one and leave your counterparts an honorable way out that preserves face
Frequently asked questions
How long can you stay in Vietnam without a visa?
A visa exemption of 45 days (entry and exit days included) applies to eligible nationalities, with a passport valid for at least six months; it cannot be extended or renewed on the spot. Beyond that, the national immigration portal issues an e-visa for up to 90 days. The residency routes are set out in Visas.
When do you become a tax resident in Vietnam?
You are a tax resident if present in Vietnam for 183 days or more in a calendar year or over 12 rolling months from arrival, or if you have a habitual home in the country. A resident is taxed on worldwide income, a non-resident at a flat 20% on Vietnam-source income. This framework is developed in Taxes.
How does income tax work in Vietnam?
Vietnamese law provides a five-band progressive scale, from 5% to 35%, applied to taxable income after deductions, with the monthly personal deduction raised to VND 15,500,000 on 1 January 2026. A reform of the income tax law is under discussion. The details are presented factually in Taxes.
Does Vietnam have double-taxation treaties?
Yes, in some cases. France, for example, signed a treaty with Vietnam in Hanoi on 10 February 1993, in force since 1 July 1994, aimed at avoiding double taxation and still applicable. Whether a treaty covers your situation depends on your country of residence and is a matter for a qualified professional, as noted in Taxes.
Can a foreigner buy property in Vietnam?
A foreign national cannot own land, which remains the property of the State, but can acquire apartments or houses in approved projects, in the form of a renewable 50-year lease and within quotas set at the project level. The framework from the 2023 and 2024 laws is detailed in Real estate.
Should you choose Hanoi, Ho Chi Minh City or Da Nang?
Ho Chi Minh City is the densest and most expensive, Hanoi keeps a more institutional feel, and Da Nang offers a more affordable coastal compromise. Budgets and rent benchmarks by city are compared in Cost of living.
Do you need a permit to work in Vietnam?
Beyond 90 cumulative days per year, salaried work in principle requires a work permit and an LD visa, within the framework recast by decree 219/2025 in force since 7 August 2025, a business visa not permitting work. The distinctions are set out in Sectors and salaries and Visas.
What is the cost of living in Vietnam?
For income earned in a strong foreign currency, purchasing power in Vietnam goes notably further, with a monthly budget commonly cited at USD 600 to 1,100 depending on the city and lifestyle. This framing, useful for people living on foreign-source income, is developed in Cost of living.