PEO in Vietnam

Expand Seamlessly with PEO in Vietnam

Entering new markets like Vietnam can be challenging, but ATA Services is here to simplify your path. We’ve successfully launched and opened offices across Vietnam, providing you with the local knowledge and resources to thrive. Our Professional Employer Organization (PEO) services empower your business to expand rapidly, cost-effectively, and compliantly.


Discover more about how we can support your growth journey in Vietnam.

Vietnam’s Economy Overview.

Vietnam’s economy in 2024 is booming, solidifying its place as one of Southeast Asia’s most dynamic markets. Strong exports, a thriving manufacturing sector, and a tech-savvy young workforce attract significant foreign investment. Electronics, textiles, and agriculture lead the way, while the digital economy is fostering innovation. The government’s trade reforms and international agreements have opened doors for global businesses, making Vietnam a vibrant hub full of opportunity. Despite global economic challenges, the country’s resilient spirit and strategic vision pave the way for sustainable growth.

Vietnam’s Political Overview.

Vietnam is a single-party socialist republic led by the Communist Party of Vietnam (CPV). The National Assembly, the top legislative body, approves major policies and elects both the President and the Prime Minister. Nguyen Phu Trong currently serves as both President and CPV General Secretary, highlighting the unified control of the party. The government prioritizes stability and economic reforms while maintaining tight control over media and political opposition. On the international front, Vietnam focuses on building strong ties with global partners, asserting its sovereignty in the South China Sea, and navigating regional security challenges.

Employment Regulation in Vietnam

Employment contracts in Vietnam must clearly define work conditions, salary, benefits, and responsibilities. Contracts typically begin with a probationary period, lasting up to 60 days for most positions or 30 days for manual labor. During this period, employees receive 85% of their official salary. The law enforces stringent regulations against discrimination, ensures workplace safety, and provides guidelines on employee welfare, including health insurance and social security benefits.

Holidays & Leaves

Vietnam offers a total of ten paid public holidays, including popular festivals like the Lunar New Year (Tet), National Day, and Independence Day. Beyond holidays, the labor code mandates annual leave for employees, with a minimum of 12 days per year. This annual leave increases by one day for every five years of service. Additionally, there are provisions for maternity leave, paternity leave, and special personal leave for marriage, bereavement, or other family events.

Working Hours

The standard working schedule is 8 hours per day and 48 hours per week. However, enterprises often adopt a five-day workweek, where employees work slightly longer daily shifts to complete their hours. Overtime is limited to 30 hours per month, and employers must pay a premium of 150% to 300% of the standard wage, depending on whether overtime is on a regular day, weekend, or holiday.


Vietnam operates a mandatory health insurance scheme that requires employer contributions. This insurance provides employees with access to government healthcare services. Employers often offer additional private health insurance as an employee benefit, which expands access to private healthcare providers. ATA Services ensures compliance with health insurance contributions while assisting with private health plans to enhance employee welfare.

Income Tax

Vietnam applies a progressive income tax system ranging from 5% to 35% based on annual earnings. Employers must calculate and withhold income taxes monthly and submit them to the tax authority. There are several deductions available for dependents, charitable contributions, and other allowances. Proper tax planning and compliance are essential to minimize potential penalties and maximize take-home pay.


Termination in Vietnam requires notice and compliance with specific procedures. Employers must provide advance notice of at least 30 days for indefinite contracts or 3 days for fixed-term contracts. Severance or job-loss allowances apply to employees with 12 or more months of service. The compensation depends on the length of employment and other factors. manages all termination procedures to minimize risks and ensure fair treatment.

Employees working under fixed-term contracts who have their contracts terminated upon expiry are not entitled to a severance payment. Employers also have the option of giving employees payment instead of requiring the employee to work during the notice period.

Life in Vietnam

Vietnam’s cities offer a vibrant cultural experience and low cost of living. With improving infrastructure, Vietnam attracts global talent seeking new opportunities in this emerging market. 

Cities and Urban Life:

Ho Chi Minh City and Hanoi are the primary urban centers. Ho Chi Minh City (Saigon) is the commercial heart, featuring a fast-paced lifestyle, innovative startups, and endless dining options. Hanoi, the capital, is steeped in history and culture, balancing colonial architecture with modern developments. Both cities boast a variety of international and local restaurants, lively nightlife, and a wide range of shopping and entertainment options.

Cost of Living:

Vietnam’s cost of living is generally affordable, with competitive rents and an abundance of fresh produce and street food. High-quality healthcare, international schools, and modern amenities make urban life accessible and convenient.


Vietnamese cuisine is a culinary delight, with iconic dishes like pho, banh mi, and fresh spring rolls. Local markets brim with fresh ingredients, while fine dining offers inventive interpretations of traditional flavors.

Natural Beauty and Travel:

Beyond the cities, Vietnam features stunning landscapes like Ha Long Bay’s limestone islands, the terraced rice fields of Sapa, and the serene Mekong Delta. Beach towns like Da Nang, Nha Trang, and Phu Quoc offer pristine shores, while historic towns like Hue and Hoi An transport visitors to Vietnam’s cultural roots.

Community and Social Life:

Vietnamese people are known for their friendliness and hospitality, welcoming newcomers into their communities. Expats can join social clubs, international chambers of commerce, or local sports teams to network and make friends. The annual Tet (Lunar New Year) celebration brings everyone together for festive feasts and traditional activities.

Work Culture and Economy:

The Vietnamese workforce is young, hardworking, and eager to embrace new opportunities. The country’s growing economy, expanding manufacturing sector, and vibrant tech startups attract multinational businesses. While English is increasingly used in business circles, Vietnamese remains essential for connecting deeply with the culture.

Overall, Vietnam combines a rich cultural heritage, modern amenities, and economic opportunities to provide a distinctive and rewarding lifestyle.

” Vietnam is a place where all the possibilities are open to you “

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