How to Move to Vietnam: An Expat’s Guide

Moving to Vietnam is an exciting prospect for many professionals. The country offers a high quality of life with its affordable cost of living, vibrant culture, and growing career opportunities in cities like Ho Chi Minh City and Hanoi.

There are estimated to be over 100,000 expats residing in Vietnam, particularly in major cities like Ho Chi Minh City and Hanoi. The country was also ranked 9th among the world’s most foreigner-friendly nations.

In this article, we will talk about how to move to Vietnam as an expat. We will cover topics such as cost of living in the country, most common visas for expats, tax obligations as a foreigner working in Vietnam, and so much more. 

Cost of Living in Vietnam

One of the biggest draws for expats is Vietnam’s low cost of living. Based on recent data, living costs in Vietnam are approximately 42.8% lower than in the UK and 63.5% lower than in the US.

That means, your money goes significantly further here than in most Western countries, allowing for a comfortable lifestyle on a modest budget.

Here is a quick breakdown of cost of living in Vietnam:

Apart from the basics, there are also other important considerations when moving to Vietnam as an expat: 

• Health Insurance: Expats often opt for international or private health insurance plans to ensure access to higher-quality medical services, which can be more expensive but still affordable compared to Western countries.
• Language: Vietnamese is the official language, and English proficiency is limited (around 16% of the population speaks English). You may face language barriers, especially outside major cities. Learning basic Vietnamese or hiring translators can be helpful.
• Culture: Vietnam has a rich cultural heritage with strong community values, respect for tradition, and a fast-paced urban lifestyle in cities like HCMC and Hanoi. Understanding local customs, etiquette, and social norms is important for integration and daily life.

Working in Vietnam as an Expat

Vietnam’s economy is growing fast, creating strong demand for foreign expertise in several key sectors.

Expat Jobs in Vietnam

Expat jobs in Vietnam are concentrated primarily in rapidly growing industries such as technology, sales, manufacturing, renewable energy, and logistics. Driven by digital transformation and support from government initiatives, many expats can find jobs in Vietnam in the following sectors: 

• Information Technology (IT) and Tech: The leading sector for expats, especially in Ho Chi Minh City and Hanoi. Key roles include software developers, AI specialists, cloud computing engineers, data analysts, and cybersecurity professionals. The tech industry is booming with unmet demand, requiring about 350,000 IT workers by 2025 but currently filling only 70% of positions.
• Sales and Marketing: Sales representatives and digital marketing specialists are in high demand as businesses expand and e-commerce grows. 
• Manufacturing and Processing: Roles such as automation engineers, supply chain managers, and quality control specialists are sought after due to increased investment and process optimization. 
• Renewable Energy and Green Economy: Environmental engineers, clean energy developers, and sustainability project managers are increasingly needed as Vietnam shifts toward sustainable development. 
• Logistics and Warehousing: With supply chain shifts and export growth, logistics roles are expanding rapidly. 
• Customer Service and E-commerce: Customer experience managers and support professionals are important as consumer demand and digitization accelerate. 

Salary range for expats in Vietnam can vary by sector and industry. For example, foreign employees in IT can range from USD $1,100 to $3,000. Salary is also affected by seniority level. Here is an overview of salary from entry-level jobs to senior and managerial positions: 

Legal Pathways to Work in Vietnam as a Foreigner

To work legally in Vietnam as a foreigner, you have three options:

1. Get Hired by a Local Company: This is the traditional route where a Vietnam-based company hires you and sponsors your work permit and visa.
2. Set Up Your Own Company: You can register your own business in Vietnam, which can then sponsor your work permit. This gives you full control but involves a more complex and costly setup process.
3. Use an Employer of Record (EOR): This is the ideal solution for remote workers, digital nomads, or professionals hired by a foreign company that doesn’t have a legal entity in Vietnam. The EOR acts as your legal employer in the country, sponsoring your work permit and handling all your payroll and taxes, while you work for your end client or company.

Obtaining a Work Permit in Vietnam

To legally work in Vietnam, you must obtain a work permit from the Department of Labor, Invalids and Social Affairs (DoLISA). It ensures compliance with Vietnamese labor and immigration laws, protects both the employee and employer from penalties, and is often a prerequisite for obtaining a work visa and long-term residency options.

Here is what you need to obtain a work permit as an expat in Vietnam: 

• Valid passport with at least 6 months validity.
• Health certificate from a recognized Vietnamese hospital or clinic.
• Criminal record clearance certificate from home country or Vietnam (issued within 6 months).
• Certified copies of academic degrees or professional certificates.
• Passport-sized photos.
• Labor contract and employer’s business registration/license.
• Work permit application form.

After obtaining a work permit, expats often apply for a Temporary Residence Card (TRC), allowing longer stays without repeated visa applications. This is important for expats planning to live and work in Vietnam long-term. 

To expedite this process, RecruitGo’s partners in Vietnam can help you prepare all the needed documents including translations and communication with DoLISA. You can also move to Vietnam as a self-employed professional by setting up a local company or using an EOR service to sponsor your work permit.

Most Common Visas for Expats in Vietnam

To legally stay in Vietnam as an expat, you need a proper work or long-term visa in the country. While easy to apply, holding a tourist visa, visa on arrival (VoA), and e-visa does not qualify you for a work permit. For long-term residency in Vietnam, you would need the following visa types: 

• Business Visa (DN1, DN2): For expats engaging in business activities such as meetings, conferences, or service provision. DN1 is for foreigners working with legally recognized Vietnamese businesses, while DN2 is for those offering services or establishing commercial presence under international treaties. These visas can be valid for up to 12 months and require sponsorship by a Vietnamese company.
• Work Visa (LD1, LD2): For foreigners employed in Vietnam, often requiring a work permit sponsored by the employer. LD1 is for those exempt from work permits under international treaties, LD2 requires a work permit. Valid up to 2 years, extendable, it is essential for legal employment in Vietnam.
• Investor Visa (DT1-DT4): For foreign investors, categorized by investment size, ranging from under VND 3 billion (DT4) to over VND 100 billion (DT1). Validity ranges from 1 to 5 years. This visa suits expats investing or starting businesses in Vietnam.

Tax Regulations for Expats in Vietnam

An individual is considered a tax resident in Vietnam if they spend 183 days or more in Vietnam within a 12-month period. They must maintain a residence, or lease a residence for 183 days or more in a tax year to be eligible for tax residency. After obtaining residency status, you will be taxed at a progressive income rate from 5% to 35% depending on income level. Non-residents are taxed only on Vietnam-sourced income at a flat 20% rate on employment income. 

Tax finalization deadlines for individuals with salary income are typically by March 31 of the following year. As an expat, you must register for tax and comply with local tax reporting rules. 

Vietnam also has Double Tax Agreements (DTAs) with 80 countries to avoid expats from paying taxes in both Vietnam and their home country. 

How RecruitGo Can Help

Moving to a new country can be overwhelming, especially when it comes to navigating the legal requirements for work. RecruitGo’s Employer of Record (EOR) service is the simplest way to work in Vietnam legally without setting up your own company.

As your legal employer, we sponsor your work permit and Temporary Residence Card, manage your monthly payroll, and ensure you are fully compliant with all local tax and labor laws. This allows you to focus on your work with complete peace of mind.

Start your journey to Vietnam the right way. Talk to our experts by filling out the form below.