Working in Vietnam: Planning to Exit

A practical lifecycle guide for companies employing foreign professionals in Vietnam—and for the people joining them. Follow the records, responsibilities and decision points that need to stay aligned from the first hiring plan to the final payroll.

The shared employment file: 01 Employment route · 02 Work authorisation · 03 Contract and payroll · 04 Renewals and changes · 05 Exit records. A change to the role, employer, work location or timing can affect more than one record. Review the full file before acting.

At a glance

These are orientation points, not universal answers. The correct route depends on the individual, the role, the employing arrangement and the current practice of the competent authorities.

The employment file belongs to both sides

A company may own the filing calendar, but it cannot complete the process without accurate documents and timely decisions from the employee. An expat may hold the passport and qualifications, but cannot normally sponsor the employment process alone. The safest approach is a shared working file with named owners, dates and evidence for every step.

This guide follows that file. It explains what usually needs to happen, what each party should check, and which practical outputs should remain available after the task is complete.

Important: immigration, labour, payroll, tax and insurance outcomes depend on the facts and current requirements. Use this article as a planning guide and confirm the position for the specific employee before relying on a timeline, rate or document list.

Plan the employment route before collecting documents

Stage one · before arrival

The legal employer, work location, job description and expected start date shape nearly every later record. Decide them first. A document checklist prepared before these decisions is likely to be incomplete or pointed at the wrong route.

Start with the employer structure

• Company has a Vietnam entity — Direct local employment. The Vietnam entity remains the legal employer and can manage payroll and HR administration internally or outsource an agreed scope. The entity remains responsible for the employment relationship.
• Company has no Vietnam entity — Local employment through an EOR arrangement. A properly structured local employer can support employment administration in Vietnam. The client continues to direct the employee’s daily work, performance and business priorities.
• Overseas group assignment — Intra-group or assignment route. The sending relationship, Vietnam host, cost allocation and role evidence should be reviewed together. The work-authorisation and tax analysis may differ from a local hire.
• Short or changing activity — Do not assume “short” means exempt. Duration alone does not settle the position. Confirm the activity, days in Vietnam, work location and any reporting or exemption requirements before travel or work begins.

For the employer

• Name the proposed legal employer and Vietnam host, if different.
• Write a specific job title, duties and work locations.
• Set a realistic start date with document and authority lead time.
• Define gross salary, allowances, benefits and payment currency.
• Assign an internal owner for immigration, HR, payroll and tax coordination.

For the expat

• Confirm passport validity and keep blank pages available where relevant.
• List citizenships, recent residence and expected travel dates accurately.
• Locate degrees, professional certificates and experience evidence early.
• Disclose accompanying dependants and expected family arrangements.
• Avoid booking a work start around an unconfirmed filing timeline.

Practical output: the case-opening sheet

A usable case-opening sheet should record the employment model, employing entity, employee identity, proposed role, work locations, expected term, compensation structure, family status, travel assumptions, named owners and target dates. This single page becomes the control record for later specialists and service providers.

Prepare work authorisation and residence records in sequence

Stage two · before work starts

Under Decree 219/2025/NĐ-CP, the work-permit framework changed from 7 August 2025. Employers should classify the role and employment form, then confirm whether the person needs a permit, an exemption confirmation, or another reporting route.

1. Classify the work. Review the position, working form, employer, work locations and any exemption basis. Record why the selected route applies.
2. Build the evidence file. Collect the employer forms and the employee’s identity, health, background and professional evidence required for the selected case.
3. Prepare and submit. Check legalisation, translation, certification, document validity and local filing practice before submission to the competent authority.
4. Align the follow-on records. After the work-authorisation position is confirmed, coordinate the labour contract, entry status, work visa or Temporary Residence Card, and start date as applicable.

Documents commonly reviewed

The exact list depends on the working form and role. A typical working file may include:

• Passport and suitable passport copies.
• Health certificate meeting the applicable form, issuer and validity requirements.
• Criminal-record document where required.
• Degree, professional qualification or training evidence.
• Experience confirmations or appointment records relevant to the proposed role.
• Employer explanation, assignment, service or corporate documents supporting the working form.
• Photographs, application forms and translations in the required format.
• Evidence for an exemption or special case, where applicable.

Timing control. Decree 219 provides a filing window for a new work-permit application within 60 days but not less than 10 days before the expected start. The stated authority processing time begins only after a complete file is received. Overseas documents, corrections and local practice can add substantial lead time, so the internal plan should start earlier.

For the employer

• Confirm the role classification and prepare the employer-side explanations.
• Check that titles, duties, locations and dates match across all records.
• Maintain a submission copy, receipt, follow-up log and final result.
• Do not instruct the employee to start before the correct basis is in place.

For the expat

• Provide complete, readable and consistent personal documents.
• Confirm name order, passport number and dates before forms are signed.
• Follow the advised legalisation and translation route; do not assume a foreign copy is sufficient.
• Keep originals available and retain a digital copy of every final record.

Work permit, visa and TRC are connected—but not interchangeable

A work permit or exemption record addresses the basis for working. A visa or Temporary Residence Card addresses entry and residence. One does not automatically replace the other, and their dates may not be identical. The employer and employee should maintain one calendar showing all expiries, passport validity and planned travel.

Employ, onboard and pay from one agreed data set

Stage three · start and monthly cycle

A correct permit does not repair a mismatched contract, and a correct contract does not repair payroll built from different terms. The employment, immigration and payroll records should describe the same person, role, employer, location, term and compensation arrangement.

Make the labour contract operational

The contract should be understandable to both parties and usable by payroll. At minimum, check the employer name, employee identity, title and duties, work location, term, start date, salary basis, payment timing, allowances, benefits, working time, leave, confidentiality and termination provisions. If a bilingual version is used, define how inconsistencies are handled.

For the employer

• Issue the contract and onboarding documents in the correct sequence.
• Translate compensation terms into payroll inputs and approval rules.
• Register the employee in applicable tax and insurance processes.
• Provide a clear monthly cut-off and channel for payroll changes.
• Keep signed records, onboarding checklists and employee acknowledgements.

For the expat

• Confirm whether quoted compensation is gross or net and how any gross-up works.
• Check that housing, school, flight, bonus or insurance benefits are written clearly.
• Provide bank, tax and dependant information by the stated cut-off.
• Review each payslip and raise questions while the source records are current.
• Keep contracts, payslips, tax confirmations and insurance details.

What a controlled monthly payroll should produce

• Inputs: Joiners, leavers, salary changes, attendance, leave, benefits and one-off payments.
• Calculation: Gross-to-net detail, taxable benefits, deductions and employer costs.
• Review: Variance notes, maker-checker evidence and authorised approval.
• Delivery: Payment file, payroll report and confidential payslips.
• Records: Tax and insurance support, payment evidence and retained payroll archive.

Personal income tax: establish status before applying a rate

Vietnam taxes resident and non-resident individuals differently. Residence commonly turns on presence in Vietnam for at least 183 days in a calendar year or relevant 12-month period, or on having a qualifying permanent place of residence. The analysis should also consider arrival and departure dates, housing, overseas income and any applicable tax treaty.

For the 2026 tax year, resident employment income uses the five-band progressive schedule below after allowable deductions. The personal deduction is VND 15.5 million per month and the registered dependant deduction is VND 6.2 million per dependant per month. Eligibility and registration requirements still need to be met.

2026 resident PIT reference · monthly taxable income

Compulsory insurance: confirm coverage and the contribution base

Foreign employees may fall within compulsory social and health insurance depending on their contract, permit or exemption status, working form and statutory exclusions. Where the common employee contributions apply, payroll often includes 8% social insurance and 1.5% health insurance on the relevant statutory base, subject to applicable ceilings. Do not apply these percentages without first confirming coverage and the current contribution base for the employee.

The practical payroll rule: maintain a written “why” beside every treatment. For a taxable benefit, exemption, insurance exclusion, gross-up or overseas recharge, keep the supporting term, factual basis and review record with the payroll file.

Maintain the file when facts change—not only at renewal

Stage four · throughout employment

International employment records age quickly. Passport replacement, a new title, an added work location, a salary restructuring or a reporting-line change may affect more than the HR file. Build change review into normal employee administration.

Use one master tracker

A tracker is useful only when it drives action. Each line should identify the document, owner, issue date, expiry date, advance-review date, current status, last evidence received and next step. At minimum, include:

• Passport, work permit or exemption record, visa and Temporary Residence Card.
• Labour contract, assignment letter and amendments.
• Health certificate and other time-limited supporting documents where relevant.
• Tax code, dependant registrations, residence analysis and annual finalisation status.
• Social and health insurance registration and payment records.
• Leave, claims, employee-file and mandatory-policy acknowledgements.

Change control · review before implementation

Renew before the document becomes urgent

A work permit is generally capped at two years and may be extended once for up to two years where the conditions are met. Decree 219 provides a work-permit extension filing window of at least 10 days and no more than 45 days before expiry. Internal review should begin earlier so the company can confirm continuing need, role evidence, passport validity, supporting documents and connected residence steps.

For the employer

• Run monthly expiry and change reports, not an annual clean-up.
• Route proposed employee changes through immigration and payroll review.
• Record submissions, authority responses and approvals centrally.
• Keep the employee informed of documents, appointments and travel constraints.

For the expat

• Report passport, address, family and travel changes promptly.
• Do not accept a materially different role or location without review.
• Check permit and residence expiry dates independently.
• Keep evidence of tax, payroll and insurance contributions throughout employment.

Close the old arrangement before relying on the new one

Stage five · change or departure

Changing employer or leaving Vietnam is not only an HR termination. It can trigger work-authorisation, residence, payroll, tax and insurance actions with different owners and dates. Start the exit file as soon as the decision is known.

Changing employers

A work permit and sponsored residence record are connected to the approved employer and work facts. They should not be treated as automatically transferable. The current and proposed employers should separately review termination, withdrawal, new work authorisation, entry or residence status and the lawful start date for the new role.

Leaving Vietnam

1. Confirm the legal end date. Align notice, last working day, contract termination, leave and handover records.
2. Close sponsorship records. Complete the applicable work-permit and immigration notifications, withdrawal, return or cancellation steps with evidence.
3. Run final payroll. Calculate final salary, approved expenses, unused leave, benefits, deductions and any termination or severance items that apply.
4. Review tax and insurance. Confirm the tax-finalisation route, tax records, insurance closure and any benefit claim for which the individual may be eligible.
5. Deliver the closing file. Provide the employee and employer with the records they should retain after access, accounts and local arrangements close.

For the employer

• Create one exit owner and timeline across HR, payroll and immigration.
• Document the termination basis and final-pay approval.
• Complete authority actions and keep proof of closure.
• Provide payslip, tax and insurance records within the applicable process.
• Keep access removal separate from the employee’s right to receive records.

For the expat

• Confirm the impact on visa or TRC before booking departure or re-entry.
• Download contracts, payslips and personal records before system access closes.
• Resolve expenses, bank details, housing and dependant arrangements.
• Review whether a tax refund, payment or filing remains outstanding.
• Ask whether social insurance benefit eligibility and an authorised claim should be assessed.

One-time social insurance is not an automatic exit refund. Eligibility, timing, contribution history, residence and the individual’s long-term benefit position should be reviewed under the current Social Insurance Law and guidance. If a claim route is appropriate, prepare the evidence and any valid authorisation before departure where possible.

Two checklists worth keeping visible

Use these as control lists. Add the case owner, due date and evidence link beside every item.

First 30 days checklist

• Confirm the approved work basis and retain the final record.
• Sign and align the labour contract and onboarding documents.
• Complete the applicable visa or TRC steps.
• Open or confirm the salary-payment account.
• Register tax and applicable compulsory insurance.
• Record the initial tax-residence assumptions and expected travel.
• Register eligible dependants using the required evidence.
• Issue the payroll calendar, leave route and employee-support contact.
• Save copies of the passport, permit/exemption, contract and residence record.

Departure checklist

• Confirm notice, last working day and travel plan.
• Map work-permit and immigration closure actions.
• Approve final salary, leave, expenses and applicable benefits.
• Review tax residence, finalisation and refund or payment position.
• Close or update applicable insurance records.
• Assess possible social insurance benefits without assuming eligibility.
• Collect employer property and close access securely.
• Deliver the employee’s final payroll and retained records.
• Keep submission, cancellation and handover evidence in the company file.

Questions to settle before they become payroll or immigration problems

The answers below are planning guidance. A case-specific review may produce a different route.

Does every foreign employee need a work permit?
No. Vietnam provides exemption and special-case routes, but the employer should identify the exact basis and complete any required confirmation or reporting. “Exempt” should not be treated as “no paperwork”.

Can an expat start while the work-permit application is pending?
Do not use a pending application as the basis to start work. Confirm that the required permit, exemption or other valid basis is in place, documented and consistent with the planned activity before work begins.

What is the difference between a work permit and a Temporary Residence Card?
The work-permit framework addresses permission to work. A visa or Temporary Residence Card addresses entry and residence. They are connected but separate records, with their own conditions, dates and authority processes.

Should an offer state gross or net salary?
Yes. State the basis explicitly and explain how tax, insurance, benefits and any gross-up are handled. Payroll cannot implement “net” accurately without agreed assumptions, and those assumptions may change when the employee’s status or benefits change.

When does a foreign employee become a Vietnam tax resident?
Residence commonly depends on at least 183 days of presence in a calendar year or relevant 12-month period, or a qualifying permanent place of residence. Arrival timing, housing, treaty residence and the full facts should be reviewed.

Are foreign employees covered by compulsory insurance?
Many are, but coverage depends on the employment contract, permit or exemption status, working form and statutory exclusions. Confirm social insurance and health insurance separately, together with the current contribution base and ceilings.

Can a work permit move with the employee to a new company?
It should not be assumed to transfer. The permit is connected to approved employment facts. The former and new employers should review their respective closure and new-application steps before the employee changes work.

Can a departing expat withdraw social insurance?
A one-time benefit may be available in specified circumstances, but it is not automatic and may affect future benefit rights. Confirm eligibility, timing, contribution records and the claim method under the rules applying to the individual.

Who manages daily work under EOR (Employer of Record)?
The client manages the employee’s daily work, responsibilities, performance and business priorities. Depending on the agreed scope, Truzand supports the local employment documentation, payroll, statutory administration, onboarding, offboarding and employee support.

Official sources and review note

Checked on 1 August 2026. English descriptions in this guide are practical summaries; the official Vietnamese text and case-specific authority requirements should be checked before action.

1. Decree 219/2025/NĐ-CP on foreign workers in Vietnam — Government legislation portal.
2. Labour Code 45/2019/QH14 — Government legislation portal.
3. Consolidated Law 62/VBHN-VPQH on entry, exit, transit and residence of foreigners — Government legislation portal.
4. Consolidated Personal Income Tax Law effective from 1 July 2026 — Government policy portal.
5. 2026 progressive PIT schedule — Government policy portal.
6. Resolution 110/2025/UBTVQH15 on family deductions — Government policy portal.
7. Social Insurance Law 41/2024/QH15 — Government legislation portal.
8. Decree 158/2025/NĐ-CP on compulsory social insurance — Government policy portal.
9. Law 51/2024/QH15 amending the Health Insurance Law — Government legislation portal.

Turn the guide into a working employment file

Truzand provides expert-led, technology-empowered HR support with clear scopes, practical records and direct coordination for businesses operating in Vietnam.

• Outsourced Payroll Services. For companies with a Vietnam entity. Depending on the agreed scope, Truzand supports payroll calculations, reports, payslips, PIT and insurance administration, employee records and related HR processes. The client remains the legal employer.
• EOR (Employer of Record). For companies hiring in Vietnam without their own local entity. Truzand supports local employment administration while the client directs daily work, performance and business priorities.
• HR Compliance & Setup. Practical contracts, policies, employee files, process checklists and trackers, including Work Permit, Visa and Temporary Residence Card support through document review, preparation, coordination and renewal tracking.

What this does not cover

This material is general information, not formal legal or tax advice. Requirements may vary based on the employee’s circumstances, the employing arrangement, current regulations, competent-authority practice and the agreed service scope. Truzand supports practical preparation and coordination; outcomes remain subject to applicable requirements and authority review.