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Working and doing business in Vietnam: permits, tax and setting up a company
Short answer: you need a work permit (or a formal exemption) before you start, your employer does most of the paperwork, and since 2025 the process has got noticeably quicker.
The short version
- Decree 219/2025 rewrote the work permit rules in August 2025. Employers now file one combined application and authorities decide within 10 working days of a complete file [1][2].
- Permits still last a maximum of two years, tied to your contract or assignment [1].
- Stay 183 days or more in a year and you're a Vietnamese tax resident, taxed on five brackets from 5% to 35% from 2026. Non-residents pay a flat 20% on Vietnamese employment income [3].
- Foreign employees on contracts of 12 months or more usually pay compulsory social insurance: 10.5% from you, 21.5% from your employer [3].
- Setting up a 100% foreign-owned company typically takes three to four months from first filing to an operating business [4].
Why Australians are here
Australia and Vietnam upgraded to a Comprehensive Strategic Partnership in March 2024, and two-way trade in goods and services reached about A$28.5 billion in 2024–25 [5]. Both countries are in AANZFTA, the CPTPP and RCEP [5], which lowers barriers for Australian goods and services and keeps a steady flow of Australian companies looking at Vietnam.
Ho Chi Minh City is the commercial centre. In May 2026 it hosted Meet Australia, a trade and investment event where more than 100 Australian businesses were expected, with forum sessions on trade and investment, green energy and human resources [6].
Getting a work permit
Who needs one
If you're working in Vietnam for a Vietnamese entity, you need a work permit or a certified exemption. Working without one can lead to fines, detention and an exit ban that stops you leaving Vietnam [7].
What changed in August 2025
Decree 219/2025 took effect on 7 August 2025, replacing the old Decree 152/2020 rules [1][2]. The main changes:
| Then | Now |
|---|---|
| Separate steps to justify hiring a foreigner and then apply for the permit | One combined dossier [1] |
| National ministry handled much of it | Provincial People's Committees issue permits [2] |
| Around five weeks or more | About three weeks end to end; decision within 10 working days of a complete file [1] |
| Three years' experience for many experts | One year for experts and technical workers in priority sectors such as science, technology and digital transformation [2] |
Your employer must post a recruitment notice at least five days before filing, then submit no earlier than 60 days and no later than 10 days before your start date [1][2]. If the application is refused, the authority must give written reasons within three working days [2].
Who qualifies
Vietnam Briefing summarises the main categories this way [1]:
- Experts: a bachelor's degree and at least two years' relevant experience, or a related degree and one year in a priority field.
- Technical workers: one year of vocational training plus two years' experience, or three years' relevant experience.
Managers and executives have their own category with different evidence requirements, so ask your employer exactly what they need from you.
Exemptions
The list of exempt categories grew from 14 to 15 [1]. They include short assignments, certain investors holding qualifying capital, some leadership roles and some professions such as lawyers [1]. Work of under 90 days in a calendar year can also be exempt [2]. Exempt doesn't mean paperwork-free: some exemptions still require your employer to notify the authority at least three working days before you start [1].
Documents to sort before you leave Australia
- Degree and experience letters. Get certified copies and ask your employer whether they need legalising.
- Criminal record certificate. Where the employer uses the linked process on the National Public Service Portal, it can be requested alongside the permit [1][2].
- Health certificate. Foreign certificates are accepted where Vietnam has a recognition arrangement with the issuing country [2]. Ask your employer whether an Australian certificate will do.
- Passport. Valid for well beyond your contract. Keep it yourself; Smartraveller warns never to hand it to an employer, even for safekeeping [7].
The Australian Consulate-General in Ho Chi Minh City can provide a limited range of notarial services that may help with some documents [7].
Tax and social insurance
Are you a Vietnamese tax resident?
You're a resident if you spend 183 days or more in Vietnam in a calendar year, or in any 12 consecutive months from arrival, or if you have a permanent residence or a qualifying lease [3]. Residents are taxed on worldwide employment income; non-residents pay a flat 20% on Vietnam-sourced employment income [3].
The 2026 brackets
Vietnam adopted a new personal income tax law at the end of 2025. Salary provisions apply from 1 January 2026 and the rest from 1 July 2026 [8]. The scale dropped from seven brackets to five [8]:
| Monthly taxable income | Rate |
|---|---|
| Up to VND 10 million | 5% |
| Over VND 10 million to 30 million | 10% |
| Over VND 30 million to 60 million | 20% |
| Over VND 60 million to 100 million | 30% |
| Over VND 100 million | 35% |
Brackets as summarised by Vietnam Briefing [3]. The personal deduction is VND 15.5 million a month and each registered dependant is worth VND 6.2 million a month [3][8].
Social insurance
If you're on a Vietnamese labour contract of 12 months or more, hold a work permit and aren't an intra-company transferee, you'll usually be in the compulsory scheme [3]. Employees pay 8% social insurance, 1.5% health insurance and 1% unemployment insurance; employers pay 21.5% in total. Contributions are capped at a salary base of 20 times the statutory reference level [3].
And your Australian tax?
Leaving Australia doesn't automatically end your Australian tax residency. Vietnam has a network of double tax agreements with tie-breaker and credit rules [3], but how they apply to you depends on your situation. Get advice from someone who knows both systems, and read our guide on Australian tax residency after moving.
Setting up a business
If you're starting your own venture rather than taking a job, Vietnam Briefing's guide outlines three main structures [4].
| Structure | What it can do | Liability |
|---|---|---|
| Limited liability company, up to 100% foreign-owned | Trade in registered business lines, hire staff, invoice locally | Limited to your capital contribution |
| Representative office | Market research and liaison only, no revenue | Parent company is liable |
| Branch office | Commercial activity within the parent's scope, in limited sectors | Parent company is liable |
Licensing, step by step
- Investment Registration Certificate. Required for new foreign-invested entities; from about 15 working days, longer where a sector needs pre-approval [4].
- Enterprise Registration Certificate. Follows the investment certificate; from about three working days [4].
- Post-licensing. Company seal, bank accounts, tax registration and similar steps take about 30 working days [4].
- Capital account. Foreign investors bring capital in through a direct investment capital account at a licensed bank, and must contribute on the schedule set in the licence and charter [4].
Most sectors have no statutory minimum capital, but authorities assess whether the amount you register will cover your first one to two years of costs. Sectors such as education, tourism, finance and telecommunications do carry minimums [4]. You'll also need a physical registered address and a legal representative with a residential address in Vietnam [4].
Protect yourself in disputes
Smartraveller warns that business disputes and unpaid debts can lead to exit bans, and that your passport can be held until a case is settled [7]. Use proper contracts, keep clean books and get local legal advice before you sign with partners.
Where to get help
- AusCham Vietnam is based in Sai Gon ward, the old District 1, and runs trade tours and events, with member discounts [9].
- Your employer's HR or a licensed advisory firm for work permits and payroll.
- The Australian Consulate-General for notarial services and emergencies, not for business disputes [7].
- Other Australians who've done it. Join Cooee Vietnam, our Facebook group for Australians in Vietnam, to ask questions.
Sources
- Vietnam work permit regulations: new rules for foreign workers from August 2025 – Vietnam Briefing (Dezan Shira & Associates)
- Changes in work permit procedures under Decree No. 219/2025/ND-CP – Apolat Legal
- Individual income tax in Vietnam – Vietnam Briefing (Dezan Shira & Associates)
- Company establishment in Vietnam – Vietnam Briefing (Dezan Shira & Associates)
- Vietnam country brief – Department of Foreign Affairs and Trade
- HCM City hosts Meet Australia 2026 to boost trade and investment ties – Voice of Vietnam
- Vietnam travel advice: local laws – Smartraveller (DFAT)
- New personal income tax law – PwC Vietnam
- AusCham Mekong Delta Investment & Trade Discovery Tour (MIDT 2026) – HKBAV