What is the salary of foreigners in Vietnam?

Vietnam has become an attractive destination for expatriates due to its dynamic economy, affordable cost of living, and favorable business environment. Expat salary in Vietnam vary widely based on industry, experience, and location, but generally, they offer a higher standard of living compared to local salaries. To learn more specifically about what expatriates can expect in terms of salaries when working in Vietnam, read the following blog. 

The salaries of foreign in Vietnam vary depending on many factors

Expat salary in Vietnam 

According to a report by recruitment firm Navigos Search, the monthly incomes of foreign experts in Vietnam ranged from $8,500 to $34,000 as of the Q1 2024. This is the income level of highly skilled experts who have good expertise and meet the local talent shortage. Specifically, the salaries of expatriates working in Vietnam across various key industry groups are as follows:

• Garment Industry: Due to the lack of local expertise in high-level positions like pattern development and quality control, foreign professionals from countries like Sri Lanka, India, and Pakistan are attracted to Vietnam for its competitive salaries.

• Healthcare: General managers in the healthcare sector, especially in Ho Chi Minh City, have reported earning between VND 400 million to 600 million ($17,520 to $26,275) per month for those with more than five years of experience.

• Tourism and Hospitality: The resumption of international flights has increased demand for senior managers in these sectors, leading to attractive salary packages for experienced foreign professionals.

In conclusion, there are many other industries with a high demand for skilled foreign professionals offering relatively good salaries.

The expat salary in Vietnam varies depending on the industry and level of expertise

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Comprehensive Expat Compensation Packages

Expat compensation in Vietnam often includes more than just a base salary. Companies typically offer various benefits to attract and retain foreign talent, making the overall package quite lucrative. These include:

• Base salary: For managerial positions at major companies, such as shoe factories in cities like Portland or Seattle, base salaries can range from $120,000 to $170,000 annually (2019 figures). These salaries are taxed only in the US.

• Housing allowance: Expatriates with families often receive a housing allowance. For a family of four, this allowance can range between $3,500 to $4,500 per month, tax-free. This amount allows for a luxurious lifestyle in cities like Ho Chi Minh City.

• Education: Companies frequently cover the cost of international school education for expatriates' children, which can range from $25,000 to $35,000 per child per year.

• Transportation: Many companies provide a private driver with a car, typically available from 7 AM to 5 PM, Monday to Saturday. This benefit is valued at around $1,200 per month and includes fuel costs.

• Relocation and Travel: Expatriates are often flown to Vietnam for house-hunting trips and their entire family is flown out for the move, often one class above economy. Additionally, many expats receive two free roundtrip flights to their home country each year.

• Moving expenses: Some companies cover moving expenses directly, while others provide a lump sum between $25,000 to $50,000 to manage these costs.

• Bonuses and stock options: Expats continue to receive bonuses and stock options similar to those they would get in their home country.

>>> See more: Average Salary in Vietnam

Is the expat salary in Vietnam sufficient to cover living expenses?

Expat salary in Vietnam typically enable a comfortable standard of living, even when factoring in living expenses. While expat salaries are notably higher than local salaries, the cost of living in Vietnam is significantly lower than in Western countries

For instance: Average salary in Vietnam for local professionals may be around 20 million VND per month (approximately $1,000), which is sufficient to support a family of four comfortably. In contrast, expat salaries, along with benefits such as housing allowance, education coverage, transportation, and relocation assistance, allow for an even higher standard of living. 

Moreover, the relatively low living costs in Vietnam, particularly housing and food expenses, further contribute to the expatriates' ability to enjoy a comfortable lifestyle. Therefore, it can be inferred that the expat salary in Vietnam is indeed sufficient to cover living expenses and provide a high quality of life.

For example, when comparing the average salary in Indonesia, it is important to consider similar factors such as living costs, benefits, and overall lifestyle. This comparison can help expats and companies make informed decisions about relocation and compensation packages in both countries.

Foreign can expect a comfortable lifestyle when working and living in Vietnam

Payroll Vietnam - Payroll Vietnam - A Guide for Expats

The specific expat salary in Vietnam will depend on the contractual agreement with the employer. However, salary payments must adhere to the general regulations of the state law. Understanding the components of expat salary in Vietnam is crucial for both employers and employees. Here are some factors regarding salaries when working in Vietnam that you should take note of.

Minimum wage

Vietnam has two types of minimum wages that apply to different categories of workers: 

• Common minimum wage: Set at VND 1,800,000 (approximately $76.60) per month. This wage is primarily used for employees in state-owned organizations and for calculating social contributions for all enterprises.

• Regional minimum wage: The regional minimum wage varies depending on the region, reflecting the cost of living differences across the country. The rates effective from July 2024 are as follows:

The labor code ensures minimum hourly wage rates for various regions:

>>> See more: Payroll Vietnam - Quick Guide (Updated 2024)

Overtime

Vietnamese labor law stipulates specific regulations for overtime compensation and special working conditions:

• Overtime pay is higher than regular hourly wages, especially for night shifts, which must be compensated at least 30% more than daytime rates.

• There are strict limitations on the number of overtime hours an employee can work, typically not exceeding 40 hours per month or 300 hours per year for certain industries.

Special provisions apply to vulnerable groups such as pregnant women and minors, limiting their work hours and types of permissible work.

Bonuses/allowances

Expatriates in Vietnam may receive various bonuses and allowances, which are crucial components of their compensation packages:

• 13th month salary: Often given as an annual bonus, typically equal to one month's salary, awarded to employees who have been with the company for at least a year.

• Tet bonus: Given before the Lunar New Year holiday, ranging from a small amount up to an entire year's salary, depending on company performance.

• Additional bonuses: May be provided for public holidays and special occasions, often given to senior management and valued employees.

The expat salary in Vietnam may include various allowances such as Tet bonus

Relocation and Integration Support

In addition to similar salary benefits as Vietnamese workers, foreign employees also receive additional perks. To facilitate the transition and integration of expatriates, companies often provide significant relocation support:

• House-Hunting trips: Fully paid trips to Vietnam for expatriates to find suitable housing.

• Moving expenses: Covered directly by the company or provided as a lump sum payment.

• Annual travel: Free roundtrip flights to the expatriate's home country, typically twice a year.

Negotiating expat salary in Vietnam requires a deep understanding of industry standards, cost of living, and strategic approaches. As expatriates seek opportunities in this dynamic market, it's crucial to collaborate with reliable resources for guidance and support. Aniday - Recruitment & Payroll Agency is poised to assist individuals embarking on their career journey in Vietnam. Contact Aniday today!

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