It is not uncommon for FDI enterprises to face penalties due to payroll management errors during their first years of operation in Vietnam. Payroll often becomes one of the biggest challenges for foreign investors entering the market, given the differences in labor regulations, tax policies, and the local operating environment. In this context, payroll outsourcing…
Starting from 2026, employees in Vietnam may be entitled to 12 Vietnam public holidays with paid leave each year, an increase of one day compared to previous regulations. These changes in Vietnam public holidays not only affect employees’ holiday plans but also directly impact human resource management and operational costs for businesses, particularly foreign-invested enterprises…
Are you a foreign investor eyeing Vietnam’s dynamic market but wary of full-scale commitments? Establishing a Representative Office (RO) offers a low-risk entry point for market research, networking, and promotion without generating revenue. However, navigating compliance is crucial to avoid fines, license revocation, or unintended tax liabilities like Permanent Establishment (PE) risks. This comprehensive guide,…
As Vietnam’s economy continues to surge in 2026, driven by a robust influx of foreign direct investment (FDI), international businesses are increasingly eyeing this dynamic Southeast Asian market. With steady GDP growth and a young, highly skilled workforce, Vietnam offers outstanding opportunities across manufacturing, technology, and service industries However, for foreign companies new to the…
Vietnam’s Personal Income Tax 2026 law was amended Law No. 109/2025/QH15 and officially takes effect from July 1, 2026. Key rules for salary, wages, and business income, however, apply right from January 1, 2026. These updates significantly reduce the tax burden for employees and business owners amid rising living costs. This guide explains exactly how to…
1. Entities Subject to the 2026 Regional Minimum Wage Adjustment According to Article 2 of Decree No. 293/2025/ND-CP, the scope of entities subject to the application of the regional minimum wage has been clearly defined and expanded to include the following groups: Employees working under labor contracts in accordance with the current Labor Code of Vietnam. Employers as stipulated under…
1- Overview of Decree 337/2025/ND-CP (Electronic Employment Contracts) Decree 337/2025/ND-CP, issued by the Government of Vietnam on December 24, 2025, marks an important milestone in the digitalization of labor relations. This Decree focuses on providing detailed regulations on electronic employment contracts, aiming to promote digital transformation in human resources and labor management. Although the Decree takes effect on January…
The November 2025 newsletter highlights key Vietnam tax policy updates that businesses need to closely monitor. The focus is on important VAT regulations related to export activities, VAT refund mechanisms, invoice usage during enforcement periods, and compliance requirements for export processing enterprises (EPEs). In addition, the update addresses notable Personal Income Tax (PIT) changes, particularly…
1. Common Accounting Challenges Faced by Startups Bookkeeping services are essential because startups in Vietnam often face many difficulties in accounting and financial management. First is the limited human resources, as many new businesses only have a few employees or do not have a dedicated accounting department. Second is the high cost of hiring full-time…
Vietnam is implementing a series of new tax, accounting, insurance, and labour regulations effective from October 2025. Notable updates include reduced export duty rates, clarified rules for input VAT deduction, higher PIT family circumstance deductions, a shift to non-resident taxation for certain foreign individuals, new CIT rates and deductible expense rules, and stricter sanctions on…