The COVID-19 pandemic is driving a substantial realignment of global supply chains. Governments and companies are assessing whether to keep export-oriented production in China or move it elsewhere. Japan is directly subsidizing companies to move supply chains out of China and is working with the United States and others, including Korea, India, Australia and Vietnam to accelerate this process.

Much of the production is going to Southeast Asia, with Vietnam being a key location of choice. With a 6.5% growth rate in 2019, Vietnam is cost competitive and has an increasingly close relationship with the United States. Through its membership in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), it also has free trade with Canada and Mexico.

On Wednesday, July 8, 2020, Asia Business Consulting is pleased to collaborate with Dickinson Wright PLLC, a well-established law firm based in Detroit, Michigan, U.S since 1878, to conduct the webinar that will assess this great supply chain realignment and will look in depth at what companies need to know about Vietnam as a production location and a market.

This webinar, with the participation of Ms. Hoang Thu Huyen, our President, as a key speaker will share insights on “Establishing and Operating in Vietnam: Legal, Tax and Everything Else You Need to Know” .

Date & Time: Wednesday, July 8, 2020 | 19:30 p.m - 21:00 p.m Vietnam time | 8:30 a.m.-10:00 a.m. ET

This webinar is complimentary, but registration is required on the following link: https://bit.ly/2ZsGj8O

We look forward to your participation.

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Please contact us for any further concerns related to the topic of this article.

About Us

Asia Business Consulting is a boutique consulting firm specializing in corporate establishment, legal and business advisory, tax and payroll compliance, HR administration, market research to multinationals investing in Vietnam. For further information or to contact the firm, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or download the company brochure. You can stay up to date with the latest business and investment news in Vietnam by subscribing to our newsletters.                                                                                                                    

As the world is becoming increasingly integrated with capital, goods and services moving across borders, multinational companies often face the challenge in dealing with double taxation. Double taxation is a detrimental circumstance involving double tax payment for the same taxable subject as income or assets. For example, the company is taxed on its earnings (profits), and the shareholders are taxed again on the dividends they receive from those earnings. As this is an obstacle to international trade, countries in the world usually engaged in Double Taxation Avoidance Agreements aimed at attenuation of double taxation to ensure the rights of their citizens and investors.

Foreign investors in Vietnam need to understand the situation of the double taxation avoidance agreement between Vietnam and foreign countries, as well as conditions and provisions which foreigners have to obey to optimize their profits.

As of 2020, Vietnam has signed Double Taxation Avoidance Agreements (DTAAs) with 80 countries and territories. These treaties breed significant contributions to double taxation avoidance and prevention of tax evasion and contraband on income and property taxes. These Agreements affect subjects who are resident of the signatories of the agreement.

In recent years, Vietnam is rising as one of the most ideal destinations for capital investment, especially if you are looking for expanding your business to Asia or Southeast Asia. Described by the World Bank (WB) as one of the most dynamic emerging countries in East Asia, the process of shifting from a centralized economy to a market economy has turned Vietnam into a meteoric developing country. With impressive growth rates of an average 7% per year, abundant resources, energetic population, incentives and preferential treatment from the State, there are many opportunities for foreign investors in Vietnam. Here are the top 11 reasons why you should invest in Vietnam right now to maximize valuable profits for your business:

1.Critical geographic location

Vietnam is an S-shaped strip of land, geographically located in the center of Southeast Asia, on the East of the Indochinese peninsula. The country possesses an ideal location for international trade with the North bordering China, the West shares borders with Laos and Cambodia, the East and the South borders the East Sea and Pacific Ocean. The long coastline of 3260 km adjacent to the East Sea is close to the main international transportation routes, create the perfect condition for trade activities.

The advantageous geographic location of Vietnam is a gateway to regional maritime economies and is also a gateway to the land-based road transport systems of Southeast Asian and Asian nations, giving Vietnam the access to the most populous region in the world, which accounts for more than 2 billion heads, including ASEAN nations, China, Japan, South Korea and Taiwan.

2.Robust economic growth

Vietnam is one of the fastest-growing countries in the world. In 2019, the country’s GDP grew by about 6,8 percent, maintaining the consistent growth rate of 7% since the last decade, ranking top in the Asia-Pacific region.

Vietnam GDP Annual Growth Rate

In recent years, the nation has been rising as a leading agricultural exporter and an attractive foreign investment destination. Vietnam's key products are: rice, cashew nuts, black pepper, coffee, tea, fishery products and rubber. Manufacturing, information technology and high-tech industries constitute a fast growing part of the economy. Notably, Vietnam is one of the largest oil producers in the region, boosting a self-powered economy for it relies on the petroleum industry for domestic energy consumption and for export.

Given its deep integration with the global economy, Vietnam has been hit hard by the COVID-19 pandemic. Yet, the health impact of the outbreak has not been as severe in Vietnam as in other countries due to proactive measures at the national and subnational levels, as the macro-economic and fiscal framework remains resilient with a reported GDP growth rate of 3.8 percent in the first quarter of 2020.

3.International integration

In the last two decades, Vietnam's economy has witnessed significant progress thanks to the promotion of openness, proactive international economic integration, and active participation in the network of free trade agreements (FTAs).

Currently, Vietnam has signed 13 free trade agreements and another 3 FTAs are ​​under negotiation. Vietnam is now the trade partner with nearly 100 countries in 5 largest market regions in the world: Northeast Asia, Southeast Asia, Europe (both Eastern Europe and Western Europe), America (both North America and South America) and Asia - Pacific. Free trade agreements are expected to be a catalyst for export growth, improve the business environment and especially enhance the attraction of foreign investment into Vietnam.

4.Bustling import – export activities

With almost 4000 km long, the coastline of Vietnam facilitates import, export, transit and transshipment activities not only for Vietnam but also for the regional countries. In fact, 40% of freight traffic from the Indian Ocean to the Pacific is forced to cross the coast of Vietnam before reaching China, Japan and the United States. In particular, after the Kra canal project (Thailand) is completed, goods will go straight through this canal into the Gulf of Thailand and then to Vietnamese waters rather than around Bangkok (Thailand) or Singapore.

The current seaport system of Vietnam is not only a place for Vietnamese goods to export but also a gateway for goods of South China, Southwest China (from Yunnan to the South), Laos, and part of Thailand and Cambodia. Thus, it’s safe to say that Vietnam has the possibility to become a gateway for goods of an entire continent.

5.Ease of doing business in Vietnam

Compared to its direct competitor – China, Vietnam actually ranks better in terms of ease of doing business—ranking 69^th place to China’s 46^th place on the World Bank’s metrics. Vietnam was also among 34 countries that improved the most from 2018 to 2019 on such metrics, most notably regarding:

Starting a business: Lowering the cost of starting a business and publishing notices of incorporation online.

Taxes: Removing the requirement to submit a hard copy of value-added tax returns and lowering employers’ contribution to the labor fund.

Contract enforcement: Publishing judgements given at all levels in commercial cases online.

                                                                                                                                                                                                                    The World Bank

The gradually improving regulatory environment in Vietnam has made operating a local business here easier than ever. 

6.Low establishing cost and competitive labor cost

Unlike many other countries, a minimum capital is not required for most businesses lines in Vietnam. The investors can start a business without a large amount of charter capital in their capacity, it just need to be enough to cover the expected costs of the company. Such low level of capital stock makes every dollar of investment yields big jump in productivity.

Although Vietnam's annual minimum wage is increasing, Vietnam is still a country with low labor costs. The country’s monthly minimum wages in 2019 vary by region from $125 to $180, with the highest rates in urban areas like Ho Chi Minh City and Hanoi. These wages are half of China’s which vary by province from about $140 to $346. Moreover, Vietnam’s minimum wage growth is showing signs of stability. Minimum wages increased by an average of 5.3 percent in 2019, a lower increase than in 2018 (6.5 percent) and 2017 (7.3 percent). It’s no surprise that Vietnam’s low labor costs are one of its most attractive features to the investors.

7.Young and dynamic population

Vietnam’s population reached 97 million in 2018 (up from about 60 million in 1986) and is expected to expand to 120 million by 2050, ranking 13^th in the world and 3^rd among ASEAN countries. Today, with 70 percent of the population is under 35 years of age, with a life expectancy of 76 years, the highest among countries in the region at similar income levels, Vietnam has enormous market potential to make any business investment a profitable one.

Vietnam also performs well on general education as Vietnamese students has a remarkably high scores in the Program for International Student Assessment (PISA), exceeds that of many OECD countries. This performance indicates a talented, well-educated and ambitious population, provides the manpower with low wages for a decisive competitive advantage.

8.Rising foreign investment

Ever since Doi Moi (Renovation, 1986), the amount of FDI inflows Vietnam has been constantly increasing over the years, especially after Vietnam became an official member of the WTO in 2006. As of 2019, there were 126 countries and territories having investment projects in Vietnam, with foreign investment capital reaching 38.02 billion USD. Meanwhile, FDI disbursement also reached more than 20.38 billion USD.

                                                                                                                                                                                                                                                     General Statistics Office of Vietnam

In 2019, foreign investors invested in 19 sectors, of which the investment focused on processing and manufacturing industries with a total capital of 24.56 billion USD, accounting for 64,6% of the total registered investment capital. This field also has a large proportion of new investment projects, expansion investment projects, capital contribution and share purchase. Real estate business ranked second with total investment capital of 3.88 billion USD, accounting for 10.2% of total registered investment capital. Next in line is the field of wholesale and retail, professional activities of science and technology, construction, etc.

9.Supporting government

The Government of Vietnam determined that attracting FDI is one of the main missions to develop the country’s economic and increase competitiveness. According to this scheme, the Government has continuously issue new policies to attract FDI projects such as exemption of import tax, reduction of corporate income tax, land lease with preferential prices, and many other investment incentives eligible for investors who carry out business in the field of information technology, high technology, agriculture, environmental protection, infrastructure construction, health service, etc.

The Government also made it clear that there won’t be any discrimination between local and foreign business, which was made principal in the Law on Investment 2014 and the Law on Enterprise 2014, Decree 60/2015 / ND-CP allows foreign investors to invest in more fields than before.

10.Progressing infrastructure

The Vietnamese government has stepped up in infrastructure development to be able to entice foreign businesses to set up factories, offices, production chains in Vietnam. Better and modern highways, airports, seaports are the key factors that will facilitate transportation and logistics activities for businesses, help reducing their running cost and create an ideal investment environment.

Aiming to be a leader in the race to develop infrastructure, in recent years, public and private infrastructure spending of Vietnam has averaged 5.7% of the gross domestic product each year, the highest in the Southeast Asia region; countries like Indonesia or the Philippines spend less than 3%, while in Thailand and Malaysia, the spending is less than 2%. In the whole of Asian territory, Vietnam is second only to China who has spent 6.8% of its GDP for infrastructure development. This also create the abundant opportunities for foreign investor to invest in infrastructure construction in Vietnam, so far it is one of the most attractive field on the list and will continue to grow in the future.

11.Stable politics and good international credit

Compared to other countries in the region, the politics environment in Vietnam is fairly stable, as it is a one-party state. The Communist Party of Vietnam (CPV) makes strategic decision to support the development of the countries in all major issues. After 45 years of peace and development, Vietnam has proven itself as a reliable place for capital investment due to its political stability and consistency, provides security for the foreign investors.

As a country once come out of the war as one of the world’s poorest nations, the international stance of Vietnam is now highly appreciated by international community. Specifically, in 2019, the North Korea-United States Summit was held in Hanoi – the capital of Vietnam, strengthening the country’s multilateral credentials. Vietnam diplomatic success is also marked by its chairmanship of ASEAN 2020, impressing international parties by its success responding to SARS-COV 2 pandemic with only 328 cases with zero deaths as of June 2020, albeit its 1,450 kilometers of land border with China, the ground zero of the virus.

With much efforts, the country has succeeded in ensuring the health of the people, the investment and business environment, making the investors feel secured and welcomed to maintain and expand the businesses in Vietnam.

On June 19th 2020, in the last working day of the 9th session, the National Assembly passed the Resolution on reduction of payable corporate income tax (CIT) of 2020. With 442/446 (>92%) National Assembly deputies voted to approve, the National Assembly decided to reduce 30% of CIT for enterprises with revenue of less than VND 200 billion. It will come into force after 45 days of signing and applying for the tax period 2020.

Subjects entitled to corporate income tax reduction including:

          - Enterprises established under the provisions of Vietnamese law;

          - Organization established under the Law on Cooperatives;

          - Non-business units established under the provisions of Vietnamese law;

          - Other organizations established in accordance with Vietnamese law and engaged in production, trading goods and income-generating services.

Meanwhile, according to Law on Enterprise Income Tax, taxpayers are specified as:

“Taxpayers are goods and service production and business organizations which have taxable incomes under the provisions of this Law (referred to as enterprises), including:

          a/ Enterprises established under Vietnamese law;

          b/ Enterprises established under foreign laws (referred to as foreign     enterprises) with or without Vietnam-based permanent establishments;

          c/ Organizations established under the Law on Cooperatives;

          d/ Non-business units established under Vietnamese law;

          e/ Other organizations engaged in income-generating production and business activities.”

Thus, except foreign enterprises, most of aforementioned taxpayers with revenue of less than VND 200 billion condition can get reduction on Corporate Income Tax.

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Asia Business Consulting is a boutique consulting firm specializing in corporate establishment, legal and business advisory, tax and payroll compliance, HR administration, market research to multinationals investing in Vietnam. For further information or to contact the firm, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or download the company brochure. You can stay up to date with the latest business and investment news in Vietnam by subscribing to our newsletters.

On February 24^th 2020, Vietnamese Government enacted Decree 22/2020/ND-CP on Amendments to Government’s Decree 139/2016/ND-CP dated October 04^th 2016 on license fee with some new noticeable following points:

Enterprises could be exempted from license fee as following cases:

“Exemption of license fees for the first year from the date of establishment or official commencement of production/business (from January 01^st to December 31^st).”

“Small- and medium-sized enterprises (SMEs) transformed from household businesses (as prescribed in Article 16 of the Law on assistance for small- and medium-sized enterprises) shall be exempted from the license fee within 03 years from the date of issuance of initial enterprise registration certificate.”

In addition, Public general education schools and public pre-schools are also new cases of exemption of license fee.

No need to pay license fee for the year of production/business suspension when already sent notification of production/business suspension and has not yet paid license fee for the planned year of suspension as follow:

“An operating payer of the license fee that has notified its supervisory tax authority in writing of its suspension of production/business in a calendar year must not pay the license fee for that year of production/business suspension if it has sent a written notification of production/business suspension to its supervisory tax authority before the prescribed deadline for paying the license fee (January 30 annually) and has made no payment of the license fee for the planned year of suspension.”

The declaration of license fee is adjusted: deadline for declaration is January 30^th of the following year of commencement of production/business or the year of establishment and household businesses, individuals, groups of individuals paying fixed tax do not submit declarations of license fee.

“Payers of the license fee that have just started their production/business or established their business facilities and SMEs transformed from household businesses shall make and submit their declarations of license fee to their supervisory tax authorities by January 30 of the year following the year of commencement of production/business or the year of establishment.”

“Household businesses, individuals and groups of individuals paying fixed tax must not submit declarations of license fee. Based on received tax declarations and tax database, tax authorities shall determine revenues which are then used as the basis for determining the license fee amounts payable by household businesses, individuals and groups of individuals paying fixed tax.”

The new Decree came into force on February 25th 2020 encourages enterprises to operate business activities in Vietnam.

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Asia Business Consulting is a boutique consulting firm specializing in corporate establishment, legal and business advisory, tax and payroll compliance, HR administration, market research to multinationals investing in Vietnam. For further information or to contact the firm, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or download the company brochure. You can stay up to date with the latest business and investment news in Vietnam by subscribing to our newsletters.

Due to the damages of Coronavirus on the domestic economy, the Decree 41/2020/ND-CP was issued on tax and land rent deferral to assist affected enterprises during difficulty period on 8 April 2020. It came into force from the date of signing.

Applicable entities including to enterprises, organizations, households, and individuals operating in agro-forestry-fishery sector; food processing and manufacturing, garment and textile; straw and plastic products; metallurgy, mechanical engineering; and construction; producing auxiliary and key mechanical products and micro and small-sized enterprises, credit organizations, branches of foreign banks which support their COVID-19 affected customers.

Deferred period for taxes and land rental are specified as follow:

Value Added Tax (VAT) obligation for the period from March to June 2020 or Quarter I and II/2020 shall be extended to 05 months which indicates the payment of VAT of first quarter of 2020 would be extended to September while second quarter to December 2020.

Corporate income tax, extension would be given to the remaining sums of 2019, provisional tax of the assessment period of the first and the second quarter.

Household and individual businesses, the deadlines for paying value added tax and corporate income tax was extended to December 31.

Payment of land use fees would also extended five months from May 31.

Deferral application procedures:

A taxpayer eligible for tax deferral shall submit an application for tax and land rent deferral (electronically or other method) to the supervisory tax authority. The deadline for sending an application for tax and land rent deferral is 30 July 2020.

Taxpayers will be responsible for self-determination of their eligibility for deferral request as prescribed in this Decree. The tax authority shall not inform the taxpayer whether the application is accepted or not.

In the case of the tax authority uncovers that the taxpayer is not eligible for deferral, the taxpayer must fully pay the outstanding tax, penalty (if any) and late payment interest determined by the tax authority to the State Treasury.

This regulation aim to support domestic enterprises dealing with difficulties from the outbreak of Coronavirus.

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Asia Business Consulting is a boutique consulting firm specializing in corporate establishment, legal and business advisory, tax and payroll compliance, HR administration, market research to multinationals investing in Vietnam. For further information or to contact the firm, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or download the company brochure. You can stay up to date with the latest business and investment news in Vietnam by subscribing to our newsletters.

What is e-Visa? This is an electronic travel authorization from the Vietnam Government for up to 30 consecutive days, issued in PDF format. It is the equivalent to a visa, but no stamp or label is placed in the passport.

Who can get e-Visa? According to the Resolution 79/NQ-CP, from July 1^st 2020, all foreigners who want to enter Vietnam from 80 countries (including United States, United Kingdom of Great Britain and Northern Ireland, China, France… *check the full list below) can get the e-Visa through Immigration Department Web portal.

The condition of getting e-Visa? Outside Vietnam Foreigners, have a valid passport (at least 6 months) and NOT in the prohibited list.

What should be noted about e-Visa?

This is a single entry visa, valid for 30 days, from the proposed date of entry indicated during the application.

Once the first 30 days have passed, and renewal be needed it, e-Visa holders in Vietnam may be considered to grant new visa IF being invited/guaranteed by authority/organisation/individual in Vietnam in accordance with Law on foreigners' entry into, exit from, transit through, residence in Vietnam.

Minors with their own passport must complete a full e-Visa application. Minors aged 14 and under included on their parent’s passport will have to be included on their parents e-Visa application.

Applicants can entry-exit in designated ports for e-Visa only (*check the full list below) and are required to carry a copy of their e-Visa at all times during their stay.

The fee is 25 USD and will not be refund in case of applicants could not get e-Visa. 

How to get e-Visa?

Step 1: Access to website https://www.xuatnhapcanh.gov.vn select 'e-Visa' section, find yourself in 'selections' and complete all blank information. Your application will be processed in 3 working days. Example:

Step 2: Pay e-Visa fee.

Step 3: Get the e-Visa.

*List of 80 allowed countries:

Andorra, Argentina, Armenia, Australia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Brunei, Bulgaria, Canada, Chile, China (including Hong Kong SAR, Macau SAR / Not apply to Chinese e-passport holders), Colombia, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Estonia, Fiji, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Ireland, Italy, Japan, Kazakhstan, Korea (South), Latvia, Liechtenstein, Lithuania, Luxembourg, The former Yugoslav of Macedonia, Malta, Marshall Islands, Mexico, Federated States of Micronesia, Moldova, Monaco, Mongolia, Montenegro, Myanmar, Nauru, Netherland, New Zealand, Norway, Palau, Panama, Papua New Guinea, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Samoa, San Marino, Serbia, Slovakia, Slovenia, Solomon Islands, Spain, Sweden, Switzerland, Timor Leste, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, United States of America, Uruguay, Vanuatu, Venezuela.

*List of allowed ports to entry and exit:

Airport: Cat Bi International Airport (Int Airport), Cam Ranh Int Airport, Can Tho Int Airport, Da Nang Int Airport, Noi Bai Int Airport, Phu Bai Int Airport, Phu Quoc Int Airport, Tan Son Nhat Int Airport.

Landport: Bo Y, Cha Lo, Cau Treo, Huu Nghi, Ha Tien, Lao Bao, Lao Cai, Moc Bai, Mong Cai, Nam Can, Song Tien, Tinh Bien, Xa Mat.

Seaport: Da Nang, Hon Gai, Hai Phong, Nha Trang, Quy Nhon, Ho Chi Minh City, Vung Tau.

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Asia Business Consulting is a boutique consulting firm specializing in corporate establishment, legal and business advisory, tax and payroll compliance, HR administration, market research to multinationals investing in Vietnam. For further information or to contact the firm, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or download the company brochure. You can stay up to date with the latest business and investment news in Vietnam by subscribing to our newsletters.

On June 8^th 2020, Socialist Republic of Vietnam officially ratified the EU-Vietnam Free Trade Agreement (EVFTA) with 100% approval of Vietnamese National Assembly and will soon go into effect in July 2020 tentatively.

EVFTA marked a turning-point in the EU’s longer-term goal of co-operation between EU and Vietnam trade deal. The agreement includes 17 chapters, two protocols and several attached memorandums, with main contents covering the following aspects: trade in goods; services, investment liberalization, e-commerce; Government procurement and Intellectual property right. The key aspect is the dismantling of customs barriers and the facilitation of European-Vietnamese trade relations which will eliminate 99 percent of tariffs on trading-goods from two sides. In the details:

The European Union (EU) will remove approximately 85.6% of tariff lines, equivalent to 70.3% of export turnover of Vietnam to EU; abolish import duties on 99.2% of tariff lines, equivalent to 99.7% of export turnover of Vietnam after 7 years from the entry into force. For about 0.3% remaining exports, the EU pledged to provide Vietnam with tariff quotas in the quota import tax to 0%

Vietnam has also committed eliminate 48.5% of tariff lines, equivalent to 64.5% of EU imports immediately after the agreement comes into force , after seven years, 91.8% of the tariff lines, equivalent to 97.1% of EU export revenue, will be removed and after 10 years is about 99% of tariff lines, equivalent to 99.8% of EU imports.

The Agreement will bring advantages to both European and Vietnamese enterprises immediately after coming into effect: Vietnam will cutting 65% of import tax on EU commodities and the EU will cut more than 70% of tariffs on Viet Nam’s commodities. The rest will be erased over a 10-year period and 7-year period respectively.

EVFTA will create abundant chances for Vietnamese development and be a leap to the economics and co-operation of Vietnam – EU.

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Asia Business Consulting is a boutique consulting firm specializing in corporate establishment, legal and business advisory, tax and payroll compliance, HR administration, market research to multinationals investing in Vietnam. For further information or to contact the firm, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or download the company brochure. You can stay up to date with the latest business and investment news in Vietnam by subscribing to our newsletters.

From July 1^st, 2019, Clause 8 of Article 4 in Resolution 70/2018/QH14 on State budget estimate for 2019 stipulates the adjustment of the basic monthly salary from 1.39 million VND to 1.49 million VND. Therefore, social insurance allowances will also increase accordingly. Here are 7 social insurance allowances that significantly increase in 2019, employees should seize to relish their rights.

1. The wage ceiling to pay social insurance

The wage ceiling to pay social insurance in accordance with the current law is equal to 20 times the minimum salary. When the Law on Social insurance 2006 came into effect from January 1, 2007, to the end of 2015 and the new Law No. 58/2014/QH13 on Social insurance became effective since January 01, 2016 to present, there have been 8 times of the salary increase, dragging the increase of the wage ceiling to pay social insurance.

From July 01, 2019, the basic monthly salary will be 1.49 million VND per month. As a result, the wage ceiling to pay social insurance will be 29.8 million VND per month instead of 27.8 million VND (because the previous basic monthly salary was 1.39 million VND).

Legal basis: Article 89, Law on Social insurance.

2. The allowance for convalescence and health rehabilitation after sickness

An employee who has taken leave under the sickness regime for the full number of days in a year prescribed in Article 26 of Law on Social insurance, but whose health has not yet recovered within 30 days after return to work, is entitled to a leave of between 5 days and 10 days in a year for convalescence and health rehabilitation. The allowance for convalescence and health rehabilitation after sickness must equal 30% of the basic salary.

Since, from July 1^st, 2019, the allowance for convalescence and health rehabilitation after sickness will be adjusted from 417.000 VND per day to 447.000 VND per day.

Legal basis: Article 29, Law on Social insurance.

3. Lump-sum allowance upon childbirth

Female employees giving birth are entitled to a lump-sum allowance equaling 2 times the basic salary for each child in the month of childbirth. In case the mother gives birth to a child but only the father is covered by social insurance, the father is entitled to a lump-sum allowance equaling 2 times the basic salary for each child in the month of childbirth.

From July 1^st, 2019, the lump-sum allowance upon childbirth will be 2.98 million VND (the previous allowance was 2.78 million VND).

Legal basis: Article 38, Law on Social insurance.

4. Convalescence and health rehabilitation after the maternity leave period

Female employees whose health has not yet recovered within the first 30 working days after the maternity leave period, are entitled to a leave for convalescence and health rehabilitation of between 5 and 10 days. The allowance for convalescence and health rehabilitation after the maternity leave period must equal 30% of the basic salary.

In detail, the convalescence and health rehabilitation after the maternity leave period from July 1^st, 2019 will be 447.000 VND per day, higher than before 30.000 VND per day.

Legal basis: Article 41, Law on Social insurance.

5. Minimum monthly pension

The lowest monthly pension of employees covered by compulsory social insurance who fully satisfy the conditions for pension enjoyment must equal the basic salary (except for exceptional cases).

Consequently, from July 1^st, 2019, the minimum monthly pension of employees will be 1.49 million VND.

Legal basis: Article 56, Law on Social insurance.

6. Funeral allowance

When the following persons die, the persons who take charge of their funeral are entitled to a lump-sum funeral allowance:

Employees who are paying social insurance premiums or employees who have their period of social insurance premium payment reserved and have paid social insurance premium payment for at least full 12 months; employees who die of a labor accident or an occupational disease; persons who are on pension or monthly labor accident or occupational disease allowance and have ceased working…

The funeral allowance must equal 10 times the basic salary of the month when the above-mentioned persons die. From July 1^st, 2019, the funeral allowance will be 14.9 million VND.

Legal basis: Article 66, Law on Social insurance.

7. Levels of monthly survivorship allowance

When the following persons die, their relatives are entitled to a monthly survivorship allowance:

Employees who have paid social insurance premiums for at least full 15 years but have not yet received a lump-sum social insurance allowance; employees who are on pension; employees who die of a labor accident or an occupational disease; employees who are on monthly labor accident or occupational disease allowance for their working capacity decrease of 61% or more.

The monthly survivorship allowance for each relative must equal 50% of the basic salary or 70% of the basic salary for relatives who have no direct fosterer.

From July 1st, 2019, the monthly survivorship allowance for each relative will increase from 695.000 VND to 745.000 VND per month; the monthly survivorship allowance for relatives who have no direct fosterer will increase from 973.000 VND to 1.043 million VND per person per month.

Legal basis: Article 68, Law on Social insurance.

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Enterprises providing labor outsourcing services are established and operated under regulations of law with the function of hiring laborers under labor contracts. These enterprises do not directly employ laborers but provide to other individuals and organizations in the form of temporary work.

The purpose of outsourcing service is to temporarily satisfy to the sudden increase in labor demand during a certain period of time; to replace the employees during maternity leave, labor accident, occupational disease or having to fulfill civic obligations; or to satisfy the needs to use high-skilled employees.