Guide To Becoming An Expat In Vietnam

In recent years, Vietnam has emerged as a competitive player in the global economy with a gross domestic product (GDP) growth of 7.1% in 2024. The country has been pulling in foreign investments which has increased by around 35% year-on-year in the first quarter of 2025.  

Tourism sector in Vietnam is also booming as it continues to draw visitors with enhanced infrastructures and nature attractions. It is perhaps due to the affordable living and increased opportunities for work and exploration that why some cities in Vietnam like Da Nang and Hoi An are growing in popularity among digital nomads and expats as well. 

Situated a relatively short distance away and sharing similar weather and certain traditions, some Malaysians may be considering living and working in Vietnam. Being an expat can be beneficial to your career as it gives you more global exposure and network contacts and you get to experience living in a new environment.  

Working Permit

Foreigners who want to work in Vietnam must apply for and obtain a work permit beforehand. Employers hiring foreign employees can apply for the work permit with the Labour Authority. 

Employees will need to furnish complete documents including educational certificates and passport copy. The application process typically takes around five to eight weeks.  

Upon approval of application, you may start working in Vietnam. The work permit is valid for two years and is tied to the job you applied for. For example, if you choose to leave the position and work in a different company, you will need to apply for another permit. 

Housing

When you first arrived in Vietnam, it’s more likely that you would choose to rent a property to stay in and get acclimatised. Foreigners can rent homes or apartments in Vietnam if they fulfil the legal requirements to stay in the country for at least three consecutive months. 

For those who are new to the country and seeking a residential location, there are expat enclaves in cities like Ho Chi Minh, Hanoi, Da Nang and Hoi An. Hanoi is the capital of Vietnam and serves as the economic epicentre as well as the gateway to well-known tourist destination Halong Bay. As one of the largest and known cities in the country, Ho Chi Minh is the economic epicentre and is pulsating with exciting entertainment centres whether it’s the culinary scene, coffee culture or shopping. 

After living in Vietnam for a while, you may want to invest in a property for long-term stay. Foreigners are able to purchase certain residential properties and own them for 50 years. You need to be in one of the following categories to buy an apartment in Viet Nam. 

• Have direct investments in Vietnam or hold a management position in a company operating in Vietnam 

• Contributed to Vietnam and such contribution has been recognized by the President or the Prime Minister of Vietnam 

• Possess university degrees or higher education and are currently working in socio-economic fields, and those who have special knowledge which Vietnam needs 

• Married to Vietnamese citizens 

• Companies with foreign-invested capital operating in Vietnam which are not a real estate trading companies and have a demand of residential accommodation for its employees upon meeting all specified conditions.  

Paying Taxes

Depending on your residency status, you will have to pay taxes on your income. You are considered a tax resident if you have lived in Vietnam for 183 days or more or holds a temporary or permanent residence card in Vietnam. 

If you’re a tax resident, you’re taxable on your worldwide income, which means the source of income does not have to be domestic. The tax rates are progressive from 5% up to 35%. 

For non-residents, only income earned in Vietnam is taxed at a flat rate of 20%.  

Foreign employees working for one year or more are required to make social insurance (SI) contributions of 8% on salary for retirement.  

Healthcare

Foreign employees working in Vietnam for three months or more are required to make contributions to health insurance at 1.5% of income. Meanwhile, employers contribute 3% of employee’s income to health insurance. 

Expats can also get their own private health insurance. As expats may travel often or are more comfortable receiving treatments at their home country, you can consider international health insurance that covers medical evacuation or overseas treatment.  

Sending Children To School

There are plenty of public and international schools in Vietnam. If you have a larger budget, you can send your children to international schools. International schools in Viet Nam have English native speakers teaching students and typically offers internationally-recognised syllabus.  

For example, the British International School Hanoi offers the British curriculum and IGSCE qualifications. Primary school fees start from 632,300,000 Vietnamese dong (RM101,168) per year, while secondary school fees are from 814,200,000 Vietnamese dong (RM130,272) annually.     

Things To Consider Before Moving To Vietnam

The prospects of working and living in a new destination can be exciting but moving abroad involves some significant life adjustments as well.  

While more people in Vietnam speak English now, the language may still not be as widespread in certain areas. Besides, as an expat, you will also need to apply for work permits every time you switch jobs.   

On the other hand, Vietnam is steeped in culture and has a lot to offer those who want to explore and learn about the country with stunning beach destinations, great food scene and city offerings.

Read Also: Expats In Malaysia: Guide To Becoming An Expat And How Much Taxes You Have To Pay     

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