Comparison of regulations regarding Vietnamese and foreigners

The following table compares the rights of a Vietnamese and those of a foreigner in Vietnam

Description	Foreigner	Vietnamese
Employment	- Possess the full capacity for civil acts; - Possess expertise, professional skills and health status apposite to the occupation; - Commit no crime or face no criminal prosecution pursuant to the laws of Vietnam and foreign countries - Have obtained a work permit from the competent government authority of Vietnam, unless: + Being a shareholder or owner of a limited liability company. + Being a member of the Board of Directors of a joint-stock company. + Being the head of a representative office or a project of an international organization or a non-governmental organization in Vietnam. + Entering Vietnam for a duration of less than 03 months to promote the sale of services. + Entering Vietnam for a duration of less than 03 months to handle complex technical issues or situations that affect or likely disturb production and business providing that Vietnamese and foreign specialists in Vietnam are not capable of settling such circumstances. + Being a foreign lawyer licensed to practice law in Vietnam pursuant to the Law on lawyers. + Being exempt pursuant to an international agreement to which the Socialist Republic of Vietnam is a signatory. + Working while pursuing education in Vietnam providing that the employer informs the relevant provincial government authority that manages labor 07 days prior to employment. + Being exempt in other circumstances defined by the government.	- From 18 years of age - Adhere to certain regulations if being employed under the age of 18
Desire to work in Vietnam	Obtain a work permit, unless being required to apply for a license	Require no permission; however, the signing of a labor contract upon employment is necessary for the protection of benefits
Recruitment	- Be recruited only to hold managerial positions or to work as managing director, specialist or technical worker for business demands that Vietnamese employees cannot fulfill. - The employer has to explain the recruitment need to competent government authorities for written approval prior to the recruitment process.	Anytime
Contribution to social insurance	Optional	Mandatory
Business-derived personal income tax	- 1% against the trade in products; - 5% against the trade in services; - 2% against production, construction, transportation and other business operations. (Based on the turnover)	- Distribution and provision of goods: 0.5%; - Service or construction exclusive of material expense: 2% . Asset lease, insurance agency, lottery agency, multi-level selling agency: 5%; - Production, transportation, service associated with products, construction inclusive of material expense: 1.5%; - Other business operations: 1%. (Based on the turnover)
Personal income tax charged on salary or wage	20%	See the calculation method at biểu thuế luỹ tiến từng phần (Income excludes contributions to social insurance, health insurance, occupational responsibility insurance for certain occupations subject to mandatory insurance, and other deductions)
Play in a casino	- Be permitted - Hold a foreign passport issued by a competent authority or a valid laissez-passer, and have enter Vietnam lawfully	Be given restricted permission that is experimental in 03 years from the date that the first company engages in the pilot program. Notice: Vietnamese residing abroad are deemed as foreigners
Administrative penalties	Not applicable	Applicable
Marriage registration	Departments of Justice in district-level People's Committees	Communal People’s Committees
Business establishment	Be permitted to establish: - Single-member limited liability company with 2 to 50 members - Partnership - Joint-stock company	Be permitted to establish: - Single-member limited liability company with 2 to 50 members - Partnership - Joint-stock company - Private enterprise
Establishment of household business	Not permitted	Permitted
House ownership	Be subject to restrictions and be eligible for ownership on the following conditions: - Invest in a residential housing project in Vietnam pursuant to the Law of housing and relevant laws; - Enter Vietnam lawfully as a foreign individual. Forms of ownership: - Invest in a residential housing project in Vietnam pursuant to the Law of housing and relevant laws; - Buy, rent and purchase, be given with or inherit commercial properties that include apartments and separate houses in a housing construction investment project, except for the areas of national defense and security pursuant to the government’s regulations.	Not limited

Legal Basis:
1. 2012 Labor code
2. Law on social insurance 2014
3. Law on personal income tax 2007
4. Law  amending and supplementing a number of articles of the Law on personal income tax
5. Law amendments to tax Laws 2014
6. Decree No. 03/2017/ND-CP on casino business
7. Law No. 15/2012/QH13 on handling administrative violations
8. Decree No. 123/2015/ND-CP
9. Decree No. 78/2015/ND-CP on enterprise registration
10.Law No. 65/2014/QH13 on housing

See more on Vietnamese: So sánh các chế độ giữa người Việt Nam và người nước ngoài