Vietnam is one of the most popular countries to find top digital nomads and independent contract workers. That’s because, in Vietnam, the working-age population is large: 62.7% of the country’s 102.3 million people were aged 15 to 59 in 2025.

Moreover, the Vietnamese leadership has made science, technology and education a policy priority. In December 2024 the Politburo issued Resolution 57-NQ/TW on breakthroughs in science, technology, innovation and digital transformation, and in August 2025 it issued Resolution 71-NQ/TW on breakthroughs in education and training.In the last months of 2024, the Vietnamese Government also signed off on various strategies to develop training, science and technology by 2030 but with a vision to 2045. With these moves, the government plans to increase the quality of skills and education among young people, driving the country’s transformative growth over the next few decades.

Independent workers in Vietnam are also quite affordable, making them a top choice for many companies. The median pay of a software engineer is around â‚«22,800,000 per month or about US $880. However, a similar professional in the USA earns around $12,293 per month.

A significant number of independent contractors in Vietnam can also speak English, making communication and collaboration with clients as smooth as possible.

So, your decision to hire independent contractors in Vietnam is a wise one. However, you will have to navigate through the country’s laws to ensure the correct classification of these professionals.

Want to know details? Read this guide to learn everything about hiring and paying independent contractors in Vietnam.

What Are Independent Contractors in Vietnam?

An independent contractor working in Vietnam is a professional individual or business entity that offers its services without forming any sort of employment relationship. This implies that an independent contractor works on a project basis that may run for one month or even a year. 

They are hired through a service agreement that mentions the scope of work, their project fee and other relevant clauses related to their work.

Independent contractors have their own tools and equipment. They also have the flexibility to create their own work methods and schedules. 

When it comes to autonomy, independent contractors have significant control over the work they perform. Unlike a traditional employee, an independent contractor isn’t directly supervised by an employer. 

Similarly, an independent contractor doesn’t get any statutory rights and benefits like an employee gets. These may include health insurance, paid leaves and a minimum wage. 

Here are some key points about independent contractors in Vietnam to keep in mind. 

  • No employment contract: Independent contractors do not have a formal employment contract. Instead, they are bound by a service contract. 
  • Self-employed status: These professionals are considered self-employed. This makes them responsible for their own social insurance contributions and taxes. 
  • Greater autonomy: Independent contractors have a lot of control over their work methods, schedules, equipment and tools. 
  • Limited benefits: Independent contractors are not entitled to benefits such as paid vacation, sick leave, or minimum wage. They only get the benefits mentioned on their contracts. 

Differences Between Independent Contractors and Employees in Vietnam

One of the biggest challenges of hiring in Vietnam is to understand how Vietnamese law makes a clear distinction between an employee and an independent contractor.

The Labor Code 2019 (Law 45/2019/QH14, in force since January 1, 2021) clearly defines an employee. According to the law, an employee is an individual who works:

  • Under a contractual agreement (or a labor contract) with the employer
  • Under an employer’s management, direction and supervision
  • And is paid a wage

If an employment contract specifically mentions that an individual works under an employer and gets a salary for that, then that worker is categorized as an employee. The name of the agreement does not matter: under Article 13, an agreement that covers paid work, a wage and management or supervision by one party is treated as a labor contract.

However, if a worker doesn’t meet the conditions above, they are considered a contractor or a freelancer. This means that they are bound by a civil service contract and have all the freedom to work on their own terms.

Additionally, unlike employees, independent contractors are not protected by statutory employment rights under Vietnamese law. They don’t receive any benefits.

Plus, they are responsible for their tax filing and returns themselves. The hiring company does not file them on their behalf, although tax may be withheld at source (see Taxes below).

What Happens When You Misclassify an Independent Contractor?

Although Vietnam’s labor laws are quite relaxed, you still have to avoid misclassification of your workers. It is unlawful to classify employees as independent contractors or vice versa.

Authorities look at the substance of the relationship rather than the title of the contract. If the work is paid, and the worker receives a wage and is managed or supervised by the engaging party, the agreement is treated as a labor contract under Article 13.

According to Vietnamese law, it is necessary to provide a contract to all employees. A labor contract must be in writing (Article 14), except that a verbal contract is allowed for terms under one month. However, for independent contractors, it is only considered as a best practice.

If a contractor is found to be misclassified as an employee, your company may face some serious consequences, such as fines, legal disputes or penalties. Under Decree 283/2026/ND-CP, which replaced Decree 12/2022/ND-CP from September 10, 2026, an employer that fails to sign a written contract with a worker hired for one month or more can be fined VND 2 million to VND 25 million (double for organizations, up to VND 50 million), depending on the number of workers affected.

In addition, you could also be a victim of intellectual property (IP) protection issues. A misclassification can lead to costly litigation that may eventually drain your resources.

Therefore, to keep yourself safe, ensure you understand the law properly before making the classification correctly.

How to Choose an Independent Contractor in Vietnam?

Here are some of the essential things you must do to make your search for an independent contractor as easy and successful as possible.

Have a Proper Understanding of the Vietnamese Laws

Make sure that you understand the distinction between an employee and an independent contractor, as explained in the labor law. It is imperative to treat each correctly and avoid fines that can harm your reputation. If you can’t understand the laws, get help from an expert. 

Define Your Project’s Requirements

You must clearly evaluate the outline of your project’s tasks, deadlines and deliverables to understand the skills you demand from an independent contractor. For instance, if your project is a basic one with a convenient timeline, you may prefer hiring a junior independent contractor rather than a senior one. The scope of work can also help you establish the contractor’s charges that you are willing to pay. 

Utilize Online Platforms

To find a skilled independent contractor, utilize various online platforms before shortlisting the best ones. You can explore platforms like Upwork, Guru, or local Vietnamese job boards to access a pool of potential contractors. LinkedIn is also a great avenue for finding gems. 

Ask for References

It is always a great idea to choose independent contractors who have already worked with companies in the same industry as yours. You can ask these ventures to recommend reliable contractors to you so you can work with them as well. 

Check Portfolios and Conduct Interviews

Don’t seal a deal with a contractor without going through their portfolios. You must always evaluate the candidates based on their past work samples and relevant experience. Also, take the relevant client testimonials into account. 

Make sure that you arrange detailed interviews with candidates before taking them on board. Engage them in detailed conversations to analyze their approach to technical skills and communication style. 

Make sure to pick candidates who can seamlessly communicate in English or Vietnamese for better collaboration. 

Vietnamese Labor Laws for Classification of Independent Contractors

In Vietnam, all independent contractors are regulated by the Civil Code of 2015 rather than the Labor Code, as long as the relationship is genuinely independent (see Article 13 above). This means that independent contractors are not categorized as employees. Plus, they don’t have statutory benefits, as mentioned by the Vietnamese labor law.

However, it is important to understand the Labor Code in case you plan to create a distinction between independent contractors and employees. An understanding is also important to help you convert independent contractors to employees if need be.

Rights and Benefits

According to local labor laws, working hours for employees are limited to 48 hours per week, with a maximum of 8 hours per day. A worker who works more than these hours is paid for overtime.

All employees are allowed to work for a maximum of 12 hours a day, including normal and overtime hours.

Employees who work overtime receive:

Work Day Type Overtime Rate
Weekdays 150% of the hourly rate
Weekly days off 200% of the hourly rate
Public holidays 300% of the hourly rate

All employees who work at night are provided with an additional amount for their work.

In addition to the above, the employer’s compulsory contributions are 21.5% of the employee’s salary for social, health and unemployment insurance, plus a trade union fee of 2% of the social insurance salary fund, which brings the employer cost to 23.5%. All employees are also obligated to contribute 10.5% of their salary towards this fund.

The maximum monthly salary used to calculate social insurance, health insurance and trade union fee contributions is VND 50,600,000 from July 1, 2026, which is 20 times the new statutory base salary of VND 2,530,000 under Decree 161/2026/ND-CP. It was VND 46,800,000 before that date.

The minimum wage rate in Vietnam isn’t the same in every region.

Since January 1, 2026, Decree 293/2025/ND-CP sets four regional minimum wages: VND 5,310,000 per month in Region I, VND 4,730,000 in Region II, VND 4,140,000 in Region III and VND 3,700,000 in Region IV. The region depends on the locality listed in the decree’s appendix.

Another regulation of the labor law for employees is that they are all entitled to a paid annual leave: 12 working days for each full 12 months of work in normal conditions, calculated in proportion to the months worked if the service is shorter (Article 113).

While employees are entitled to these benefits, independent contractors in Vietnam are not. So, providing them with the benefits above may lead to a misclassification.

Taxes

Vietnam has a progressive personal income tax system. The rates range from 5% to 35%, across five brackets for resident employment income, applying from the 2026 tax year under Law 109/2025/QH15, depending on the salary. The employers deduct the tax amount from the salaries before handing them to the employees. Employers in Vietnam are also responsible for filing any tax returns.

However, in Vietnam, independent contractors must register with tax authorities themselves. They should also then file taxes and returns as per the law. The hiring company does not file them on the contractor’s behalf. However, a payer subject to Vietnamese withholding rules must withhold 10% personal income tax from each payment of VND 5 million or more (VND 2 million before July 1, 2026) to a resident individual who has no labor contract or a contract shorter than three months, under Decree 253/2026/ND-CP. The individual can avoid withholding by giving the payer a written commitment that their income is below the taxable threshold.

How to Pay an Independent Contractor in Vietnam

If you plan to welcome independent contractors to your company, you will have to make sure that they are paid well and on a timely basis. Make sure that you always align your chosen payment method with your independent contractor’s preferences. Also, the chosen method must comply with Vietnamese tax regulations.

Here are some of the common methods to pay your independent contractors in Vietnam. 

Direct Bank Transfers

This is a straightforward way to make a payment. Pay your independent contractors directly in their bank accounts. However, be aware of any hefty charges. These may include transfer fees and foreign exchange charges. 

International Wire Transfers

Many companies also send payments through wire transfer services. These services are usually reliable. However, you may face high fees and longer payment processing times.

Third-party Payroll Services

If you want to make frequent payments or send money to a large team of independent contractors, you can get help from third-party payroll services. They are reliable and efficient. 

E-wallet

Many contractors in Vietnam prefer receiving payments via platforms such as PayPal, Payoneer, or local services.

How to Convert an Independent Contractor to an Employee

If you want to convert an independent contractor to a full-time employee in Vietnam, you must start by communicating your motive to the professional.

If they agree to this conversion, ensure compliance with Vietnamese labor laws. Achieve this by first curating a proper employment contract. The contract should cover the employee’s details, job position, benefits, wages, working hours and any classes covering termination.

You must also enroll the individual in social and health insurance and register them with tax authorities if they aren’t already. You should also update tax details and notify the relevant authorities about the change in employment status.

In some cases, you may also have to obtain a work permit for the professional. This applies if the professional is a foreign national, and the rules are set by Decree 219/2025/ND-CP, in force since August 7, 2025.

If the conversion seems daunting, consult a legal expert familiar with Vietnamese labor laws to help you navigate the conversion process smoothly.

Grow With Independent Contractors in Vietnam

Your decision to hire independent contractors in Vietnam is a wise one for many reasons. Vietnam has affordable labor. Plus, its labor laws aren’t too strict, making it easy for you to create a distinction between an independent contractor and an employee. 

However, at times, you may find the search daunting and cumbersome. So, in that case, you can always contact RemotePeople to find the best workforce for you. 

At RemotePeople, our team can help you hire and onboard the best independent contractors in Vietnam. We have worked with many companies that grow by sourcing the best talent in Vietnam. 

We offer all our services at up to 40% reduced costs compared to the regular market prices. This is a great offer for all our startups and SMEs that want to hire independent contractors.

So, if you need labor for an upcoming project, simply contact us to help you navigate through this journey.

Frequently Asked Questions

Yes, there are many independent contractors who work legally in Vietnam. You will have to explore different platforms to find them. You can also shortlist the best candidates in Vietnam by consulting recruitment agencies. 

Before hiring an independent contractor in Vietnam, you must properly evaluate their qualifications, experience, and skills. Moreover, if you can, check the general reputation of the contractor from companies who may have already worked with them. 

It depends on their skills, experience, and project budget. Experienced contractors make more than the junior ones.Â