Living in Vietnam: What Expats Need to Know Before Moving

Vietnam has become a top choice for expats who are looking to get settled abroad. With its growing economy and rich cultural heritage, this country is offering attractive opportunities. As of 2022, almost 1,00,000 foreigners have made this country their home because of its affordable cost of living, growing job market, and great lifestyle.

Vietnam’s burgeoning economic growth makes it a great place to start a new business or one who is looking for work. Many big companies predict that Vietnam will become one of the world’s strongest economy by 2050, which means that there is a need for skilled workers.

But, living in Vietnam requires a lot of things to consider. These things include planning for getting the right visa, finding the right place to live, sorting healthcare options, and paying taxes.

Need help with a Work Permit in Vietnam? Check out InCorp Vietnam’s Immigration Services now!

Living in Vietnam Permanently: Essentials for Expats to Take Care Of

Residency Process

Living in Vietnam permanently, requires you to know all the legalities and processes. The Vietnamese government has prescribed a three-tier system for foreigners who are looking to live in this country. It includes a working visa, temporary residency, and permanent residency.

The first and foremost thing in this process is to obtain a work permit. They remain valid for up to 2 years and must be obtained two weeks before your employment start date. The qualifications for the work permit are:

You must be 18 years of age
You have secured a job in Vietnam
You have to provide a good health status
You must not have any criminal record

Professional qualifications include:

Holding an undergraduate degree or
Have a relevant work experience of 5 years in your field

After obtaining a work permit for living in Vietnam, you need a Temporary Residence Card (TRC). This residency card is valid for 1 to 3 years but it can be extended too. To qualify for this card, you need:

A work permit
An investment certificate
Proof of status in Vietnam

The TRC is subject to return to the immigration authorities and you have to submit your work permit to the employer.

However, if you are looking to stay for a long period of time then a Permanent Residence Permit is required. It will be available if you have lived for 3 years in Vietnam. They need to be renewed every ten years. To qualify for a permanent residence permit you must:

Provide proof of stable income
Have a temporary residence permit

Financial Considerations and Banking

Banking Services

Banks in Vietnam offer two main types of accounts for foreigners, i.e., personal and business accounts. For a personal account, you have to make an initial deposit and should have:

A temporary residency card
Proof of employment such as a work contract
Proof of Vietnamese address

The business bank account needs additional documents. You should have a legal representative to counter-sign your application and along with that you need to have:

Proof of business legitimacy
Registered address in Vietnam
Operating license
Tax return documents

Vietnamese Currency

The unique currency system of Vietnam offers three different forms of payment. The Vietnamese Dong (VND) is the primary source of daily transactions. US dollars are used for luxury items and gold is the traditional currency to buy and sell land or house. This shows that the economic structure of Vietnam is complex and provides flexible transactions.

Tax Obligations

The tax system in Vietnam depends on the number of days you spend in the country. If you have stayed for more than 183 days then you are considered a tax resident and you will have to pay the taxes at the same rates as Vietnamese citizens.

The tax rates depend on your income level which can range from 5% to 35%. The tax year starts from 1st December to 31st December which requires monthly income tax filings and annual returns due by March 30th.

If you are doing a job then your monthly income tax payments are handled by your employer, if you are self-employed you need to manage your tax payments by yourself through bank transfers. In such cases, expats find it helpful to hire an accountant to assist them with their annual tax payments.

Social Security and Insurance Requirements

It is compulsory for all foreigners who are working in Vietnam to contribute to the social security system. This includes a 17.5% contribution for social insurance, 3% for health insurance, and 2% for trade union fees. These payments are necessary to ensure your security in Vietnam and you can avail of other benefits and services as well.

Healthcare System and Insurance

Vietnam’s healthcare system follows public and private models but it is gradually transitioning towards a complete public system. There is a strong emphasis on preventative care which is effective in handling public health challenges. The expats prefer private hospitals in major cities like Hanoi and Ho Chi Minh City. The medical staff in these facilities are generally English or French-speaking staff who provide premium care. All these facilities make private health insurance a recommended choice for expats especially those who are living outside urban centers.

You can also consider adding medical evacuation coverage to your insurance plan as some treatments might require you to travel to different locations like Thailand, Singapore, or South Korea. Also, remember that European health cards (GHIC or EHIC) are valid in Vietnam which is why local or international coverage is necessary.

Some Recommended Cities for Living in Vietnam

Vietnam has many cities which are best for living purposes. While searching for places in Vietnam, people think of various factors like cost of living, lifestyle, and whether other people like them are living there or not. Here are some places which you can consider to live in Vietnam:

Hanoi

Hanoi is the capital of Vietnam in the north. If you want to experience the real Vietnamese culture then Hanoi is the best place for you. At first, you might be surprised by the busy life and the streets but in Hanoi, there is always something fun to do. Many foreigners live here as the living costs are low. Not just that, you can go on short trips to nearby places like Sapa and Ha Long Bay.

Danang

Danang is a lively city which is liked by both locals and tourists. You can enjoy beaches and green mountains, this city has everything for you to enjoy. The surprising fact about this city is that even though it is the third largest city in Vietnam with over a million people living there, you will not find busy streets like other big cities.

It is a friendly place where people are always ready to help. Near Danang, there is a beautiful small town, Hoi An. It is just 30 minutes away from Danang. This place is so special that it is protected as a world treasure by UNESCO.

Ho Chi Minh City

Ho Chi Minh City is also known as Saigon. It is considered the biggest city in Vietnam. This city is divided into 12 different areas and each one of them has its own places to eat, have fun, and live. The built structure of this city is modern with tall buildings, shops, and bars on the top of the buildings. This city is a mix of modern and traditional culture which makes it one of the best places to explore in Vietnam.

Cost of Living in Vietnam for Expat

Vietnam is a great option for expats who want to stretch their budgets further than in the UK. It is possible that your expenses could be a third of what they were back home for everyday necessities. How far your money goes is really dependent on you and which city you live in.

If you plan on driving in Vietnam you will want to read this. You cannot rent a car or bring a car into the country as you need a Vietnamese driving license for that. However, you can own a motorcycle, and many expats get around the country that way. In fact, it is a great way to get around and many locals wave you by with big smiles on their faces. It is a great way to experience the real Vietnam.

Moving to Vietnam is also a straightforward process. The country has many ports so finding one near your new home is easy. Once you have booked your shipping you will need to move your goods to your new home.

For most people, moving to Vietnam is under US$3,000, and many people spend less than US$1,000. It all depends on where you are moving from and how much you choose to bring.

Here is the cost of living in Vietnam for 1 person:

Expense	Cost (US$)
Accommodation	US$400
Utilities	US$50
Food (local)	US$200
Food (local and international)	US$300
Transport	US$55
Phone	US$5
Miscellaneous	US$45
Total	US$955 – 1000

Pros and Cons of Living in Vietnam Permanently

Pros

Affordable cost of living: Living in Vietnam is affordable and you can bargain for your desired stuff as well. If you work as an expat then your salary will be enough to live a comfortable life.
Easy to get around: Vietnam has many airports which makes it easy to travel around the country to nearby places like Singapore or Thailand. You can use a taxi, train, etc for daily commute.
Great for English speakers looking for work: There are many schools that look for teachers who teach English. There are plenty of jobs available for them and it is the most common work which an expat does in Vietnam.
Amazing food: You can experience amazing food in Vietnam. It is both tasty and affordable. You can try local dishes while having a great time with your friends.
Nice weather: The weather in Vietnam is nice and pleasant. It is very often that people experience the rainy season and storms. The chances of natural disasters are negligible in this country.

Cons

Tourist pricing: The pricing for tourists is high when compared to locals for the same things. You should always check the prices before paying for anything.
Busy and polluted cities: While some cities are peaceful, other cities are very crowded with countless motorbikes on the road. There might be problems related to air quality as well.
Paperwork headaches: The paperwork which includes documents like a visa or work permit is not easy to get which is why people hire local agencies to help them with this issue.
Different way of life: You might find the traditional culture strange in Vietnam. It has old traditions which you might not understand. It can take time to get used to things.
Weather changes a lot: The North has very different weather from the South. Up North, you might see snow in winter and very hot summers (over 40°C), while the South stays warm all year. You need to be ready for whatever region you choose.

How InCorp Vietnam Can Assist?

Applying for a work permit and residence card in Vietnam can be a complex and time-consuming process, especially if you are unfamiliar with local regulations. Since employment and residency status are time-sensitive, working with a local expert or legal consultant ensures a smooth and successful application process, allowing you to work and stay in Vietnam hassle-free.

InCorp Vietnam provides comprehensive permit and visa services, along with a full suite of corporate business solutions to help you stay compliant, streamline operations, and reduce costs. With years of expertise, we have assisted thousands of individuals and businesses worldwide in establishing themselves in Vietnam and achieving long-term success.

Check out Our InCorp Vietnam’s Work Permit & Temporary Residence Card (TRC) Services

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