Tiếng Việt
中文Short answer: Yes, but only in limited cases. Organizations (residents or non-residents) may agree on and pay salaries, bonuses, and allowances in a labor contract in foreign currency (by transfer or cash) to non-residents and resident foreigners working for that organization. For employees who are resident Vietnamese, the company may not pay salaries in foreign currency — payment must be in Vietnamese Dong.
Legal basis
- The Ordinance on Foreign Exchange; foreign exchange management regulations (formerly Article 4 of Circular 32/2013/TT-NHNN);
- Labor Code 2019 (Article 95 — salaries paid in Vietnamese Dong).
Cases where salaries may be paid in foreign currency
Under the regulations on cases where foreign exchange may be used in Vietnam’s territory, an organization may agree on and pay salaries, bonuses, and allowances in a labor contract in foreign currency by transfer or cash to:
Related services
Commercial Contracts
If you are preparing to sign, review or handle a dispute arising from a contract, ANT Legal can help assess key terms, legal risks and suitable handling options.
- Non-residents (e.g., foreign experts working in Vietnam short-term, not yet meeting residency conditions);
- Resident foreigners working for that organization.
The agreement must be clearly stated in the labor contract.
Cases where salaries may not be paid in foreign currency
Employees who are Vietnamese citizens residing in Vietnam: salaries must be paid in Vietnamese Dong. Agreeing to pay salaries in foreign currency to Vietnamese employees violates foreign exchange management regulations and may be subject to administrative penalties.
Frequently asked questions
May salaries be stated in USD in a contract with a Vietnamese person?
Not advisable. Labor contracts with Vietnamese employees should state salaries in Vietnamese Dong; an exchange-rate adjustment mechanism may be agreed, but actual payment must be in Vietnamese Dong.
Is personal income tax withheld on foreign-currency salaries?
Yes. Salary and wage income paid in foreign currency remains subject to personal income tax; taxable income is converted into Vietnamese Dong at the prescribed exchange rate.
To build salary policies for foreign workers that comply with foreign exchange and tax regulations, please contact ANT Legal’s lawyers for review and advice before proceeding.
