Banking, Money and Taxes in Vietnam
The banking system in Vietnam is up-to-date and efficient. ATMs are widely available as is Internet banking and most banks have at least one English-speaking service representative. Many expats choose to bank with HSBC and ANZ, while Vietcom bank is also a popular choice. All banks offer different packages so it is best to research which package best suits your needs. Most banks have English brochures outlining their services.
In order to open a bank account in Vietnam you will need your passport and a copy of your work contract as well as an initial deposit which varies depending on the bank you’ve chosen. Some banks require a letter from your landlord stating that you are legally renting from him or her, but most just need a valid address at which they can contact you – usually your work address is best suited.
On opening an account some banks will ask you whether you wish to bank in Vietnamese Dong or US Dollars, this means that you can choose which currency you want to store your savings in. All ATMs, except ANZ, allow withdrawals of two million Dong at a time. ANZ allows four million Dong withdrawals. Your bank will issue you with a bank booklet and a card once your account has been authorised.
The currency in Vietnam is the Vietnamese Dong. It is divided into 100, 500, 1000, 2000, 5000, 10 000, 20 000, 50 000, 100 000 and 500 000 Dong notes and 200, 500, 1000, 200 and 5000 dong coins. However the most useful are the 50 000 and 100 000 notes in tourist areas, and 5000 and 10 000 in Vietnamese stores. US Dollars are accepted throughout Vietnam and many prices are quoted in dollars rather than Dong.
There are currently four categories of taxpayers in Vietnam, two of which apply to expatriates:
Taxes in Vietnam have been subject to a lot of changes recently and so it is best to check with your employer about the current situation.
In 2009 salaries were taxed on a sliding scale up to 40 percent of your gross monthly salary.
However, during 2010 the taxation system in Vietnam was being changed and taxes may be decreased. A general rule of thumb seems to be that expats residing in Vietnam will be taxed at least 25 percent on monthly gross salaries of up to 5,500 USD.
From January 2010 foreigners were required to participate in a social scheme with a maximum amount of 50 USD. All taxes should be deducted from your gross salary by the employer.
In order to open a bank account in Vietnam you will need your passport and a copy of your work contract as well as an initial deposit which varies depending on the bank you’ve chosen. Some banks require a letter from your landlord stating that you are legally renting from him or her, but most just need a valid address at which they can contact you – usually your work address is best suited.On opening an account some banks will ask you whether you wish to bank in Vietnamese Dong or US Dollars, this means that you can choose which currency you want to store your savings in. All ATMs, except ANZ, allow withdrawals of two million Dong at a time. ANZ allows four million Dong withdrawals. Your bank will issue you with a bank booklet and a card once your account has been authorised.
Money and Taxes
The currency in Vietnam is the Vietnamese Dong. It is divided into 100, 500, 1000, 2000, 5000, 10 000, 20 000, 50 000, 100 000 and 500 000 Dong notes and 200, 500, 1000, 200 and 5000 dong coins. However the most useful are the 50 000 and 100 000 notes in tourist areas, and 5000 and 10 000 in Vietnamese stores. US Dollars are accepted throughout Vietnam and many prices are quoted in dollars rather than Dong.
There are currently four categories of taxpayers in Vietnam, two of which apply to expatriates:
- Individuals who do not have Vietnamese citizenship but reside in Vietnam indefinitely.
- Foreigners working in Vietnam, including those who do not live in Vietnam but have income which is sourced in Vietnam.
Taxes in Vietnam have been subject to a lot of changes recently and so it is best to check with your employer about the current situation.
| Level | Average monthly per capita income | Rate (%) |
| 1 | to 8,000 | 0 |
| 2 | over 8,000 up to 20,000 | 10 |
| 3 | over 20,000 up to 50,000 | 20 |
| 4 | over 50,000 up to 80,000 | 30 |
| 5 | over 80,000 | 40 |
In 2009 salaries were taxed on a sliding scale up to 40 percent of your gross monthly salary.
However, during 2010 the taxation system in Vietnam was being changed and taxes may be decreased. A general rule of thumb seems to be that expats residing in Vietnam will be taxed at least 25 percent on monthly gross salaries of up to 5,500 USD.
From January 2010 foreigners were required to participate in a social scheme with a maximum amount of 50 USD. All taxes should be deducted from your gross salary by the employer.
