Introduction - Freelancing in Vietnam
Freelancing in Vietnam is booming. From the bustling tech scene in Ho Chi Minh City to the tranquil beaches and rice fields of Hoi An, the country has become a hotspot for foreign freelancers, digital nomads, and even English teachers. The low cost of living, strong internet infrastructure, and a growing appetite for international talent make Vietnam attractive. But there’s a catch: the legal framework for foreign freelancers isn’t straightforward. Missteps in visa status, work authorization, or tax compliance can lead to serious consequences.
This article breaks down the legal risks and penalties of freelancing in Vietnam. We cover the laws that apply, the real-world consequences of non-compliance, and how you can legally protect your livelihood and stay in the country long term. Whether you're building a remote design studio, teaching a few private English classes, or running a yoga studio, this guide is essential reading.
Who Needs This Guide Most?
- Digital nomads in Vietnam long-term and taking on remote contracts
- English teachers supplementing their income with private lessons
- Consultants and creatives doing project-based work for Vietnamese clients
- Freelance developers or marketers working with multiple local or international firms
If you're in any of these categories, staying compliant isn't just a legal formality—it's essential for sustaining your work and lifestyle in Vietnam.
And don't miss out on the FAQ at the end of the article!
Why Foreigners Choose to Freelance in Vietnam
Vietnam offers many professional opportunities to go with an enticing lifestyle: affordable cities, lively culture, and a strategic location in Asia. Many freelancers and remote workers enjoy the freedom of choosing their projects and clients while living in a place where their income stretches further.
Monthly costs in major cities like Ho Chi Minh City or Hanoi can be under $1,000 for a modest but comfortable lifestyle. Co-working spaces, international cuisine, and well-developed transport options make life easy and enjoyable.
Vietnam is also a growing hub for industries such as fintech, e-commerce, digital marketing, education, and renewable energy. Opportunities for consultants, content creators, developers, and teachers continue to grow, particularly as startups seek international perspectives and bilingual skillsets.
However, this appealing landscape comes with legal limitations:
- Tourist visas do not permit any form of paid work—even remote freelance work.
- Business visas (DN) allow you to attend meetings and explore opportunities but do not authorize income-generating activities unless linked with a sponsoring entity.
- Work Permits are required to work legally, and these must be sponsored by a Vietnamese company, together with a Temporary Residence Card (TRC) for long-term stay.
- Investor Visas are allow you to stay long term, but do not allow for direct income generating employment, or to receive a salary.
Wanna know more about different Visa Options for Vietnam? We've written about it extensively.
Assuming you can freelance on a tourist or business visa is a risky misconception. Vietnam has clear legal distinctions between being a visitor, a business guest, and a worker. Freelancers should take steps to align with immigration, labor, and tax laws to enjoy the country without risking penalties or deportation.
Legal Landscape: Vietnam Work Permits, and Work Contracts
In Article 13 of Law No. 45/2019/QH14 of Vietnam's Labor Code (2019), foreigners are required to hold a valid work permit when working for a Vietnamese entity or residing in the country while earning income. These permits are specific to the employer, job title, and location.
Freelancing for multiple clients without the proper visa or work permit can result in non-compliance, especially if the clients are Vietnamese entities.
Confusion often arises between two types of agreements: labor contracts and civil contracts. While companies sometimes prefer civil contracts to bypass work permit requirements, misusing them can lead to reclassification and penalties. If your freelance engagement includes scheduled hours, long-term duties, or oversight from the client, it may be considered employment under the law.
- Labor contracts involve formal employment relationship with regular hours, monthly salary, social insurance, and integration into a company’s hierarchy. A full-time English teaching job or a salaried tech role are clear examples.
- Civil contracts on the other hand should be task-oriented, short-term, and without supervisory control. A freelance designer hired to deliver a logo or a consultant conducting a one-off workshop fits this model. If such freelancers begin reporting regularly or follow internal protocols, their arrangement risks being treated as disguised employment.
This distinction matters.
Misclassification can trigger back taxes, fines, or immigration issues. When unsure, consult a lawyer to ensure contracts align with your actual work conditions.
What Can Go Wrong
Working without a proper permit or on the wrong visa can lead to serious penalties. Foreign freelancers caught working illegally face fines ranging from 15 to 25 million VND (US$600 to $1,000) as stipulated in Article 32, Clause 3 of Decree 12/2022/NĐ-CP, potential deportation, and even blacklisting from Vietnam.
The companies that hire them aren't off the hook either; they face fines of 30 to 75 million VND per infraction.
Authorities have increased enforcement in recent years. In one case, a freelance videographer who collaborated with multiple Vietnamese production companies without a proper work permit. After posting their portfolio on social media, they were flagged during a visa extension process and ultimately deported.
Understanding Taxes: PIT and Residency Status
Freelancers in Vietnam are subject to Personal Income Tax (PIT); if you reside in the country for more than 183 days in a year, you become a Vietnam tax resident and are required to declare global income. And, even if you're below that residence threshold, income earned in Vietnam is still taxable under local rules.
Freelancers working under civil contracts are generally subject to a 10% withholding tax. This tax must be paid through your client or self-declared at the tax office. However, this setup can be risky—especially if your civil contract is later reclassified as a labor contract.
As discussed earlier, if the nature of your engagement includes supervision, fixed hours, or regular payments, tax authorities may view it as employment. In such cases, you're liable not just for personal tax, but potentially for unremitted social insurance contributions and penalties.
Want to have a better understanding of tax requirements in Vietnam? We've made a basic guide to help you!
The key is proper documentation and consistent tax reporting. Many freelancers operate "under the radar," but this is increasingly risky given the government's digitalization of tax and immigration records.
Ensuring your contract structure aligns with your actual working relationship is essential not just for labor compliance, but also for tax accuracy and audit protection.
Multi-Client Work: Secondary Work Permits in Vietnam
If you're working with multiple clients—especially within Vietnam—you may need additional work permits. Vietnamese law allows for dual employment, but only if each employer applies for a separate work permit. This process is not automatic and requires careful coordination and time.
Short-term freelance work of less than 30 days may be exempt from permits, but only under very specific conditions and with formal declarations.
According to Article 7 of Decree 152/2020/NĐ-CP, the exemption typically applies to foreign experts, specialists, or technical workers who enter Vietnam for under 30 days to offer consulting, training, or execute short-term technical tasks. The employer must still notify the local Department of Labor at least three working days before the foreigner begins working. And it has to be noted that this is not a straightforward process.
How to Qualify for Short Term Exemption
In such cases, the foreigner should enter Vietnam using a business visa (usually the DN1 type), which is appropriate for short-term, non-permanent professional activities. This visa does not itself permit salaried employment, but it can be used in conjunction with a short-term exemption if all required conditions and formalities are met.
- The work must fall under one of the qualifying exemption categories such as expert consulting, training, or highly technical short-term support
- The assignment must not exceed 30 consecutive days
- The total working duration in Vietnam must not exceed 90 days in a calendar year
- The employer must submit a formal written notification to the local Department of Labor at least three working days before the foreigner begins work
- The foreigner must enter Vietnam using a DN1-type business visa.
Any deviation from these criteria could disqualify the exemption and subject the foreigner to standard work permit requirements.
Examples of potentially qualifying work include:
- A marketing strategist from abroad contracted to run a one-week workshop for a Vietnamese agency, provided they are recognized as an expert and their activities are confined to the defined short-term scope.
- A software engineer employed by a foreign company visiting a Vietnamese branch or partner organization to implement a new system within two weeks, where the task involves technical guidance or training.
- An English teaching expert invited by a licensed language center to deliver a two-day training session for local teachers, with formal documentation and employer notice filed in advance.
In all these cases, the individual must meet the qualifications of an expert or technical specialist and ensure that the short-term engagement is limited in scope, duration, and responsibility. Additionally, they must enter Vietnam on a DN1 business visa and comply with all notification and exemption procedures outlined by the Ministry of Labor.
However, these exemptions are narrowly interpreted. Routine freelance work, especially involving multiple clients or recurring engagements, will not qualify. Always confirm your status with a legal expert before assuming exemption applies.
Common Mistakes Foreign Freelancers Make
- Using tourist or business visas to work: These visas do not authorize employment and using them for paid work can result in deportation or blacklisting.
- Assuming civil contracts are foolproof: Civil contracts must be project-based, limited in scope, and free from supervision. If your contract resembles employment—with regular hours, reporting obligations, or integration into a company's operations—it risks being reclassified as a labor contract. This triggers not only labor law violations but also additional tax and social insurance liabilities.
- Ignoring tax obligations: Not declaring income or failing to pay the 10% PIT exposes you to audits, penalties, and potential interest on unpaid amounts. Misclassified contracts can worsen this risk.
- Working for multiple companies without permits: Vietnamese law requires a separate work permit for each employer unless the engagement qualifies for exemption. Even then, specific conditions under Article 7 of Decree 152/2020/NĐ-CP must be met: your assignment must be under 30 consecutive days, not exceed 90 days per calendar year, and must be supported by advance written notice to local labor authorities. You must also enter on a DN1 business visa.
Avoiding these mistakes requires awareness and preparation. Review your work structure, visa type, and contractual terms carefully.
Can A Foreigner Do Freelance Work if They Already Have a TRC/Work Permit?
One common question is whether foreigners with a valid Temporary Residence Card (TRC) tied to an existing employer can also engage in freelance work for a second company. The answer depends on the legal basis for that work.
- A TRC issued in connection with a work permit is specific to the employer that sponsored it.
- If you wish to freelance or work for a second company, you must either apply for a second work permit sponsored by that company, or ensure the freelance engagement qualifies under a civil contract that does not violate labor regulations.
- Freelance work must be truly project-based, without ongoing managerial oversight, fixed work schedules, or integration into the second company's operational structure. The engagement should be clearly limited in duration and scope, with outputs defined by deliverables rather than daily performance or company protocols.
Even with a TRC, working for another entity without proper authorization—especially in an employment-like relationship—can result in fines, revocation of the TRC, or even deportation.
When in doubt, seek expert legal or HR guidance to evaluate your secondary work arrangements and ensure they comply with immigration and labor law.
How to Stay Compliant
Here are some simples steps to to avoid issues and fines:
- Assess your visa and work status: Are you working under the correct legal framework?
- Structure contracts properly: Make sure civil contracts are truly non-employment in nature.
- Apply for a work permit: For long-term or recurring work, this is essential.
- Declare your income: Register for a tax code and pay PIT.
- Consult legal or HR professionals: Especially if you plan to work for more than one client.
Consider establishing a legal entity such as a foreign-owned LLC if you're running a business in Vietnam. This gives you access to full legal protections, the ability to invoice clients, and better tax planning options.
Frequently Asked Questions (FAQ)
1. Can I freelance in Vietnam on a tourist visa?
No. Tourist visas do not permit any form of paid work, including remote freelance work. Doing so can result in fines, deportation, or blacklisting.
2. Can I work for more than one client or company in Vietnam?
Yes, but only under strict conditions. Each company must sponsor a separate work permit, or your freelance work must qualify as exempt under Article 7 of Decree 152/2020/NĐ-CP. Otherwise, it may be considered illegal employment.
3. What taxes do freelancers need to pay in Vietnam?
Freelancers are typically subject to a 10% withholding tax on income earned under civil contracts. If you stay in Vietnam for more than 183 days per year, you are considered a tax resident and must declare global income.
4. What qualifies for a work permit exemption?
Short-term work (under 30 days per assignment and under 90 days/year total) by recognized experts or technical workers may qualify. You must enter on a DN1 visa, and the employer must notify the local labor office at least 3 working days in advance.
5. Can I register a business in Vietnam as a freelancer?
Yes, but foreigners generally need to establish a foreign-owned company (e.g., LLC), which requires investment capital, a registered business address, and licensing. Sole proprietorships are typically reserved for Vietnamese nationals.
Final Thoughts
Freelancing in Vietnam can be incredibly rewarding, but it's not without legal challenges. Understanding the distinction between visas, work permits, contracts, and tax obligations is critical. Ignorance isn't a valid defense—and penalties can be severe.
By structuring your freelance career legally, you protect yourself and your income. It may require some paperwork and planning, but the peace of mind is well worth it.
If you're a digital nomad, English teacher, or freelancer working in Vietnam, it's time to take compliance seriously. We offer a free Freelancer Legal & Tax Checklist for Vietnam to help you:
- Understand your visa and permit obligations
- Structure civil contracts the right way
- Calculate and declare your taxes
Need personalized support? Drop us a note now!
Schedule a free consultation!
Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or investment advice. While every effort has been made to ensure accuracy at the time of publication, laws and regulations may change. Readers are encouraged to consult with qualified legal or financial advisors before making decisions related to foreign investment or share transfers in Vietnam. United Consulting is not liable for any actions taken based on this content.
Freelancing in Vietnam: Legal Risks, Penalties and Compliance for Foreigners