Salary negotiations Vietnam
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Hi all,
I've been through several rounds of interviews for an expat job in HCMC.
(experienced / management level)
Today, afer round 3 the HR director is asking me to share them my salary expectations.
So I've been Googling for some latest salary guides.
But since this is quite new to me I was wondering: is this the normal way of working?
Does anyone have experience with how these negotiations usually work?
(I'm used to companies giving you the first offer)
And are there any specific benefits/requirements I need to keep in mind while negotiating a package?
Currently I gathered this much:
- Healthcare will be included
- I'll have to arrange my own housing.
- Flights / visa will be arranged by the company.
I have a friend in the same situation, no offer yet after 4 interviews. Pick a salary you want, raise it and let them negotiate with you.
RCP79 wrote:Hi all,
Today, afer round 3 the HR director is asking me to share them my salary expectations.
I would simply ask the HR director what is the salary range for this position. This should give you an idea what they are willing to pay on the low and high end. Then decide where you are comfortable accepting the position.
I agree with Coder X10. You might word it another way such as: "What is the usual salary for a person in this position here in Vietnam?" or, if you want to be even more direct, "What did you pay the last person who had this position?"
Hiring Expats rules changed in Feb 2021
Its now a little more difficult
At the end of the day its about the value you can add
Thanks for the input
What rules we're changed this year?
Actually, before the first interview they also asked for a preferred salary.
So I gave them a ballpark figure to which they replied: is that gross or net?
Which (in Europe) is quite an unusual question, but since it did not scare them off I guess it is in their range.
I'm thinking I should up the number a bit since I found out housing isn't included.
RCP79 wrote:Thanks for the input
What rules we're changed this year?
Actually, before the first interview they also asked for a preferred salary.
So I gave them a ballpark figure to which they replied: is that gross or net?
Which (in Europe) is quite an unusual question, but since it did not scare them off I guess it is in their range.
Strange question, never heard that one before!! must be before & after tax etc
I'm thinking I should up the number a bit since I found out housing isn't included.
for sure you should, housing is not cheap, but depends on what salary they are offering suppose
Employing foreigners got raise this year, if they are here on a TRC and married to a local they don't need a work permit
As for the salary negotiation, try looking at Glassdoor they usually have guides reviews of the employer including salaries.
At the end for why day whatever figure you say they are going to try and best you down, here cheaper is better in most companies opinion
Surely the flights part is past tense.. you are already here so how is that an issue? Same with housing..
Health insurance by any professional company will be included, though don't bank on that being able to cover all your potential medical expenses. Hopefully you won't need them.. but it's worth bearing in mind
Thanks for the information, but I'm not in Vietnam yet, I'm still in Europe.
All my interviews we're online.
I've done business trips to VN before though.
I don't know anything about salary, but I do know about the benefits that most companies offer their employees, based on what ALL the oil and oil-related professionals in my building received before COVID:
- Housing allowance (up to 15M/month in Vung Tau. Utilities are not part of the allowance.)
- Transportation (with driver but only during workweek)
- Lunch (I don't know where)
- Health care
- Once a year airfare back home for family visitation
RCP79 wrote:Hi all,
I've been through several rounds of interviews for an expat job in HCMC.
(experienced / management level)
Today, afer round 3 the HR director is asking me to share them my salary expectations.
So I've been Googling for some latest salary guides.
But since this is quite new to me I was wondering: is this the normal way of working?
Does anyone have experience with how these negotiations usually work?
(I'm used to companies giving you the first offer)
And are there any specific benefits/requirements I need to keep in mind while negotiating a package?
Currently I gathered this much:
- Healthcare will be included
- I'll have to arrange my own housing.
- Flights / visa will be arranged by the company.
I have been in discussions with a MNC also having their operations in HCMC. Have had two rounds of discussions (in the last 5 months), still inconclusive and the salary negotiation part is yet to start.
20-25 years of experience, management level, TRC for full family, healthcare for full family, 2 round trips for full family in a year, local conveyance with driver, etc by company. Housing not included. Indicative package mentioned by Headhunter was USD 80,000 - 90,000 per year before personal income tax, Well !!! this is for an engineering organisation. You need to keep in mind the tax issue to arrive at net which I understand is around 26% (please confirm) after all possible deductions. I also understand that the company may be amenable to consider school fees of one child as additional at actual (USD 15,000 - 20,000 per year in a good school).
Trust this is of some assistance.
andidips wrote:RCP79 wrote:Hi all,
I've been through several rounds of interviews for an expat job in HCMC.
(experienced / management level)
Today, afer round 3 the HR director is asking me to share them my salary expectations.
So I've been Googling for some latest salary guides.
But since this is quite new to me I was wondering: is this the normal way of working?
Does anyone have experience with how these negotiations usually work?
(I'm used to companies giving you the first offer)
And are there any specific benefits/requirements I need to keep in mind while negotiating a package?
Currently I gathered this much:
- Healthcare will be included
- I'll have to arrange my own housing.
- Flights / visa will be arranged by the company.
I have been in discussions with a MNC also having their operations in HCMC. Have had two rounds of discussions (in the last 5 months), still inconclusive and the salary negotiation part is yet to start.
20-25 years of experience, management level, TRC for full family, healthcare for full family, 2 round trips for full family in a year, local conveyance with driver, etc by company. Housing not included. Indicative package mentioned by Headhunter was USD 80,000 - 90,000 per year before personal income tax, Well !!! this is for an engineering organisation. You need to keep in mind the tax issue to arrive at net which I understand is around 26% (please confirm) after all possible deductions. I also understand that the company may be amenable to consider school fees of one child as additional at actual (USD 15,000 - 20,000 per year in a good school).
Trust this is of some assistance.
If you are still waiting after 5 months I seriously doubt it will amount to much more than discussions whoever the head hunter is they are probably stringing you along
Recruit here is brutal..
RCP79 wrote:Thanks for the information, but I'm not in Vietnam yet, I'm still in Europe.
All my interviews we're online.
I've done business trips to VN before though.
I wouldn't get your hopes up.. video interviews are ok but most serious companies prefer to hire people who are already here and even then you'd have to be at the top of your field
Jlgarbutt wrote:andidips wrote:RCP79 wrote:Hi all,
I've been through several rounds of interviews for an expat job in HCMC.
(experienced / management level)
Today, afer round 3 the HR director is asking me to share them my salary expectations.
So I've been Googling for some latest salary guides.
But since this is quite new to me I was wondering: is this the normal way of working?
Does anyone have experience with how these negotiations usually work?
(I'm used to companies giving you the first offer)
And are there any specific benefits/requirements I need to keep in mind while negotiating a package?
Currently I gathered this much:
- Healthcare will be included
- I'll have to arrange my own housing.
- Flights / visa will be arranged by the company.
I have been in discussions with a MNC also having their operations in HCMC. Have had two rounds of discussions (in the last 5 months), still inconclusive and the salary negotiation part is yet to start.
20-25 years of experience, management level, TRC for full family, healthcare for full family, 2 round trips for full family in a year, local conveyance with driver, etc by company. Housing not included. Indicative package mentioned by Headhunter was USD 80,000 - 90,000 per year before personal income tax, Well !!! this is for an engineering organisation. You need to keep in mind the tax issue to arrive at net which I understand is around 26% (please confirm) after all possible deductions. I also understand that the company may be amenable to consider school fees of one child as additional at actual (USD 15,000 - 20,000 per year in a good school).
Trust this is of some assistance.
If you are still waiting after 5 months I seriously doubt it will amount to much more than discussions whoever the head hunter is they are probably stringing you along
Recruit here is brutal..
Last discussions with the employer (not head hunter) was as recent as the last week of April. The opportunity is not moving forward because this is a BD position requiring moving around in SEA.
What I was trying to communicate to the OP through my post was, good engineering companies who have their operations in VN, pay around USD 100,000 per year as salaries plus other benefits as indicated.
Just tell them what your expectations are for salary and benefits. They will accept or counter if interested. The time period is abnormal but not the process.
I have given them my salary expectations.
Fingers crossed
Thanks for all the helpful answers on my post!
Hi all,
After giving the recuiter from the company my salary expectations, I actually got an initial offer today
After the initial excitement, now I'm wondering..
Since salary and holidays aren't bad, but quite far from what I indicated as expected:
Is it common/acceptable to give a counter offer in Vietnam?
I know there is probably not a simple answer for this, but I'd like to hear your experiences with this.
Just tell them you are not interested. Many companies here like to play silly games.
I tried to renegotiate my salary and they accepted several counter-offers without getting annoyed but ultimately didnt budge. Maybe if you are willing to decline they might budge, not sure. But for me it was currently the only interesting offer and I wasnt willing to let it slip for some 300-400 $ per month more.
I think one counter offer wont hurt, but not sure if its going to make a difference.
Good luck
RCP79 wrote:Since salary and holidays aren't bad, but quite far from what I indicated as expected:
Is it common/acceptable to give a counter offer in Vietnam?
If it is a management level position as you indicated and they already gave you an offer, you have some leverage. I would think they would expect you to counter to demonstrate your negotiation skills or lack thereof. If you are willing to accept the current offer, then I would recommend countering. If they say “we can’t do that,†then you can always back track to the original offer. Or they might meet you in the middle. You won’t know until you ask! Did they offer you housing or housing allowance?
It is indeed a management position.
They upped the salary a little after my counter offer.
The package is quite simple:
Current offer on the table is 90kUSD a year with healthcare and relocation covered.
No other benefits like housing, schooling, etc.
Compare it to what you get in your home country. Rents and schools are quite high in Saigon. 90k is not a great salary.
My friend is in upper management, he gets 200k, 30 million housing, health insurance for whold family, private school both kids,car and driver, 2 flights per year to anywhere in the world for whole family plus performance bonus and shares.
200k!? That sounds like really alot, where can I sign
I thought 90k was a reasonable salary for an expat in VN.
RCP79 wrote:200k!? That sounds like really alot, where can I sign
I thought 90k was a reasonable salary for an expat in VN.
Not if you have to pay rent, travel,health care and othercosts.
If you're happy with 90k, take it. You can live very well on 90k.
Have you looked at the personal income tax on your earnings?
RCP79 ...........The reminder from Colin on personal income tax is worth noting. As far as my information goes, personal income tax is 26-27% of the gross even after considering deductions for personal allowance, dependent allowance and quick deduction.
Google out "Vietnam pocket tax book" by pwc for the latest information on personal income tax for exact details. You may also like to look into - Vietnam salary guide by First Alliances. Both can give useful information.
Thanks! I'll check it out. I didn't know about this PWC book.
With the latest proposal (now raised to 95k, and judging by the tone of the mail it sounds like I reached the end of the bandwith) the company provided me a Gross income / Net take home overview which I found quite handy.
There are quite some deductions on it, but looking at the gross and net figure, tax seems to be 20%.
RCP79 wrote:Thanks! I'll check it out. I didn't know about this PWC book.
With the latest proposal (now raised to 95k, and judging by the tone of the mail it sounds like I reached the end of the bandwith) the company provided me a Gross income / Net take home overview which I found quite handy.
There are quite some deductions on it, but looking at the gross and net figure, tax seems to be 20%.
RCP79 wrote:With the latest proposal (now raised to 95k, and judging by the tone of the mail it sounds like I reached the end of the bandwith) the company provided me a Gross income / Net take home overview which I found quite handy.
Don’t over think yourself out of a deal. Making 90k usd in Vietnam is in the 1% of salaried jobs. Maybe you could have negotiate a better deal that included housing. Any foreigner I know that makes around that range has housing included. But if you really want to be in Vietnam, maybe bite the bullet and accept the offer to get your visa started. Which is no guarantee at this moment as HCMC has ban international flights arrival due to the recent Covid wave. If this company is willing to pay you that much, the competitor will surely match it, maybe with housing. Get into Vietnam first, that seems to be the biggest obstacle.
CoderX10 wrote:RCP79 wrote:With the latest proposal (now raised to 95k, and judging by the tone of the mail it sounds like I reached the end of the bandwith) the company provided me a Gross income / Net take home overview which I found quite handy.
Don’t over think yourself out of a deal. Making 90k usd in Vietnam is in the 1% of salaried jobs. Maybe you could have negotiate a better deal that included housing. Any foreigner I know that makes around that range has housing included. But if you really want to be in Vietnam, maybe bite the bullet and accept the offer to get your visa started. Which is no guarantee at this moment as HCMC has ban international flights arrival due to the recent Covid wave. If this company is willing to pay you that much, the competitor will surely match it, maybe with housing. Get into Vietnam first, that seems to be the biggest obstacle.
Thing is ..........the term/description manager or upper management is wide open...................expat manager of a small manufacturing company here might command a salary of 95k usd without extras. Ex pat manager of an oil rig working out of Vung Tau or based in HCMC will have a salary of at least 3 + times that complete with all the perc's cos thats what the job pays world wide. So the thing is ask yourself what would the job salary be back in your home country & 95k usd might be the going rate.
As said on this post 95k usd is a good salary on average here & you certainly wont go hungry even when paying tax, house, schooling, cost of living etc etc
Most expats will negotiate salary here in net amount, and most foreign companies will cover your tax here , otherwise most foreigners wouldn't come when they look into the tax rates.
The reason for this is the higher rate of tax is very low (have a look at the PWC booklet for exact rates) so even on a lowish salary of around 40K$ you will be losing a lot to tax, 35% i believe after the personal allowance of 13 million a month, around 500$ or so.
Tax depends on your residence here. Once you go over 183 days you are regarded as resident and pay tac and social insurance like a local. The 20% rate only applies if you are not resident in Vietnam.
Also be aware that Vietnam is like the US and taxes worldwide income. So technically any money that you earn outside of the country would be subject to tax in Vietnam at the applicable rate, after any deductions for allowances etc.
90K$ is a great net salary here, still great if it's taxable but you will lose a lot of that amount. Bare in my that the tax you pay here goes to a gov that is very corrupt and you don't get much back for those tax payments, although that's just my opinion of course.
When i see my payslip at the end of each month and finalisation at the end of the year i pay a lot more tax than i did in the UK for a comparable salary, however my employer covers that tax here, making it slightly more palatable.
Just Google Vietnamese salary calculator,most of the big recruitment companies have them
Splat enter your gross salary and other details and it breaks down your taxes and insurance contributions
After some more negotiations I closed the deal.
My employer will handle taxes and calculated for me it will be around 27-28%.
Google tells me the same, so I think it is accurate.
And although a bit more than initially expected, still much better than where I'm from!
Congratulations and welcome to Vietnam. Now learn to handle the locals under you. If you have not worked in Asia before, be prepared for all kinds of surprises. Some may not be as innocent in their dealings as you seem to see it. All the best as some will take you for a rude ride...
Hello, 200k as in what? USD or VN dong? Please be specific...and assume its per year...
gabbystares0y wrote:I should have replied here. Which company pays USD 200k in Vietnam?
Management positions in large multi-national companies.
AT realistic arithmetic, 200k USD per year = approx 17,000 usd per month. That is 388 million dong per month..
I doubt if you can get that in Employment!
Possibly one third of that..
More likely if you do business OR speculative deeds in Real Estate....
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