Doing Business

Public Holidays in ASEAN countries (Part 1 – Vietnam)

Trường Lăng

January 2, 2024

Doing Business

Public Holidays in ASEAN countries (Part 1 – Vietnam)

Trường Lăng

January 2, 2024

Every nation is distinguished by its own culture. Thus, their national holidays are celebrated differently and uniquely. These also affect investors in making investment decisions, aside from the business and legal environment. Therefore, it is crucial for business owners to understand and familiarize themselves with traditional holidays and practices. In this article, Viettonkin will provide insights and tips for investors about Vietnamese national holidays and labor compliance.

Vietnam’s public holidays

Vietnam is known for its deep-rooted and diverse culture, in which national holidays are often associated with Vietnamese traditions and customs, or special events in history.
For example, the Lunar New Year (“Tet Holiday”) is considered the most important and desirable public holiday of the year. Tet usually happens on the 1st day of the lunar new year and symbolizes warmth and family reunions. Besides, Hung King’s Anniversary on April 30th and May 1st annually reflect Vietnamese origin and philosophy “When drinking water, remember the source”. Thus, people have several days off to commemorate and show gratitude towards Hung King and his forefathers.

tet
Tet Holiday in Vietnam (Source: Internet)

In addition, another significant holiday in Vietnam is on September 2nd – Independence Day. Vietnamese people celebrate the day when the country was established and recall the heroic history of the nation.

b
 Independence Day in Vietnam (Source: Vnexpress International)

In Vietnam, the holiday schedule for special holidays such as the Lunar New Year, and Hung King’s Anniversary, among others, will be regulated by the state. Traditionally, the Tet holiday is the longest holiday, lasting for 7 days, from February 8th to February 14th in 2024. For the remaining holidays, employees will have a maximum of 6 days off.

image

Regarding civil servants, they will have 7 days off on Tet Holiday as mentioned above (February 8th – 14th, 2024). For non-civil servants, the Lunar New Year holiday in 2024 will be determined by the employer’s decision. Accordingly, the employer has three options following the lunar calendar for this holiday:

– 1 day off at the end of the previous year and 4 days off at the beginning of the following year 

– 2 days off at the end of the previous year and 3 days off at the beginning of the following year 

– 3 days off at the end of the previous year and 2 days off at the beginning of the following year 

If the weekly day off coincides with Tet holiday, the employee will be compensated by taking the day off on the next working day.

Implications of public holidays for enterprises and companies  in respect of the Calculation of Employee Salary and Holidays

The Labor Code 2019 stipulates how salary is calculated during public holidays, annual leave, and personal leave. In case employees are off work, the salary for employees on public holidays, annual leave, and personal leave is the salary according to the labor contract at the time they take leave. Some expenses, such as mid-shift lunches, allowances for gas, a car, a phone, and other items, are not included in the salary used as the foundation for public holidays.
In case the employees are on duty during public holidays, the employee’s salary is calculated as follows (Article 98 of the Labor Code 2019)
Employees who work overtime on public holidays and paid holidays are paid at least 300% of their salary, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries. Specifically, for employees who receive hour-based wages on public holidays, the overtime pay is equal to the actual hourly wage paid on a normal working day multiplied by 300% multiplied by the number of overtime hours, excluding the daily salary during public holidays or paid leave in case the employee receives a daily salary.
Meanwhile, for employees who receive product-based wages on national time off, the overtime pay is equal to the unit price of the product salary of the normal working day multiplied by at least 300% and multiplied by the number of products.
One mindful note for investors in Vietnam is that holidays will affect the tax planning of investors. They might be extended if the legal and compliance due dates coincide with public holidays. Thus, paying attention to national holidays is essential. Being attentive to public holidays may help investors schedule their tax compliance ahead of the due date, hence fulfilling tax obligations on time.
To avoid future legal violations, investors are advised to consult leading experts in the field. In this way, investors can reduce the risk of non-compliance, and legal concerns, thus focusing more on core business activities. With decades of experience in many Southeast Asia markets, along with a team of seasoned and professional experts insightful of the regional and domestic markets, Viettonkin is willing to accompany and support investors along Vietnamese legal procedures and compliance

Related posts

Doing Business

Public Holidays in ASEAN countries (Part 4 – Indonesia)

Famously known as “The Emerald of the Equator”, Indonesia is home to at least 300 ethnic groups, in which the majority of the population belong ...
Read more
Doing Business

Public Holidays in ASEAN countries (Part 3 – Singapore)

Singapore is a melting pot of diverse cultures with a socio-cultural fabric of Chinese, Malaysian, Indian, among others. This distinct yet harmonious blend of various ...
Read more
Doing Business

Investing in Southeast Asia: Rising Opportunities

In recent years, investing in Southeast Asia has gained remarkable significance for businesses and investors worldwide. The region’s dynamic economies, strategic location, and abundant opportunities ...
Read more
Doing Business

Intra-ASEAN Trade: How Vietnam Leads the Way

Vietnam’s role in intra-ASEAN trade and economic cooperation is pivotal in shaping the region’s dynamics. Situated at the crossroads of Southeast Asia, Vietnam‘s strategic geographical ...
Read more

Download our Latest Ebook about Real Estate and Property!

Real estate holds a pivotal position in the development of a country, not only via the spillover impacts on other economic sectors such as construction, manufacturing, tourism, finance and banking etc. but also affecting the social dynamic by mobilizing the residency and infrastructure system. Foreign direct investment in real estate (RFDI) in Vietnam has a long running history and is unique in that it is largely dominated by the private sector compared to other industries which usually still have a rather large Government involvement. International capital has consistently been selecting real estate as the destination of choice, given that RDI has always been in the top 2 and 3 for volume inflow over the last 10 years, even throughout extremely turbulent periods such as COVID-19, per the General Statistics Office of Vietnam’s (GSO) data. Find out more in this ebook edition.

Tải cuốn ebook mới nhất về nền kinh tế số Việt Nam!

The digital economy of Vietnam has been fueled and accelerated by the global digital trends and the pandemic Covid-19. The movement of digital transformation is underway in every corner of Vietnamese life, strongly influencing the way people do things. Digital economy is the future of the Vietnam economy. Realizing the potential of the digital economy, the Vietnam government has issued policies, guidelines and created legal frameworks to support and further enhance this economy. In this ebook edition, the digital economy is looked at from different angles. Perspectives from the key elements comprising Vietnam digital economy are examined and discovered.

Our Happy Clients