Financial Planning for Expats in Vietnam: The Complete Guide

Vietnam for internationally mobile individuals

Vietnam has emerged as one of Southeast Asia's most compelling destinations for internationally mobile professionals and entrepreneurs. Its economy has grown at among the fastest rates in Asia over the past decade, driven by manufacturing, technology, and a rapidly expanding services sector. Ho Chi Minh City (HCMC, still widely called Saigon) is a dense, energetic commercial hub; Hanoi is the political capital with a more measured pace. Da Nang and other coastal cities have attracted smaller communities of remote workers and retirees.

The country's appeal is not merely economic. Vietnam offers a warm climate, rich culture, excellent food, and — particularly in HCMC — a cost of living that remains substantially below major Western cities even after factoring in the premium costs of an international lifestyle. The expat community is large and well established.

For HNW individuals, however, Vietnam presents a set of financial and legal complexities that require honest assessment. There is no retirement visa, property ownership is significantly restricted, and the Vietnamese Dong is subject to currency controls. While a UK-Vietnam double taxation agreement has been in force since 1994, Vietnam's worldwide-income tax base and high marginal rates still require careful cross-border planning. Planning before establishing residence in Vietnam is not a formality — it is a necessity.

Visa and residency options

Vietnam's visa framework does not include a straightforward long-term residency option for most internationally mobile individuals who are not actively working.

The e-visa allows stays of up to 90 days, with single or multiple entries. It has been extended and simplified in recent years and is widely used as a first step. Many individuals in the "digital nomad" category live in Vietnam on a cycle of e-visa extensions or by briefly leaving the country to reset their permitted period.

Business visa (DN) and investor visa (DT) provide longer stays and a more stable basis for residence for those with a genuine commercial or investment tie. The DT visa requires an investment in a Vietnamese business entity, with minimum thresholds depending on the investment category.

Work permit and LD visa: foreign nationals employed by Vietnamese companies or foreign companies with registered operations in Vietnam require a work permit. The LD visa accompanies an approved work permit and can be granted for up to two years, with renewal.

Permanent residency (TT status) is possible after extended qualifying periods but is rarely the practical outcome for most expatriates without a Vietnamese family connection.

The honest position for anyone without a work or business anchor is that long-term legal residence in Vietnam is structured informally, through repeated visa renewals, rather than through a purpose-built retirement or residency programme of the kind available in Thailand, Malaysia, or the Philippines.

The Vietnamese tax system

Vietnamese personal income tax (PIT) is levied on a progressive scale for residents: 5% on taxable income up to VND 60 million per year, rising to 10%, 15%, 20%, 25%, 30%, and 35% on income above VND 960 million per year.

Tax residence is triggered by spending 183 days or more in Vietnam in a calendar year or in any 12-month period from the date of first arrival, or by having a permanent registered residence in Vietnam. Tax residents are taxed on worldwide income — employment income from anywhere, foreign investment income, rental income from overseas property, and capital gains. Non-residents are taxed only on Vietnamese-source income at a flat rate of 20%.

The worldwide income rule is the central planning concern for HNW individuals. A Vietnamese tax resident with a UK investment portfolio, a UK rental property, and a UK pension must consider all three in the context of Vietnamese PIT. A comprehensive UK-Vietnam double taxation agreement has been in force since 1994 and provides relief against double taxation on the credit method, but it does not remove Vietnam's worldwide-income exposure: relief depends on which country holds primary taxing rights over each income stream, and Vietnam's high marginal rates can exceed the UK credit available. Careful management of income timing, source, and the correct application of the treaty is essential, and specialist advice should be taken.

Capital gains: there is no separate capital gains tax for individuals in Vietnam on the disposal of most investments. However, gains from the transfer of real estate are subject to a deemed 2% tax on the transfer price (regardless of actual profit). Gains on securities transactions are taxed at a flat 0.1% on sale proceeds rather than on net gain.

No property CGT on primary residence: the disposal of a single residential property used as a primary residence is generally exempt, subject to conditions.

Property ownership for foreign nationals

Land in Vietnam is owned by the state; individuals can hold land use rights (LURs) but not freehold land title. For foreign nationals, the position is further restricted:

• Foreigners may own apartment units (not houses or landed property) for an initial term of 50 years, extendable on application.
• A maximum of 30% of units in any apartment building may be foreign-owned.
• In certain restricted zones — border areas, some tourist zones, and areas designated as sensitive — foreign ownership is prohibited or further limited.
• The foreign ownership limit has caused difficulties for resale, as a building that has reached 30% foreign ownership cannot accept further foreign buyers until existing foreign-owned units are sold.

Most foreign investors in Vietnamese real estate focus on HCMC (particularly the Thao Dien and An Phu areas of District 2/Thu Duc) and Hanoi (Tay Ho, Ba Dinh). Prices in these prime expat areas are substantially above the Vietnamese market average but remain very competitive by European or Singapore standards.

Banking and currency

The Vietnamese Dong (VND) is the official currency. Vietnam maintains a managed exchange rate system, and while the currency has been broadly stable against the USD in recent years, it has depreciated over longer periods. The State Bank of Vietnam monitors large foreign currency transactions.

Foreign currency restrictions: Vietnam imposes controls on foreign currency transactions. Large transfers out of Vietnam (above $10,000 or equivalent) require documentation. Repatriation of investment proceeds (sale of property, dividends from a Vietnamese company) follows specific procedures. This is a meaningful planning concern for HNW individuals who may hold illiquid Vietnamese assets and wish to repatriate capital.

USD is widely used alongside VND in commercial transactions, particularly in real estate and large business contracts. Some businesses in expat areas quote and accept USD, though technically transactions must be settled in VND.

Major Vietnamese banks: Techcombank, Vietcombank (VCB), BIDV, and VietinBank dominate the domestic market. HSBC Vietnam, Standard Chartered Vietnam, and Citibank Vietnam operate and are more accessible for international clients. Citibank's retail operations in Vietnam have been transferred to HSBC. Opening an account at an international bank typically requires a work permit or investor documentation; requirements vary.

ATM access is good in HCMC and Hanoi, with cash remaining important in daily transactions. Wise and Remitly are widely used for international transfers at the retail level. Large transfers should go through bank-to-bank channels with appropriate documentation.

Cost of living

Vietnam remains one of Southeast Asia's most affordable countries for expatriates on international salaries. HCMC is typically priced at 30–40% of London costs for equivalent lifestyle elements, though the premium expat zones (Thao Dien, District 2, District 1) command significant price premiums over the Vietnamese average.

Key cost benchmarks in HCMC (as of 2026):

• International school fees: USD 5,000–25,000 per year, depending on school and curriculum
• Apartment rental (expat areas): USD 1,500–4,000/month for a two- to three-bedroom apartment
• Domestic help: widely available at Vietnamese market rates, substantially below Western equivalents
• Healthcare: significantly cheaper than Western countries at local facilities; international hospitals (Family Medical Practice, FV Hospital, Vinmec) offer higher-cost but internationally comparable care

International schools

HCMC and Hanoi both have well-developed international school sectors. Schools following British, American, Australian, and IB curricula are available. Key schools include the British Vietnamese International School (BVIS), Renaissance International School, The International School of Vietnam (ISV), and Saigon South International School (SSIS). Fees range from approximately USD 5,000 to USD 25,000 per year depending on age, school, and curriculum. Places at the most established schools are competitive and early registration is advisable.

Planning priorities for HNW individuals

• Pre-arrival income review: map all foreign income sources and model the Vietnamese tax exposure before establishing Vietnamese tax residence, applying the UK-Vietnam DTA to confirm primary taxing rights and the credit relief available on each income stream.
• Visa structure: identify the most appropriate visa route given your work and investment activities; avoid reliance on informal visa run cycles for a long-term stay.
• Property: approach Vietnamese real estate ownership with specialist Vietnamese legal advice and full understanding of the 50-year ownership term, 30% cap, and resale restrictions.
• Currency: plan for VND instability and maintain core savings and investments in hard currencies outside Vietnam.
• Remittance planning: document the source of all funds transferred into Vietnam; maintain clear records to support repatriation of capital in future.

How Global Investments can help

Global Investments advises internationally mobile HNW individuals on the financial complexities of living and investing in Vietnam. We provide pre-arrival income and tax planning, coordinate the UK tax position with Vietnamese obligations, advise on cross-border portfolio management, and work with trusted local legal and tax counsel for matters requiring Vietnamese expertise. We are direct about the limitations of the Vietnamese system — the worldwide-income tax base, the property restrictions, the visa constraints — and help clients structure their affairs to manage these risks pragmatically.

Contact us for an initial conversation before making Vietnam your base.

This guide is for general information only and does not constitute tax, legal, or financial advice. Vietnamese and UK tax rules can change; seek professional advice specific to your circumstances before acting.