🇻🇳 COUNTRY A Vietnam VS 🇨🇳 COUNTRY B China

Vietnam's Personal Income Tax uses seven progressive brackets for employment income: 5% up to VND 60M/year; 10% from VND 60M–120M; 15% from VND 120M–216M; 20% from VND 216M–384M; 25% from VND 384M–624M; 30% from VND 624M–960M; and 35% above VND 960M/year (approximately $38,400 USD at current rates). Foreign nationals who are Vietnamese tax residents (physically present 183+ days in a tax year, or with a permanent address in Vietnam) are taxed on worldwide income using these rates. Non-residents pay a flat 20% on Vietnam-source income. Personal deductions: VND 11M/month for the individual plus VND 4.4M/month for each dependent. Employers withhold monthly; residents file an annual settlement return.

Under Chinese IIT law, foreign nationals who have been Chinese tax residents for fewer than 6 consecutive years generally pay IIT only on China-source income. Non-China-source income not remitted to China is exempt. Once a foreign national completes 6 consecutive years of Chinese tax residency without a qualifying break, they become liable for IIT on worldwide income. To reset the 6-year clock: the individual must either leave China for 31+ consecutive days in a single trip, or spend 91+ days outside China in total in a calendar year. This rule drives many long-term expats and multinationals to carefully plan annual absence from China. In practice: expats on 2–4 year assignments typically have no issue; those on longer placements need deliberate break-planning in year 5.

Yes — since January 2018, foreign workers employed under Vietnamese labour contracts are required to participate in Vietnam's social insurance scheme (VSS). Employee contributions: compulsory social insurance (pension + death benefit) 8%, health insurance 1.5%, unemployment insurance 1% — total 10.5%. These apply on salary up to 20× the base minimum wage per month, which is approximately VND 46.8M/month (VND 561.6M/year = approximately $22,400 USD annually at current rates). Above this ceiling, no VSS is payable on the incremental salary. Foreigners working in Vietnam under intra-company transfer or business visitor arrangements (under specific conditions) may be exempt — the VSS requirement applies specifically to those with Vietnamese employment contracts.

China remains the global manufacturing hub by scale — the world's largest factory ecosystem, sophisticated supply chains, and unmatched infrastructure. For manufacturing professionals in electronics, automotive, and heavy industry, China provides the deepest career ecosystem. Vietnam is the leading China+1 destination — Samsung (world's largest smartphone factory in Vietnam), Intel, LG, and Apple supplier networks have established major production in northern Vietnam (Hanoi/Bac Ninh). Ho Chi Minh City is the commercial hub. For expats specifically: Vietnam offers a lower tax burden at mid-income levels (particularly due to VSS caps), lower cost of living, and a less complex regulatory environment for foreign professionals. Compensation levels are rising rapidly. For a 2–4 year assignment in supply chain or manufacturing, Vietnam increasingly competes with China on both economics and career development.