Introduction

If you’re ready to reject your 9-5 job and take up work on your own time on your own terms and start your journey as a freelancer, Vietnam is your perfect place to be. 

Whether you’re looking to work from the bustling markets of Hanoi, the dreamlike emerald waters of Hạ Long Bay, or the city beaches of Da Nang, this storied Southeast Asian country offers the perfect balance between work and lifestyle. And as one of the fastest-growing economies in the world — with a burgeoning IT sector — there are plenty of opportunities for potential clients too.

Before you can get started with your freelance journey, you’ll need to know how to:

1. Register your business in Vietnam
2. Avoid misclassification as an employee
3. Create compliant contracts that protect you
4. Invoice and collect payments from around the world

In this article, we’ll cover information about how to become a freelancer in Vietnam and navigate your tax responsibilities as a self-employed worker. We’ll also discuss some of the other risks and liabilities you should be aware of.

Who is an independent contractor in Vietnam?

Independent contractors are people who work to provide services or products independent of an organization. They are not entitled to the same benefits as employees hence they are not classified as such. These benefits include paid leaves, sick leaves, minimum wage etc. While contractors don’t get these benefits, they work on their own terms and are free to choose what to work and what not to work on. They are the soul decision makers of their work and life. 

In Vietnam, there is no specific employment law or code that covers independent contractors. However, the Labor Code of Vietnam outlines the legal definitions of employer-employee relationships and contractual agreements. Based on these guidelines, you’re considered a contractor if you:

• Determine your own work schedule and working hours
• Perform work for other companies
• Set your own rates and scope of work
• Provide your own tools or equipment
• Are not integrated into one specific company and its operations (i.e., you don’t have an internal email address)
• Are able to delegate or subcontract work
• Work without direction or supervision

When you work with clients, it’s important to be correctly classified to avoid penalties and fines, and to ensure you’re paying the right taxes.

With the independence of work also comes the independence of managing your incomes and finances your way which means one has to deal with invoicing and financing every time with different sets of clients. This process can become cumbersome and unorganized if not done wisely.  

Some of the most common ways to collect payments include:

• Bank transfers
• Direct deposits
• Paper checks
• Money orders
• Virtual wallets
• Digital and fintech transfer services like Transfi and Wise

These methods all have their own pros and cons. For instance, bank and digital transfers can be pretty quick but often come with hefty service fees. And if you have clients in other countries besides Vietnam, the payment collection process can be even more complicated. 

To carry out such transactions smoothly, you can use our finance solution - Transfi. Our platform is a simple, secure, and reliable way to get paid quickly in Vietnamese đồng — and with no hidden fees. 

Transfi has everything you need to manage and invoice your clients. You can even choose to get paid in your preferred currency, and Transfi will automatically convert the funds.

Once you submit an invoice, your employer receives a notification. The process will be streamlined from initiation to settling the payments. 

Learn more about how our platform can help you manage your freelance business.

Independent contractor taxes in Vietnam

As an independent contractor, you’re responsible for filing and paying your own taxes and making social security contributions.

The taxes you’re required to pay will depend on your residency status. Residency in Vietnam falls under two categories:

1. Non-residents: A non-resident is someone who lives in Vietnam for less than 183 days in a year. These individuals are subject to a flat tax rate of 20% on their Vietnam-sourced income. If you’re a foreign national working for a Vietnamese company on a contract basis, you need to pay a 20% tax on this income. 

2. Residents: A resident is someone who lives in Vietnam for more than 183 days in a year or has permanent residency. Resident independent contractors are subject to Personal Income Tax (PIT). The tax rates are progressive, ranging from 5% to 35%, depending on your annual income.

How Transfi can make your life easier as independent contractors 

As you can see, there’s a lot to take on board when setting up as an independent contractor. Transfi can help you with many of these challenges, allowing you to focus on growing your business and delivering to your clients without worrying about finance management. 

1. Easy and accessible cross border payments 

Navigating all of your clients’ payment systems can be complicated and time-consuming. And manual methods of collecting payments can increase the risk of fees, errors, and delays. Transfi gives you access to highly secure, streamlined services that make international payments cost-effective and efficient. You can use our platform to get paid in Vietnamese đồng (or other currencies). The process is as easy as making local payments and it comes with real time settlement across borders in desired currencies.

2. Payment methods and digital assets

When it comes to multiplicity of the kinds of transactions you’re dealing with in terms of different countries and different payment methods, it can become tedious to streamline your transactions. Transfi provides a variety of payment methods including digital assets, cryptos and stablecoins making it flexible to make transactions in the desired medium all on the same platform in minimal steps.

3. Ensures compliance with global regulation easing out taxation

Transfi provides compliance with global regulatory measures helping businesses avoid any legal complexities like establishing legal complexities in different regions and ensuring compliance with various tax laws and regulations. 

4. Round the clock customer support

With all these services and benefits comes the customer support that’s available 24/7 for all users. Transfi is also packed with use cases and resources making it extremely user friendly for anyone starting out with international payments.

Setting up as an independent contractor in Vietnam

Having the freedom and flexibility to work on your own terms is liberating. But your administrative responsibilities can distract from what you really want to be doing: helping your clients, delivering great work, and collecting invoices.

By using a stable, trusted platform like Transfi, you can manage these obligations quickly and efficiently, allowing you to focus on your business goals. Specifically, we can help you:

• Avoid intermediary fees and delays with international client payments
• Draft compliant contracts for Vietnamese and foreign clients
• Availability of payment methods and digital assets
• Ensure legal compliance across global regulations
• Providing immense customer support

Our platform makes it quick, simple, and seamless to get started as an independent contractor. Learn more about how our expertise can save you time and resources today.

Also find out about How to get paid as a remote worker without a PayPal account by following this link!

Must-Have income Management Tools for Freelancers

1. Transfi

Transfi is one of the best income management tools, making automating payables faster, safer, and more efficient. The end-to-end solution modernizes operations while providing an effective means to process payments internationally. Users can quickly and easily send payouts to suppliers, freelancers, and other recipients. The system also offers a variety of payment methods. From automation to virtual payment services and digital marketplaces, Transfi is a robust platform that delivers a worldwide quality experience. 

What does Transfi provide?

• Quick cross border transfers with instant processing
• Multi currency accessibility, provides 40+ currency options
• Multiple payment options 
• Effortless API integration
• Competitive and transparent pricing 
• 24/7 customer support

Transfi’s Bizpay provides a one stop solution for all your international payment needs, it is easily accessible and does not require a multi step- difficult process to make payments.

2. Payoneer

Payoneer makes it simple for freelancers, service providers, and stock photographers to manage their cross-border payments, proving getting paid for freelance work doesn’t have to be expensive or take a lot of time.

3. AND.CO

This tool streamlines the freelance flow from proposal to payment, all while allowing you to create and send customized contracts and invoices. You can accept payments through PayPal, credit card, or ACH bank transfer, and if a client hasn’t paid on time, they’ll even send out a payment reminder.

4. Mint

This financial tracking app allows you to see everything at a glance, which is perfect for freelancers who want to see all their financial information in one place. Mint allows you to pull information from your bank accounts, credit cards, savings, and investment accounts, giving you a comprehensive overview.

5. Cushion

Cushion was designed by freelancers who understand the roller-coaster ride that can be trying to run a business. According to the team, “we’re solving our own problems by building Cushion, while still using it to manage our freelance work.” They know what you’re looking for and do their best to provide it.

Conclusion

By switching to modern day payment solutions complying with local systems diligently, the Vietnamese working population has achieved a well built financial setup for international payment operations. These streamlined solutions have helped make payment processing efficient and eliminating unnecessary delays. Platforms like Transfi optimize cross border payments coming at the ease of users requirements, easy integrations combined with quick customer support, this efficient solution makes up the perfect medium for transactions in real time at completely transparent and low pricing.

Frequently asked questions (FAQs)

1. Why do freelancers trust Transfi for cross border payments and income management?

• Seamless cross border payments
• Low setting up cost
• User friendly systems
• Multiple currency and payment options
• 24/7 customer support 

2. How can freelancers accept payments from international clients?

Freelancers can receive international payments through various online platforms such as Transfi, PayPal, Stripe, Wise, and Amazon Payments. One can use Transfi for easy, minimal and flexible international payments as you can receive money in desired currencies or cryptos without exchange costs or additional charges.

3. What are the things to consider when getting paid as a freelancer in Vietnam?

• Evaluate the nature of your services and clients
• Consider your business structure
• Take into account the size and frequency of payments
• Consider ease of use and accessibility for your clients
• Understand fees
• Consider security 

4. What are the ways in which freelancers in Vietnam can accept payments? 

• Bank transfers
• Direct deposits
• Paper checks
• Money orders
• Virtual wallets
• Digital and fintech transfer services like Transfi and Wise

5. How do I avoid being charged high fees when paying international freelancers?  The high-cost charging avenues to avoid include PayPal and wire transfers, replacing them with the much lower-priced BizPay that charges minimal transaction fees and offers competitive forex rates.