Vietnam Compensation Handbook: Practical Guide for Local vs. FDI
Dec 22, 2025
Last updated on Dec 22, 2025
Compensation practices in the Vietnamese market come with distinct challenges. Without a clear understanding of the local context, both local and FDI companies risk making misguided reward decisions — often resulting in the loss of critical talent without fully understanding the root cause.
The reality is different
Vietnamese local enterprises and FDI companies operate under very different business contexts, talent expectations, and structural constraints. Applying a single compensation model often results in rising costs, internal inequity, and weak retention outcomes.
To address this gap, Talentnet developed the Vietnam Compensation Handbook: Local vs. FDI — a concise guide designed to help organizations build reward strategies that truly fit the Vietnamese market.
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Why this handbook matters
- Local enterprises often struggle to systemize compensation while scaling quickly
- FDI companies face challenges localizing global reward frameworks
- Many organizations rely on assumptions instead of market data
- Compensation decisions are frequently reactive rather than strategic
This handbook helps leaders move away from ad-hoc decisions and toward clear, structured, and market-relevant compensation strategies.
What you will gain from this handbook
This practical guide brings together market insights, real-world advisory experience, and structured frameworks to help you:
- Understand the fundamental differences in compensation challenges between local companies and FDI organizations
- Identify common misconceptions that undermine attraction and retention efforts
- Clarify what must be defined before building a compensation strategy, including business goals, operating model, critical talent, and budget limits
- Learn how to localize global compensation policies while maintaining governance and competitiveness
- Apply a stage-based reward approach, aligned with business growth (market entry, expansion, maturity)
- Avoid the three most common mistakes organizations make when trying to standardize compensation too quickly
Rather than theoretical models, the handbook focuses on practical decision frameworks that HR leaders and business executives can apply immediately.
Who should not skip this handbook?
- HR Directors and C&B leaders under pressure to “fix” retention
- Business leaders questioning why payroll keeps rising but engagement doesn’t
- Local companies competing head-to-head with multinationals for talent
- FDI organizations struggling to make global policies work in Vietnam
If your organization is making compensation decisions that affect growth, margins, and leadership credibility, this handbook is not optional.
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