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Our Information Guide to you to help ease the transition of relocating to Vietnam. Relocating to a new place can be very stressful. We have compiled information that can be very helpful with the many issues you may consider. Here are some of the issues:

1. Coping with Culture Shock
2. Cost of living in Vietnam
3. Housing in Vietnam
4. Schools & childcare
5. Taxes & taxable income
6. Transportation

1. Coping with Culture Shock

Culture shock is caused by the stress of being in a new culture. It is a normal part of adjusting to new foods, customs, language, people and activities.

Symptoms of culture shock are:

• Unwarranted criticism of the culture and people
• Constant complaints about the climate
• Utopian ideas concerning one’s previous culture
• Continuous concern about the purity of water and food
• Fear of touching local people
• Refusal to learn the language
• Preoccupation about being robbed or cheated
• Pressing desire to talk with people who “really make sense.”
• Preoccupation with returning home
• Irritability
• Overly concerned with health
• Loneliness
• Hopelessness
• Distrust of hosts
• Withdrawal of people
• Lowered work performances

How can you cope with culture shock when in Vietnam?

The most effective way to combat culture shock is to step back from a given event that has bothered you, assess it, and search for an appropriate explanation and response. Try the following:

1. Are you misunderstanding the host people’s treatment of you? Where can you find more information about this aspect of the culture? Behavior which seems rude to you, may not be intended as rude. Polite customs are different for each culture. When situations seem senseless, remember the hosts may be following social rules unknown to you. Ask questions about social customs. And plan how you may want to act to this similar situations in future.
2. If you are still bothered by a situation, find ways to minimize the irritation. Is the situation necessary? If not, you may be able to avoid or minimize involvement.
4. What do you miss the most which was enjoyable in your home country? Look for ways to meet these desires or replace these with something new. For example, if you miss your favourite American steak, go to an American steakhouse or head to the supermarkets to cook some yourself. In Ho Chi Minh City, expatriates are fortunate as we are very cosmopolitan, it is very easy to find a treat from your own country as Ho Chi Minh City serves up many cultures’ food.
5. Develop friendships with both Vietnamese and people from your own country. At times the friendships with culturally different people will seem very taxing. That is why it is important to have people from your own country or area to spend time with also. This helps you re-energize for interacting cross-culturally. However, isolation in either group alone causes more adjustment problems.
6. Talk to people from your country about your stresses and ask how they have dealt with the same situation.
7. Continue improving your language proficiency (watch TV, listen to the radio, read books in English).
8. Have a sense of humor. Allow yourself to see the humor in misunderstandings or embarrassments. Laughter heals. Vietnamese are generally very easy-going and helpful.
9. Exercise and a nutritional diet also help to reduce stress.
10. Remember that some culture shock is a normal part of adjusting to a new country. However, the more severe symptoms mean the adjustment process is blocked and you need help to move into a more comfortable stage.
11. Find a place where you feel comfortable and spend time there. In Ho Chi Minh City, you can for example find your tranquility in the many air-conditioned coffee shops downtown.
12. Have certain times during the week or day when you don’t think about your research or problems, just have fun.
13. When problems seem to be building up, mentally step back from them. Divide your problems up, understand each one, and work on them one at a time.
14. If headaches and stomach aches become a constant problem, realize that they may be a sign of emotional problems, not just physical problems. If medical doctors and medication do not work, it might be time to see a counsellor.
15. It is important to maintain regular life patterns, for example eating meals at regular times and sleeping and exercising regularly.
16. When you begin to feel depressed, ask yourself: “What did I expect? Why? Was my expectation reasonable?” Sometimes, you may be setting your expectations from people too high, so lowering your expectations and try to understand the other party’s intentions will also help reduce your stress level.
17. Learn the culture and customs of Vietnam. Vietnam is very multi-ethnic and cultural based, expatriates are normally treated as a part of the family.
18. Disregard your old assumptions and expectations. Be open to learning new things. Explore new ways of living and compare these to your own. Become more aware of both your values and attitudes and those of your host country.
19. Adjusting to a new culture requires a good amount of re-examination of your own values and outlook. Try to do that as you live in the new culture.
20. Throughout the period of cultural adaptation, take good care of yourself. Read a book or watch a video in your home language, take a short trip if possible, exercise and get plenty of rest, write a letter or telephone home, eat good food, and do things you enjoy with friends. Take special notice of things you enjoy about living in the host culture.
21. Although it can be disconcerting and a little scary, the “shock” gradually eases as you begin to understand the new culture. It is useful to realize that often the reactions and perceptions of others toward you–and you toward them– are not personal evaluations but are based on a clash of cultural values. The more skilled you become in recognizing how and when cultural values and behaviors are likely to come in conflict, the easier it becomes to make adjustments that can help you avoid serious difficulties.

2. Cost of living in Vietnam

The job seeker can either live rather cheaply in Ho Chi Minh City, or can live a life of luxury. Salaries are competitive, and numerous benefits (such as recreation facilities and bonuses) make working here a rewarding experience.

Those on expatriate compensation packages may also receive additional benefits, such as transportation/car allowances, housing, childcare, payment of school fees, entertainment allowances, and work-related benefits. According to Mercer survey (1 June 2010) on the cost of living, Vietnam is easier to stretch the dollar than that of Tokyo, Singapore and Beijing, making it cheaper for expatriates to live in. Singapore fell twenty one places from 100th to the 121st position, in a survey of cost of living of 144 cities. The survey measures the comparative cost of more than 200 items in each city, including housing, food, clothing and household goods, transport and entertainment.

Cost of utilities – Electricity, Water and Gas

3. Housing in Vietnam

Buying or renting a home?

The cost of housing has decreased over the past few years.  Housing costs vary depending on the location and there are many resources to help in your search. Our Property for rent in HCMC has an immense amount of information to expedite your search. Before you start your search to rent a house, here are some things to consider:

• Decide beforehand on a few likely locations that you’d like to live in. Take into account things like the distance to work places, schools, transportation and places that you visit frequently with your family’s lifestyle in mind. There is also a Saigon District Guide to help you pick the ideal location and housing in which you would like to relocate to.
• Size – How large a home do you need? Have you thought about the next couple of years – are members of your family likely to move in or out? How many bedrooms do you need? Where do you and your family spend most time?
• Facilities – Would you like the advantage of a swimming pool, tennis courts and other condominium type facilities? Or, would you prefer to join a recreation club and enjoy a wider variety of leisure?
• Amenities – Are shops, banks, and markets within a short distance away?

Browse our Property for rent in HCMC on choosing the right home in the right location at the right price.

4. Schools

Schools in the area

When a family moves to a new location, the biggest factor in deciding on a neighbourhood could be the school district. Information on the list of international schools will help you decide better. Our comprehensive list of International Schools, education system in Ho Chi Minh City can be found at International Schools, Education.

5. Taxes & taxable income

Most foreign investments and foreign investors will be affected by the following taxes:
• Business income tax;
• Various withholding taxes;
• Capital assignment profits tax;
• Value added tax;
• Import duties;
• Personal income tax of Vietnamese and expatriate employees; and
• Social insurance, unemployment insurance and health insurance.

There are various other taxes that may affect certain investors, including:
• Special sales tax;
• Natural resources tax;
• Property taxes; and
• Export duties.

All these taxes are imposed at the national level. There are no local, state or
provincial taxes.ding midnight on 31 December.

Residency status

Residents are those individuals residing in Vietnam for 183 days or more in a calendar year, or in 12 consecutive months from the first date of arrival; or those having a permanent residence in Vietnam (including a registered residence which is recorded on the permanent/temporary residence card in case of foreigners). Where an individual stays in Vietnam for more than 90 days but less than 183 days in a tax year, the individual will be treated as a tax non-resident if he/she can prove that they are tax resident of another country.

Residents taxes

Tax residents are subject to Vietnamese PIT on their worldwide taxable income, wherever it is paid or received. Employment income is taxed on a graduated tax rates basis. Non-employment income is taxed at a variety of different rates.

Individuals not meeting the conditions for being tax residents are considered tax non-residents in Vietnam. Non-residents are subject to PIT at a flat tax rate of 20% on the income received as a result of working in Vietnam in the tax year, and at various other rates on their non-employment income. However, this will need to be considered in light of the provisions of any DTA that might apply.

Personal Income Tax Rates

What income is taxable?

1. Profits from a business, profession or vocation
2. Earnings from full or part-time work
3. Dividends from shares in a company
4. Interest · pension, charge or annuity
5. Rent, royalties and other profits arising from property

Assessment of tax

Tax codes
Individuals who have taxable income are required to obtain a tax code.
Those who have taxable employment income must submit the tax registration file to their employer who will subsequently submit this to the local tax office. Those who have other items of taxable income are required to submit their tax registration file to the district tax office of
the locality where they reside.

Tax declarations and payment
For employment income, tax has to be declared and paid provisionally on a monthly basis by the 20th day of the following month. The amounts paid are reconciled to the total tax liability at year-end.
Expatriate employees are also required to carry out a PIT finalization on termination of their Vietnamese assignments before exiting Vietnam. Tax refunds due to excess tax payments are only available to those who have a tax code.
For non employment income, the individual is required to declare and pay PIT in relation to each type of taxable non employment income.
The PIT regulations require income to be declared and tax to be paid on a regular basis, often each time income is received.

6. Transportation

A car may not necessary in Vietnam as their are more convenient ways of transportation and owning a car in Vietnam is a major undertaking as compared to the Europe and America. The widely most used mode of transportation would be motorcycle, buses and taxis.