Navigating Vietnam's Training Subsidy Landscape as an HR Leader

Vietnam offers generous training support, but the complexity can be overwhelming. Unlike straightforward programs in Singapore (SkillsFuture) or Malaysia (HRDF), Vietnam requires HR leaders to choose between multiple programs, understand bureaucratic requirements, and maintain detailed documentation.

This guide simplifies the decision-making process and provides practical implementation strategies.

Quick Decision Framework

Step 1: Assess Your Company Profile

Company Size:

• Under 200 employees (manufacturing) or 100 employees (services) → Primary option: Decree 80 (70-100% subsidy)
• Over 200 employees → Primary option: Decree 182 (if high-tech) or CIT deductions

Industry/Technology Focus:

• High-tech certified (or can qualify) → Decree 182 (50% up to VND 100M per employee)
• AI development company → Decree 182 + AI Law PIT exemption (stacked benefits)
• Traditional industries → Decree 80 (if SME) or CIT deductions

Training Budget:

• VND 50M or less per employee annually → Decree 80 likely sufficient
• VND 50M-100M per employee → Consider Decree 182 if high-tech
• Over VND 100M per employee → Supplement with CIT deductions

Step 2: Match Training Type to Program

General Skills & Management (Decree 80):

• Digital skills and productivity software
• Supervisory and leadership training
• Customer service excellence
• Language training (English, Chinese)
• Quality management systems

High-Tech & AI Training (Decree 182):

• AI/machine learning development
• Cloud architecture certifications
• Cybersecurity and penetration testing
• Semiconductor design
• Industrial automation and IoT
• Data science and analytics

AI Professional Development (Combine Decree 182 + AI Law):

• Upskill engineers to AI roles
• Combine 50% training subsidy with 5-year PIT exemption
• Maximize total benefit: VND 450M-750M per employee over 5 years

Step 3: Evaluate Administrative Capacity

Limited HR Resources → Start with Decree 80:

• Provincial-level approval (simpler than ministry-level)
• More straightforward documentation
• Wider acceptance of training providers
• 60-90 day reimbursement

Dedicated Compliance Team → Pursue Decree 182:

• Higher per-employee caps (VND 100M vs. VND 50M)
• Requires high-tech enterprise certification
• Ministry-level approval process
• 90-120 day reimbursement
• Additional CIT benefits (10% rate vs. 20%)

No Bandwidth for Subsidy Programs → Use CIT Deductions:

• 150% tax deductibility for all training expenses
• No pre-approval required
• Simple: maintain receipts and employee retention records
• Saves ~30% of training costs (at 20% CIT rate)

Program Comparison: At-a-Glance

Decree 80 (SME Focus)

Best For: Small and medium enterprises under 200 employees

Subsidy: 70-100% of training costs

Cap: VND 50M per employee per year

Timeline: 6-9 months (application to reimbursement)

Pros:

• Highest subsidy percentage
• Provincial approval (faster, easier)
• Wide range of eligible training
• No high-tech certification required

Cons:

• Lower per-employee cap than Decree 182
• SME size restrictions
• Provincial budget constraints (apply early)

Ideal Training:

• Digital transformation
• Management development
• Technical skills
• Language programs

Decree 182 (High-Tech Focus)

Best For: High-tech enterprises with certification

Subsidy: 50% reimbursement

Cap: VND 100M per employee per year

Timeline: 7-10 months (application to reimbursement)

Pros:

• Double the per-employee cap (VND 100M)
• Covers cutting-edge technology training
• Unlocks 10% CIT rate (vs. standard 20%)
• International training providers accepted

Cons:

• Requires high-tech enterprise certification (3-6 months)
• Lower subsidy percentage (50% vs. 70-100%)
• More complex documentation
• Ministry-level approval

Ideal Training:

• AI/ML development
• Cloud certifications (AWS, Azure, GCP)
• Semiconductor design
• Advanced manufacturing
• Cybersecurity

AI Law PIT Exemption (Talent Retention)

Best For: Companies employing AI professionals

Benefit: 5-year personal income tax exemption for AI workers

Employee Gain: 20-35% higher take-home pay (VND 200M-500M over 5 years per employee)

Timeline: 30 days for initial approval, annual confirmation

Pros:

• Massive recruitment/retention advantage
• Zero employer cost (employee benefit)
• Stacks with Decree 182 training subsidies
• Positions Vietnam competitively vs. Singapore/HK

Cons:

• Only applies to AI roles (>50% time on AI work)
• Requires detailed documentation
• Annual compliance confirmation
• Exemption ends if employee changes roles

Ideal Use:

• AI engineer recruitment from Singapore/overseas
• Retention of high-value AI talent
• Upskilling existing engineers to AI roles

CIT Deduction (Fallback Option)

Best For: Large companies, or those unable to access subsidies

Benefit: 150% tax deductibility

Savings: ~30% of training costs (at 20% CIT rate)

Timeline: Immediate (claim on annual tax return)

Pros:

• No pre-approval required
• All training types eligible
• Simple documentation (receipts + 12-month retention)
• Works for any company size/industry

Cons:

• Lowest benefit (30% vs. 50-100% subsidies)
• Benefit realized at tax time, not immediately
• Requires company profitability to claim deduction

Ideal Use:

• Companies too large for Decree 80
• Non-high-tech companies ineligible for Decree 182
• Supplementing subsidy programs for training exceeding caps

Common HR Scenarios and Recommendations

Scenario 1: Manufacturing SME (150 employees)

Profile:

• Manufacturing sector
• 150 employees
• Budget: VND 30M per employee
• Training needs: Quality control, safety, technical skills

Recommendation: Decree 80

Strategy:

• Apply for 70-90% subsidy (depending on province)
• Target VND 25M-35M training per employee
• Focus Q1-Q2 applications (budget availability)
• Group training by department for efficiency

Expected Outcome:

• VND 21M-31M subsidy per employee
• Net cost: VND 4M-9M per employee
• 70-90% cost recovery

Scenario 2: Software Development Company (60 employees)

Profile:

• IT/software sector
• 60 employees
• Building AI capabilities
• Budget: VND 80M per employee for AI team

Recommendation: Pursue high-tech certification → Decree 182 + AI Law

Strategy:

1. Apply for high-tech enterprise certification (3-6 months)
2. While pending, prepare training plans
3. Once certified, apply for Decree 182 for AI training
4. Register AI professionals for PIT exemption

Expected Outcome:

• Decree 182: VND 40M subsidy per employee (50% of VND 80M)
• AI Law: VND 200M-500M per employee over 5 years (tax savings)
• Total benefit: VND 240M-540M per AI employee
• Plus 10% CIT rate (vs. 20%) ongoing

Scenario 3: E-commerce Company (500 employees)

Profile:

• Retail/e-commerce
• 500 employees (too large for Decree 80)
• Non-high-tech sector
• Training needs: Digital marketing, customer service, data analytics

Recommendation: CIT Deductions

Strategy:

• Invest in training without subsidy complications
• Maintain documentation for 150% CIT deduction
• Ensure 12-month retention post-training
• Calculate ~30% effective savings on training budget

Example:

• Training budget: VND 2B annually
• CIT deduction: VND 3B (150% of VND 2B)
• Tax savings: VND 600M (at 20% CIT rate)
• Effective cost: VND 1.4B (30% savings)

Scenario 4: Logistics Company (85 employees, Mekong Delta)

Profile:

• Logistics/warehousing
• 85 employees
• Located in less-developed province
• Training needs: Forklift operation, warehouse systems, safety

Recommendation: Decree 80 with 100% subsidy targeting

Strategy:

• Leverage provincial incentives (100% subsidy for less-developed areas)
• Prioritize safety and vocational training (priority occupations)
• Apply early in fiscal year

Expected Outcome:

• 100% subsidy coverage
• Zero net training cost
• Improved safety certifications (ISO 45001)

Scenario 5: Semiconductor Company (200 employees)

Profile:

• Semiconductor testing
• 200 employees (exceeds Decree 80 limit)
• Already high-tech certified
• Training needs: Advanced testing methodologies, 7nm chip testing

Recommendation: Decree 182 with international training

Strategy:

• Partner with international providers (Advantest, KLA)
• Obtain MOET approval for foreign training
• Target VND 80M-100M per engineer (maximize cap)
• Quarterly reimbursement cadence

Expected Outcome:

• 50% subsidy: VND 40M-50M per employee
• Access to world-class training unavailable locally
• Qualify for new client projects (7nm testing capability)

Implementation Roadmap for HR Leaders

Month 1: Assessment and Planning

Week 1-2:

• Determine company eligibility (size, sector, high-tech status)
• Calculate current training budget and ROI expectations
• Identify skill gaps and priority training areas
• Choose primary program (Decree 80, 182, AI Law, CIT)

Week 3-4:

• Research training providers (verify licensing)
• Obtain quotations (minimum 3 for subsidies)
• Build business case for leadership approval
• Allocate HR resources for application process

Month 2-3: Documentation and Application

Decree 80 Track:

• Gather company documents (registration, tax compliance, labor contracts)
• Prepare training plan with business alignment
• Submit to provincial DOLISA
• Expect approval within 30 days

Decree 182 Track:

• If not certified: initiate high-tech certification (3-6 months)
• If certified: prepare technology development plan
• Submit training plan to MOST
• Expect approval within 30-45 days

AI Law Track:

• Identify AI professional roles (>50% time on AI)
• Document job descriptions and work content
• Submit PIT exemption applications to tax authorities
• Expect approval within 30 days

Month 4-6: Training Execution

• Execute approved training programs
• Maintain detailed attendance records (80% minimum)
• Document training delivery (photos, materials)
• Conduct assessments and issue certificates
• Collect participant feedback

Month 7-9: Reimbursement and Evaluation

• Submit completion documentation within 30 days of training end
• Follow up with authorities on processing status
• Receive reimbursement (60-90 days for Decree 80, 90-120 for Decree 182)
• Measure training impact (performance improvements, certifications earned)
• Plan next cycle based on learnings

Maximizing Multi-Year ROI

Year 1: Foundation

• Start with one program (Decree 80 or CIT deductions)
• Build documentation processes and provider relationships
• Train HR team on requirements and best practices
• Achieve 50-70% cost recovery

Year 2: Expansion

• If successful with Decree 80, maintain and increase employee coverage
• If company growing, assess high-tech certification benefits
• Combine multiple programs strategically (Decree 80 for general training, start Decree 182 planning)
• Achieve 60-80% cost recovery

Year 3+: Optimization

• Run Decree 80 and/or 182 at scale with proven processes
• Leverage AI Law for retention of key technical talent
• Supplement with CIT deductions for training exceeding caps
• Achieve 70-90% cost recovery
• Realize long-term benefits: reduced turnover, improved productivity, competitive hiring

Common Mistakes to Avoid

Mistake 1: Starting Training Before Approval

Impact: 100% loss of subsidy eligibility

Prevention: Always wait for written approval letter before contracting with provider or beginning training

Mistake 2: Choosing Wrong Program

Example: SME pursuing Decree 182 without high-tech certification

Impact: Application rejected, 3-6 month delay while obtaining certification

Prevention: Use decision framework above; assess eligibility before investing time in applications

Mistake 3: Incomplete Documentation

Impact: Delayed approvals (weeks to months) or rejected claims

Prevention: Use official checklists from DOLISA/MOST, submit complete dossiers at once, consider consultant support

Mistake 4: Poor Provider Selection

Example: Contracting with unlicensed training provider

Impact: Subsidy ineligible regardless of training quality

Prevention: Verify MOET vocational training license before contracting, request certified copy

Mistake 5: Ignoring Provincial Budget Timing

Example: Applying for Decree 80 in Q4 when provincial budget depleted

Impact: Application approved but funding unavailable, pushed to next fiscal year

Prevention: Apply Q1-Q2 for best funding availability

Mistake 6: Neglecting Post-Training Documentation

Example: Losing attendance records or missing reimbursement deadline

Impact: Subsidy forfeited even though training completed

Prevention: Assign dedicated HR staff to maintain records, set calendar reminders for submission deadlines (30 days post-training)

Working with Pertama Partners

Pertama Partners specializes in helping HR leaders navigate Vietnam's training subsidy landscape:

Strategic Assessment:

• Company profile evaluation (size, sector, eligibility)
• Program recommendation (Decree 80, 182, AI Law, or combination)
• Multi-year training strategy aligned with business goals
• ROI modeling and cost-benefit analysis

End-to-End Implementation:

• High-tech certification guidance (if pursuing Decree 182)
• Complete application dossier preparation
• Training provider network and selection
• Submission and liaison with government authorities
• Reimbursement claim management

Ongoing Support:

• Annual planning for training cycles
• Compliance monitoring and documentation
• AI professional PIT exemption administration
• Integration of multiple programs for maximum benefit

Typical Results:

• 60-90% training cost recovery (vs. 30-50% self-managed average)
• 95%+ approval rate with complete documentation
• 30-40% faster processing time
• Zero rejected reimbursement claims
• VND 500M-3B average subsidy recovered per client annually

Contact Pertama Partners for a customized Vietnam training subsidy strategy.