Understanding Vietnam's Training Subsidy Landscape

Vietnam's government has created a complex but generous network of training subsidies designed to boost workforce skills, particularly in high-tech sectors like AI, manufacturing automation, and digital transformation. Unlike simpler programs in neighboring countries, Vietnam requires employers to navigate multiple decrees and regulations—but the rewards can be substantial.

Why Vietnam's Training Subsidies Matter in 2026

With Vietnam positioning itself as a manufacturing and tech hub in Southeast Asia, the government has significantly expanded training support:

• SME Focus: Small and medium enterprises can receive 70-100% subsidy coverage under Decree 80
• High-Tech Priority: AI, semiconductor, and advanced manufacturing training receives 50% reimbursement under Decree 182
• Talent Retention: The new Vietnam AI Law (effective March 2026) provides 5-year personal income tax exemptions for AI professionals
• Regional Development: Higher subsidy rates for companies operating in less-developed provinces

Primary Funding Programs Overview

Decree 80/2021/ND-CP: SME Training Support

Best for: Small and medium enterprises (under 200 employees)

Subsidy Rate: 70-100% of training costs

Maximum: VND 50,000,000 per employee per year

Eligible Training: Vocational training, technical skills, management development, digital skills

Process: Submit training plan to provincial Department of Labor, complete training, submit reimbursement claim with certificates

Decree 80 is Vietnam's most generous program but requires advance approval. Companies must demonstrate the training aligns with business needs and employee career development.

Decree 182/2021/ND-CP: High-Tech & AI Training

Best for: Companies in high-tech sectors or investing in Industry 4.0 technology

Subsidy Rate: 50% reimbursement

Maximum: VND 100,000,000 per employee per year

Eligible Training: AI/machine learning, semiconductor design, automation engineering, advanced manufacturing, cybersecurity

Process: Register as high-tech enterprise, submit training plan to Ministry of Science and Technology, claim reimbursement quarterly

Decree 182 covers higher amounts but requires formal high-tech enterprise status, which involves meeting technology investment thresholds.

Vietnam AI Law (Effective March 2026)

Best for: Companies hiring or developing AI specialists

Benefit: 5-year personal income tax (PIT) exemption for qualified AI professionals

Who Qualifies: Employees working primarily on AI development, machine learning engineering, AI research

Employer Action: Register employees with tax authorities, maintain documentation of AI-related work

Impact: Significant retention tool—AI engineers can earn 20-30% more take-home pay compared to other roles

While not a direct training subsidy, this law makes Vietnam extremely competitive for AI talent and should factor into training investment decisions.

Choosing the Right Program

Decision Framework

Company Size:

• Under 200 employees → Decree 80 (70-100% subsidy)
• Over 200 employees → Decree 182 or tax deductions

Training Type:

• General skills, management → Decree 80
• AI, advanced tech → Decree 182
• AI specialist development → Combine training with AI Law PIT exemption

Administrative Capacity:

• Limited HR resources → Start with Decree 80 (provincial level, simpler)
• Dedicated compliance team → Pursue Decree 182 (higher amounts, more complexity)

Can You Combine Programs?

Yes, but with restrictions:

• Can use Decree 80 for general training AND Decree 182 for specialized tech training
• Cannot claim both subsidies for the same training course
• AI Law PIT exemption applies regardless of which training subsidy you use
• Total subsidies cannot exceed 100% of training costs

Application Process: Step-by-Step

Phase 1: Determine Eligibility (2-4 weeks)

1. Assess company size and sector
2. Review employee skill gaps
3. Research available training providers
4. Calculate potential subsidy amounts
5. Choose primary program (Decree 80 vs 182)

Phase 2: Prepare Documentation (2-3 weeks)

For Decree 80 (SMEs):

• Business registration certificate
• Latest tax filing confirmation
• Employee roster with current roles
• Training needs assessment
• Training provider quotations (minimum 3)

For Decree 182 (High-Tech):

• High-tech enterprise certificate (or application)
• Technology investment documentation
• R&D expenditure records
• Training plan aligned with tech roadmap

Phase 3: Submit Application (1-2 weeks processing)

Decree 80: Submit to provincial Department of Labor, Invalids and Social Affairs (DOLISA)

Decree 182: Submit to Ministry of Science and Technology (MOST) or authorized provincial departments

Required Elements:

• Formal application letter
• Training plan with objectives, duration, provider
• Budget breakdown
• Expected outcomes and assessment methods

Phase 4: Execute Training (As planned)

• Must use approved training provider
• Maintain attendance records (minimum 80% attendance required)
• Document training delivery (photos, materials, assessments)
• Conduct post-training evaluation

Phase 5: Claim Reimbursement (2-3 months processing)

Submit:

• Training completion certificates
• Attendance records
• Payment receipts and invoices
• Post-training assessment results
• Employee confirmation letters

Processing Time:

• Decree 80: 60-90 days
• Decree 182: 90-120 days

Payment: Direct bank transfer to company account

Common Mistakes to Avoid

Starting Training Before Approval

Both Decree 80 and 182 require pre-approval. Training costs incurred before approval are not reimbursable. Always wait for written approval before starting.

Incomplete Documentation

Vietnam's bureaucracy requires complete, accurate documentation. Missing a single form can delay reimbursement by months. Use a checklist and submit everything together.

Using Non-Approved Training Providers

Only training providers with valid vocational training licenses or recognized certifications qualify. Verify provider status before contracting.

Insufficient Post-Training Evidence

Authorities may audit claims. Maintain comprehensive records: attendance sheets with signatures, training materials, assessment results, photos of training sessions.

Mixing Program Requirements

Each program has specific rules. Don't assume Decree 80 procedures apply to Decree 182. Read the specific decree carefully or hire a consultant.

Tax Deductions as an Alternative

Corporate Income Tax (CIT) Deductibility

Even without subsidies, all training expenses are 150% deductible from corporate income tax if:

• Training relates to current business activities
• Documentation is maintained
• Employees remain with company for 12+ months post-training

Example: VND 100,000,000 in training costs → VND 150,000,000 CIT deduction → VND 30,000,000 tax savings (at 20% CIT rate)

For large companies ineligible for Decree 80, this 150% deduction provides meaningful ROI even without subsidies.

Industry-Specific Considerations

Manufacturing

Priority sector for Decree 182. Focus on:

• Industry 4.0 automation training
• Quality management systems (ISO, Six Sigma)
• Supply chain digitalization
• Robotics operation and maintenance

Technology & Software

Highest subsidy potential combining Decree 182 + AI Law:

• AI/ML engineering courses
• Cloud architecture certifications
• Cybersecurity training
• DevOps and agile methodologies

Professional Services

Best fit for Decree 80:

• Digital marketing skills
• Financial software training (ERP, accounting)
• Project management certifications
• Data analytics fundamentals

Working with Pertama Partners

Navigating Vietnam's training subsidies requires local expertise and patience. Pertama Partners helps companies:

• Eligibility Assessment: Determine which programs offer the best ROI for your situation
• Documentation Preparation: Ensure complete, accurate submissions to avoid delays
• Provider Selection: Connect with approved training providers for your industry
• Reimbursement Management: Track claims and follow up with authorities
• Tax Optimization: Combine subsidies with CIT deductions for maximum benefit

Average Client Results:

• 60-80% of training costs recovered through subsidies
• 4-6 month faster reimbursement with expert support
• Zero rejected claims due to documentation errors

Contact Pertama to discuss your Vietnam training strategy.