Understanding Vietnamese Talent’s Sense of Money Calculation: A Practical Guide to Pay Explanations and Workplace Retention

One of the earliest problems to surface after hiring Vietnamese talent is misunderstanding and dissatisfaction around pay slips. Comments such as “My take-home pay is nothing like what I expected,” “Why is so much being deducted?” and “I worked more overtime than last month, but the amount deposited went down” are not driven by limited Japanese alone. Differences in how people sense currency units, habits around calculating money, and remittance culture combine in complex ways.

This article goes into Vietnam’s cultural sense of money, the realities of currency conversion, remittance habits, and seasonal funding needs, and explains retention support measures hiring managers can put into practice from the earliest stage. It is written for every company contact who works with Vietnamese talent, regardless of status of residence—Specified Skilled Worker, Technical Intern Training, Highly Skilled Professional, and others.

The fundamental difference in “sense of money units” between Vietnam and Japan

Vietnam’s legal currency is the Vietnamese dong (VND). As of June 2026, a rough reference rate has been around 1 yen = about 160–170 dong, but what matters more than the rate itself is the difference in scale of the digits.

In Japan, a monthly salary of 220,000 yen is intuitively grasped as a five- or six-digit figure. Converted into Vietnamese dong, however, it becomes roughly 35–37 million dong. In Vietnam, everyday speech uses expressions such as “XX thousand dong” and “XX million dong,” and transactions in the millions to tens of millions of dong are ordinary. Because this “sense of digit scale” differs fundamentally from the Japanese yen, Vietnamese talent who have only just arrived in Japan may not yet have a fully developed mental calculator for judging whether an amount is large or small.

Even more serious is the gap with wage levels inside Vietnam. Monthly income for ordinary manufacturing workers in urban Ho Chi Minh City or Hanoi is often around 5–10 million dong (roughly 30,000–60,000 yen), so even Japan’s minimum wage level can be seen as “dream-level high income.” The sheer size of this income gap can itself become a breeding ground for strong dissatisfaction—“I should be earning this much, so why is my take-home so low?”

While digital payments (MoMo, ZaloPay, ViettelPay, and others) are spreading rapidly in Vietnam, a cash payment culture also remains strong. People are used to “counting and exchanging money themselves,” but the system in which complex taxes and social insurance premiums are automatically deducted from pay is often something they never imagined before coming to Japan.

Vietnamese dong → Japanese yen: the on-the-ground reality of everyday currency conversion

When Vietnamese talent report the pay they receive in Japan to family back home, they always convert it into Vietnamese dong. This is not only for remittances; it also functions as a shared language for telling family and the local community “how much I am earning.” In Vietnam there is a strong culture of pride in family members who succeed through overseas work, and the monthly remittance amount is deeply tied to the person’s own self-evaluation.

Today, the main means of sending money overseas to Vietnam include bank transfers, dedicated remittance services (Wise, SBI Remit, GMO Aozora Net Bank, and others), and convenience-store remittances. Fees and applied rates differ by service, and many Vietnamese talent carefully compare how much the amount received will change. The calculation “How many tens of thousands of dong can I send this month?” runs constantly in their heads alongside Japanese study and work communication.

Immigration Services Agency of Japan statistics show that the number of Vietnamese residents in Japan exceeded about 560,000 as of the end of 2025, remaining among the top nationalities by number of foreign residents. Given that remittance needs on this scale arise every month, “calculating money” is central to Vietnamese talent’s daily lives and self-esteem. Designing support systems with this reality in mind leads directly to workplace retention.

Can they increase the remittance in a month with more overtime? How should they adjust the remittance plan in a month when social insurance deductions change? Showing a willingness to think through these detailed money calculations together with them helps build trust early.

For fundamentals and procedures in hiring foreign workers, see also this explanatory article

Common on-site questions: misunderstandings around pay slips and take-home pay calculations

A common on-site issue managers first face is the complaint that “take-home pay differs from the contract.” In most cases this is not fraud or a calculation error, but legitimate deductions for social insurance premiums, employment insurance premiums, income tax, and resident tax. The processing is normal under Japan’s pay system, but for Vietnamese talent it is often a mechanism they never expected at all.

Ministry of Health, Labour and Welfare surveys also rank “insufficient advance explanation of working conditions” high among reasons foreign workers experience employment-related trouble. If only a gross figure such as “monthly pay of ● yen” was explained at hiring, Vietnamese talent who see the actual deposit may feel they were “deceived.” This is not a matter of sincerity; it is a matter of how explanations are designed.

Below are typical questions commonly raised on site.

“Health insurance and employees’ pension together take 30,000–40,000 yen a month. I don’t understand why it’s so high.”
“I should have received overtime pay, so why is this month’s take-home less than last month’s?” (often overlapping with the timing of standard monthly remuneration revisions for social insurance)
“After special collection of resident tax started in June, my take-home suddenly fell. Did something go wrong?”
“I heard there can be a year-end tax adjustment refund—am I eligible? What is year-end tax adjustment in the first place?”
“I pay employment insurance, but is there any benefit? Can I use it after returning home?”

These are points Japanese workers gradually learn through school and workplace experience. Newly arrived Vietnamese talent lack that background knowledge, and ending the explanation with “because that’s the system” only deepens suspicion. What matters is a setup that lets them check each pay slip as it arrives, and a workplace culture that welcomes questions.

Failure patterns and how to avoid them: common company mistakes in pay explanations

Before organizing failure patterns and countermeasures, it helps to confirm the structural reason failures occur. In many cases the company believes it “explained,” but the message has not fully “gotten through” to Vietnamese talent. Beyond the language barrier, timing, format, depth, and whether there is follow-up all interact.

Failure pattern 1: Communicating only the gross amount at hiring

A common case is making an offer with only “monthly pay of 220,000 yen,” then discovering only after payments start that take-home is about 170,000–180,000 yen. In Vietnamese talent’s terms, they may have expected roughly 220,000 yen × about 165 dong ≈ 36.3 million dong, while the actual deposit is about 170,000 yen × about 165 dong ≈ 28.05 million dong—so the post-conversion gap is felt even more sharply as a “loss.”

The countermeasure is to present an estimated take-home amount in writing before the offer is accepted. e-Gov publishes Labor Standards Act and notice-of-working-conditions forms that include fields for wage deduction items. Using those fields carefully and attaching a Vietnamese translation greatly improves the quality of the explanation.

Failure pattern 2: Trying to finish everything in a single explanation

This is the case of explaining pay only once at onboarding and never following up. Events that affect take-home pay occur multiple times through the year: the start of special collection of resident tax (June of the year after joining), the regular determination of standard monthly remuneration for social insurance (every September–October), year-end tax adjustment, and exemptions from premiums during childcare leave, among others. Building a support setup that adds a brief note each time—“this month changed like this, and here is why”—prevents distrust from arising.

Failure pattern 3: Ignoring conversion into Vietnamese dong entirely

An attitude of “you work in Japan, so please think in yen” increases the psychological burden on Vietnamese talent. Conversion calculations are unavoidable for remittances and reports to family, so even regularly sharing reference information such as “at this month’s rate, you could send about this much” raises trust in the contact person and a sense of belonging at work.

Failure pattern 4: One person carrying everything alone

If questions about pay, deductions, and remittances are handled by only one designated person, handover may fail when that person transfers or leaves, and Vietnamese talent may feel they “have no one to rely on,” leading to resignation. An important criterion is designing support as a system, not as an individual.

For country-by-country differences in communication style, cases involving Myanmar talent are also useful

Points hiring managers often overlook: deductions, remittances, and funding needs before Tết

At the top of points hiring managers often overlook are seasonal funding needs. Vietnam has the Lunar New Year, Tết, and in 2027 Tết New Year’s Day falls on February 17 (it shifts each year with the lunar calendar). Around Tết, money moves heavily across Vietnamese society: travel home, gifts for family, and the “lucky money” custom (lì xì) concentrate more spending than usual. Especially because increasing remittances to one’s parents is seen as proof of filial piety, remittance amounts in this period can reach 1.5–2 times a normal month.

Requests around Tết to “work more overtime” or “use paid leave to go home” are entirely natural for Vietnamese talent. If the company does not understand this cycle, sudden overtime requests may be misread as a “change in work attitude,” and responses to resignations after Tết may come too late.

Other points that are also easy to miss include the following.

The lump-sum withdrawal payment system

When a foreign national with a status of residence has enrolled in employees’ pension insurance, they can claim a “lump-sum withdrawal payment” upon returning home. This system, available with at least six months of enrollment, is important information for Vietnamese talent considering return. The Ministry of Health, Labour and Welfare’s official site also explains the procedures; providing this information accurately creates the impression of a company that “does not hide information and is sincere,” and in fact builds trust toward longer-term retention.

When resident tax withholding begins

In the first year of employment there is no prior-year income, so special collection of resident tax does not apply. From June of the following year, however, withholding suddenly begins and monthly take-home pay falls by roughly 10,000–30,000 yen. If this change is not explained in advance, misunderstandings arise such as “something went wrong” or “pay is being calculated incorrectly.” Simply noting at onboarding “from June next year it will change like this” on a calendar and handing it over can prevent trouble.

Using Hello Work and guiding people to consultation

In addition to accepting notifications of the employment status of foreign nationals, Hello Work also provides consultation desks for foreign workers. Guiding people at onboarding to these as places to consult if trouble arises over pay or working conditions enables earlier detection and resolution. Simply knowing that “there is an external place to turn when in trouble” raises Vietnamese talent’s psychological safety.

An important judgment criterion is whether the path is clear for “whom to consult, when, and how when Vietnamese talent face a money problem.” In workplaces where the consultation path is unclear, problems grow under the surface and surface as sudden resignations. In workplaces with a clear setup—“when in trouble, go first to this person”—early intervention and resolution become possible.

Diagram: post-hire money support flow (from hiring through retention)

Below is a chronological organization of money-related support that should be provided after hiring. Use it as a visual set of checkpoints.

Phase 1: Offer through pre-onboarding (2–4 weeks before start)

Issue the notice of working conditions in both Japanese and Vietnamese
State in writing the gross amount, main deduction items, and approximate take-home pay
Explain that resident tax does not apply in the first year of employment and preview the change from June of the following year
Confirm how you will support bank account opening and Individual Number (My Number) card applications
Introduce types of remittance services and approximate fees

Phase 2: Start date through first payday

Explain the types, amounts, and purpose of health insurance, employees’ pension, and employment insurance with Vietnamese materials
Set aside time to review “how to read the first month’s pay slip” together
Support the first remittance (how to register remittance apps, how to check rates, etc.)
Clearly name the contact person for money-related questions and how to reach them

Phase 3: Within three months of joining (during the probation period)

Hold individual meetings about once a month to review the pay slip together
Reconfirm how overtime pay, commuting expense reimbursement, and various allowances are calculated
Build a mechanism to catch feelings that “take-home is less / more than expected”

Phase 4: Six months through the first year

Explain the start of special collection of resident tax (June) in advance in writing and orally
Explain the regular determination of standard monthly remuneration for social insurance (September–October)
Grasp remittance needs before Tết (December–January) and coordinate overtime and paid-leave schedules
Confirm whether year-end tax adjustment or final income tax return is needed and support as required

Phase 5: Ongoing retention from year two onward

Provide information on the lump-sum withdrawal payment system to those considering return home
Regularly share career paths and expected annual income to make the benefits of long-term employment visible
Hold follow-up meetings at least once a year on changes in prices and living costs

Practical checklist: pay and living-cost support for Vietnamese talent

The practical checklist below summarizes, by phase, items hiring managers should confirm from pre-onboarding through the retention period. Review it regularly and use it as a tool to prevent gaps in support.

Pre-onboarding checks

Did you attach a Vietnamese translation (or bilingual version) to the notice of working conditions?
Did you communicate the estimated take-home amount (approximate figure after main deductions) both orally and in writing?
Did you confirm and prepare a support setup for opening a bank account?
Did you prepare and share information on major remittance services?
Did you share within the company the timing and cultural significance of Tết (Lunar New Year)?

Immediate post-hire check

Have you explained each item on the pay slip with Vietnamese-language materials?
Have you explained the types of social insurance, deduction amounts, and future benefits?
Have you explained how resident tax works (differences between the first year and subsequent years)?
Have you clearly identified consultation contacts for when issues arise (internal staff, Hello Work, etc.)?
Have you provided support for the first remittance?

3-month follow-up check

Have you confirmed in individual meetings whether questions or dissatisfaction about pay slips have been resolved?
Have you confirmed there is no gap in understanding regarding take-home pay?
Have you provided an opportunity to reconfirm how overtime pay and various allowances are calculated?

Annual check

Have you confirmed systems are in place to address funding and leave needs around Tet?
Have you conducted advance explanations ahead of the start of special collection of resident tax?
Have you confirmed whether year-end tax adjustment or final income tax return filing is needed and supported the necessary procedures?
Have you conducted meetings about career paths and expected annual income?
Have you provided information on the lump-sum withdrawal payment system to those wishing to return home?

Frequently asked questions (FAQ)

Q1. When explaining pay slips to Vietnamese talent, are Vietnamese-language materials always required?

They are not mandatory, but strongly recommended. Even talent at JLPT N3 or above often need time to accurately understand the kanji used for deduction items and the basis for amount calculations. It is wise to reduce explanation costs by also using the multilingual labor-condition explanation materials (Vietnamese version) provided by the Ministry of Health, Labour and Welfare. Ideally, updated materials should be provided not only the first time, but also whenever take-home pay changes—such as when resident tax begins or social insurance premiums are revised.

Q2. If Vietnamese talent starts saying their take-home pay is less than expected, how should you respond?

First, it is important to acknowledge their feelings. Responding with “that’s just how the system works” heightens distrust. Review the actual pay slip together and carefully confirm the meaning, amount, and calculation basis of each item. If they still cannot accept the explanation, guiding them to consult Hello Work or a labor and social security attorney is also an effective option.

Q3. Does the company need to provide remittance support?

There is no legal obligation, but positioning it as part of a good workplace environment helps lower turnover. Concrete steps include sharing information on remittance services, accompanying staff to open bank accounts, and advising on the timing of salary deposits and remittances. It is one of the higher cost-effectiveness initiatives that can be carried out without spending much money.

Q4. What is the appropriate response when Tet leave is requested?

For Vietnamese talent, Tet (Lunar New Year) is a cultural occasion with even greater significance than New Year’s in Japan. Encouraging planned use of paid leave and, where possible, adjusting shifts in advance to allow home visits is effective for improving retention. A realistic standard is to build into hiring plans from the outset the fact that concentrated leave requests arise every year in January–February.

Q5. Won’t explaining the lump-sum withdrawal payment system encourage people to return home?

Paradoxically, openly sharing accurate information more often builds trust and leads to longer retention. When people feel reassured that “this company tells me about benefits without hiding them,” many Vietnamese talent choose continued employment over returning home. In practice, showing a commitment to long-term relationship building is more effective than holding back information.

Q6. What should you do if there is no staff member in the company who can explain in Japanese?

Using bilingual materials and translation apps is a realistic first step. You can also outsource multilingual explanations on pay, tax, and social insurance by using life-support services offered by sending organizations or Registered Support Organizations. The key to sustainable retention support is building systems rather than having one person shoulder all the support alone.

Summary: Understanding money builds the foundation for workplace retention

In retaining Vietnamese talent at work, “differences in money calculation and currency sense” is an easy-to-overlook theme, yet it is one of the main drivers of early turnover. When factors pile up—the different scale of digits between the Vietnamese dong and the Japanese yen, remittance culture and a sense of responsibility to family, seasonal funding needs around Tet, and starting from zero knowledge of how deductions work—a quiet feeling that “this workplace is not what I expected” takes shape.

There are many actions hiring managers can take without a special budget. Setting aside time once a month to review pay slips together, communicating estimated take-home pay in writing before joining, using Vietnamese bilingual materials, and building funding needs around Tet into work plans—these accumulated steps become the foundation of trust and lead directly to higher retention.

It is also essential to build a structure in which the responsible person does not shoulder everything alone, while making use of materials and consultation desks from public bodies such as the Immigration Services Agency of Japan, the Ministry of Health, Labour and Welfare, and Hello Work. For company staff working on hiring and retaining international talent, understanding of culture and daily life is not “nice to have”—it is something without which turnover rises.

For consultations on hiring and retention support for Vietnamese talent, please feel free to contact us via the Foreign Talent Insights inquiry form