We have booked flights to HCMC arriving at 12a.m. I intend to book flights to Da Nang at the same day. I wonder about safe transit time in HCMC.
Highly appreciate any recommendations?

Domestic airport in Vietnam is small, so it takes short time to transit. Just make sure you have at least 1hour base wt 2 flights in case there is any delay

I usually clear immigration in less than 20 minutes . Though if you have to pick up VOA it may take double that . You can walk to domestic terminal in 10 minutes .

Hi,
From HCMC to Danang, you can transfer by bus, train or flight. However, if you want to move by flight , you should book a ticket at some cheap flights such as Jetstar or Vietjet. Check out: http://www.seat61.com/Vietnam.htm#.V3oIXLh96Cg
Good grief people, do you all love travel stress? If the OP is arriving on a trans-pacific (from Canada?) flight arrival delays are a real possibility. If the OP is just on an AirAsia flight from BKK maybe not much of an issue. The time it takes to complete the arrival process is unpredictable!! If you already have a visa, it's faster. If you're using a pre-approved (VOA) visa it takes longer. If you're near the front of the plane it's faster than if you're near the back. If other flights have arrived just before your's that can cause delays. There are all kinds of possible delays, your luggage comes off last, or is missing, customs decides to search your luggage.........
The point is that if everything goes right then you can just about make the connection in an hour. But, if things start going wrong you may be screwed! Travel can be stressful enough without having to sweat out a tight connection. So, give yourself at least 2 hours or maybe even 3 hours between flights. You can always relax with a beer or two if you have extra time.

Ignore what elenacopper has said and DO NOT fly with Vietjet! A simple Google search about them will show you how horribly unreliable they are with delays from 1 hour to two days common. Flying with Jetstar or Vietnam Airlines is a much safer bet (delays could still happen though but won't be a lot).
Agree with other posters that the walk from the International Terminal to the Domestic one is a maximum of 10 minutes, I'd estimate only about 600m. You can push your trolley over to the domestic terminal too.
If you need to get your VOA I'd leave yourself 3 hours, if you've got your visa, I'd say 2 would be enough.
Vietnam Airlines recommends 2 hours which in my experience is not rushed at all. If you are getting a VOA then do fill out the forms before you leave home as this will save an additional queueing in line at immigration and most importantly time.
IMO the pessimistic attitude to delays is pointless. I mean why stop at 3 hours, why not allow 12 hours to allow for a major technical delay. If you're going to take that attitude then cover all eventualities or just don't bother and assume your flight will be on time. In my experience long-hauls generally arrive ahead of time.

It's probability. Most flights will land within 30 mins of schedule, I would expect ones landing 12 hours late to be low, less than 1%. Yes some flights land early but then I found we were waiting for a previous plane to leave before we could go to disembark. At Dubai it was nearly 1 hour from landing to getting off the plane, then flights leaving there were both delayed by about 30 minutes. I vowed never to use Emirates again, always seems to be delays there. Manila also has congestion problems. Even Bahrain I was about 1 hour late into BKK last trip. Think delays are getting more frequent in the last few years. So I would allow 1 hour for delays, then less stress.
Exactly my experience. I've lost track of how many times I've flown into SEA and lately there seem to be a lot more delays. If it's not weather then it's ATC or ground ops. Last time I came into Saigon there was some kind of scheduling screw-up and there was only ONE immigration officer working. They had to send guys from the VOA desk over to work the immigration lines. Luck for me I was close to the front of the plane and got my pre-approved visa processed before they moved staff off that desk.