Vietnam’s Labour Law Changes in 2025: What Employers and Employees Need to Know
Vietnam’s Labour Law Changes in 2025: What Employers and Employees Need to Know
Vietnam’s rapidly evolving economy has sparked a wave of significant labour law changes throughout 2025, aimed at modernizing workplace standards, reinforcing worker protections, and aligning with international norms. This article looks at key developments in employment law, unemployment insurance, HR compliance in Vietnam, and the treatment of foreign employers navigating work permit and visa requirements.
Trade Union Reform & Stronger Employee Rights
Vietnam’s revamped Trade Union Law, passed in late 2024 and coming into effect on July 1, 2025, is bringing major changes to labour relations.
- Foreign employees with contracts of 12 months or longer can now join grassroots trade unions, giving them better protection, though they remain ineligible for leadership roles.
- Employers must continue contributing 2% of the salary fund to union dues, but may now be eligible for exemptions or delays under specific circumstances.
- Trade unions have gained more oversight powers in enterprise audits, and stricter rules govern financial transparency.
These changes mark a pivotal shift in employment law, widening worker representation and strengthening transparency across industries.
Employment Law & Broader Unemployment Insurance
On June 16, 2025, Vietnam’s National Assembly passed the updated Employment Law 2025, taking effect January 1, 2026. In the meantime, Decree No. 158, effective July 1, 2025, guides implementation of the 2024 Law on Social Insurance.
Key highlights include:
- Wider unemployment insurance coverage: now includes short-term contracts (1–3 months), part-time employees earning at least the compulsory SI base, and business managers/executives receiving salaries.
- UI contribution rules are now flexible: employees still pay 1%, but employers contribute up to 1%, and the state may support up to another 1%, adjustable in emergencies.
- A national Labour Market Information System and Labour Registration Database are being set up, giving employees and employers better access to employment and insurance data.
Repeal of Outdated Labour Wage Documents
Effective February 15, 2025, the Ministry of Labour, War Invalids and Social Affairs cancelled 10 key labour and wage-related circulars issued between 2013 and 2014. While details are technical, this clean-up makes the regulatory landscape simpler, requiring HR departments to update policies to remain current and compliant.
Foreign Employers & Visa Work Permit Reforms
For foreign employers, navigating Vietnam’s visa work permit system has long been a complex undertaking, now made tougher by tighter scrutiny and digitisation.
Digital Applications & Documentation
- The government’s National Public Service Portal now handles all work permit applications online, making the process easier and clearer.
- Employers must prove foreign labour needs clearly, showing that no qualified Vietnamese candidates are available.
Qualification Requirements & Duration Limits
- For experts, a bachelor’s degree plus 3 years of relevant experience or 5 years of relevant experience with certification is required. For technical workers, 1 year of training plus 3 years of experience, or 5 years of related experience, is now standard.
- The work permit is limited to 2 years, with one possible renewal; after that, a new permit must be applied for.
- Permits expire if the contract ends, the job scope changes, or the employer closes; non-compliance can result in fines ranging from VND 30 million to VND 75 million, and potential deportation for foreign employees.
Exemptions & Supporting Documentation
- Exemptions from work permit requirements remain for short-term assignments under 90 days, intra-company transfers, key executives, or cases covered under international agreements.
- Deadlines are strict: employers must apply at least 10 days but no more than 60 days before the foreign worker’s planned start date. Approvals must be issued within 10 working days; refusals require written reasons within 3 days.
Together, these developments put new emphasis on careful compliance by foreign employers, ensuring that visa and work permit processes are properly managed via digital systems and up-to-date paperwork.
With these wide-ranging labour law changes, businesses in Vietnam face greater compliance responsibilities than ever before. From adjusting HR policies and managing unemployment insurance contributions to navigating strict digital work permit processes, it can be challenging for companies to keep up with every detail.
ATA Services Vietnam specialises in helping foreign and local businesses stay compliant with Vietnam’s fast-changing regulations. Our team provides end-to-end support with:
- HR compliance and payroll management
- Work permit and visa applications through the National Public Service Portal
- Labour contract drafting and policy updates
- Social insurance and unemployment insurance contributions
- Ongoing legal and administrative support
By partnering with ATA Services Vietnam, companies can reduce the risks of non-compliance, avoid costly penalties, and focus on growing their business while we handle the complex legal requirements.
