Recent developments in Vietnam
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment landscape in Vietnam.
Evolving Rules on Employment Termination (2025):
Vietnamese labour law continues to define four legally acceptable methods of employment termination: automatic termination (such as the expiry of a fixed-term contract), mutual agreement between the parties, termination by the employer (including unilateral termination, redundancy, or dismissal), and unilateral termination by the employee. Employers must ensure that each termination case aligns with one of these categories and complies fully with the procedural and noticeable requirements established under the Labour Code.
Amendment to Work Permit Regulations – Decree 70/2023/ND-CP (2025):
Although Decree No. 70/2023/ND-CP was originally issued in late 2023, its full practical implementation has taken effect during 2025. The Decree amended key provisions of Decree No. 152/2020/ND-CP regarding the employment of foreign workers in Vietnam. Authorities have clarified work permit procedures, simplified required documentation, and introduced clearer guidance for managing Vietnamese staff working for foreign employers.
Shortened Timeline for Foreign Labour Demand Registration (2025):
One of the most significant regulatory shifts now fully in force in 2025 is the reduction in the required lead time for submitting a foreign labour demand report. Employers must now file this report at least 15 days before the intended employment start date, replacing the earlier 30-day requirement. This streamlining of the process is designed to support faster recruitment of foreign professionals.
Increased Scrutiny on Labour Outsourcing (2025):
Vietnamese authorities have intensified their scrutiny of labour outsourcing practices in 2025. Companies engaging third-party staffing providers or managing independent contractors must ensure proper role classification, transparent reporting, and contractual compliance. Authorities have made it clear that misclassification or misuse of outsourcing arrangements may result in fines, inspections, or other enforcement actions.
Digitalisation of Work Permit Applications (2025):
Throughout 2025, Vietnam has accelerated its move toward digitalising work permit procedures. Pilot programs launched in Hanoi and Ho Chi Minh City now enable employers to submit certain work permit applications and labour-related filings online. This initiative aims to increase administrative efficiency, reduce in-person interactions, and streamline processing times across key provinces.
