Vietnam is a potential and attractive investment environment for foreign investors due to its many advantages in a large labor market, affordable labor costs, abundant young workforce, incentives policies. When implementing investment activities in Vietnam, besides the concerns about conditions and procedures, foreign investors need to pay special attention to labor regulations as well. There are core labor regulations that foreign investors keep in mind when making the investment in Vietnam.

1. Labor Contract

Under the provisions of Vietnamese law, a labor contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations. A labor contract shall be concluded in one of the following types:

• An indefinite-term labor contract is a contract in which the two parties neither fix the term nor the time of termination of the contract.

• A fixed-term labor contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its enforcement.

A labor contract shall be concluded in writing and made into two copies, one of which will be kept by the employee, the other by the employer, except a contract with a term of less than one month can be concluded in verbal.

Within 30 days from the expiration date of the labor contract, both parties shall enter into a new labor contract. Before such a new labor contract is...

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