Vietnam has introduced the most significant overhaul of its labor regulations in recent years with the passage of the 2025 Employment Law. The new law, effective from January 1, 2026, reflects the government’s response to emerging trends in the global labor market, while aligning domestic policies with international standards.
Prescribed under the new law, the reform modernizes Vietnam’s employment landscape by:
This article provides a comprehensive analysis of the new employment framework, explaining the key changes, how they differ from previous regulations, who will be impacted, and how businesses and employees should strategically respond. It also highlights the opportunities that organizations can leverage as part of their compliance and transformation journey.
Vietnam’s labor market is undergoing structural shifts driven by various economic and social dynamics.
The prevailing trend of digitalization is changing how work is performed and how employment relationships are managed. The rise of the gig economy and flexible work models continues to create demand for more inclusive and adaptable labor laws. Meanwhile, the government has...
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