What Should FDI Enterprises Pay Attention to Regarding Vietnam’s Labor Law in 2026?

Date: 2026.02.05

The year 2026 is forecast to bring many changes in labor and wage policies in Vietnam. These updates stem from practical requirements, administrative reforms, enhanced protection of employees, and alignment with international commitments (ILO, CPTPP, EVFTA).
For FDI enterprises—especially Japanese companies—timely awareness is crucial to maintaining compliance, avoiding legal risks, and ensuring stable operations.

Below are the most important points FDI enterprises should note in 2026.

1. Updates on Minimum Wage and Salary Structure

According to the National Wage Council, regional minimum wages are proposed to be adjusted based on living standards and economic growth in 2026.
FDI enterprises should note:

– The minimum wage is the lowest salary paid to unskilled workers and does not include allowances.

– Wages for trained employees must be at least 7% higher than the minimum wage.

– Salary structures must be clearly separated into: base salary – allowances – other additional payments.

This is an area where Japanese enterprises often face difficulties when designing compliant salary scales in Vietnam.

2. Stricter Management of Working Hours and Overtime (OT)

According to MOLISA, overtime violations are the most common compliance issues among FDI enterprises.
Key points in 2026 include:

– Continued application of the OT limit: no more than 40 hours per month.

– Manufacturing sectors may apply up to 300 OT hours per year, subject to eligibility conditions.

– Written consent from employees is required for overtime work.

– Increased inspections on proper OT payment rates:

+ 150% on normal working days

+ 200% on weekly rest days

+ 300% on public holidays

Japanese enterprises—with traditionally high OT cultures—should carefully review their working time management systems.

3. Workplace Dialogue and Multi-Representative Labor Relations

Under the 2019 Labor Code and new guidance from the Vietnam General Confederation of Labour, 2026 continues to emphasize:

– Periodic workplace dialogues (1–4 times per year).

– Establishment of dialogue committees with proper structure.

– Promotion of employee representative organizations (EoR) in line with ILO standards.

In particular, commitments under EVFTA and CPTPP are expanding non-traditional labor representative models, requiring FDI enterprises to prepare for multi-party labor relations management.

4. Social, Health, and Unemployment Insurance: Stricter Inspections

According to Vietnam Social Security, electronic inspection systems implemented in 2024–2025 allow faster detection of:

– Under-declared insurance bases

– Failure to insure eligible employees

– Late or evaded contributions

New points FDI enterprises should note:

– Regular supplementary payments must be included in the insurance contribution base.

– Increased scrutiny of seasonal contracts and collaborators.

– Proper management of foreign employees in accordance with Decree No. 152/2020.

5. Occupational Safety and Health (OSH) – Mandatory Documentation

The Department of Work Safety has announced key inspection priorities for 2026, focusing on FDI enterprises, including:

– OSH risk assessments

– Safety training records for Groups 1–6

– Workplace accident logs

– Operating procedures for equipment with strict safety requirements

– Timely submission of periodic OSH reports

For manufacturing sectors—where many Japanese enterprises operate—compliance requirements are particularly strict.

6. Labor Disciplinary Procedures Must Fully Comply with Documentation Requirements

Based on labor disputes in 2023–2024, Vietnamese courts emphasize:

– All disciplinary decisions must have complete records, evidence, and meeting participants.

– Trade unions or employee representative organizations must be involved.

– Disciplinary actions are prohibited when employees are on sick leave or pregnant.

Missing any step may invalidate the decision and expose enterprises to significant risks.

7. Periodic Reporting – Commonly Forgotten but Heavily Penalized

In 2026, MOLISA continues to require mandatory reports, including:

– Semi-annual labor reports

– Annual labor reports

– OSH reports

– Occupational accident reports

New electronic systems enable quick detection of late or missing submissions.

FDI Enterprises Should Prepare Early for 2026

Overall, Vietnam is steadily improving its labor legal framework to:

– Enhance transparency

– Protect employees

– Align with international standards

FDI enterprises should:

– Conduct periodic compliance reviews

– Stay updated on new regulations

– Build robust HR – Payroll – Compliance systems

– Consider Back Office Outsourcing to reduce risks

Professional outsourcing services help enterprises save time and costs while maintaining full compliance with Vietnamese law.