1. What is workforce reduction? Under current Vietnamese law, there is no specific legal definition of “workforce reduction.” However, this term is commonly understood as a situation where an enterprise terminates employment contracts ahead of their expiry date with multiple employees (from two or more individuals) at the same time in order to reduce the […]

Correctly distinguishing contract types: Avoid risks for FDI enterprises In recent years, Vietnam has intensified labor compliance inspections, especially for FDI enterprises. According to reports from the Inspectorate of the Ministry of Labour – Invalids and Social Affairs (MOLISA), one of the most common violations is the misuse of employment contract types, leading to legal […]

🔔 From 2026: Overtime Pay, Night Shift Pay, and Unused Annual Leave Payments Are Exempt from Personal Income Tax – What Employees Need to Know From 2026, a range of income items related to employees’ salaries will officially be exempt from personal income tax (PIT) under the new provisions of the 2025 Personal Income Tax […]

Starting in 2026, personal income tax (PIT) policy will see a highly noteworthy change, particularly for employees who frequently work overtime or night shifts. Under the 2025 Personal Income Tax Law, all overtime pay and night-shift wages will be fully exempt from personal income tax, instead of only the differential portion as applied under previous […]

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 […]

Vietnam is becoming an increasingly attractive destination for foreign investors, especially from Japan, South Korea, and Europe. However, according to reports from the Inspectorate of the Ministry of Labor, Invalids and Social Affairs (MOLISA) and the Department of Work Safety, more than 65% of FDI enterprises experience labor and occupational safety violations within their first […]

Starting from January 1, 2026, Vietnam will officially implement Decree No. 293/2025/NĐ-CP, which increases regional minimum wages nationwide. This is a significant adjustment in wage policy that directly impacts personnel costs, financial planning, and employee welfare policies for all businesses operating in Vietnam. 1. New Regional Minimum Wage from 2026 According to Decree 293/2025/NĐ-CP, regional […]

Comprehensive labor compliance solutions for FDI enterprises in Vietnam Vietnam is an attractive destination for FDI enterprises thanks to its stable environment, abundant workforce, and reasonable labor costs. However, according to reports from the Inspectorate of the Ministry of Labour – Invalids and Social Affairs (MOLISA), more than 60% of FDI enterprises face difficulties in […]

Labor Law compliance: What do FDI enterprises often misunderstand? When expanding operations into Vietnam, many FDI enterprises—especially from Japan, South Korea, and Europe—face significant challenges in complying with labor regulations. According to reports, more than 60% of labor violations by FDI companies stem from misunderstandings of regulations, leading to unintentional non-compliance but serious legal risks. […]

How can newly established FDI companies avoid labor inspection risks? During 2024–2025, Vietnam has strengthened labor compliance management through annual inspection plans conducted by the Inspectorate of the Ministry of Labour – Invalids and Social Affairs (MOLISA), the Department of Work Safety, and Vietnam Social Security (VSS). FDI enterprises are often among the groups inspected […]