Many businesses in Vietnam focus on daily operations, revenue growth, and market expansion—while legal compliance is often treated as a one-time task completed during company setup. In reality, however, legal obligations do not end after incorporation. Every year, businesses are required to perform a series of legal actions to remain compliant.
Unfortunately, many of these annual legal obligations are frequently overlooked. They may not cause immediate problems, but when authorities conduct inspections or audits, these forgotten tasks often lead to penalties, corrective orders, or operational disruptions.
This article highlights the key legal obligations businesses must complete every year in Vietnam—but often forget, and explains why ongoing legal consultancy is essential for long-term compliance.
Unlike tax filings or payroll, many legal obligations are not managed by a single department. They are spread across corporate governance, labor, licensing, investment, and regulatory compliance.
Businesses often overlook annual legal tasks because:
Responsibilities are divided between accounting, HR, and management;
Regulations change frequently and are not always clearly communicated;
Some obligations do not require immediate filing unless changes occur;
Companies lack an internal legal function to monitor compliance.
These factors make annual legal compliance particularly challenging—especially for foreign-invested enterprises (FDI companies).
Every year, businesses should review and update their corporate governance documents, including:
Internal resolutions of shareholders or members;
Appointment or re-appointment of legal representatives;
Authorization letters and power-of-attorney documents;
Compliance with the company charter.
Many companies operate for years using outdated resolutions or expired authorizations, which can invalidate transactions and create risks during inspections or disputes.
Businesses should annually assess whether:
Their actual activities remain within licensed business lines;
Additional sub-licenses are required for certain services;
Changes in business models require license amendments;
Industry-specific compliance conditions are still met.
Operating beyond the licensed scope—even unintentionally—is a common violation that often surfaces during regulatory inspections.
Annual legal review of labor matters is critical to avoid disputes.
Key tasks include:
Reviewing employment contracts for compliance with current labor law;
Updating internal labor regulations, HR policies, and salary structures;
Reviewing overtime, bonus, and disciplinary procedures;
Ensuring proper termination processes and documentation.
Outdated labor templates are a frequent source of penalties and employee claims.
Each year, businesses should verify:
Accuracy of social insurance contributions and declarations;
Compliance with mandatory insurance for all eligible employees;
Employee benefit policies aligned with legal requirements;
Reconciliation of insurance records with payroll data.
Errors in social insurance often result in retroactive payments, fines, and disputes with employees.
FDI companies in Vietnam are subject to annual and periodic investment reporting obligations.
Commonly forgotten tasks include:
Annual investment activity reports;
Updates on project progress or capital contribution;
Notifications of changes in project implementation;
Sector-specific regulatory reports.
Failure to comply with investment reporting requirements may affect future expansion plans or investment approvals.
Long-term contracts should not be left unchecked year after year.
Annual contract review should include:
Renewal or termination of expiring agreements;
Review of pricing, liability, and penalty clauses;
Alignment with updated laws and business practices;
Assessment of legal risks in key commercial relationships.
Unreviewed contracts often contain outdated or unenforceable terms that expose businesses to unnecessary risk.
Data protection regulations are becoming increasingly important in Vietnam.
Each year, businesses should review:
Collection and use of employee and customer data;
Privacy notices and consent mechanisms;
Internal data protection policies;
Cross-border data transfers and outsourcing arrangements.
Non-compliance in this area can result in significant reputational and legal consequences.
Vietnamese laws and enforcement practices change frequently.
An annual legal review should:
Identify new laws and regulations relevant to the business;
Assess their impact on operations;
Update internal processes and contracts accordingly.
Relying on outdated regulations is a common compliance risk.
Overlooking annual legal tasks may lead to:
Administrative penalties and corrective orders;
Increased scrutiny during inspections;
Disputes with employees, partners, or authorities;
Delays in transactions, expansions, or restructuring;
Damage to the company’s reputation.
Most of these risks are preventable with proper planning and regular legal oversight.
Many businesses do not need a full-time in-house lawyer—but they do need continuous legal support.
An ongoing legal consultancy service provides:
Regular reminders of annual and recurring legal obligations;
Proactive legal reviews and risk assessments;
Practical advice tailored to the company’s operations;
Predictable legal costs through monthly or annual retainers.
This model is particularly suitable for SMEs and FDI companies operating in Vietnam.
DEDICA provides ongoing legal consultancy services designed to help businesses manage annual and recurring legal obligations effectively.
Our support includes:
Annual legal compliance reviews;
Ongoing advice on corporate, labor, and regulatory matters;
Monitoring of legal changes affecting your business;
Legal risk assessments and preventive solutions;
Acting as an outsourced legal department for your company.
DEDICA’s approach is practical, proactive, and business-focused, helping clients avoid legal surprises and operate with confidence.
Annual legal obligations are an essential part of running a compliant business in Vietnam, yet many are often forgotten until problems arise. From corporate governance and licensing to labor compliance and investment reporting, these tasks require consistent legal attention.
For businesses seeking a reliable and cost-effective solution, ongoing legal consultancy ensures that no critical legal obligation is overlooked.
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
🕒 Working Hours: Monday – Friday (8:30 – 18:00)
Contact us today for a free initial consultation with our experienced lawyers!
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