Vietnam’s Labor Market in 2025: Emerging Trends and Key Disputes

Vietnam’s labor market is undergoing a profound transformation: a young workforce, the rise of technology, a dominant informal sector, and increasingly complex labor disputes. So, in Vietnam, what trends should businesses and workers be aware of, and how can they prepare for the most significant disputes ahead?

1. Major Trends in Vietnam’s Labor Market in 2025

Amid rapid global and domestic economic shifts, Vietnam’s labor market in 2025 shows numerous new signals — offering both major opportunities and significant challenges for employers and employees alike.

1.1. Structural Transformation and Skills Demand

According to data from the General Statistics Office, in Q2 2025, Vietnam’s informal employment rate stood at around 63.5%, a slight decrease compared to the same period last year. Meanwhile, the proportion of trained workers (with degrees or certificates) reached 29.1%, up 0.3 percentage points from the previous quarter. This indicates that Vietnam’s workforce is becoming more professional, although a large portion remains unskilled.

Industries with surging demand include information technology, artificial intelligence (AI), logistics and supply chain, renewable energy, and export manufacturing. Businesses in Vietnam, especially foreign-invested enterprises, are seeking employees with “green” competencies, soft skills, and adaptability to technological change.

1.2. New Legal Regulations and Labor Protection Mechanisms

The year 2025 marks a major legal turning point in Vietnam with the Employment Law 2025, which was passed by the National Assembly and will take effect on January 1, 2026. This law responds to new labor market dynamics such as flexible work, the gig economy, and digital transformation in human resource management.

Key highlights include:

• Expanding unemployment insurance coverage to workers with short-term contracts (from one month or more);

• Introducing new regulations on electronic labor contracts and personal data protection;

• Developing a national labor market information and registration system.

In Vietnam, both employers and employees must update and comply with these new regulations to avoid legal risks and labor disputes.

2. Prominent Labor Disputes and How to Address Them

Alongside these evolving trends, Vietnam’s labor market faces growing disputes and legal challenges. Understanding and preparing well are essential for businesses and workers to operate safely.

2.1. Common Types of Labor Disputes

According to expert analyses, labor disputes in Vietnam typically stem from delayed or unpaid wages and bonuses, unlawful dismissal, breach of employment contracts, and discrimination. In a rapidly changing labor market, mismatched recruitment, skill shortages, and rising unemployment have also become sources of conflict.

For instance, although Vietnam’s GDP growth reached 7.52% in the first half of 2025, the supply–demand mismatch in the labor market persists, putting workers at risk of job loss or unstable employment conditions.

2.2. New Legal Risks under Vietnam’s Labor Framework

The Employment Law 2025 also introduces potential risks if businesses and workers fail to prepare adequately. For example, companies that do not fully contribute to unemployment insurance may have to compensate employees. Improper management of HR data or electronic contracts could violate Vietnam’s personal data protection laws. Additionally, when workers relocate between provinces (for instance, from rural to urban areas), unemployment insurance benefits can be disrupted if transfer procedures are not properly followed.

2.3. Strategic Recommendations for Employers and Employees in Vietnam

To seize opportunities and mitigate risks in Vietnam’s 2025 labor market, both employers and employees should proactively adopt several strategic measures.

2.4. For Employers

• Upgrade human resources: Invest in reskilling and upskilling the workforce, especially in digital, soft, and technology-related skills.

• Ensure legal compliance: Review labor contracts (including electronic ones), unemployment insurance policies, and HR data management systems to comply with the Employment Law 2025.

• Develop proactive HR systems: Apply digital tools to manage workforce data, maintain flexible recruitment strategies, and strengthen talent retention.

• Forecast and manage disputes: Establish internal complaint mechanisms, ensure transparency in pay and contract handling, and minimize unlawful terminations.

2.5. For Employees

• Enhance future-ready skills: Actively learn new technologies and digital tools to increase adaptability.

• Understand rights and obligations: Familiarize yourself with labor contracts, unemployment insurance entitlements, and benefit transfer procedures when relocating.

• Engage actively at work: Learn company policies, provide feedback on workplace conditions, and ensure fair treatment.

• Maintain clear documentation: Keep all employment records, insurance documents, and personal data to protect your rights in case of disputes.

3. Conclusion

Vietnam’s labor market in 2025 stands at a critical turning point — where opportunities and challenges intersect. On one hand, strong economic recovery and deeper global integration are creating millions of new jobs; on the other, rapid technological change, evolving job structures, and new legal frameworks are increasing the risk of disputes.

Both businesses and employees in Vietnam must proactively adapt: employers should not only comply with the law but also foster transparent, sustainable workplace cultures, while workers must continuously upgrade their skills and understand their rights to protect themselves amid market fluctuations.

In this transformative era, partnering with experienced legal professionals is key to minimizing risks and ensuring stability. DEDICA Law remains committed to supporting both employers and employees with safe, effective, and cost-optimized legal solutions — helping Vietnam’s labor market grow healthily and sustainably.

Contact DEDICA Law Firm for expert legal consultation!

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