Vietnam is preparing for one of its most significant labor market reforms in recent years. The new 2025 Employment Law, approved during the National Assembly’s ninth session, will officially take effect on January 1, 2026. More than a simple update, the law reshapes how workers are supported, how skills are recognized, and how the labor market operates in a rapidly changing economy.

A new approach to skills, training, and workforce mobility

One major change lies in how Vietnam assesses and recognizes vocational skills. The law upgrades national qualification frameworks and vocational skill standards so they better reflect regional and global benchmarks. Workers—whether trained formally, independently, or through on-the-job experience—can now obtain national vocational skill certificates if they pass competency assessments.

This reform is expected to benefit more than one million workers who currently have skills but lack formal certification. With clear recognition, many may see greater employability, better wages, and more opportunities for career advancement.

For those seeking overseas employment, the law also opens access to financial support. Workers can apply for loans from the Vietnam Bank for Social Policies to cover training and preparation costs—helping Vietnam send more skilled talent to high-income, secure labor markets.

Strengthening public employment services

The updated law authorizes the government to set standards for public employment service providers, reinforcing the development of a free, accessible employment service system for workers. These centers will play a central role in job placement, career counseling, labor market information, and supporting both workers and employers.

Unemployment insurance becomes more flexible

One of the most notable reforms involves unemployment insurance (UI). The policy is redesigned to function not just as a safety net, but as a labor market management tool, aligned with Vietnam’s social insurance reform strategy.

Key changes include:

1. Expanded eligibility to increase coverage, aligned with the Social Insurance Law 2024
2. Flexible contribution rates, up to 1% of monthly salary
3. Simplified procedures for both employees and employers
4. Streamlined benefit access, reducing administrative burdens

Together, these adjustments aim to make UI more responsive, practical, and inclusive.

Building a real-time national labor database

For the first time, all Vietnamese citizens aged 16 and above will be registered in a unified national labor database, fully linked to the national population database. This system will:

1. Enable more accurate labor market forecasting
2. Support real-time tracking of employment trends
3. Provide reliable data for planning and policymaking
4. Improve coordination between localities, employers, and government agencies

Compared with today’s sample-based labor surveys, the new data ecosystem is designed to be “clean, live, and real”—capturing daily shifts in labor supply and demand.

A national employment exchange platform coming in 2026

The Ministry of Home Affairs is preparing to launch a national employment exchange platform, with pilot operations expected soon. This platform will digitally connect jobseekers and employers while allowing private recruitment platforms to integrate their data. The goal is to move away from manual job matching and toward a modern, fully interconnected labor market ecosystem.

Why this matters for Vietnam’s workforce

According to the Department of Employment, these reforms do not directly “cut” unemployment on their own, since joblessness depends on broader economic conditions. Instead, the law seeks to strengthen the foundation of Vietnam’s labor market—making it more transparent, data-driven, skills-based, and responsive to both domestic and international demand.

As Vietnam continues to position itself as a competitive destination for investment, labor availability, skill quality, and workforce readiness have become decisive factors for businesses. The 2025 Employment Law represents a strategic step toward meeting those expectations, while opening clearer pathways for workers to build skills, access opportunities, and move more confidently within the labor market.