Vietnam
Summary
Vietnam's Labor Code of 2019 introduced significant changes to contingent workforce regulations, including stricter rules for fixed-term contracts and labor outsourcing.
Key Considerations
Monitoring Strategy
To stay updated on changes to Vietnam's contingent workforce regulations, regularly monitor the Ministry of Labour, Invalids and Social Affairs website for new decrees and circulars implementing the Labor Code. Subscribe to alerts from industry associations such as the Vietnam Chamber of Commerce and Industry and the Vietnam Business Forum. Legal updates from major Vietnamese law firms specializing in employment law are also valuable sources of information on regulatory changes and implementation guidance.
Which jobs can use outsourced (dispatched) labour in Vietnam?
Only listed ones. Labour outsourcing is permitted solely for jobs on the government's approved list, twenty occupations under current decree, covering roles like interpreters, secretaries, drivers, and certain technical positions. Outsourcing outside the list is unlawful.
How long can an outsourced worker be assigned to a client in Vietnam?
Twelve months maximum. The Labor Code caps labour outsourcing at 12 months per worker with the same client, with no extension mechanism. Programs needing longer coverage must transition to direct fixed-term employment or restructure the work as genuine services outsourcing.
Do labour outsourcing companies need a licence in Vietnam?
Yes. Providers need a labour outsourcing licence from the authorities and must place a statutory deposit of VND 2 billion to secure worker claims. Licence and deposit verification should be standard onboarding for Vietnamese staffing vendors.
What are the fixed-term contract limits in Vietnam?
Thirty-six months, once renewable. A fixed-term labour contract may run up to 36 months and be renewed a single time; continuing employment after that requires an indefinite-term contract. Chains of short renewals to preserve flexibility are not available under the 2019 Labor Code.
Are outsourced workers entitled to equal pay in Vietnam?
Yes. Outsourced workers must receive wages not lower than those of the client's own employees holding the same qualifications and doing the same or equal-value work. The outsourcing provider remains the legal employer responsible for contracts and social insurance.