State-specific workers' compensation laws in Vietnam

Currently, the issue of protecting workers' rights is becoming increasingly urgent as the workforce accounts for a large proportion of the global population (about 60% are workers aged 15 and over). Factors such as economic crisis, political and legal conflicts and the development of science and technology also risk making workers more vulnerable than ever.

1. Implementing laws to ensure workers' rights through laws and regulations such as the Labor Code, Social Insurance Law

To create a legal basis to protect workers' rights, Vietnam has made many important steps in building a legal system, including direct provisions in the Labor Code, Social Insurance Law, Law on Occupational Safety and Hygiene, Criminal Code and other State-specific workers' compensation laws.

The 2019 Labor Code is a core legal document that protects workers' rights by regulating basic rights such as Workers' compensation insurance coverage, Compensation for medical expenses, but there are still gaps in implementation, not fully protecting informal, seasonal or temporary and permanent disability benefits for workers. These workers do not enjoy the minimum wage, social security or health insurance like formal workers. The process of resolving labor disputes is often very complicated, costly and lengthy, causing difficulties for workers, especially those with low incomes. Enterprises that violate labor regulations or workplace injury documentation are often only lightly fined or not severely punished...
 

Vietnam Labor Law for Foreigners (2025)

The 2014 Social Insurance Law protects social security benefits for workers, especially in cases such as illness, work accidents, retirement and maternity. However, the coverage of this law is still limited, such as workers in the informal sector and small businesses still face many difficulties in accessing compulsory social insurance. Taking advantage of and handling benefits related to employee insurance is still difficult.

The 2015 Law on Occupational Safety and Health plays an important role in protecting workers from occupational risks, but enforcement of the law in small businesses or rural areas is uneven due to lack of supervision and awareness of compliance with the law. The group of workers without contracts is also not fully protected in terms of insurance and labor rights.

2. Efforts to implement initiatives and programs to enhance workers' rights

In recent years, Vietnam has implemented many initiatives and programs to improve working conditions and enhance workers' rights and workers' compensation compliance audits. One of the outstanding programs is the National Program on Occupational Safety and Hygiene for the period 2021-2025, focusing on raising awareness and improving safe working conditions for workers in hazardous industries such as construction, mining and chemical production.

In addition, the wage policy reform program under Decision No. 135/QD-TTg dated January 31, 2024 of the Prime Minister has been and is being implemented to ensure that workers are paid more fairly and fairly. The goal of this program is to adjust the minimum wage, ensuring that it is consistent with the actual living standards and living costs of workers, especially in the context of inflation and rising living costs.
 

Compensation for medical expenses

In addition, trade unions in Vietnam also play an important role in protecting workers' rights. Through social dialogues between workers and employers, trade unions have participated in negotiating working conditions, wages and other welfare regimes for workers, contributing to improving their status and rights in society.

Vietnam not only focuses on internal reforms but also promotes international cooperation to protect workers' rights. Vietnam has signed many free trade agreements (FTAs) with provisions related to labor rights, most notably the Vietnam-EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

3. Some solutions to meet the increasing needs of workers and ensure their rights

3.1 Improve the social insurance system and welfare policies to ensure better benefits for workers.

Evasion of social insurance contributions by enterprises, especially in the informal sector, is an emerging issue in practice that requires the application of blockchain technology to the social insurance system, helping to manage transparently and prevent acts of evasion of social insurance contributions. Granting a unique personal insurance code to each worker will create the ability to easily retrieve social insurance payment information. At the same time, welfare policies such as unemployment insurance and health insurance need to be adjusted more flexibly to meet the needs of workers in the context of a rapidly changing economy.

3.2 Train workers on their rights and measures to protect themselves in the context of a changing economy.

One of the biggest challenges today is that many workers are not aware of the Workers' compensation claims process, making them vulnerable to abuse.

To address this, it is necessary to promote training programs on Employer workers' compensation obligations through forms such as online seminars and mobile applications. These applications not only provide information on workers' rights but also support them to report violations safely and confidentially.

At the same time, training skills to cope with changes in the labor market, such as automation and globalization, or Injury reporting procedures, will help workers improve their ability to protect themselves and develop sustainably in their work.

Vietnam is increasingly integrating deeply into the global economy, creating many opportunities for cooperation in the field of labor. To improve, Vietnam needs to strengthen its labor management capacity through international cooperation programs, improve the capacity of domestic authorities, and create conditions for the development of a professional labor market that meets international standards and enhances Vietnam's position in the global supply chain.

The above solutions not only help improve workers' rights but also create the foundation for a strong, highly aware and skilled workforce, ready to face the challenges of the modern labor market. If you want to know more about Workers' compensation requirements, please do not hesitate to contact us for HR consulting service.

Faro Vietnam

• Email: service@farovietnam.com.vn

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