Vietnam Employment Guide

Vietnam Employment Guide

Vietnam is in Southeast Asia with sustained high economic growth, and its manufacturing, technology and service industries develop rapidly. With a large young labor force and improving infrastructure, it is attracting more multinational enterprises to invest in branches or outsourcing teams, becoming a popular market for global employers. In HR management, Vietnam has a relatively sound labor law system covering employment contracts, working hours, minimum wages, benefits and termination procedures. Employers must contribute to social insurance, health insurance and unemployment insurance, and pay salaries monthly in Vietnamese Dong generally. Probation periods, fixed and open-ended contracts have clear legal provisions, and employee dismissals must meet statutory conditions. Flexible employment is growing with digital office trends, but formal labor relations still emphasize written contract compliance. Local professional services are recommended for legal employment procedures.

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Currency

Vietnamese Dong (VND)

Capital

Hanoi

Official language

Vietnamese

Salary Cycle

Monthly

Our Employment Guide in Vietnam

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Annual Health Examinations in Vietnam: An HR Compliance Guide

Vietnam's Labor Code, specifically the Law on Occupational Safety and Health (2015), establishes a clear legal framework for employee welfare. A cornerstone of this framework is the mandatory provision of annual health checks by employers. This requirement is not merely a formality but a critical component of workplace safety and risk management.

Mandatory Health Check Policy

The law mandates that employers must organize health examinations for all employees at least once per year. The primary objective is to assess an employee's fitness for their specific role and working environment. However, the frequency increases for employees in high-risk categories.

  • Standard Employees: Annual health examination.
  • High-Risk Employees: Health checks are required at least every six months. This group includes individuals engaged in heavy labor, or work involving toxic or hazardous substances, as well as disabled, minor, and elderly employees.

Trigger Events for Additional Examinations

Beyond the scheduled checks, employers have a duty to arrange additional medical assessments in specific scenarios. Proactive compliance in these areas is essential for mitigating liability.

  1. When an employee is transferred to a role that is more physically demanding, dangerous, or involves greater health risks.
  2. Following an employee's return to work after recovering from an occupational disease or a work-related injury.
  3. Upon a formal request from the employee or their representative, unless a recent assessment by a certified medical board is already available.

Furthermore, for roles with identified occupational disease risks, employers must also facilitate specific occupational disease monitoring, typically conducted alongside the regular health check.

Financial and Administrative Responsibilities

The financial burden of these health examinations rests entirely with the employer. It is illegal to pass any of these costs on to employees.

  • Cost Coverage: Employers bear 100% of the expenses, which can be classified as deductible administrative costs for corporate income tax purposes.
  • Record Keeping: Companies are obligated to establish and maintain detailed occupational health records for each employee.
  • Reporting: Employers must inform employees of their examination results and submit an annual health report to the relevant government authorities.

For multinational companies, managing these administrative tasks across borders can be complex. Partnering with a global HR solutions provider like SailGlobal can streamline compliance, ensuring accurate record-keeping and timely reporting.

Consequences of Non-Compliance

Failure to adhere to these regulations carries significant financial penalties as stipulated in Decree No. 12/2022/ND-CP.

ViolationPenalty Range (per employee)Maximum Total Penalty
Failure to organize annual health checks2,000,000 – 6,000,000 VND150,000,000 VND
Failure to conduct a check before a transfer or after a return to work5,000,000 – 10,000,000 VND

Consider the case of a manufacturing plant in Hai Phong that faced substantial fines after an inspection revealed it had not conducted bi-annual checks for its assembly line workers, a clear high-risk group. The financial penalty, coupled with reputational damage, underscored the importance of strict adherence to the law.

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