The Vietnamese government enacted several laws to help mitigate the pandemic’s impact on employers and employees, including suspension of retirement plan contributions, allowances for unemployed workers, and relaxed regulations on foreign workers.
Resolution 105/NQ-CP, issued on September 9, eased restrictions for issuing, extending, and certification of work permits for foreign workers in Vietnam. Foreign workers will be allowed to work with more flexibilities on academic degrees, working and training experience, and working location and mobility.
Resolution 68/NQ-CP, effective in July, provided various support policies for employers and employees facing challenges due to the pandemic with a package of US$1.13 billion (VND 26 trillion).
- Employers and employees are entitled to suspend contributing to the retirement fund for six months starting in July, with some requirements. After the suspension period, employers and employees are expected to continue making contributions to the fund and reimburse for the suspension period without late payment interest.
- Employers are also allowed to leverage the unemployment insurance fund to provide training to their employees up to VND 1,500,000 (US$65) per employee per month no longer than six months. A request document must be submitted to the relevant authorities between July 1, 2022, and June 30, 2022.
- Employees who take unpaid leave, or have their work contracts suspended or terminated due to the pandemic, or who are in quarantine more than 14 days, are entitled to receive a one-time lump sum from VND 1,000,000 (US$43) to VND 3,710,000 (US$161) per person provided they have been contributing to social insurance.
- In addition, employees that are pregnant are eligible to receive VND 1,000,000 (US$43); those taking care and raising children under 6 years of age are eligible for an additional VND 1,000,000 (US$43) per child.
Outlook: Vietnam aims to use the resolutions to contain the pandemic’s fiduciary impact and resume business production and activities to spur economic growth. Employers who operate in Vietnam should understand the benefits of the new laws and effectively communicate with their employees.
