Attorney Vu Manh Quynh is the Managing Partner of ECOVIS Vietnam Law, advising international investors on Foreign Direct Investment (FDI), corporate governance, and regulatory compliance in Vietnam.

Summary: ECOVIS Vietnam Law provides HR legal compliance support for training companies and foreign employers in Vietnam — covering labor contracts, work permits for foreign trainers, internal labor regulations, minimum wage compliance, and corporate training service agreements. Attorney Vu Manh Quynh advises international education and training businesses on employment risk management in Ho Chi Minh City.

Legal Basis at a Glance

1. Why HR Compliance Is Critical for Training Businesses

Training companies in Vietnam typically operate with employment structures more complex than most service industries: full-time Vietnamese staff, part-time Vietnamese instructors, full-time foreign trainers, short-term foreign guest lecturers, and external contractors — each requiring different contractual and legal treatment.

Vietnam’s Labor Code 2019 applies to all employees working in Vietnam, regardless of nationality. The Code distinguishes between employment relationships and commercial service relationships, and this distinction determines tax treatment, social insurance obligations, work permit requirements, and termination rights. The most consequential HR compliance failures are discovered during labor disputes, tax inspections, or immigration checks — when the cost of correction significantly exceeds the cost of structuring correctly from the start.

2. Labor Contracts: Type, Probation, and Wage Compliance

• Fixed-term contracts may be renewed only once. A second renewal automatically creates an indefinite-term contract. Training companies that routinely renew fixed-term contracts for recurring instructors create unintended indefinite employment relationships.
• Seasonal/specific-work contracts must be genuinely tied to a specific task or season. Using this type for recurring teaching roles will not be upheld in a labour dispute.
• Probation: maximum 30 working days for professional/technical roles under the Labor Code 2019; prohibited for contracts under one month. Clauses beyond these limits are void.
• Minimum wage (Region I — HCMC): under Decree 293/2025/ND-CP effective 1 January 2026, the minimum is VND 5,310,000/month or VND 25,500/hour. All contracts referencing the prior VND 4,960,000/month rate should be reviewed and updated.

3. Work Permits for Foreign Trainers

The work permit obligation under Decree 152/2020/ND-CP as amended by Decree 70/2023/ND-CP applies to all foreign nationals in ongoing teaching or training roles, regardless of contract structure:

• Regular corporate trainers delivering scheduled training require full work permits; narrow, procedurally defined short-term exemptions apply only to genuinely discrete engagements under 30 consecutive days, under prescribed conditions
• Training companies that engage foreign trainers through third-party staffing remain the substantive employer for work permit purposes if trainers work under the company’s direction on the company’s premises
• Employers face an administrative fine of VND 75 million to VND 100 million per violation under Decree 12/2022/ND-CP for employing foreign workers without valid work permits — assessed at the employer entity level

“Training businesses sometimes assume that because their foreign trainers are not on permanent contracts, the work permit requirement does not apply. The obligation is triggered by the nature of the work — regular teaching or training on Vietnamese soil — not by the contract type or the label of the arrangement.” — Attorney Vu Manh Quynh, Managing Partner, ECOVIS Vietnam Law

4. Internal Labor Regulations and Salary Documentation

Under Article 118 of the Labor Code 2019, companies employing 10 or more workers must register internal labor regulations (noi quy lao dong) with the competent district DOLISA office. For training companies, discipline provisions are particularly important: managing performance issues with instructors, handling complaints about teaching quality, and structuring termination for cause all require enforceable, DOLISA-registered internal regulations.

Additional documentation required:

• Salary scale and payroll structure (thang luong, bang luong): must be registered with DOLISA. All salary grades in contracts must correspond to registered salary scale entries
• Pay slip disclosure: employees must receive pay slips showing salary components, PIT withholding, and social insurance deductions

5. Personal Data Protection for Training Businesses

Decree 13/2023/ND-CP applies to training companies’ handling of both employee data and training participant data:

• Training participant data — including corporate clients’ employee data processed during delivery — requires a data processing agreement between the training company and the corporate client
• Where programs include minors (under 16), parental or guardian consent is required for personal data processing
• International LMS platforms and video tools should be assessed for cross-border transfer compliance under the Decree

6. Corporate Training Service Contracts

• IP ownership: training materials, curricula, and assessment tools must have clear IP ownership clauses — without express allocation, disputes arise on exit
• Named trainer substitution: service agreements must specify substitution procedures and approval requirements
• VAT and e-invoicing: training service revenue is subject to VAT; e-invoices must be issued at point of service delivery
• Performance representations: claims about learning outcomes or skill certification in B2B contracts must be accurate

7. Termination and Redundancy

• Notice periods: 45 working days for indefinite-term; 30 calendar days for fixed-term 12–36 months; 3 working days for contracts under 12 months
• Dismissal for cause: requires a documented disciplinary hearing with prescribed employee representation rights. Dismissal without following the procedure is unlawful regardless of the substantive grounds
• Severance: employees with 12+ months of service are entitled to half a month’s salary per year of service on termination (except in defined dismissal-for-cause scenarios)

8. Frequently Asked Questions

Does a training company need to register internal labor regulations?

Yes, if it employs 10 or more workers (Article 118, Labor Code 2019). The regulations must be registered with district DOLISA, posted at the workplace, and provided to employees. Operating without registered regulations at the required scale is an administrative violation, and disciplinary proceedings conducted without them are procedurally vulnerable.

Can a training company pay foreign trainers through service fees rather than salaries?

This carries material compliance risk. If the economic reality of the arrangement constitutes an employment relationship — the trainer works at the company’s direction, on the company’s premises, at scheduled times — the service contract characterisation will not override the employment and work permit analysis. Tax authorities and labour inspectors apply a substance-over-form approach.

What is the current minimum wage in Ho Chi Minh City?

Under Decree 293/2025/ND-CP, effective 1 January 2026, the Region I minimum wage for Ho Chi Minh City is VND 5,310,000 per month or VND 25,500 per hour. All contracts referencing the prior VND 4,960,000/month rate should be updated.

What notice period is required to terminate an employee?

Under the Labor Code 2019: 45 working days for indefinite-term contracts; 30 calendar days for fixed-term contracts of 12 to 36 months; 3 working days for contracts under 12 months. Termination for cause follows a separate disciplinary procedure, not notice-period termination.

How should a training company handle corporate client employee data?

Under Decree 13/2023/ND-CP, a data processing agreement should be established with the corporate client, clarifying controller/processor roles, processing purposes, security obligations, retention limits, and data subject request procedures. Using participant data for marketing without a separate lawful basis is a compliance risk.

Can ECOVIS Vietnam Law help with HR compliance for multi-location expansion?

Yes. Multi-location expansion creates compliance implications: DPI notifications, updated internal labor regulations, work permit amendments for foreign employees working at new sites, and additional DOLISA registrations. ECOVIS Vietnam Law advises training companies on the compliance requirements at each stage of expansion.

9. HR Compliance Checklist for Training Companies

• ☐ Review all employment contracts: confirm type reflects actual working arrangement
• ☐ Verify probation clauses: maximum 30 working days for professional roles; prohibited for contracts under 1 month
• ☐ Update all salary figures to Region I minimum: VND 5,310,000/month or VND 25,500/hour (Decree 293/2025/ND-CP, eff. 1 January 2026)
• ☐ Register internal labor regulations with district DOLISA (required at 10+ employees)
• ☐ Register salary scale and payroll structure with DOLISA
• ☐ Confirm work permit status for all foreign trainers — permits must reflect current job title, employer entity, and location(s)
• ☐ Initiate work permit renewals 30 to 45 days before expiry
• ☐ Register all employees for social insurance within 30 days of first hire
• ☐ Review corporate training service contracts for IP ownership, data processing, VAT, and performance representation clauses
• ☐ Assess personal data processing: employee data, training participant data, minors, cross-border transfers
• ☐ Establish a termination documentation protocol ensuring procedural compliance
• ☐ Conduct HR compliance audit annually and after any significant headcount or location change

Request an HR legal compliance diagnostic for your training company. Contact Attorney Vu Manh Quynh: vietnam@ecovislaw.vn | www.ecovislaw.vn

Attorney Vu Manh Quynh is the Managing Partner of ECOVIS Vietnam Law, advising international investors on Foreign Direct Investment (FDI), corporate governance, and regulatory compliance in Vietnam.

This material is for general informational purposes only and does not constitute legal, tax or professional advice. Investors should seek specific advice based on their business sector, ownership structure and investment location in Vietnam. Legal and regulatory references reflect the position as of June 2026 and are subject to change.

Last reviewed: June 2026 | ECOVIS Vietnam Law