You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 31, 2020

Vietnam Issues Strict Social Distancing Measures to Combat COVID-19

On March 31, 2020, the Prime Minister of Vietnam issued Directive No. 16/CT-TTg, which sets out Vietnam’s strongest measures yet for preventing and controlling the COVID-19 virus.

Notably, Directive 16 mandates strict social distancing throughout the country for 15 days, from April 1 through April 15. In the wording of the directive, “families should be distanced from families, villages should be distanced from villages … provinces should be distanced from provinces.”

Practical Implications

All people are required to stay at home, except for trips to buy essential goods such as food and medicine, for emergencies, and to go to work at factories and businesses that remain open. People are also required to strictly maintain a minimum distance of two meters when meeting others. Gatherings of more than two people are prohibited in all public places, and outside/in front of workplaces, schools, and hospitals.

Factories and workshops must ensure a safe distance between employees, facemasks must be worn, and workplaces must be sterilized according to regulations.

All state agencies are required to arrange for their staff to work from home.

Public transportation services will be suspended and travel/transport from region to region will be minimized, except for essential goods and services.

Border crossings between Vietnam and Cambodia and Laos will be temporarily closed from April 1. Immigration will be tightly controlled at all international border crossings; all those entering from Cambodia and Laos will be quarantined for 14 days.

Impact on Foreign Businesses

Mai Tien Dung, Minister and Chairman of the Government Office, later clarified in an interview that, for foreign businesses, management is free to determine whether to continue allowing employees to go to work based on the situation, but that they must be responsible for ensuring their employees’ health and safety in accordance with regulations. However, the government encourages the use of remote-working technology to allow employees to work from home.

Further clarifying guidance on issues such as what businesses are considered essential, if forthcoming, would help in implementing the policy.

RELATED INSIGHTS​ 

September 30, 2025
Over the past several years, during and after the COVID-19 pandemic, Thai employees and labor unions have faced reductions in benefits and welfare from their employers. Consequently, they have pursued various strategies to enhance their compensation packages. One such approach involves establishing employee committees to negotiate with employers regarding benefits and welfare. Additionally, companies with existing unions typically nominate representatives to serve on these employee committees. Many employers, however, remain unfamiliar with both the committee’s role and the heightened procedural requirements that apply when disciplinary measures are contemplated against committee members. Because any violation of a committee member’s statutory rights can expose the employer—and its directors or authorized representatives—to criminal liability, a clear understanding of the relevant legal framework is essential. The Labor Relations Act B.E. 2518 (LRA) provides the statutory foundation for establishing employee committees. The purpose of the committee is to promote harmonious industrial relations and create a formal channel through which employees and employers can discuss workplace matters on a regular basis. Any workplace that employs at least fifty employees must, upon request by employees or the labor union, facilitate the creation of a committee. Members may be elected directly by employees or, where applicable, appointed by the labor union. Each member serves a three-year term. The LRA prescribes minimum committee sizes based on the employer’s headcount, as shown in the table below. If union members constitute more than 20 percent of the total workforce, the union must appoint at least one more committee member than the number of nonunion members elected by the general workforce. If union membership exceeds 50 percent of the workforce, the union acquires the exclusive right to appoint every committee member. Where multiple unions exist and their combined appointments would exceed the statutory committee size, the employer may lawfully refuse to
September 30, 2025
Vietnam’s higher education system is at a pivotal stage of reform, with the government taking decisive steps to strengthen its policy and regulatory framework. In response to obstacles encountered during the implementation of the Law on Higher Education, issued in 2012 and amended in 2018, the third draft of the amended Law on Higher Education (Draft Law) is scheduled for submission to the National Assembly in October 2025. The Draft Law reflects the state’s commitment to aligning the education sector with international standards while addressing persistent structural challenges. The Draft Law emphasizes clarifying institutional mandates, enhancing accountability, and modernizing governance models to enable higher education institutions to operate with greater autonomy and efficiency. Against this backdrop, we outline below several notable provisions of the third draft and their potential implications for higher education institutions (HEIs) in Vietnam. Applicable Entities In addition to HEIs as defined and covered under existing legislation, the Draft Law extends its scope of applicable entities. The current Law on Higher Education does not regulate training institutions under state agencies, the armed forces, or political and social organizations, nor does it provide specific provisions for institutions offering only postgraduate education. To address this, the Draft Law introduces the term “institutions with higher education activities,” expanding its scope to include: (a) academies and research institutes established by the prime minister, mandated to provide doctoral-level training; (b) educational institutions affiliated with state agencies, political organizations, socio-political organizations, and the people’s armed forces, authorized to offer higher education programs in their specialized fields; and (c) institutions established pursuant to international treaties or by decision of the prime minister, with authorization to deliver certain levels of higher education. The inclusion of “institutions with higher education activities” represents a significant development both legally and institutionally. In an increasingly diversified higher education
September 29, 2025
In September 2019, the government of Vietnam issued Decree No. 75/2019/ND-CP on Administrative Sanctions in the Field of Competition (Decree 75) to address the urgent need for clear sanctioning mechanisms following the implementation of the new Law on Competition in July 2019. However, after five years of enforcement, various gaps and inconsistencies have been exposed that hinder its application. These shortcomings have reduced the deterrent effect of the sanctioning regime, and created legal uncertainty for market participants. A recent case involving Duc Giang – Lao Cai Chemicals’ acquisition of another chemical company—one of the first cases of economic concentration violation to be sanctioned by the National Competition Commission (NCC) since the Law on Competition took effect—highlights the practical difficulties under Vietnam’s competition law enforcement regime. In this case, although the transaction exceeded the statutory notification thresholds of economic concentration set out in the law, the parties failed to submit the required notification. This violation resulted in the NCC imposing aggregate fines of VND 1,423,982,880 (approximately USD 54,770) on the companies in September 2024. On appeal, Duc Giang – Lao Cai Chemicals argued that the chairman of the NCC was legally entitled to issue a warning as the key punishment instead of a monetary penalty. However, the chairman rejected the appeal, citing Article 14 of Decree 75, under which the specific penalty and level for “failure to notify economic concentration” is a fine, not a warning. While the chairman of the NCC is generally empowered to impose penalties, a warning cannot be applied if the specific regulation for a particular violation does not provide for it as a sanction. This example shows the inadequacy and inconsistency of the regulations on penalties for violations of competition law, and underscores the need for an amendment of Decree 75 to resolve such conflicts
September 26, 2025
As Vietnam accelerates its digital transformation, data centers have emerged as critical infrastructure supporting the shift toward a digital government, digital economy, and digital society. For businesses targeting Vietnam’s rapidly growing data center market, a clear understanding of the evolving regulatory landscape, compliance obligations, and government incentives is key to successful market entry and operation. This article provides a strategic overview of investment opportunities and key compliance requirements in Vietnam’s dynamic data center sector. Investment Incentives to Boost Data Center Growth Since July 1, 2024, organizations and individuals across all economic sectors have been encouraged to invest in and contribute to the development of data centers. By law, there are no restrictions on shareholding ratios, capital contributions, or foreign investor participation in data center and cloud computing services under business cooperation contracts. Currently, investment in AI data centers is classified as a specially incentivized industry, qualifying for preferential treatments and incentives in terms of investment, taxation, land use, and other related areas. Large-scale data centers, together with AI and cloud computing, are currently considered as strategic technologies and products for which Vietnam offers significant fiscal, tax, and land incentives to promote investment. Additionally, these large-scale projects may receive direct financial support from local development budgets for facility construction, technical infrastructure, and equipment procurement, subject to state budget provisions and applicable laws. AI data center construction projects also enjoy preferential treatment under customs regulations. Regulatory Approvals for Providing Data Center Services The 2023 Telecom Law and its guiding documents marked a significant milestone by classifying data center services as value-added telecom services. Under the law, a data center service is defined as a telecom service that enables users to process, store, and retrieve information via a telecom network through the leasing of part or all of a data center. A