Foreign Direct Investment (FDI) companies operating in Vietnam must comply with strict labor reporting requirements to maintain their legal status and ensure transparency in their workforce management. This comprehensive guide outlines the essential aspects of labor usage reporting for FDI enterprises in 2025.
Vietnam's labor reporting requirements for FDI companies are governed by several key regulations:
Labor Code 2019 (Law No. 45/2019/QH14)
Decree 152/2020/ND-CP on foreign worker management
Decree 145/2020/ND-CP on guiding the Labor Code
Circular 28/2020/TT-BLDTBXH on labor reporting procedures
2. Types of Required Labor Reports
FDI companies must submit various labor-related reports throughout the year:
2.1 Regular Labor Usage Reports
Report on labor utilization status (Article 4 of Decree 145/2020/ND-CP)
Report on occupational accidents (Article 24 of Decree 39/2016/ND-CP)
Report on occupational safety and hygiene (Article 10 of Circular 07/2016/TT-BLDTBXH)
Report on unemployment insurance participation from the previous year (Clause 7, Article 32 of Decree 28/2015/ND-CP)
2.2 Foreign Worker Reports
Explanation report on the need for foreign workers (Article 4 of Decree 152/2020/ND-CP)
Report on the status of foreign worker utilization (Article 6 of Decree 152/2020/ND-CP)
Report on the recruitment and management of Vietnamese workers (for foreign organizations and individuals in Vietnam) (Clause 4 Article 27 of Decree 152/2020/ND-CP)
Adherence to reporting deadlines is crucial for compliance:
Report on labor utilization status (for both Vietnamese and foreign workers): Semi-annually (before June 5) and annually (before December 5)
Report on occupational accidents: Annually (before January 10 of the following year)
Report on occupational safety and hygiene: Annually (before January 10 of the following year)
Report on unemployment insurance participation from the previous year: Annually, before January 15 of the following year
Explanation report on the need for foreign workers: Before hiring foreign workers
Report on the recruitment and management of Vietnamese workers: Annually, before December 20 or upon request
4. Essential Report Content Requirements
Each labor report must include specific information:
4.1 Basic Information
Enterprise name and business registration number
Headquarters and branch addresses (if any)
Business sectors and investment fields (including FDI-related details such as country of origin, investment capital, cooperation model, etc.)
Total workforce
Workforce classification (domestic and foreign workers)
Type of labor contracts
4.2 Detailed Workforce Data
Current workforce by gender, age, education level, position, and contract type
Salary levels and benefits
Working hours and overtime statistics
Data on new, renewed, and terminated labor contracts
Periodic workforce updates
4.3 Foreign Worker Information
Number of foreign workers employed
Nationality, job position, and contract duration
Specific labor contract details as per regulations for foreign organizations and individuals in Vietnam
4.4 Social Insurance and Unemployment Insurance Data
Number of employees participating in social and unemployment insurance
Contribution amounts and paid insurance premiums
Compliance updates and legal adjustments
4.5 Occupational Safety, Hygiene, and Working Conditions Information
Reports on workplace accidents and safety incidents (if any)
Measures ensuring workplace safety, hygiene, and environmental conditions
Plans and results of periodic labor condition assessments
4.6 Recruitment and Workforce Management Information
Recruitment, termination, and workforce fluctuation statistics
HR management policies and labor structure adjustments
Data on employee training, upskilling, and development programs
5. Submission Procedures
Reports can be submitted through multiple channels:
5.1 Submission Locations
Department of Labor, Invalids, and Social Affairs of the enterprise’s registered location:
Report on the recruitment and management of Vietnamese workers
Report on labor utilization status
Report on occupational accidents
Report on occupational safety and hygiene
Provincial People’s Committees or the Ministry of Labor, Invalids, and Social Affairs (MOLISA): Explanation report on the need for foreign workers
Local Social Insurance Agency: Report on unemployment insurance participation from the previous year
5.2 Submission Methods
Reports can be submitted through various channels:
Online Submission:
Via the electronic portal of the relevant authority
Through the electronic labor management reporting system for foreign workers
Requires digital signature authentication
From March 1, 2025, the MOLISA electronic portal will be consolidated and operate under the Ministry of Home Affairs’ portal at https://moha.gov.vn/
Direct Submission:
Hard copy documents submitted to local labor authorities
Must include official stamps and signatures
Supporting documents must be attached
6. Common Compliance Challenges
FDI companies often face several reporting challenges:
Language barriers in report preparation: FDI enterprises frequently encounter challenges when drafting reports in Vietnamese, which require specific legal formats and specialized terminology. This necessitates precise translation and a deep understanding of legal language, making it time-consuming and labor-intensive for teams primarily using other languages. Consequently, report preparation may be delayed, affecting timely submission and posing legal risks if the content does not fully meet regulatory requirements.
Ensuring timely report submission: Report submission deadlines are mandatory and strictly enforced by regulatory agencies, especially given the diverse range of reports FDI enterprises must complete. Discrepancies between internal management systems and local administrative procedures can lead to delays in report compilation and submission. This not only diminishes the enterprise’s credibility but can also result in financial penalties and complications in investment license adjustments, potentially disrupting business operations.
Maintaining accurate personnel data: Workforce reporting demands a high level of accuracy as it involves labor contracts, insurance, and workforce-related indicators. Given the complex personnel structure of FDI enterprises, which includes both local and foreign workers, continuously updating changes and maintaining precise data is a significant challenge. Data inaccuracies may lead to incorrect reports, impacting performance evaluations and exposing the company to legal risks, which could negatively affect its reputation and competitiveness.
Keeping up with changing legal requirements: Labor laws and financial reporting regulations in Vietnam are frequently updated, requiring FDI enterprises to continuously monitor and adjust internal processes accordingly. Rapid regulatory changes affect not only report content but also necessitate continuous training and knowledge updates for management and reporting staff. Failure to keep up with these changes may result in reporting errors, legal violations, and penalties, ultimately affecting smooth operations and market credibility.
7. Digital Reporting Systems
Modern digital platforms have streamlined the reporting process:
Online reporting portals: Utilizing online reporting portals allows FDI enterprises to submit reports on time and in the correct format. This automation reduces manual data entry errors and facilitates regulatory oversight. As a result, transparency and efficiency in human resource management are enhanced.
Automated report generation tools: Automation tools streamline data compilation from various sources, significantly reducing the time and effort required for reporting. These systems enable rapid data aggregation and generate accurate, detailed reports that meet regulatory and legal requirements. Consequently, FDI enterprises can focus on other strategic human resource management initiatives to improve business efficiency.
Digital document management systems: Transitioning to digital document management enhances the storage, retrieval, and security of personnel records. Important documents such as labor contracts, employee records, and reports are digitized, minimizing the risk of loss and facilitating easy updates and modifications. This not only ensures continuity in data storage but also simplifies audits and compliance checks.
Real-time data tracking capabilities: Digital technology enables enterprises to monitor workforce data, including employee numbers and performance indicators, in real-time. This helps businesses quickly identify and rectify discrepancies, ensuring the accuracy and timeliness of reports. Continuous data updates provide HR managers with a comprehensive overview of the company’s workforce, supporting strategic decision-making.
8. Penalties for Non-compliance
Failure to comply with reporting requirements can result in penalties:
Employers who fail to declare labor usage as required (Clause 1, Article 8 of Decree 12/2022/ND-CP): Fines ranging from VND 1-3 million.
Employers who fail to report changes in labor status (Clause 2, Article 8 of Decree 12/2022/ND-CP): Fines ranging from VND 5-10 million.
Violations of occupational safety and hygiene reporting regulations (Article 20 of Decree 12/2022/ND-CP): Fines ranging from VND 500,000-10 million.
Employers who fail to report or inaccurately report on the employment of foreign workers (Point a, Clause 1, Article 32 of Decree 12/2022/ND-CP): Fines ranging from VND 1-3 million.
Foreign employers who hire Vietnamese workers but fail to report or inaccurately report recruitment and employment details to the authorized agency (Clause 1, Article 33 of Decree 12/2022/ND-CP): Fines ranging from VND 1-3 million.
9. Best Practices for Report Management
To ensure efficient reporting compliance:
Implement an efficient HR management system: Investing in an integrated, modern HR management system automates processes related to recruitment, training, attendance tracking, and performance evaluation. This system ensures accurate personnel data storage and processing while generating comprehensive reports for management. Digital technology applications help minimize manual data entry errors and facilitate timely decision-making.
Maintain an up-to-date personnel database: Accurate labor reporting and analysis require a continuously updated personnel database. This includes tracking changes in labor contracts, contact information, and employee training and benefits data. A regularly updated database serves as a strong foundation for meeting regulatory reporting requirements and mitigating risks associated with outdated data.
Establish an internal reporting schedule: Developing a periodic internal reporting schedule allows businesses to proactively compile and prepare reports. This schedule should clearly define deadlines and assign responsibilities to relevant departments, from data collection to report compilation and quality checks. By doing so, enterprises can promptly detect and correct errors before submitting official reports to regulatory agencies.
Conduct periodic compliance audits: Regular compliance audits ensure that reporting processes are accurate and timely. These audits help identify weaknesses and errors in reporting procedures and HR management systems, enabling timely corrective actions. Routine internal audits promote transparency and accountability across the entire management system.
Train personnel on reporting requirements: Training dedicated personnel on reporting requirements is essential. Reporting staff should stay updated on new legal regulations and be proficient in using modern digital tools for reporting. Regular training enhances professional expertise and compliance awareness, ensuring that all reports are accurate, timely, and complete, thereby reducing the risk of administrative penalties from regulatory agencies.
10. Conclusion
Proper labor usage reporting is essential for FDI companies operating in Vietnam. By understanding and following these requirements, companies can maintain compliance, avoid penalties, and ensure smooth operations. Regular updates to reporting procedures and systems will help businesses stay current with evolving regulations.
For the latest updates on labor reporting requirements, companies should regularly consult with local labor authorities and maintain relationships with legal advisors specializing in Vietnamese labor law
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