EMPLOYMENT RELATIONS IN VIETNAM

ACCORDING TO INTERNATIONAL ESG GOVERNANCE STANDARDS

WHY TO MANAGE EMPLOYMENT RELATIONS ACCORDING TO ESG?

ESG (Environmental, Social and Governance) is a set of international standards for measuring sustainable development, risk management, and codes of conduct for a business in the course of operation.

Employment management is one of the pillar criteria of ESG – Social 

This pillar focuses on the relationships of businesses with people and communities. The core criteria include:

1. Comply with the labor law and regulations, maintain working conditions, health, safety and the rights of workers.
2. Data protection, customer and consumer privacy.
3. Community contribution activities and social responsibility.

Meeting ESG labor relations management standards helps to comply with the law, reduces risks and enhances reputation, meets international export standards and builds a sustainable brand image in the eyes of consumers, attracting investment funds and banks to pour capital thanks to high ESG scores.

LAW AND REGULATIONS IN LABOR RELATIONS IN VIETNAM:

Labor relations management must always meet 03 groups of regulations at the same time:

1. Between enterprises and employees through the development of internal regulations and policies, management of employee records, establishment and administration of labor contracts, salary calculation, salary cost management, evaluation, human resource arrangement, reward, discipline and termination of labor relations.
2. Between enterprises and local Labor Departments through labor registration, salary scales, labor regulations, collective labor agreements, reporting, responding to requests, handling labor disputes.
3. Manage the relationship between enterprises and tax authorities through the control of labor relations records, salary vouchers, management of personal income taxes for both domestic and foreign employees, management of salaries and amounts related to payable corporate income tax.
   

PLATFORMS TO HELP MANAGE THE LOCAL LABOR RELATIONS 

In order to comply with labor law regulations and comply with ESG scoring criteria, businesses need to operate the following basic platforms simultaneously:

1. Complete and promulgate Internal Regulations – labor discipline, collective labor agreements, personnel handbooks.
2. Complete and promulgate the Regulation on salary and bonuses.
3. Complete – promulgate – register and apply the salary scale system.
4. Complete the system of forms on labor contracts, drafting and issuance regulations.
5. Organize the creation and storage of the entire system of labor relations compliance records according to standards and systems to meet requirements from state agencies and ESG scoring criteria.

On the occasion of its 20th anniversary, VIVA Business Consulting implements a comprehensive labor relations inspection and improvement program for corporate clients in Vietnam to meet local regulations and ESG criteria, eliminate risks and create sustainable governance foundations.

Please contact our experts for tailor-made advice on how to enforce the criteria and procedures.

Read more:

• The Local Employment Relations – Manage the Required Compliance Procedures by Laws
• Business Records Management for Enterprises
• Issuance – Registration of Compulsory Internal Labor Regulations
• Vietnam Employee Books Regulations on Preparation, Update, Management and Use
• Managing the Required Business Records in Vietnam
• Electronic Labor Contract Vietnam 2026 – Regulations & Guide