NEWSFLASH｜From Paper to Digital: E-Labor Contracts Are Now Available in Vietnam

Vietnam’s Ministry of Home Affairs has officially issued Circular 08/2026/TT-BNV, a new legal instrument aimed at strengthening the regulatory framework for electronic labor contracts and supporting the country’s ongoing digital transformation in human resources management. The Circular was promulgated on 15 May 2026 and will take effect from 1 July 2026.

One of the most significant changes introduced by the Circular is the requirement that every electronic labor contract must be assigned a unique identification code at the time of creation. Under Circular 08/2026/TT-BNV, this code serves as the contract’s “digital identity,” enabling authorities to more effectively monitor, verify, and trace contract information within the centralized electronic database system.

The Circular also establishes a standardized structure for this identification code, including the employer’s tax code, the year of execution, the employee’s personal identification or citizen identification number, and the applicable contract type code. This standardization is expected to improve consistency within the national reporting system while reducing errors in labor data management and processing.

In addition, enterprises currently using electronic labor contracts will be required to review previously executed contracts and update them in accordance with the new format. Existing e-contracts must be supplemented with the newly required identification code before 31 December 2026.

Labor reporting procedures will also undergo substantial changes. Instead of relying on paper-based submissions, employers will be required to submit reports through an electronic data system, with the contract identification code serving as the basis for automated workforce data synchronization and reporting. This mechanism is expected to save time, minimize manual errors, and enhance overall legal compliance.

The Circular further places strong emphasis on cybersecurity and data retention obligations. Electronic labor contracts must be encrypted, protected against unauthorized access, and securely stored for a minimum period of 20 years to ensure accessibility when requested by competent authorities.

Importantly, Circular 08/2026/TT-BNV confirms that the use of electronic labor contracts remains optional rather than mandatory. However, where enterprises choose to adopt e-contracts, such contracts shall carry the same legal validity as traditional paper contracts and must fully comply with the new requirements relating to identification, reporting, storage, and data security.

For foreign employees working in Vietnam, several key points should be noted:

• Full legal validity: Electronic labor contracts (e-contracts) have the same legal effect as traditional paper contracts.
• Flexible authentication methods: Employees may execute contracts using either a personal digital signature or identity authentication through the VNeID application at Level 2 verification.
• Standardized four-step process: The process includes contract initiation by the employer, the employer’s electronic signature, the employee’s digital authentication/signature, and synchronization of the contract data with the national database system.