Changes to the business conditions for employment services from mid-2026
Employment service activities have long been classified as a conditional business line, uniformly applicable to both domestic enterprises and foreign-invested enterprises. The scope of activities includes job consultancy and placement services; provision and supply of labor to employers; as well as the collection, analysis, storage, and provision of labor market information. However, the Law on Investment 2025 has removed this sector from the List of Conditional Business Lines, thereby paving the way for future adjustments and improvements to the relevant legal framework. The evolution of regulatory conditions governing employment service activities over the past 10 years is as follows:
1. The Law on Investment 2014, effective from July 1, 2015, classified employment service activities as a conditional business line. At the same time, the Law on Employment 2013 (effective from January 1, 2015), together with Decree No. 52/2014/ND-CP and Decree No. 23/2021/ND-CP,required enterprises providing employment services to obtain an operating license and satisfy the following conditions:
– Having a stable business premises with a minimum term of 36 months (which may be leased or owned by the enterprise);
– Having personnel meeting the required professional qualifications;
– Maintaining a deposit of VND 300,000,000 at a commercial bank in Vietnam.
2. The Law on Investment 2020 (effective from January 1, 2021) continued to classify employment service activities as a conditional business line.Accordingly, the conditions set out in the Law on Employment 2013 and its guiding decrees remained applicable until the end of 2025.
From January 1, 2026, the Law on Employment 2025 and Decree No. 352/2025/ND-CP take effect, providing the following conditions for employment service activities:
- Having a stable business premises with a minimum term of 24 months (which may be leased or owned by the enterprise);
- The legal representative must not be subject to any restriction or loss of civil act capacity; must hold at least a university degree or have at least 02 years (24 months) of experience in employment services or labor supply;
- Maintaining a deposit for employment service operations in the amount of VND 300,000,000 (three hundred million Vietnamese dong).
3. The Law on Investment 2025 takes effect from March 1, 2026, however, the List of Conditional Business Lines is applicable from July 1, 2026.Accordingly, from this point onward, employment service activities are no longer classified as a conditional business line for both domestic and foreign investors.At the same time, Article 4.2 of the Investment Law 2025 provides that, in case of any discrepancy between the provisions on conditional business lines under this Law and those under laws enacted prior to the effective date of Law on Investment 2025, the provisions of the Law on Investment 2025 shall prevail.
To ensure the consistency of the legal system, it is expected that the Law on Employment 2025 and Decree No. 352/2025/ND-CP will be reviewed by competent authorities, and provisions on business conditions applicable to employment service activities may be amended or repealed. However, regardless of whether the Law on Employment 2025 is revised and takes effect from July 1, 2026, enterprises will no longer be required to obtain a license to operate employment services.
During the transitional period from January 1, 2026 to June 30, 2026, enterprises must still fully satisfy the applicable business conditions and carry out procedures for obtaining an operation license (or maintain the validity of an already issued license) in accordance with Decree No. 352/2025/ND-CP. At the same time, enterprises should closely monitor legal developments as well as guidance from competent authorities in order to timely adjust their operations and ensure compliance with applicable regulations.
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