Legal Basis for Electronic Labor Contracts in Vietnam
Vietnam first recognized electronic labor contracts as legally valid under Article 14 of the 2019 Labor Code, which confirms that contracts concluded via electronic means have the same legal effect as written contracts, provided they comply with e-transaction laws. This position was further strengthened by the Law on Electronic Transactions 2023, effective 1 July 2024, which clarified the legal validity and reliability of digital signatures and data messages. Together, these laws firmly establish that electronic employment contracts are fully binding under Vietnamese law.
Before these updates, electronic signing was technically possible under the 2005 e-Transactions Law, but employers remained cautious due to limited guidance. While the 2019 Labor Code set the legal principle, practical uncertainties around digital signatures, storage, and dispute resolution persisted. These gaps were finally addressed by detailed government regulations issued in late 2025, which now provide a clearer and more workable framework for implementing electronic labor contracts in practice.
Recent Regulatory Updates (2024–2025)
Over the past two years, Vietnam has made significant regulatory moves to enable electronic labor contracts in practice. A key milestone is Decree No. 337/2025/ND-CP, issued on 24 December 2025, which specifically regulates the conclusion, performance, and management of electronic labor contracts. Although the decree takes effect on 1 January 2026, it provides a transition period, with full mandatory application from 1 July 2026, when the National Electronic Labor Contract Platform becomes operational. From that date, all electronic labor contracts must comply with Decree 337.
Decree 337 builds on the Law on Electronic Transactions 2023 and the Labor Code 2019, filling long-standing gaps around implementation. It introduces a dedicated legal framework for electronic labor contracts, including technical standards, legal responsibilities, and data security requirements. The decree was drafted by the Ministry of Home Affairs and aligns with Vietnam’s broader push toward digital government and administrative reform.
Key highlights include a clear definition of electronic labor contracts as data messages with the same legal validity as paper contracts, the establishment of a centralized government-managed e-contract platform, and detailed rules on signing, storage, and compliance. While the use of electronic labor contracts is encouraged rather than mandatory for now, any employer choosing this format must follow the new standards from mid-2026 onward. Together with related regulations on electronic transactions, cybersecurity, and personal data protection, Vietnam now has a more complete and practical legal framework to support the digitalization of employment contracts.
Read Related: HR Outsourcing in Vietnam: Optimizing Operations for Business Success
Key Requirements Under Decree 337/2025 for Electronic Labor Contracts
Decree 337/2025/ND-CP sets out a clear and practical framework for concluding and managing electronic labor contracts in Vietnam. To ensure legal validity, security, and enforceability, employers, employees, and e-contract service providers must comply with the following core requirements.
1. Digital signatures and timestamping
Electronic labor contracts must be signed using compliant digital signatures in line with Vietnam’s e-transaction laws. Each signature must be accompanied by a trusted timestamp, and the contract generally takes effect at the moment the last party signs, unless another effective date is agreed. Only licensed digital signature solutions that meet legal standards should be used, as these verify identity, ensure document integrity, and provide strong evidentiary value.
Practical note: Scanned signatures or simple “click to accept” methods are not sufficient. Employers should use approved digital certificates or accredited remote signing platforms with built-in timestamp services.
2. Mutual consent to electronic contracting
Both employer and employee must agree to use the electronic format and to the electronic method of delivery, such as email, a secure portal, or an HR system. Each party must receive an accessible electronic copy of the signed contract.
Practical note: Include consent to electronic signing in offer letters or onboarding documents, and ensure signed contracts are properly delivered and stored for both sides.
3. National electronic labor contract platform and ID code
All electronic labor contracts must be registered on the National Electronic Labor Contract Platform managed by the Ministry of Home Affairs. Once uploaded, each contract is assigned a unique identification code used for centralized management and verification by authorities. Contract data must be transmitted to the platform within 24 hours of the final signature.
Practical note: Confirm that your e-contract provider is integrated with the national platform and that the contract ID is recorded in your HR records for compliance and audit purposes.
4. Identity verification of the parties
The system used to sign electronic labor contracts must verify the identities of all signatories. Vietnamese individuals use citizen ID cards or approved e-ID accounts, foreign employees use passports and valid immigration documents, and employers use enterprise registration details and authorized representative information.
Practical note: Ensure authorized company signatories have valid digital identities and that employee information in the system exactly matches official documents.
5. Use of compliant e-contract service providers
E-contract platforms must meet strict technical, security, and compliance standards. These providers are responsible for signature verification, data security, identity authentication, system integrity, and connectivity with the national platform. They effectively “certify” the electronic contract data under the e-transaction framework.
Practical note: Choose providers that explicitly confirm compliance with Decree 337, support national platform integration, and have experience handling HR and labor contracts in Vietnam.
6. Conversion of existing paper contracts
Existing paper labor contracts may be converted into electronic form, though this is not mandatory. The electronic version must accurately reflect the original and be digitally signed or certified by both parties. Once converted, the contract is registered on the national platform and treated as a valid electronic labor contract.
Practical note: Prioritize active or long-term contracts for conversion, ensure content consistency with originals, and retain paper copies during the transition period.
In short, Decree 337 moves electronic labor contracts from principle to practice. From mid-2026 onward, employers using e-contracts must ensure compliant signatures, verified identities, proper platform registration, and secure systems. Early preparation will help HR teams transition smoothly and avoid compliance risks.
Read More: Vietnam HR & Payroll: Labor Laws, Payroll Processes, and HR Planning For SMEs
Benefits of Electronic Labor Contracts for Employers and Employees
Implementing electronic labor contracts in Vietnam offers several practical advantages, aligning with the Adopting electronic labor contracts in Vietnam delivers clear operational, compliance, and strategic advantages, supporting the government’s broader digital transformation agenda and offering tangible value to both employers and employees.
Efficiency and cost savings.
Electronic contracts significantly reduce administrative workload by eliminating printing, physical signing, courier services, and paper storage. Contracts can be signed remotely within minutes, which accelerates hiring and onboarding, especially for companies with multiple locations or remote employees. In practice, many businesses report substantial reductions in HR processing time and related costs, allowing teams to focus on higher-value work rather than paperwork.
Improved record management and transparency.
Each electronic labor contract is assigned a unique ID on the national platform, enabling fast retrieval, centralized tracking, and easier audits. For employers managing large workforces, this simplifies internal control and makes statutory reporting, such as labor usage reports, more accurate and less time-consuming. Employees also benefit from having a clear, easily accessible record of their employment terms.
Stronger legal compliance and security.
Properly implemented electronic contracts reduce the risk of loss, damage, or unauthorized alteration compared to paper documents. Digital signatures and timestamps create a reliable audit trail, making it easier to prove when and how a contract was signed. This protects employers in disputes and safeguards employees against unilateral changes, while reinforced cybersecurity and data protection requirements improve overall HR data security.
Better integration with government and HR systems.
The electronic labor contract framework is designed to integrate with social insurance and tax systems over time. This creates the potential for automated notifications and data sharing, reducing duplicate filings and manual reporting. As these integrations mature, employers can expect smoother compliance workflows and fewer administrative touchpoints.
Modern, sustainable employer image.
Electronic labor contracts support environmental goals by reducing paper use and signal a modern, tech-enabled workplace. This is particularly attractive to younger, digitally native talent and aligns well with multinational companies’ global HR practices. For employees, having a secure electronic copy of their contract improves convenience and accessibility for personal or administrative needs.
Overall, electronic labor contracts offer efficiency, security, and long-term compliance benefits. With proper planning and the right systems in place, they can significantly modernize HR operations while enhancing trust and transparency in employment relationships.
Challenges and Risks to Consider
Despite the clear benefits, employers and employees should be aware of several challenges when transitioning to electronic labor contracts and plan mitigation measures early.
Technical readiness and upfront investment.
Moving to e-contracts requires investment in digital signatures, compliant e-contract platforms, system integration, and staff training. For SMEs, the initial cost and learning curve may feel significant. Integration with the national platform by mid-2026 also requires technical preparation. Companies that delay may face disruptions or risk using non-compliant signing methods once the new rules are fully applied.
Data security and privacy risks.
Electronic labor contracts contain sensitive personal data, making cybersecurity a critical concern. Data breaches or system failures could expose employee information and lead to regulatory penalties under Vietnam’s cybersecurity and personal data protection laws. Employers must implement strong safeguards such as encryption, secure storage, access controls, and backups, often requiring support from qualified IT or cloud service providers.
Workforce adaptation and user acceptance.
Not all employees are comfortable with digital tools. Older workers or those in areas with limited internet access may find electronic signing difficult or confusing. Employers need clear communication, step-by-step guidance, and practical support to help employees understand the legal validity of e-signatures and complete the process smoothly. In limited cases, temporary use of paper contracts may still be necessary.
Regulatory compliance during the transition period.
Until July 2026, companies will likely operate a hybrid system of paper and electronic contracts, which can complicate record management. Authorities may issue further guidance, and future inspections may focus on e-contract compliance. Using invalid signatures or failing to register contracts on the national platform could result in contracts being considered non-compliant or legally ineffective, placing responsibility squarely on employers to follow technical rules closely.
Cross-border and foreign employee considerations.
Foreign-invested companies must ensure that digital signatures used by foreign managers or employees are recognized under Vietnamese law. Not all overseas e-signature tools will be acceptable. In addition, electronic systems must support bilingual contracts, with Vietnamese remaining the governing language. These issues add complexity but can be managed with the right service providers and planning.
Overall, electronic labor contracts require more than a technical switch. Early preparation, careful vendor selection, employee training, and ongoing compliance monitoring are essential to reduce risk and ensure a smooth transition.
Best Practices for Implementation and Compliance
To roll out electronic labor contracts smoothly and remain compliant with Decree 337/2025/ND-CP, employers should take a structured and proactive approach.
Start early and pilot the system.
Do not wait until mid-2026. Pilot electronic contracts with a small group of new hires or selected existing contracts to test workflows, identify technical issues, and refine internal processes before scaling company-wide.
Select a compliant e-contract platform.
Choose a reputable provider that explicitly complies with Vietnamese law and supports integration with the National Electronic Labor Contract Platform. The system should cover identity verification, compliant digital signatures, automatic submission to the government platform, and easy access for both employer and employee.
Train HR teams and employees.
HR staff should fully understand how to initiate, manage, and verify electronic contracts and how to support employees during signing. Provide simple guidance to employees explaining how to sign, why the company uses e-contracts, and confirming their legal validity.
Strengthen data security and privacy controls.
Protect electronic contracts with encryption, access controls, regular backups, and multi-factor authentication. Ensure compliance with personal data protection rules and limit access strictly to authorized personnel and service providers.
Update internal policies and document retention rules.
Revise internal policies or employee handbooks to formally recognize electronic labor contracts as equivalent to paper contracts. Establish clear digital archiving and backup procedures to meet long-term retention requirements.
Address bilingual and procedural requirements.
For foreign employees, prepare bilingual contract templates and ensure the Vietnamese version remains the governing text. Clarify internally that digital signatures replace physical company seals, which are no longer legally required.
Monitor regulatory updates.
Track further guidance or technical standards issued during the transition period. Incorporate new instructions promptly, especially those relating to reporting, corrections, or platform procedures.
Prepare for audits and inspections.
Maintain clear records of all electronic contracts and their platform ID codes. Ensure HR staff can quickly retrieve contracts or demonstrate authenticity during labor inspections.
In practice, early preparation, careful system selection, staff training, and ongoing compliance monitoring are the key factors that will determine whether electronic labor contracts become a genuine efficiency gain rather than a compliance risk.
Looking Ahead: 2026 and Beyond
Vietnam’s adoption of electronic labor contracts marks a major shift in labor administration, but it is only the first phase of a broader digital transformation. As the 1 July 2026 milestone approaches, several developments are likely.
Full roll-out by mid-2026.
By mid-2026, the National Electronic Labor Contract Platform is expected to be fully operational and widely used. Employers that choose electronic contracts will need compliant systems in place, as any electronically signed labor contract must be registered through the national platform. While paper contracts will remain legally valid, administrative processes are likely to increasingly favor electronic records, accelerating the shift toward digital contracting.
More data-driven compliance and enforcement.
As labor contract data becomes centralized, authorities may rely more on digital records for inspections and cross-checks. Labor, social insurance, and tax agencies could increasingly use e-contract data to verify employment status, insurance enrollment, and personal income tax compliance. This makes data accuracy critical, as inconsistencies across systems will be easier to detect.
Potential future mandates.
Although electronic labor contracts are currently encouraged rather than mandatory, policy direction suggests they may become the default over time. Future amendments could require new labor contracts to be concluded electronically, except in limited cases. Employers that adopt early will be better positioned if and when such mandates are introduced.
Ongoing system enhancements.
Authorities are expected to refine the platform through technical standards, certified provider lists, and user improvements, such as employee access via national e-ID accounts. Feedback from early adopters may lead to practical adjustments, making participation and engagement valuable for larger employers and industry groups.
No change to substantive labor law.
Importantly, the shift to electronic contracts does not alter core labor rights or obligations. All substantive requirements under the Labor Code 2019 remain unchanged. The transformation is procedural, not substantive, with electronic contracts serving as a new, compliant form of documenting the same legal relationship.
In short, electronic labor contracts are likely to become central to Vietnam’s labor compliance framework. Employers that prepare early, ensure data accuracy, and stay alert to regulatory updates will be best placed to navigate 2026 and beyond with minimal disruption.
