Major changes to Vietnam’s insurance laws are on the horizon, promising to reshape the landscape for both workers and everyday citizens. With the amended Labor Law set to take effect on January 1, 2026, and a comprehensive overhaul of the Insurance Business Law under discussion, policymakers are aiming for a more transparent, equitable, and accessible system. These reforms, debated and crafted at the highest levels of government, reflect a broader drive to modernize Vietnam’s social safety net and financial services. But what do these changes actually mean for the millions of people who rely on unemployment insurance or sign up for private policies? Let’s break down the details and implications.
According to a report from VNExpress, the Standing Committee of the National Assembly met on October 13, 2025, to review a draft amendment to the Insurance Business Law. The proposed legislation seeks to amend and supplement 24 articles, simplifying and clarifying the rules for insurance providers and participants alike. Deputy Minister of Finance Le Tan Can highlighted a persistent problem: “Insurance contracts still contain lengthy clauses making it difficult for citizens to understand their rights.” This lack of clarity has long been a barrier, leaving many people unsure of what they’re signing up for or how to claim their benefits.
The draft amendment tackles this issue head-on. It proposes to cut, reduce, and simplify business conditions and administrative procedures in seven key areas. For instance, the requirement for foreign management confirmation—a bureaucratic hurdle for many insurance companies—would be scrapped. Pre-operation conditions, such as certain approvals before a company can officially begin business, are also on the chopping block. These changes are designed to make it easier for new players to enter the market and for existing firms to focus on serving customers rather than navigating red tape.
But it’s not just about corporate convenience. The reforms also aim to make the process of buying and understanding insurance more straightforward for individuals. The draft law removes some of the conditions and standards for managers and controllers, and even gets rid of procedures for approving key positions within insurance companies. Administrative procedures related to capital source separation and insurance premium calculation methods are set to be simplified, reducing the paperwork burden for both insurers and policyholders.
To ensure consistency across Vietnam’s legal framework, the draft amendment aligns the Insurance Business Law with the Law on Inspection and the Law on Enterprises. It introduces two capital models—one based on risk and another on solvency margin—giving companies time to prepare resources and upgrade their IT systems. There’s also a new provision outlining the principles of organization, capital contribution, establishment, management, and supervision of insurance business entities and agencies, aiming for a more robust and transparent sector overall.
Deputy Minister Le Tan Can was candid about the challenges: “When people participate in insurance, the contracts are very thick, with many clauses, and many people do not know or cannot read all the terms before signing up.” The hope is that by streamlining the law and clarifying obligations, more citizens will feel confident and protected when they choose insurance products.
These sentiments were echoed by Nguyen Thanh Hai, Chairwoman of the National Assembly’s Delegate Affairs Committee. She noted that the law, with its 157 articles, is daunting for ordinary people to navigate. “The drafting agency needs to carefully review the provisions in the Insurance Business Law,” she urged, calling for a renewed focus on clarity and accessibility. The Standing Committee of the National Assembly agreed, supporting the push to further review the law, cut administrative procedures, and resolve pressing issues that hinder both businesses and consumers.
While these legislative debates play out, another set of sweeping changes is already on the books. From January 1, 2026, the amended Labor Law will bring important updates to unemployment insurance policy—changes that will affect millions of workers across Vietnam. The amendments, as reported by Tuoi Tre, focus on three main areas: clarifying regulations on unemployment benefits when reaching retirement age, shortening the waiting time to receive benefits, and unifying the maximum benefit level.
One of the biggest sticking points in the current law has been the overlap between retirement and unemployment benefits. Previously, only those who had already started receiving a retirement salary were ineligible for unemployment support. This loophole allowed some workers who were eligible for retirement but hadn’t submitted paperwork to claim unemployment benefits for a short period. The new law closes this gap: anyone who is eligible for retirement, regardless of whether they have completed the necessary procedures, will no longer be entitled to unemployment benefits. This adjustment is designed to ensure the unemployment insurance fund is used properly and fairly, preventing abuse and promoting equality among all participants.
Another significant improvement is the reduction in waiting time for unemployment benefits. Under the existing law, workers must wait 15 working days after submitting a complete application before they are considered unemployed and start receiving benefits (with payments beginning on the 16th day). The amended law cuts this wait to just 10 working days, so benefits will begin on the 11th working day after submission. This five-day reduction may not sound like much, but for workers suddenly out of a job—especially those with average or low incomes—it can make a world of difference. The change reflects a broader administrative reform, pushing government agencies to process claims more efficiently and easing the financial pressure on job seekers during tough transitions.
Perhaps the most impactful adjustment is the unification of the maximum unemployment benefit. Previously, two different formulas applied: for state employees, the cap was five times the monthly base salary; for those working in enterprises, it was five times the regional minimum wage. Since the base salary is typically much lower than the minimum wage, this created a significant disparity between groups. The new law levels the playing field by setting a single cap: no worker can receive more than five times the regional minimum wage at the time their contract ends. This move not only ensures fairness and transparency but also aligns with broader wage reform efforts, gradually phasing out the concept of a “base salary” in social security policies.
These legislative updates, taken together, represent a major step forward for Vietnam’s social safety net and insurance sector. Policymakers hope that by making the system more transparent, timely, and equitable, they can better support workers and consumers—especially those who are most vulnerable during periods of unemployment or financial uncertainty. The coming months will be crucial as lawmakers finalize the Insurance Business Law amendments and prepare for the Labor Law’s implementation in 2026. For now, the message is clear: change is coming, and it’s designed to make life just a little bit easier for everyone who depends on these vital protections.
As Vietnam moves toward these reforms, workers and citizens alike are encouraged to stay informed and take an active role in understanding their rights and benefits under the new laws. The government’s efforts to simplify, clarify, and modernize the system could well set a new standard for social protection in the region.