On March 25, 2025, during the 7th National Assembly Delegate Conference, discussions centered around the amended Law on Employment, which bore critical implications for thousands of workers impacted by government streamlining efforts. Deputy Chairman of the National Assembly Nguyen Thi Thanh revealed that previous estimates indicated around 100,000 officials would be affected by organizational changes. However, she emphasized the actual number of those impacted would likely surpass this figure with upcoming mergers of provinces and the elimination of district levels.
During the meeting, the revised draft of the Law on Employment was shared, now consisting of 8 chapters and 61 articles—one chapter and 33 articles fewer than the original version proposed by the government. A significant point of contention arose regarding the regulation that unemployment insurance contributions exceeding 144 months would not be preserved for future claims. The revisions have drawn various responses, particularly concerning worker benefits and responsibilities.
Representative Nguyen Thi Viet Nga from Hai Duong voiced support for the stated regulation, articulating that, "the maximum period of 12 months to receive unemployment benefits is long enough for employees to find new jobs." She added, "setting a cap on the length of benefits helps encourage workers to seek employment rather than rely on insurance schemes, promoting their reentry into the labor market." This perspective aligns with a broader aim of the proposed changes to stimulate economic participation among the workforce.
In response to the ongoing debate about unemployment insurance, Deputy Minister of Home Affairs Le Van Thanh explained, "the unemployment insurance fund is designed as a short-term resource. It’s vital to maintain its balance to facilitate future workforce support initiatives.” He further noted, “the regulations aim to protect the fund from potential exploitation where individuals might collect benefits while holding informal jobs." His comments underscore an ongoing concern regarding possible abuses of the unemployment support system, an issue exacerbated by the prevalence of informal employment in Vietnam.
Furthermore, Thanh acknowledged the regulatory requirement for individuals to report directly on job-seeking efforts, a move intended to present a clearer picture of the employment market and prevent fraudulent claims. However, some members of the assembly suggested the option for online notifications could enhance flexibility for those actively searching for work, a proposal that carried significance in the context of Vietnam's rapidly digitizing work environment.
In her closing remarks, Nguyen Thi Thanh urged for a more comprehensive approach regarding the restructuring of employment mechanisms, stating, "the potential impact from streamlining the provincial administration is exponentially higher than previously calculated, especially when viewed alongside upcoming changes to social level management." Her call for deeper analysis suggests strong recognition of the ample scope of individuals transitioning from the public to private sectors and particularly stresses the importance of upskilling programs in her proposal to support this demographic.
As the discussions unfolded, it became evident that the propose amendments to the Law on Employment are set against the backdrop of major administrative changes. The current deliberations not only reflect necessary adaptations to labor policies but also highlight crucial aspects about balancing benefits, responsibilities, and the rights of workers amidst evolving organizational structures.
In conclusion, policymakers face the fine line between providing adequate social safety nets while coaxing labor back into more formalized, productive sectors of the workforce. The path forward remains complex, underscoring the importance of continuous dialogues alongside evidence-based adjustments to labor laws designed to cater to the dynamic nature of employment in Vietnam.
