Mandatory Insurances for Your Business in Vietnam

Running a business in Vietnam provides many opportunities. The market is dynamic, operational costs are manageable, and the country continues to welcome foreign founders eager to build something new in Southeast Asia. 

But before you start your operations, business insurance is one of the most important things you will need to organize. It protects your operations, significantly reduces financial risk, and helps keep you compliant with local regulations regarding insurance for your business in Vietnam.

Why Having Business Insurance Matters In Vietnam

Vietnam’s business landscape is fast moving. Companies grow, hire, expand locations and work with partners from many industries. With that comes all kinds of exposure to accidents, disputes, injuries or unexpected shutdowns. Even small businesses deal with risks such as customer claims, damaged equipment, or employee injuries during work activities.

Insurance helps owners handle these situations without breaking their finances. The right combination of coverage keeps operations stable and gives you room to grow with confidence.

Business Insurance Requirements in Vietnam Are Easy to Understand When You Know Where to Begin

Most companies in Vietnam end up with two layers of protection.

One layer is compulsory coverage tied to employees and regulated risks, like fire and explosion for certain facilities. Another layer is optional coverage that smart businesses buy to match their day-to-day exposure, like public liability, professional liability, property, cargo, or management liability.

If you want the cleanest starting point, go straight to the official sources and build from there, then compare insurer options after you understand what you must have.

Compulsory Social Insurance for All Employees

Vietnam requires employers to participate in the compulsory system that covers social insurance, health insurance, and unemployment insurance for eligible employees. 

These insurances are not a “nice-to-have” benefit. It is a compliance requirement tied to labor contracts, payroll reporting, and monthly contributions, and it is administered by Vietnam Social Security through the same official portal you use for guidance and procedures at Viet Nam Social Security.

Foreign employees can be included when they meet the legal conditions. A practical official reference you can link inside your article is the Vietnam Social Security legal library entry that hosts the government’s Decree 143 attachment at VSS Legal Documents On Decree 143. 

Why this matters for business owners is simple. 

If you mis-handle these obligations, the risk is not only fines. It can create payroll disputes, employee claims, and delays when your company needs clean compliance records for licensing steps, audits, or corporate procurement.

Workers Compensation Insurance for Incidents at Work

Even “low risk” workplaces face accidents. A fall on stairs, a delivery injury, an electrical incident, repetitive strain issues for desk teams, or a warehouse mishap can all lead to medical costs and compensation exposure.

Vietnam’s rules on the employer contribution rate to the occupational accident and disease benefit fund are set out in government regulation. You can reference the official Government Portal page for Decree 58 at Government Portal Decree 58 2020. 

For a plain-language explainer that businesses can understand quickly, Vietnam Social Security has an official article stating the standard rate and the reduced-rate option at VSS Explanation Of Occupational Accident Fund Rates. 

This is a protective layer for staff and for the company’s cash flow. When incidents happen, the financial impact is easier to manage when you are compliant and the system is set up correctly from the start.

Fire and Explosion Insurance for Certain Buildings and Facilities

Fire risk is one of the most contract-driven compliance points in Vietnam. Many businesses discover it during lease negotiations, since landlords and building managers often require evidence of coverage before handing over the premises.

The formal framework for compulsory fire and explosion insurance is spelled out in a government decree. A clean official link to embed in the article is the Government Portal page for Decree 67 at Government Portal Decree 67 2023. 

Fire safety obligations can change as Vietnam updates fire prevention and rescue rules. For the newer framework that details implementation of the fire safety law, you can link the Government Portal entry for Decree 105 at Government Portal Decree 105 2025. 

Even when your exact business activity is not obviously “high risk,” the facility type can trigger mandatory obligations. Large spaces, certain building categories, and certain operations tend to be the usual triggers. The practical takeaway is to treat fire-related compliance as part of site selection, not something you handle later.

Public Liability Insurance for Customer Interactions

If your business regularly interacts with clients, customers, or the public, a public liability policy helps handle claims related to third-party injuries or property damage. Companies in customer-facing sectors like hospitality, retail, education, and consulting often purchase this insurance to ensure financial peace of mind. It is a practical measure for managing unexpected public incidents.

Professional Liability for Consulting and Service Businesses

Firms that provide specialized advice or services, such as consulting firms, design studios, engineering teams, and technology companies, often buy professional liability insurance. This coverage handles claims related to errors, omissions, or negligent advice that might cause financial losses for a client. Holding this policy is a strong indication of professionalism when working with established corporate partners in Vietnam.

Property Insurance for Your Office and Assets

Property losses hurt more than owners expect. A single incident can wipe out IT equipment, damage inventory, destroy fit-outs, and force relocation or downtime. The real pain is not only replacement cost. It is interruption, lost revenue, ongoing payroll, and the cost of restarting operations.

These policies are not always mandatory by law, but they are often demanded by landlords, lenders, or high-value contracts. Since you want official references only, the regulator angle works well. The Ministry of Finance’s insurance supervision portal gives your readers confidence that they should buy from licensed entities and keep proper documentation, using the same official pages at Ministry Of Finance Insurance Supervision and the directory entry at MOF List Of Insurers And Brokers.

However, Insurance Needs Can Change Depending On Your Business Model

Different industries naturally face different risks and therefore require different levels of insurance coverage. Here is a simple breakdown to help you determine your own company’s needs.

For Small and Medium Service Businesses

For small to medium service companies, common insurance policies include social insurance for employees, professional liability, public liability, and property coverage for computers and office equipment. For these businesses, establishing a strong reputation is highly valued, so having the correct protections in place helps build immediate trust with local partners and clients.

For Retail and Hospitality Operations

Shops, restaurants, and cafés generally need fire insurance, public liability coverage, property insurance, and workers compensation. Vietnam’s consumer market is expanding rapidly, and customers expect spaces that are safe and well managed.

For Manufacturing and Logistics Industries

These sectors involve higher physical safety and operational risks. The usual insurance package includes fire and explosion coverage, cargo insurance, machinery insurance, and comprehensive workers compensation. Additionally, some foreign investors also choose to buy directors and officers insurance to support good governance and compliance practices.

For Foreign Representative Offices in Vietnam

Even though representative offices cannot conduct direct commercial business, they still hire staff, rent office space, and meet with clients. The standard necessary protections are social insurance for staff, office property insurance, and public liability insurance. Choosing a high-quality, reputable office space greatly helps in compliance, especially during the official licensing and inspection processes.

How Choosing A Workspace Like The Sentry Reduces Your Insurance Burden

The workspace you choose has a big impact on how much insurance you need. Traditional offices usually require tenants to handle a long list of responsibilities. You must manage repairs, fire protection, security systems and building maintenance on your own. This comes with higher risks and higher insurance costs.

Working at The Sentry changes that completely. The space is designed for modern businesses that want stability and professionalism without the administrative hassle. Here is how The Sentry supports you from day one:

A secured and professionally managed building

The Sentry offers 24/7 security, monitored entrances, controlled access and modern fire protection systems. Many common risks are already handled by building management, letting you focus on your team instead of building issues.

A workspace built for productive businesses

Everything from meeting rooms to phone booths to shared lounges is maintained at a high standard. There are regular checks, technical support and a responsive onsite team. This reduces the likelihood of equipment damage or operational downtime.

Reliable utilities and infrastructure

Power, internet and air conditioning are stable and supported by expert technicians. When a workspace runs smoothly, you deal with fewer interruptions and fewer chances for insurance claims.

Flexible options for different business sizes

Startups, SMEs and enterprise teams all work at The Sentry. Whether you need dedicated offices, hot desks or hybrid solutions, you get a professional setup without committing to long-term leases or heavy fit-out costs. This also keeps your insurance planning simpler because many structural risks are already handled.

Book A Tour At The Sentry And Build Your Business With Confidence

If you want a workspace that supports your growth and reduces your operational risks, The Sentry is ready to welcome you. 

Visit our contact page and book a tour today. 

You will see firsthand how a well designed coworking environment can make your business safer, smoother and more productive from the very first day.