Why must enterprises protect employees’ personal information?

1. Fundamental human rights: the right to privacy

In general, the right to the protection of private life and personal information is a fundamental human right, recognized in many legal systems around the world, and it has evolved alongside technological advancements. Since the late 19th century, regulations on the protection of personal images have emerged in response to the development of journalism and photography. Moving into the era of computerization, many countries began to enact specialized laws on personal data, such as the Sweden’s Data Act (1973), the US Privacy Act (1974), and Germany’s Federal Data Protection Act (1978). The era of the internet and e-commerce introduced new privacy challenges, leading to the creation of modern legal frameworks such as California’s Data Breach Notification Law (2003), the EU’s General Data Protection Regulation (GDPR, 2018), California’s CCPA/CPRA (2018–2020), and China’s PIPL (2021). Collectively, these regulations have laid the foundation for the global trend of strengthening personal data protection.

In Vietnam, the right to privacy has been recognized in the Constitution and several discrete laws; however, there had long been no unified regulation. It was not until 2023, with the promulgation of Decree 13/2023/ND-CP on personal data protection (“Decree 13”), that Vietnam officially established its first comprehensive legal framework governing this area. Since then, compliance with personal data protection has become a topic of widespeard concern and an increasing focus of corporate risk governance.

2. An important and valuable property of enterprises

In practice, during the implementation of Decree 13, when the supervision and inspection of compliance by competent state authorities remained unclear and lacked specificity, most enterprises and organizations prioritized allocating resources to protect customer personal information, as customer data is clearly a strategic asset for enterprises. Furthermore, Decree 13 does not explicitly identify “employee data” as a concrete subject of regulation, leading to the view that supervisory and enforcement efforts would primarily focus on high-risk areas involving the processing of large volumes of customer data, such as e-commerce platforms, retailers, telecommunications service providers, and online service providers. These entities are considered likely to be subject to strict control and required to comply with more stringent personal data protection regulations. With respect to employee personal data, despite being collected, stored, and processed daily within most enterprises, it has often been considered less risky and therefore received limited attention. This perception stems from the special relationship established through labor contracts and governed by labor law. However, this perspective is inaccurate. Although Decree 13 does not specifically mention “employee data”, its general scope of regulation defines personal data as any information associated with or capable of identifying a specific individual. Accordingly, personnel data clearly falls within the ambit of this Decree and must be protected in compliance with its provisions. In light of current legal and governance trends, personnel data is considered an important type of information asset that directly reflects the relationship between employers and employees. Protecting such data is not only a legal obligation but also an ethical responsibility and a foundational factor in fostering internal trust, corporate culture, and organizational reputation.

3. Clearly stipulated by law

The Law on Personal Data Protection 2025, effective from January 1, 2026, introduced a dedicated provision on personal data protection in employee recruitment and employment. It requires enterprises to be responsible for safeguarding personal data throughout the entire life cycle of the labor relationship, from recruitment, establishment, and management to termination. Violations of this obligation may result in administrative fines up to 3 (three) billion VND, compensation for damages, and/or disputes and lawsuits, thereby affecting the enterprises’s reputation and image. This is a positive development by lawmakers to strengthen mechanisms for protecting employee rights amidst vigorous digital transformation, where most corporate governance processes have been or are being digitized, consequently increasing the risk of personal data breaches in any organization. Crucially, enterprises frequently share and transfer employee data to other parties (e.g., parent companies abroad for FDI enterprises, payroll service providers, banks, insurance providers, accommodation/travel service providers, etc.) for purposes related to the execution of labor contracts, management, and employee welfare. Therefore, any leakage or misuse incident can cause serious consequences, ranging from disappointment, loss of trust, and reduced work motivation to internal crises and reputational damage in the labor market. In the social media age, even a minor breach can spread rapidly and have a profound impact, especially for listed companies, whose brand value and reputation are closely linked to stock performance. Furthermore, in the context of globalization and deep integration into international supply chains, compliance with personal data protection standards is becoming a prerequisite for Vietnamese enterprises to maintain partnerships, attract investment, and ensure sustainable development.

4. The foundation for sustainable development

In summary, employee information is not merely administrative management data, it is both a component of human rights and a valuable corporate asset. For sustainable development and confident intergration into the global business network, enterprises must establish robust data security mechanisms for personnel data, equivalent to those applied to customer data, as this is the foundation for sustainable development. Strong compliance with personnel data protection regulations enables enterprises to mitigate the risks of violations and financial losses, while enhancing their competitive advantage in cooperation with international partners, particularly corporations from markets with stringent data protection standards such as Europe, the United States, and Japan. Therefore, it is time for Vietnamese enterprises to proactively establish comprehensive personnel data governance systems, including reviewing procedures for data collection, storage, and sharing; raising employee awareness through regular training, adopting secure technological solutions; and integrating security requirements into all internal operational activities. Once personal data is properly protected, enterprises will ensure legal compliance and foster trust, which is an essential pillar of long-term sustainable development and reputation in the labor market.

Time of writing: 15/10/2025

The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer  at  info@cdlaf.vn

You can refer for more information:

• Analysis of the roles and responsibilities of the parties involved in data processing under Vietnamese law
• Sensitive Data: What your business might be handling without knowing it
• Key considerations for Enterprises for Private placement of Shares
• New Provisions under the Corporate Income Tax Law effective from October 1, 2025