Discussing non-disclosure agreements and non-compete agreements in Vietnam’s labor law

Abstract

Non-Disclosure Agreements and Non-Compete Agreements between employers and employees are no longer a new issue in Vietnam, especially in the wave of market economy leading to fierce competition between businesses, when the mobility of workers increases, this agreement plays an extremely important role. The term "Non-Compete Agreements" has been mentioned in the Competition Law, but this provision is only for regulating the relationships between economic entities against unfair competition acts. Non-Disclosure Agreements and Non-Compete Agreements are increasingly popular in Vietnam. Many businesses are now using NDA and NCA as a measure to protect themselves. However, the legal framework governing these types of agreements in Vietnam is still open, and the current legal provisions are only at the level of giving employers the right to agree on a confidentiality commitment, and not clear regulations on how the commitment content must be expressed, which leads to conflicting views on how to resolve disputes arising in fact. The study of some theoretical issues on NDA and NCA will contribute to perfecting the provisions of the Labor Law in the future, and at the same time, create a legal corridor for the settlement of such actual disputes.