Informal workers top 60 percent in Vietnam as safety net lags

The surge in Vietnam’s informal workers, now over 60 percent of the workforce, presents a structural challenge for the country’s tech platforms. Ride-hailing and delivery services rely on this flexible labor pool. Without stronger worker protections, these companies face increased regulatory scrutiny and potential operational instability. This is not sustainable for long-term growth.

For Southeast Asian regulators, Vietnam’s situation offers a clear lesson. Other markets with large informal economies, like Indonesia and the Philippines, must address similar vulnerabilities. The test for Hanoi is whether it can implement effective social safety nets without stifling the gig economy. This balance is critical for continued digital economy expansion in the region.

The thing to watch is Vietnam’s next labor policy reform. Any new legislation that mandates benefits or formalizes gig worker status will directly impact platform profitability. Companies like Grab and Gojek, which operate extensively in Vietnam, will need to adapt their business models. Their financial performance will reflect these changes by late 2027.