In a landscape where laws are changing rapidly and becoming increasingly complex, training is no longer optional — it has become a necessity for every business. Constantly evolving regulations on taxation, labor, insurance, health–safety–environment (HSE), information technology, and personal data protection have made staying up to date and adaptable a matter of survival.
So why is it essential to strengthen employee training when the law changes? And what should businesses do to adapt effectively? The following article breaks down 5 key reasons to help you clearly understand the challenges — and take the right actions.
1. Constant Legal Changes – Increased Legal Risks Without Proper Training
In Vietnam, hundreds of new legal documents are issued every year. In 2024 alone, more than 100 new decrees and circulars affecting businesses have been put into effect. Without regular training, employees can easily misapply these regulations, leading to violations related to contracts, taxation, insurance, environmental protection, or occupational safety.
Training helps employees stay informed about legal updates, thereby minimizing the risk of penalties, avoiding reputational damage, and preventing disruptions to business operations. Failure to keep up with regulatory changes can expose a company to significant fines or even temporary suspension of its activities.
A specific example is the Personal Data Protection Law, which officially took effect in 2024. It requires businesses to implement data privacy policies, appoint a data protection officer, and conduct internal training. Failure to comply can result in fines of up to hundreds of millions of VND.

2. Training Helps Businesses Adapt Quickly and Maintain a Competitive Edge
In the digital economy era, legal changes are not limited to administrative procedures — they are closely tied to technology, digital transformation, and emerging business models. Regulations on digital signatures, e-invoices, data storage, and information security require businesses to adapt both their processes and workforce skillsets.
Organizing regular training is not just about legal compliance — it’s also a way for businesses to strengthen adaptability and respond quickly to change. Training helps employees understand the reasons behind transformations and supports them in effectively adjusting to new systems.
Businesses that take the lead in employee training are better positioned to maintain stability while competitors struggle to interpret regulations and deal with the consequences of non-compliance. This creates a lasting competitive advantage in the market.

3. Training as a Preventive Tool to Protect Businesses from Lawsuits
One of the most pressing challenges facing businesses today is labor disputes, along with complaints from customers or partners. In most cases, these issues stem from employees not fully understanding internal procedures, company policies, or unintentionally violating the law due to a lack of knowledge.
Through training, businesses can communicate internal policies and new legal regulations, while also highlighting specific scenarios that require special attention. This not only helps employees act appropriately, but also provides a legal foundation to protect the company in case of disputes.
Example: If a sales employee is not trained on the terms of an electronic contract, they may sign the wrong template, leading to legal risks regarding the validity of the transaction. Training helps prevent such issues from the outset.
4. Training Helps Build a Culture of Compliance Within the Organization
A culture of compliance doesn’t form by chance. It requires strong leadership, clear internal policies, and — most importantly — structured, regular training programs.
When a company prioritizes legal training, employees begin to understand that compliance is not a burden, but a path to sustainable growth. This fosters a more proactive attitude toward learning, sharing information, and cross-department collaboration to ensure all operations remain within legal boundaries.
A company with a strong culture of compliance can minimize internal risks, improve operational efficiency, and build trust with customers, investors, and government regulators.

5. Training Empowers Leaders to Make Legally Sound Decisions at the Right Time
It’s not just employees — managers and leaders also need continuous training, especially on regulations that directly impact business strategy and operations.
Leaders who are not up to date with new laws are more likely to make poor decisions, which can lead to serious consequences — such as investing in non-compliant business models, misusing budgets, or signing contracts that violate legal requirements.
Training programs for management should cover in-depth topics such as the Enterprise Law, Investment Law, Tax Law, Labor Law, and regulations specific to the company’s industry. This not only enhances leadership and governance capacity but also helps prevent crises when the business faces legal risks.
Effective Training Methods for Navigating Legal Changes
Businesses can choose from a variety of training methods to suit their size and workforce characteristics, such as:
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Internal training through regular meetings or legal expert briefings.
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Online training through videos, instructional materials, and quizzes.
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External training through seminars and specialized courses organized by professional institutions.
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“Train-the-trainer” model – early learners are trained first and then pass on knowledge to smaller groups within the organization.
The key is to establish a continuous training plan that includes assessments and regularly updated materials aligned with each specific legal change.

Conclusion: Training is not just a solution — it’s a long-term adaptation strategy.
When laws change, businesses cannot afford to remain passive. Proactive training is a critical factor for staying up to date, adapting effectively, and operating smoothly in any situation. Beyond mitigating risks, training enhances workforce quality, fosters a culture of compliance, and strengthens competitive advantage.
The sooner a business recognizes the importance of training, the better equipped it will be to withstand the increasingly intense waves of legal and market chang


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