Vietnamese Lunar New Year (Tet or Tet Nguyen Dan in Vietnamese) is the most important traditional holiday in Vietnam. It is also the longest public holiday in the country, with up to 10 consecutive work-free days.The date of the festival is dictated by the Lunisolar calendar and can, therefore, fall anywhere between January 21 and February 20. The transition from the Year of the Dragon to the Year of the Snake will begin on January 30, 2025, though preparations usually begin after the Western New Year (January 1). In 2025, the holiday might start as early as Friday, January 24, 2025, and end as late as February 3, 2025, depending on each entity’s scheduling. Tet traditions and payment of bonuses: Advisory for businesses in VietnamOne aspect business owners and foreign employers should be aware of is the custom of paying a Tet bonus to each staff member, which can be as much as a monthly salary or more.Despite the bonus not being a legal obligation, it can facilitate employee satisfaction and retention. More than a few foreign employers have seen their valued staff leave after the holidays due to the lack of a Tet bonus. Considering that the Lunar New Year is the high season for recruiting and job change, the bonus should be used to both motivate and retain employees.Without an obligated rate, it should be determined based on business results and the employees’ work performance. Though employees are entitled to a holiday break, some businesses might require or offer them to work during this time, depending on the nature of the work or special requirements. This is more frequent for foreign businesses than local counterparts.To compensate employees for working during this period, employers must provide overtime pay. Beyond cash rewards, businesses often offer Lunar New Year incentives in various forms. Many companies, for instance, provide train tickets to help employees return to their hometowns or give high-value items such as household appliances and motorbikes, which are commonly used in Vietnam.Companies operating in Vietnam should be prepared to embrace these local practices during the festive season to strengthen relationships and align with cultural expectations.In 2025, although Tet falls on January 30, businesses and factories in Vietnam will remain closed for 7 to 9 days. This period includes the 5 days mandated by the Labor Code for the Tet holiday, along with an additional 2 to 4 days falling on the weekend.Banks and schools will also be closed during this period. To avoid production delays and backlogs, which can build up 1 to 2 weeks before the holiday, factories should prioritize orders based on their importance and relationships with partners.Both manufacturers and buyers are advised to pay close attention to the ordering process. Early placement of orders by buyers can help minimize issues caused by rushed production before and after the Lunar New Year.During the first week after the holiday, most businesses will begin reopening gradually and planning their production schedules, although some may take longer to resume full operations.It is worth noting that millions of migrant workers in major cities return to their hometowns to celebrate the Lunar New Year with their families. This leads to crowded airports, bus terminals, and train stations in the lead-up to the holiday, as well as quieter, emptier streets in urban areas. Domestic travel surges during this time, particularly between Hanoi and Ho Chi Minh City.During the Lunar New Year period, Vietnamese ports and port warehouses close for the holiday, while terminals remain operational and open for incoming vessels.After the holiday, ports resume operations at full capacity but often face heavy congestion at the terminals. Businesses should anticipate delays caused by the week-long closure, with timelines in the North generally taking longer to normalize compared to the South. These delays may further compound supply chain disruptions.Foreign businesses relying on supply chains in Vietnam are advised to maintain close communication with their suppliers, who may face labor shortages, and to coordinate shipments to minimize delays. It is important to note that it often takes time for businesses to fully resume normal operations after the holiday. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Briefing