Labor Market ReformsInformalityDespite Vietnam’s significant labor market transformation from an agrarian to an industry and services-driven economy, persistent structural challenges such as informality, underemployment, skills mismatch, and disguised unemployment hinder long-term development. To address these issues, this chapter proposes a comprehensive policy approach balancing formalization incentives with stricter enforcement, simplifying business registration, expanding social security, encouraging financial inclusion, bridging the skills gap through collaboration between education and industry, and facilitating labor mobility.