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Saturday,  Jan 20,2018,02:49 (GMT+7)

Compulsory social insurance for foreign workers yet to be enforced

Thuy Dung
Tuesday,  Jan 9,2018,20:27 (GMT+7)
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Compulsory social insurance for foreign workers yet to be enforced

Thuy Dung

HANOI – Foreign workers have not yet been forced to contribute social insurance in Vietnam in line with the 2014 Law on Social Insurance, as guidelines for implementing the law in this respect have not been issued, said an official at Vietnam Social Insurance.

Dieu Ba Duoc, head of the social insurance policy enforcement department, said the Law on Social Insurance requires foreigners with work permits in Vietnam, trade certificates, or licenses issued by competent Vietnamese authorities shall have to contribute social insurance. Article 2 of the law regulates that foreign workers are subject to compulsory social insurance from January 1, 2018.

However, the Government has not issued a decree guiding the execution of the law due to persistent outcries over such regulations.

Many foreign business associations have objected to the regulations.

According to the Korea Chamber of Business in Vietnam (Korcham), there are currently 15,000 Koreans working in Vietnam, accounting for more than 18% of the country’s total number of foreign workers. Korcham said many Korean workers are still subject to social insurance contribution in their home country so the regulation shall force them to participate in two social insurance programs at the same time.

Similarly, the European Chamber of Commerce in Vietnam (EuroCham) said in the White Book 2017 that a certain number of foreign nationals maintain their social security policies in their home countries or enter the private global health care programs. In this case, the statutory social and health insurance contribution will result in additional costs for employees and employers.

EuroCham suggested the Vietnamese Government provide an exemption for statutory social insurance and health insurance contributions in case employers and foreign nationals working in Vietnam prove that their private health care programs and continuation of social insurance in their home countries are maintained.

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