Kathmandu. Social insurance is now mandatory for foreign workers in Vietnam who work under a labor agreement of at least 12 months. This provision has been implemented under the Social Insurance Act-2024. <\/p>\n
This requirement applies to foreign nationals employed by a Vietnamese employer under a permanent labour contract of 12 months or more in accordance with Article 2 (clause 2) of the law. The move comes at a time of increasing foreign direct investment. Where foreign workers play a big role in industries ranging from production to high-quality services. <\/p>\n
Expanding mandatory social security insurance coverage is part of an effort to align Vietnam’s labor policies with international standards. The International Labour Organization (ILO) recommends that social security systems, regardless of nationality, be protected to reduce employment-related risks. The policy also supports Vietnam’s commitments under trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). It focuses more on labor standards and worker safety. <\/p>\n
Companies may face costs higher than required social security insurance contributions. But experts say the policy could reduce legal and operational risks over time. <\/p>\n
Companies that fail to meet contribution requirements may face penalties, refunds, and potential disruptions in enforcement. Because the implementation gets tougher. <\/p>\n
This policy can also help companies attract and retain foreign professionals (especially specialists, engineers, and managers). They consider Social Security and benefits when choosing a place to work. <\/p>\n
In addition, there are challenges in the implementation of this policy. Many foreign workers already contribute to their country’s social insurance system. This raises concerns about dual contributions without receiving the same benefits. Short- and medium-term employment arrangements can also reduce interest in long-term benefits, such as pensions. <\/p>\n
Employers have also reported difficulties in identifying qualified workers, calculating contribution levels, and managing administrative procedures. Some companies are reported to have used flexible contracting arrangements to avoid contribution obligations. This has raised concerns about worker safety and fair competition. <\/p>\n
Countries such as Japan and South Korea have already taken part in social security systems for foreign workers. These countries have also implemented bilateral social security agreements to prevent dual contributions and secure workers’ entitlements to benefits. <\/p>\n
In the long term, the policy is expected to treat domestic and foreign workers more equally, increase income for social insurance funds, and support the sustainability of the social security system as the population ages. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Social insurance is now mandatory for foreign workers in Vietnam who work under a labor agreement of at least 12 months. This provision has been implemented under the Social Insurance Act-2024. This requirement applies to foreign nationals employed by a Vietnamese employer under a permanent labour contract of 12 months or more in accordance […]<\/p>\n","protected":false},"author":16,"featured_media":301606,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-301609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/301609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=301609"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/301609\/revisions"}],"predecessor-version":[{"id":301610,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/301609\/revisions\/301610"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/301606"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=301609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=301609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=301609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}