Vietnam Social Security: Dialogue on Insurance Policies with Japanese Investors

To mark the 50th anniversary of the Vietnam-Japan diplomatic relations (1973 - 2023), the Vietnam Social Security (VSS) organized a dialogue conference on social insurance and health insurance implementation with Japanese-invested firms in Vietnam.

Delegates at the dialogue between VSS and Japanese-invested firms in Vietnam on the implementation of social and health insurance policies

The event was attended by more than 100 Japanese companies operating in northern Vietnam. The event provided an opportunity for Japanese companies to gain a better understanding of the social security system and the legal framework of social insurance and health insurance in Vietnam, thus helping them build and strengthen their trust and confidence in the institutions, policies and regulations, including those related to social insurance and health insurance.

Supporting FDI enterprises in upholding workers' rights

VSS has consistently supported and collaborated with enterprises to ensure that workers receive adequate social insurance and health insurance benefits as prescribed by law. Dialogues with the business community, including FDI firms, on social insurance and health insurance policies are a regular activity.

As part of the celebration of the 50th anniversary of Vietnam-Japan diplomatic relations, the Dialogue Conference on social insurance and health insurance policies with Japanese investors in Vietnam was an opportunity for them to gain a deeper understanding of the social security system and the legal framework of social insurance and health insurance in Vietnam, thus helping them build and strengthen their trust and confidence in the institutions, policies and regulations, including those related to social insurance and health insurance.

This was also an occasion for them to express their opinions for improved mechanisms and policies on social insurance, enabling them to conduct long-term business and investment in Vietnam and ensure workers’ rights.

VSS General Director Nguyen The Manh reported that, as of September 2023, VSS served more than 92 million health-insured customers and 17.5 million customers with social insurance, accounting for nearly 40% of the workforce. Over 2,100 Japanese companies are currently providing social insurance policies for 547,100 workers, including 545,500 Vietnamese workers and 1,600 foreign workers. Their social insurance revenue accounts for more than 13% of the total FDI social insurance revenue in Vietnam.

In the challenging context of the COVID-19 pandemic outbreak and post-pandemic recovery, FDI firms, including Japanese, have implemented many solutions to maintain stable operations and their manufacturing and business, “retain” employees, and make important contributions to Vietnam's socio-economic recovery and development.

“Most Japanese businesses comply well with Vietnam's laws, including laws on social insurance and health insurance,” he emphasized.

As a government agency responsible for social insurance and health insurance policies, VSS has proactively deployed solutions to support and accompany enterprises and workers. Notably, VSS has advised and submitted to the Government to issue support policies on social insurance and unemployment insurance for employees and employers struggling with difficulties caused by the COVID-19 pandemic. The support fund for social insurance and unemployment insurance was VND47,200 billion, accounting for 45.2% of the government's total COVID-19 support packages.

In addition, VSS has continuously strived to reform, innovate and develop towards more professionalism, modernity, sustainability and efficiency and better meet public and business satisfaction. To date, the social security sector has provided all public services online on the National Public Service Portal. Rapid digital transformation in each operational stage helps businesses, people and workers access and fully enjoy social insurance and health insurance benefits.

Especially, the deployment of VssID social security applications with more than 32 million users has created breakthroughs in bringing many benefits for people and businesses, helping them reduce time and cost in working with VSS agencies. To further increase the impact of the VssID application in the business community, at this conference, VSS launched the Japanese version of VssID application for Japanese workers to easily use social insurance and health insurance.

Advancing negotiations on the Vietnam-Japan bilateral social insurance agreement

Deputy Minister of Foreign Affairs Nguyen Minh Vu stated that Vietnam-Japan cooperation is increasingly cohesive, substantive and effective. He said that about 500,000 Vietnamese people in Japan and about 20,000 Japanese people in Vietnam have made many positive and practical contributions to the development of the two countries.

Along with the development of multifaceted cooperation between Vietnam and Japan, VSS’s cooperation with Japanese partners in social security in general and effective social insurance and health insurance policies, in particular, has achieved many positive results. To facilitate the Japanese business community to invest and do business in Vietnam as well as the Vietnamese community living and working in Japan, the two countries are exchanging and updating information and roadmaps prepared for negotiations on the Bilateral Agreement on Social Insurance between the Government of Vietnam and the Government of Japan.

"This is definitely a new milestone in cooperation in ensuring social security for the people of the two countries," said VSS General Director Nguyen The Manh.

Ambassador of Japan to Vietnam Yamada Takio expressed his delight at the positive progress in Vietnam-Japan relations. He informed that the number of Japanese companies investing in Vietnam increases every year. In 2023, the Japanese Business Association in Vietnam has reached around 2,000 member companies. This is the largest overseas Japanese business association in ASEAN and the second largest in the world.

Along with their increased direct investment in Vietnam, Japanese companies need to understand and well implement Vietnam's social security regulations and policies to ensure legal rights and interests for their employees. Therefore, this conference created an opportunity for Japanese companies to grasp information and learn deeply about Vietnamese laws on social insurance and health insurance policies for employees for better implementation.

Amendments and supplements to the Social Insurance Law will bring changes to Vietnam's social security system in the future, thus having a great impact on investment trends from Japanese companies.

The conference between VSS representatives and Japanese FDI companies aimed to improve policies on social insurance and health insurance, facilitate companies to do business, make effective, stable and sustainable investments in Vietnam, and ensure long-term benefits for workers.

 VSS will receive opinions and continue to improve internal procedures to facilitate FDI firms to take part in social insurance and health insurance.

VSS will also collect and synthesize opinions to send to relevant agencies of the Government of Vietnam for consideration and resolution to achieve the common goal of ensuring lawful social insurance and health insurance benefits for FDI workers in Vietnam and contribute practically to the development of FDI companies and the country’s socioeconomic development.

Source: Vietnam Business Forum