But Vietnam's social insurance fund is still at risk of a deficit, and the number of people participating in social insurance is still low. In order to find solutions to this problem, a conference looking at international experiences on the issue was organised by Ministry of Labour, Invalids and Social Affairs and the International Labour Organisation.
The Law on Social Insurance 2014 stated that from January 1st 2018, foreigners working legally in Vietnam are compelled to participate in social insurance. Lawmakers and experts are currently discussing specific details of the implementation of social insurance for foreigners.
“We need to guide foreign workers on their participation in social insurance. What level of payment or benefits are they are entitled to, the pension or other payments? There are still many thing that need to be discussed with experts” – said Doan Mau Diep, Deputy Minister, Ministry of Labour - Invalids and Social Affairs.
At the workshop, experts said to implement social insurance for foreigners working in Vietnam would require the country to perfect bilateral mechanisms with other countries. This would also guarantee the interests of Vietnamese workers abroad and mean they would avoid having to pay social insurance twice in Vietnam and the country in which they work.
The conference also discussed the expansion of Vietnam's social insurance coverage, involving issues such as the low number of participants, the decline in social insurance funding and the increasing number of pensioners. International experience has shown that the government needs support to encourage participation in social insurance, and facilitate coordination between tax authorities and social insurance.
