It can be seen that foreign direct investment (FDI) from Japan has been creating a large number of jobs in Viet Nam. Therefore, ensuring social security benefits in the FDI sector in general and Japanese enterprises in particular is playing very important role, not only making contribution to the quality improvement of employees’ life, but also to the increase in labor productivity, healthy competitiveness..., to promote a sustainable development of the country's socio-economic area.

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As an agency in charge of the organizing and implementation of social insurance and health insurance policies, in recent times, Viet Nam Social Security has always strived to reform and innovate in a professional and modern direction to better meet the satisfaction of people and enterprises, including Japanese businesses in Viet Nam. The settlement of social insurance, health insurance, and unemployment insurance regimes for employees is always guaranteed by Viet Nam Social Security, promptly and fully, helping employees feel secure in their work.

In 2022, Viet Nam Social Security successfully held a conference with Japanese FDI enterprises in the Southern region to provide information, create a forum for discussion, and shed light on difficulties in the implementation of social insurance, health insurance, unemployment insurance policy. The conference received the attention and participation of leaders, managers, and staffs directly involved in the implementation of social insurance policy from nearly 100 Japanese enterprises operating in provinces and cities such as Ba Ria-Vung Tau, Dong Nai, Binh Duong, Ho Chi Minh City... This activity are highly appreciated by Japanese Embassy and enterprises, and expected to be held regularly. Questions from enterprises at the Conference were answered and resolved by leaders of Viet Nam Social Security and affiliated units. The recommendations and comments of Japanese businesses were seriously taken into account by Viet Nam Social Security for researching, amendment or making proposal to competent authorities, in order to improve the efficiency of the implementation of social insurance, health insurance and unemployment insurance policies. This could be considered a clear demonstration of Viet Nam Social Security’s  efforts to effectively implement Resolution No. 02/NQ-CP dated January 10, 2022 of the Government on key tasks and solution for the improvement of business environment, enhancement of national competitiveness and thereby contributing to the affirmation of Viet Nam Social Security’s position and role in the promotion of effective implementation of social insurance, health insurance and unemployment insurance policies in the enterprises community.

Illustrative image (VSS)

Following the success achieved at the Southern regional Conference, Viet Nam Social Security continues to organize a conference on the implementation of social insurance, health insurance, and unemployment insurance policies with Japanese FDI enterprises in the Northẻn region on October 24, 2023. The conference will have the participation of Japanese FDI enterprises from provinces and cities such as Ha Noi, Hai Phong, Hai Duong, Bac Ninh, Hung Yen, Bac Giang... With the goal of ensuring better social insurance, health insurance, and unemployment insurance benefits for employees in the FDI sector in Viet Nam, the Conference will be a meaningful and practical activity contributing to the 50th anniversary of the establishment of diplomatic relations between Viet Nam and Japan (September 21, 1973-September 21, 2023).

 Due to the COVID-19 pandemic and adverse impacts of the global economy, Nitori Furniture Vietnam, a Japanese-invested business operating in Quang Minh Industrial Park, Hà Nội, had to reduce its workforce by 20 per cent from more than 6,000 to 4,800. But the company has never delayed paying monthly social and health insurance premiums for its labourers.

Hà Thảo Phương, a company worker, said: “I have health insurance expenses covered and enjoy maternity benefits thanks to quick procedures supported by the human resources department.”

Japan has a concept called “lifetime employment” which means recruiting workers until they retire. Social, health and unemployment insurance play an extremely important role in retaining labourers for a long time.

Kushida Akihiro, deputy general director of Nitori Furniture, said his company started operation in 2003. His enterprise always strictly complies with Việt Nam's legal regulations.

“The full participation in social insurance, health insurance and unemployment insurance aims to ensure workers’ benefits and create conditions for them to stay over the long term. That’s also an important requirement we have set,” he told Việt Nam News.

“We have a professional human resources department that has coordinated closely with the Hà Nội Social Security Office in paying premiums and providing benefits for employees,” he said.

The company always timely and fully updates the social insurance policies from local authorities in Việt Nam, legal consulting units and the Foreign Direct Investment (FDI) business association, he said.

The Vietnam Social Security (VSS) has supported enterprises in the settlement of social insurance regimes, especially paying sickness and maternity benefits on time. There were a few cases of money transfer delay compared to the expected results. When we gave feedback, the agency promptly resolved it, he said.

During a recent dialogue between VSS and Japanese-invested firms in Việt Nam on the implementation of social and health insurance policies, VSS General Director Nguyễn Thế Mạnh said the vast majority of Japanese businesses comply with Việt Nam's legal policies, including those on social and health insurance.

In the difficult context of the pandemic and the post-COVID-19 period, FDI enterprises, including Japanese firms, have applied many solutions to maintain production stability and retain workers, making an important contribution to Việt Nam's socio-economic recovery and development, he said.

The VSS has so far served 2,112 Japanese businesses in Việt Nam, with 547,100 employees participating in social insurance, including more than 545,000 Vietnamese employees and 1,600 foreign ones.

In the first nine months of this year, social insurance revenue from Japanese-invested enterprises accounted for over 13 per cent of the total revenue from foreign invested enterprises operating in Việt Nam.

In order to create favourable conditions for the Japanese business community investing and doing business in Việt Nam, as well as the Vietnamese community living and working in Japan, the two countries are conducting exchange procedures, updating information and roadmaps to prepare for the negotiation of the bilateral agreement on social insurance, which will serve as a new milestone in the two countries’ relations, Mạnh said.

Japanese Ambassador to Việt Nam Yamada Takio said in 2023, the Japanese Business Association in Việt Nam has about 2,000 member companies. This is the largest overseas Japanese Business Association in ASEAN and the second largest in the world. One of the attractions for Japanese businesses is Việt Nam’s abundant labour source.

Protecting labourers’ benefits is an important factor for Việt Nam to attract foreign investment, he said.

Along with the direct investment increase from Japan into Việt Nam, Japanese companies are required to understand and well implement Việt Nam's social insurance regulations and policies to ensure labourers’ legitimate rights and benefits. The Vietnamese Government is amending the Law on Social Insurance, which will better protect labourers’ rights and affect investment trends of Japanese firms in Việt Nam, the ambassador noted.

He hoped the Vietnamese Government would listen to the feedback of Japanese enterprises in Việt Nam on the law amendments to make the law truly reflect the wills of Japanese employees and employers.

He believed that social and health insurance policies with the aim of better protecting the rights of labourers would promote economic cooperation between the two countries.

To help Japanese people in Việt Nam better access social and health insurance policies and facilitate them in procedures, on Tuesday, the VSS launched the Japanese version of the social insurance mobile app VssID.