Vietnam Social Security has regulations on handling the enterprises’ social insurance debt. However, delaying and evading social insurance payments still occurs in many businesses, significantly impacting the rights of employees.

In Vietnam, Bac Giang Social Security office promotes social and health insuance premiums collection and reduces debt. Bac  Giang Social Security office checks and evaluates enterprises that violate regulations of Law on social insurance on paying social, health and unemployment premiums.

From 2018 to 2023, the Vietnam Social Security submitted 417 files recommending prosecution to the investigation agency.

These cases involved insurance fraud, unemployment and health insurance violations, as well as cases related to evasion of insurance contributions.

In 2023, 26 cases were brought to prosecution. Of these, 15 have been prosecuted, yielding eight legally binding verdicts. Individuals and organisations implicated are required to pay over VNĐ2.69 billion (some US$106,000) to the social insurance agency, with VNĐ2.38 billion ($93,800) already recovered.

The figures indicate a complex and ongoing issue of debt and evasion of social insurance payments, sparking significant consequences, the Voice of Việt Nam reported.

This not only affects the rights of workers but also undermines long-term social security benefits and trust in the social insurance system.

Experts have called for stricter penalties for employers delaying or evading social insurance payments.

Phạm Minh Huân, former deputy minister of the Ministry of Labour, Invalids and Social Affairs, said that the failure to fulfil social insurance obligations lies with the businesses.

While some businesses face difficulties and seek extensions for insurance payments, agreements must be reached between insurance agencies and businesses.

Once businesses recover, they must promptly fulfil their social insurance obligations.

Deliberate evasion of social insurance contributions should be legally prosecuted, as administrative penalties or criminal prosecution are stipulated by law.

He also emphasised the complexity of addressing such violations. Legal provisions exist for both administrative and criminal measures, yet challenges remain due to policy mechanisms and practical implementation.

Businesses found at fault must face severe penalties, and coordination among insurance agencies, inspection bodies, labour unions and workers themselves is essential.

Clear distinctions must be made between deliberate evasion and objective difficulties, with appropriate measures applied accordingly.

The amended laws explicitly outline which issues fall under administrative or criminal jurisdiction.

Furthermore, strengthening inspection and enforcement measures is necessary to safeguard the rights of workers, Huân said.

In China, When making debt financing decisions, some firms choose a relatively dispersed source of financing (e.g., simultaneously obtaining funds from commercial paper, term loans, lines of credit, senior bonds, and subordinated bonds), while others concentrate their sources of debt finance on a smaller variety of financing sources (Rauh and Sufi, 2010; Colla et al., 2013; Lou and Clemens, 2020; John et al., 2021; Li et al., 2021). The latter debt structure implies that firms only need to communicate and coordinate with a small variety of creditors. When a firm is unable to repay its debts, there is a higher possibility of successful debt renegotiation with creditors, thereby reducing the probability of a firm being liquidated (Gilson et al., 1990; John et al., 2021; Li et al., 2021). Even if a firm enters bankruptcy liquidation owing to its inability to repay debts, a higher concentration of debt types enables the firm to better coordinate with the liquidating parties, and the liquidation value will also be higher (John et al., 2021). Certainly, high debt concentrations have certain limitations. It is easier to communicate and coordinate with creditors, which can increase a firm's risk of strategic default. This results in difficulties for firms in obtaining new debt financing in the future as well as higher debt costs (Li et al., 2021). Therefore, when choosing debt concentration, firms consider the costs and benefits under different concentrations to determine the debt financing method that is most beneficial to them.

Deliberate evasion of social insurance contributions should be legally prosecuted, as administrative penalties or criminal prosecution are stipulated by law.