NA Chairman Vuong Dinh Hue delivered the opening speech. Photo: Doan Tan/VNA

According to the Government's report presented by the Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung, the current regulations on application of social insurance are giving rise to the obligation to pay dual social insurance contributions. Specifically, Vietnamese employees working in Korea will both have to pay social insurance contributions in Vietnam according to the provisions of the Vietnam Law on Social Insurance, and pay social insurance contributions according to the National Pension Act of Korea and Korean employees in Vietnam shall incur the same obligation to pay social insurance contributions.

In order to ensure compliance with the laws of the employee's country, avoid the double payment of social insurance premiums, and optimize the benefits of workers who are citizens of the two countries, since 2015 until now, the two Governments have exchanged, negotiated and basically made agreement on the content of the draft Agreement on social insurance between the two countries.

The signing of the Agreement is a recognition of the results of the negotiation process between the Governments of the two countries and is also a premise for Vietnam to continue to expand its negotiation activities on the Agreement on Social Insurance in the coming time.

According to the inspection report of the NA's Foreign Affairs Committee presented by Chairman Vu Hai Ha, this is the first comprehensive agreement on bilateral social insurance in Vietnam. The Foreign Affairs Committee has come to an agreement on the need to sign an agreement to avoid double payment of social insurance premiums, optimize the benefits of social insurance for employees in each country, and contribute to better ensuring the social security rights, which were recognized in the 1966 International Covenant on Economic, Social and Cultural Rights of the United Nations.

Chairman of the NA's Foreign Affairs Committee Vu Hai Ha delivered a speech. Photo: Doan Tan/VNA

The signing of bilateral social insurance agreements is also consistent with Resolution No. 28-NQ/TW dated May 23, 2018 of the Seventh Plenary Session of the 12th Central Committee on reforming social insurance policies towards developing a flexible, diversified, multi-layered, modern and internationally integrated system of social insurance policies; reviewing and amending regulations on Vietnamese workers going to work abroad and foreigners working in Vietnam participating in compulsory social insurance, in association with accelerating negotiations and signing of bilateral agreements on social insurance.

In addition, the signing of the Agreement contributes to promoting the comprehensive cooperative partnership between the two countries, especially in the context of the number of Vietnamese workers going to work in Korea and the number of Korean workers coming to Vietnam is increasing, and creates a favorable premise for the signing of bilateral agreements on social insurance with countries that have labor cooperation relations with Vietnam.

In the draft agreement, there are two contents not yet specified in the Law on Social Insurance. That is, there is no regulation on the time of paying social insurance premiums abroad in the total period of payment of social insurance as the basis for enjoying the retirement regime. The Law also does not stipulate the determination of monthly pension for female employees with under 15 years of payment of social insurance and male employees with less than 20 years of payment of social insurance in the case of accumulating the time of payment of social insurance according to the provisions of the agreement.

On the basis of the Government's report and relevant documents, the Foreign Affairs Committee proposed to the NA Standing Committee to approve the Government's signing of the Social Insurance Agreement between the Government of Vietnam and the Government of the Republic of Korea; also, requested the Government to soon propose amendments and supplements to the 2014 Law on Social Insurance and submit it to the NA according to regulations in order to promptly institutionalize the Party's policy on reforming social insurance policies and for this Agreement to be fully implemented in practice soon.

At the meeting, the delegates basically agreed with the necessity of signing the agreement. However, there are opinions that social insurance is a basic pillar of social security, the right to social security insurance is one of the basic rights of citizens, therefore, it is suggested that explanations and clarifications are required whether the contents of the agreement, especially those not yet specified in the law alter the fundamental rights of citizens as defined at point c, clause 1, Article 29 of the Law on Treaties in order to determine the authority of the Standing Committee of the NA to give opinions or the NA to ratify this agreement.

There are also opinions that the consultation of relevant agencies and organizations is still carried out in a narrow area, without the opinions of those directly affected, while the impact is not small; some requested the Government to explain more closely on a number of related issues such as whether the implementation of the agreement needs to be adjusted to other relevant laws.

At the meeting, the NA Chairman suggested that the time for paying social insurance premiums to enjoy pensions in Vietnam must still comply with the provisions of the Vietnam's Law on Social Insurance. Along with that, it is necessary to assess the impact on the social insurance fund of our country.

Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung presented the report. Photo: Doan Tan/VNA

Also, Dung gave consent to the comments of the NA Chairman and delegates and affirmed that the impact would be thoroughly assessed.

Concluding speech, Standing NA Vice Chairman Tran Thanh Man stated that the NA Standing Committee agreed in principle to sign the Social Insurance Agreement between the Government of Vietnam and the Government of the Republic of Korea. He also noted that the signing of the Agreement must be in line with the Party's policy on reforming social insurance policies, in accordance with Vietnamese law, and speeding up the negotiation and signing of a bilateral agreement on social insurance. This contributes to promoting the comprehensive cooperation relationship between Vietnam and Korea, especially in the context of increasing number of Vietnamese workers in Korea and Korean workers in Vietnam.