The dialogue aimed to raise awareness and create a wider consensus and cohesion among Foreign Direct Investment (FDI) enterprises in their implementation of policies and laws relating to social insurance and health insurance in the Vietnamese market.

The dialogue between VSS and Japanese enterprises held in the southern province of Ba Ria-Vung Tau on October 11

The dialogue is also among activities that further tighten the relationship between Vietnam and Japan in social security, toward the 50th anniversary of the establishment of diplomatic relations between the two countries in 2023.

The dialogue helped strengthen the position of Vietnam's social insurance industry, and clearly reflected the industry's efforts to effectively implement Resolution No 02/NQ-CP dated January 10, 2022 of the Government on solutions to improve the business environment and national competitiveness in 2022.

Currently, Japan continues to be Vietnam's leading economic partner, the largest ODA donor and recipient of Vietnamese workers, the second largest investor and the fourth largest trading partner of Vietnam. Therefore, ensuring the rights and social security regime in the FDI sector in general and Japanese enterprises, in particular, is very important, not only contributing to ensuring and improving the quality of life for employees but also increasing labour productivity and improving national competitiveness.

Deputy General Director of Vietnam Social Security Dao Viet Anh speaks at the dialogue

Speaking at the event, Deputy General Director of Vietnam Social Security Dao Viet Anh said Vietnam Social Security always made efforts to reform and innovate, and develop professionally to better meet the needs of people and businesses, including Japanese FDI enterprises in Vietnam.

It is estimated that by the end of September 2022, there are about 87.5 million Vietnamese people participating in health insurance (accounting for 91 per cent of the country’s population) and 17.2 million people participating in social insurance (accounting for 33 per cent of its labour force) including employees working in domestic enterprises and foreign-invested enterprises.

In the Japanese business sector alone, there are more than 2,100 enterprises with nearly 525,000 employees participating in social insurance, of which about 522,900 employees are Vietnamese and 2,100 employees are foreigners.

Social insurance revenue of Japanese enterprises accounts for 12.9 per cent of the total revenue of foreign-invested enterprises in Vietnam.

The settlement of social insurance, health insurance and unemployment insurance benefits for employees in general and employees working in FDI enterprises is always ensured, contributing to ensuring the interests of employees, and helping employees feel secure, especially during the COVID-19 pandemic.

Reports from 63 provinces and cities show that from 2020 to August 2022, sickness, maternity, and nursing care regimes have been settled for 13,627,153 workers at FDI enterprises (including 1,712,341 from Japanese enterprises, accounting for 13 per cent) with a total amount of nearly VND25.64 trillion.

5,606 people received death benefits with an amount of more than VND491 billion; 3,871 people received retirement benefits with the amount of VND32.7 billion.

Unemployment benefits were given to 633,450 employees of FDI enterprises with an amount of more than VND73.089 trillion.

For FDI enterprises with 100 per cent of Japanese capital, unemployment benefits worth nearly VND5,780 billion have been paid to 43,305 people, accounting for 7 per cent of the total number of workers receiving unemployment benefits in FDI enterprises.

In addition, in the first eight months of 2022, the whole country had about 228,976 employees working at FDI enterprises who used health insurance cards for medical examination and treatment. The Health Insurance Fund covered the medical costs of VND58.9 billion.

The fund covered VND7.3 billion as medical costs for 37,025 people who are working for Japanese FDI enterprises.

VSS Deputy General Director Dao Viet Anh said that the Law on Social Insurance 2014 and the Government’s Decree No 143/2018/ND-CP stipulate that foreign nationals working in Vietnam are subject to compulsory social insurance, from January 1, 2022, binding the responsibility of enterprises and employees.

This is a common concern of many foreign-invested enterprises in Vietnam, including Japanese enterprises, he said.

To avoid the double payment of social insurance and optimise benefits for employees, Vietnam and Japan were carrying out procedures to exchange, update information, and prepare a roadmap for the negotiation of a bilateral agreement on social insurance.

Vice chairman of Ba Ria –Vung Tau Province People’s Committee Dang Minh Thong said that the province had 39 Japan-invested projects with a total registered capital of US$3.8 billion, mostly in Phu My 1 Industrial Park and Phu My 3 Industrial Park.

Japan ranked fifth among countries with large investment capital in Ba Ria - Vung Tau Province and Japanese enterprises focused on businesses such as steel and glass production, rare chemicals, industrial gases, packaging paper, oil pipe processing, garment and seaports.

“Among 39 projects, 30 projects are operating stably, contributing to province's socioeconomic development,” Minh said.

“Ba Ria - Vung Tau Province has implemented the Government's policies to improve the business investment environment; create favorable conditions in the organisation and implementation of social insurance and health insurance policies and regimes, harmonising the interests of employees, enterprises and society,” he said.

 Sasaki Shohei, First Secretary, Embassy of Japan speaks at the dialogue

Sasaki Shohei, First Secretary, Embassy of Japan highly appreciated the organisation of a dialogue between Vietnam Social Security and Japanese enterprises.

He said he expects it will be a regular activity.

“Japan always attaches importance to investment in Vietnam's market on the foundation of the growing diplomatic relations between the two countries. Currently, the number of Japanese enterprises investing in Vietnam is increasing. The number of members of the Japan Business Association in Hanoi and Ho Chi Minh City is more than 2,000 enterprises. This is a very impressive number of Japanese enterprises investing in a country, showing that Vietnam is an attractive and friendly investment market,” he said. “During the investment process in Vietnam, Japanese enterprises always pay attention to implementing policies on social insurance and health insurance for employees. When Decree No 143/2018/ND-CP of the Government of Vietnam stipulates that foreign employees working in Vietnam are subject to compulsory social insurance, Japanese businesses are more and more aware of their rights and responsibilities,” he said.

During the Q&A session, representatives of Japanese businesses asked many questions and made recommendations related to social insurance, health insurance and unemployment insurance policies.

For example, issues on the handling of overlapping social insurance contributions between countries; the rights of Japanese workers when participating in social insurance in Vietnam; policies of attracting investment with FDI enterprises in some localities; channels of contact, support, advice and communication of VSS with foreign workers; updates to new citizen identification numbers for employees participating in social insurance; maternity regimes for female employees; expanding health care facilities covered by health insurance for foreigners with language support; sickness regime for foreign workers; participation in social insurance for foreign workers with contracts of less than two months; receiving pension when foreign workers have returned home and how to transfer money abroad and the VSSID app.

A representative from a Japanese company asks a question at the dialogue

Also at the event, VSS General Director Nguyen The Manh awarded Certificates of Merit to 12 Japanese FDI enterprises including Renesa Design Vietnam, NISSEY (Vietnam), ORGAN Vietnam Garment Needle, FICT Viet Nai; MITSUBA Vietnam; Muto – Vietnam, Omron Healthcare Manufacturing Vietnam; Wonderful Saigon Electrics; YAZAKI EDS Vietnam; VINA KYOEI Steel; Joint Venture SENDO Steel Pipe; and Nitori Export Processing Company (Ba Ria - Vung Tau branch).

Japanese companies receive Certificates of Merit from VSS General Director Nguyen The Manh