In the process of international economic integration regionally and globally, Vietnam has signed and effectuated Free Trade Agreements (FTAs) with 11 nations and international organisations, along with preparing for three new-generation FTAs, namely the Europe-Vietnam FTA, the Trans Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). The country was also part of the establishment of the ASEAN Economic Community in December 2015, aiming to create a single market and production base through internally free flows of goods, services, capital, investment and skilled workers. The country has witnessed an increasing and diverse number of Vietnamese workers going abroad for work and foreigners working in Vietnam as well. Incomplete statistics show that there are approximately 76,000 foreign employees currently working in Vietnam, while in 2014 there were about 100,000 Vietnamese employees working abroad.

The newly-endorsed Social Insurance Law coming into force from January 1, 2016 stated that social insurance is obligatory for all Vietnamese contracted employees going abroad for work and from January 1, 2018, it is also compulsory for foreign employees working in Vietnam under a work permit or business license issued by Vietnamese authorities.

In the context of international economic integration and new legislation for Vietnam’s social insurance, the country must begin early negotiations and signing of bilateral agreements on social insurance and labour cooperation for the sake of both Vietnamese people working abroad and foreigners working in Vietnam. Such an agreement is needed to avoid “double social insurance”; retired guest workers having no retirement pension or with a small retirement pension in their country of origin are entitled to pension to be sent to them from abroad when returning home; guest workers are not entitled to including the working time spent in their host country when calculating years of insurance contributions in their country of origin, Vietnam. The Government of Vietnam has agreed in principle deals for bilateral agreements on social insurance between Vietnam and other countries. The Ministry of Labour, Invalids and Social Affairs has assigned the leading role in collaboration with Vietnam Social Security and other government bodies concerned in negotiations with Germany and the Republic of Korea (RoK) on this matter. Germany and the RoK are countries where a large number of Vietnamese are living and working, while there are many people coming from these countries to Vietnam for work and business. In addition, the two countries have also signed bilateral agreements on social insurance with many countries.

Taking the RoK as an example, there are about 63,000 Vietnamese living and working there. So far, the RoK has signed bilateral agreements on social insurance with 29 countries and territories and is in negotiations with four other countries, including Vietnam. The negotiation and signing of a bilateral agreement on social insurance between Vietnam and the RoK should be finalised soon to lay groundwork and a legal framework for its implementation by early 2018 for the sake of workers of each country. Once concluded, the agreement will help avoid double social insurance and continuously calculated contributions to social insurance from workers. Workers also have the right to be paid in their country of residence based on their working time and contribution to social insurance corresponding to what work they performed in each country. Such an agreement is expected to create favourable condition for employees, employers and government bodies concerned in the movement of labour among the countries and also for the social insurance system. Vietnam Social Security is the focal point and leading agency for negotiating with its foreign counterparts for deals on social insurance, on the basis of signed bilateral agreements, which provide technical guidance.

With the aim of “Joining hands to implement universal health insurance”, VSS submitted plans to the Government and Prime Minister Nguyen Xuan Phuc on collaboration with other government agencies and social partners to encourage people to join health insurance schemes. In line with the Prime Minister’s order, VSS has set a target to cover at least 90% of Vietnam’s population by 2020.

VSS provides health insurance services for nearly 150 million visits annually. To better serve the insured and to effectively manage the health insurance fund in accordance with the law, VSS focuses on modernising the administration through the application of information technology in the assessment and payment of medical expenses. So far, most of the health facilities in the country’s 63 provinces and centrally-run cities have piloted connecting with the health insurance assessment information system. On June 25, the VSS portal was officially put into operation, receiving data on health insurance claims from health facilities nationwide. Nguyen Thi Minh, VSS Director General, stated that the Government has always paid close attention to health insurance, as it is one of the key pillars of the social security system and has profound humanitarian and community values. On June 16, 2008, then Prime Minister Nguyen Tan Dung declared July 1 as Vietnam’s Health Insurance Day. This was in recognition of the efforts to implement health insurance policies and affirmed the critical role of health insurance in society.

International Cooperation Department