(Source: Viet Nam Social Security)

In recent years, the number of participants in social insurance (SI), health insurance (HI), and unemployment insurance (UI) in Vietnam have been increasing rapidly. However, until now, SI coverage is only about 20 percent of the labour force which is a long way from the 50 percent goal for 2020 set in the Politburo’s Resolution No. 21-NQ/TW. Although, the number of HI participants has reached 82 percent of the population, sustainability remains a challenge, with contribution evasion and arrears being a common phenonmena.

This is due to the fact that VSS’s administrative sanctions are still limited.  Each year, only some enterprises are inspected, the quality of inter - disciplinary inspection is low, information sharing between social security offices and other related agencies in managing enterprises is limited and businesses sometimes do not cooperate and interfere with inspections.

To overcome difficulties in the implementation, especially to reduce SI, HI and UI unpaid amounts and contribution evasion, the revised Law on Social Insurancen 2014 has mandated specialised inspections on SI, HI and UI contributions by social security offices. On  March 31, 2016, the Government issued Decree No.21/2016/ ND-CP regulating specialised inspection functions of social security offices (effective from June 1, 2016). It mandates administrative sanctions for the Vietnam Social Security Director General, provincial/centrally-run city social security directors. This is considered as a tool to help the social security sector realise SI, HI and UI policies.

Based on that, the Director General of VSS issued Decision No. 1518 dated October 18, 2016 on SI, HI, UI contribution inspection activities and follow up inspections in VSS and Decision No. 102 / QD-BHXH dated January 12, 2017 regulating provision and management of cards and clothing of staff assigned for specialised inspections.

Following the regulations, in the first half of 2017, the social security sector conducted 2,228 inspections at 5,769 units, detecting 14,218 workers that had not contributed or contributed late, 14,094 workers that had not fully contribute, 519 employees that did not issue SI book, and 949 employees had not been provided with HI cards. From the inspection results, VSS imposed administrative penalties on 25 units with total fine of 1.04 billion VND and collecting back 59.45 billion VND.

In the coming time, social security inspectors will continue implementing specialised inspections to reduce SI, HI and UI unpaid amounts. In addition, VSS is proposing the National Assembly consider assigning inspection functions on payments and HI funds usage and revising the regulations for those carrying out VSS specialised inspections so they are appointed inspectors so VSS can implement specialised inspections in accordance with the SI Law 2014 and Inspection Law 2010. 

International Cooperation Department