General Director of Vietnam Social Security Nguyen The Manh delivered a speech at the Conference

Attending the conference, on the side of international delegates, there were: Counsellor of Labour and Employment at Embassy of the Republic of Korea Lee Jae Guk; Director of the International Labor Organization (ILO) in Vietnam Chang Hee Lee; representatives of World Bank, Business Association in Korea; especially the presence of more than 100 leaders of Korean enterprises in Vietnam.

The national delegates include: Vice Chairman of the National Assembly Committee on Social Affairs - Bui Sy Loi; Vice Chairman of Vietnam Chamber of Commerce and Industry (VCCI), Member of Viet Nam Social Security Board of Commissioners - Hoang Quang Phong; Deputy Secretary of the Provincial Party Committee, Chairman of Dong Nai People's Committee - Cao Tien Dung; Vice Chairman of Dong Nai People's Committee - Nguyen Thai Bao representing ministries and industries in the country.

On the side of VSS, the attendants were: VSS General Director Nguyen The Manh; leaders of affiliated units; head of Dong Nai Social Security Office, and Ho Chi Minh Social Security Office.

Towards a cohesive relationship and creating consensus

Speaking at the opening of the Conference, VSS General Director Nguyen The Manh, on behalf of VSS, welcomed distinguished guests and delegates, especially leaders of more than 100 Korean businesses to the Dialogue Conference between VSS and Korean businesses with a view to creating cohesion, consensus, understanding and mutual support between VSS and Korean enterprises investing in production and business in Vietnam in implementing the legal policies on social insurance and health insurance in Vietnam as well as ensuring the benefits and social security regimes for employees at enterprises.

According to Manh, the conference aims to concretize a number of tasks and solutions to further improve the business environment and enhance Vietnam's national competitiveness according to Resolution No. 02/NQ-CP dated January 1, 2021 of the Government; at the same time, this is also an activity of practical significance towards the 30th anniversary of the establishment of diplomatic relations between Vietnam and Korea in 2022.

Manh said that we had been witnessing a very strong, profound and comprehensive development of the Vietnam-Korea cooperation relationship over the years and in many fields, especially for trade and investment economics. Korea currently holds the first position in terms of investment with a total registered capital of over 70.6 billion USD; the second on ODA, and the third on trade with Vietnam. For Korean businesses alone, VSS is serving 4,559 enterprises with 1.31 million employees participating in social insurance, including 1.29 million Vietnamese people and over 12,000 foreigners, and social insurance accounts for nearly 28% of the total revenue of foreign invested enterprises.

Manh assessed, these numbers will continue to increase in the flow of international labor integration, social security and labor mobility in the region, with more and more Korean workers coming to work in Vietnam and vice versa. The problem posed for the Government and enterprises of the two countries is how to ensure the best interests and social security regime for workers in each country when going to work abroad.

Deputy Secretary of the Provincial Party Committee, Chairman of Dong Nai People's Committee Cao Tien Dung speaking at the Conference

In Vietnam, the 2014 Law on Social Insurance and Decree No. 143/2018/ND-CP of the Government of Vietnam stipulate that employees who are foreign citizens working in Vietnam subject to compulsory social insurance, from January 1, 2022, hereby will bind the responsibilities of the contributions of businesses and employees. This is the common concern of many foreign-invested enterprises in Vietnam, including the Korean ones. In order to avoid the parallel payment of social insurance and optimize the interests of employees, the two countries are negotiating to sign a bilateral agreement on social insurance between the Government of Vietnam and the Korean government and on that basis, VSS and the Korea's National Pension Service will also sign an Implementation Agreement to create a legal basis and corridor for the implementation and ensure the social security benefits of employees in each country. VSS is cooperating with the Ministry of Labor, Invalids and Social Affairs to work hard with Korean partner agencies to soon realize this goal in the spirit of the high-level agreement of the two governments.

“With that in mind, at this Conference, we hope to continue to receive more direct and constructive comments, exchanges and dialogues from Korean businesses to help VSS as well as Ministries and branches of the Government consult to complete mechanisms and policies to support and create more favorable conditions for Korean employees and businesses to expand operations in Vietnam.” - Manh said.

Deputy Secretary of the Provincial Party Committee, Chairman of Dong Nai People's Committee - Cao Tien Dung said: Currently, Korea is leading in 45 countries and territories investing in Dong Nai with a total registered capital of nearly 7 billion USD and more than 300 projects. Korean enterprises mostly invest in footwear manufacturing, electronic components, machinery, equipment, and raw materials for the textile and garment industry. The majority of Korean businesses invest in the province to operate efficiently, in which many businesses have expanded production 2-3 times compared to the initial registered capital.

Overview of the Conference

According to the data over the past years, despite the number of FDI enterprises participating in social insurance, health insurance and unemployment insurance in the province only accounts for a low proportion of the total number of units (about 12%), the revenue and registration of the number of employees always account for the highest proportion (about 70%). Therefore, it is a wise move for VSS to choose Dong Nai to hold a dialogue conference with Korean businesses, thereby raising awareness and creating consensus and cohesion among Korean businesses in implementing policies on social insurance and health insurance. This is a specific action to implement Resolution No. 19-2018/NQ-CP dated May 15, 2018 and Resolution No. 02/NQ-CP dated January 1, 2021 of the Government on continuing to implement the major tasks and solutions to improve the business environment and enhance national competitiveness; At the same time, it is also consistent with Dong Nai province's policy of "The government accompanies businesses", etc.

At the conference, Vice Chairman of Vietnam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong shared: For many years, Korea has always been on the list of the biggest foreign direct investors in Vietnam. According to statistics of the Ministry of Planning and Investment, only in the first 2 months of 2021, among 46 countries and territories registered for new investment in Vietnam, South Korea was the third country with a total registered investment capital of 1.05 billion USD, accounting for 19.3% of the total investment capital.

Like foreign-invested enterprises in Vietnam in general, Korean businesses in particular have attracted and used a large number of Vietnamese workers. Along with focusing on training and improving skills for employees, Korean businesses have also paid attention to and ensured social security issues for employees by well implementing policies on social insurance, health insurance and unemployment insurance.

“In order to contribute to supporting FDI enterprises in this field, from the end of March to the beginning of April, VCCI has coordinated with VSS to organize a survey for FDI enterprises on the implementation of policies on social insurance, health insurance and unemployment insurance. On the basis of the results and the content received from today's conference, I believe that VSS will have important sources of information and data for the implementation of the goal of improving service quality for people and businesses; at the same time help businesses to overcome difficulties, contributing to increasingly successful investment in production and business.” - Mr. Phong shared.

Vice Chairman of Vietnam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong shared at the Conference

Speaking at the conference, Counsellor of Labour and Employment of the Korean Embassy Lee Jae Guk highly appreciated this initiative of VSS; At the same time, it is expected that this will be an annual activity. Mr. Lee Jae Guk shared that Korea always attaches great importance to Vietnam's investment in the market on the basis of the developing diplomatic relations of the two countries. Compliance with the laws of Vietnam has always been respected by Korean businesses, including the implementation of policies on social insurance, health insurance and unemployment insurance. As the Decree No. 143/2018/ND-CP of the Vietnamese Government stipulates that foreign employees working in Vietnam are subject to compulsory social insurance, Korean businesses are more and more aware about their rights and responsibilities.

In order for Korean businesses to better implement the policies of social insurance, health insurance and unemployment insurance in Vietnam, Mr. Lee Jae Guk proposed that VSS establish more online and offline communication channels with Korean businesses, and provide contact points in provinces and cities.

Lee Jae Guk highly appreciated the VSS's initiative to hold a Dialogue Conference with Korean businesses

Regarding the policy of health insurance and social insurance of Vietnam and related ministries and agencies, it is necessary to establish hospitals with language support for foreign workers. Lee informed that there are currently 5 hospitals in Korea for foreign workers supporting 5 languages, including Vietnamese.

Finally, Lee also proposed that VSS will continue to support and participate more actively in the signing of the Bilateral Agreement on Social Insurance between the Government of Vietnam and the Government of Korea, thereby creating opportunities for departments and legal corridors for the implementation and assurance of social security interests of workers in each country.

Boosting support and resolving difficulties

In order to better support and serve Korean businesses in Vietnam, on the occasion of the dialogue, VSS General Director Nguyen The Manh and the delegates launched of the Korean version of VssID application - Digital Social Insurance. This version is aimed at users who are Korean employers, professionals and employees working and living in Vietnam.

At the Conference, Mr. Duong Van Hao - Head of the Department of Contribution Collection – Insurance Book and Card (VSS) presented a number of new points about policies and regimes of social insurance and health insurance; the implementation of social insurance and health insurance policies of FDI enterprises and Korean enterprises; special emphasis is placed on the provisions of Decree No. 143/2018/ND-CP of the Government of Vietnam on compulsory social insurance participation with employees who are foreign citizens working in Vietnam.

The Head of the Department of Contribution Collection – Insurance Book and Card also summarized the results of surveys and recommendations of Korean businesses on the implementation of policies on social insurance, health insurance and unemployment insurance in Vietnam; at the same time shared about solutions to improve service quality of the social insurance industry, etc.

Delegates hosting the Q&A session

In the Q&A session, representatives of Korean businesses asked many questions, as well as recommendations related to policies on social insurance, health insurance and unemployment insurance such as: How to calculate unemployment benefits due to the effects of the COVID-19 epidemic; How the employees who are foreign workers in Vietnam pay social insurance premiums; If the salary is recorded in foreign currency, how the exchange rate will be determined; What are the current policies to attract investment with FDI enterprises in some localities; information security when using the VssID application; specific reforms of administrative procedures of the social insurance industry with FDI enterprises over the past time; channels of contact, support and consultation of VSS today with foreign workers; propose to private clinics with Korean language support to register for medical examination and treatment under health insurance, etc.

At the conference, questions from businesses were received and answered by the VSS General Director, leaders of units directly under the VSS and the delegates. VSS also accepted recommendations and suggestions from Korean businesses to research, amend or recommend competent authorities to improve the effectiveness of the implementation of policies on social insurance, health insurance and unemployment insurance towards Korea's businesses, serving participants better and better.

Korean business representatives placed questions

At the Conference, Deputy Chairman of the Committee on Social Affairs of the National Assembly - Bui Sy Loi, Director of the International Labor Organization (ILO) in Vietnam Chang Hee Lee shared and highly appreciated the Dialogue Conference of VSS; at the same time hoped this activity to be held regularly. According to Mr. Bui Sy Loi, in recent years, although VSS has made numerous achievements in reforming administrative procedures and applying IT in the implementation of policies on social insurance, health insurance and unemployment insurance, there are problems that need to be improved. Dialogue conferences are to help VSS better identify the requirements of the reality, of employers and employees, from there making appropriate adjustments.

Speaking at the closing session of the Conference, General Director Nguyen The Manh once again emphasized the importance of the cooperation relationship between the two countries Korea and Vietnam, including the field of social security associated with investment and production activities of Korean enterprises in Vietnam. According to Manh, the conference has received 31 groups of issues from representatives of Korean businesses related to the implementation of policies on social insurance, health insurance and unemployment insurance; in which 18 groups of issues were answered and resolved at the Conference. "We highly appreciate the candid and constructive comments, exchanges and suggestions at the Conference. For the unanswered comments and questions on the spot, the Organizing Committee will synthesize then respond to businesses via writing documents and via the VSS Portal." - Manh affirmed; also, he would like to thank Korean businessmen who attended the conference as well as local representatives and ministries and departments for joining and helping the Conference to be successfully held.

Awarding the Certificate of Merit from the General Director of Vietnam Social Security to Korean businesses with outstanding achievements in implementing policies

and laws on social insurance and health insurance in 2020

Within the framework of the conference, VSS General Director Nguyen The Manh presented the Certificates of Merit to 8 Korean enterprises in the areas of Dong Nai, Binh Duong, and Ho Chi Minh City who had excellent achievements in the implementation of the legal policies on social insurance and health insurance in 2020 include:

1. New - Hanam Company Limited (Ho Chi Minh City)

2. DAEYOUNG ELECTRONICS VINA Company Limited (Ho Chi Minh City)

3. Samil Tongsang Vina Company Limited (Binh Duong Province)

4. SUNG HYUN VINA Joint Stock Company (Binh Duong Province)

5. Shinsung Tongsang Vietnam Company Limited (Binh Duong Province)

6. Taekwang Vina Industrial Joint Stock Company (Dong Nai Province)

7. HWASEUNG VINA CO., LTD (Dong Nai Province)

8. Chang Shin Vietnam Company Limited (Dong Nai Province)./.