Fighting challenges on social insurance in Vietnam


According to laws of using foreigner employees in Vietnam, the government requires foreigner employees to pay for social insurance in Vietnam at 8% of the net salary. And the rest, 14% of the net salary, the company has to pay for its employee. However, as the local researches, this amount of fund has not been used effectively until now.

What can social insurance in Vietnam use for?

The essence of social insurance is the protection of the social to their citizens. It includes the difficulties of finance, health, physical conditions, oldness, and death. They all cause difficulty in the economy and society. Social insurance also helps families those have more children than usual.

There are three main packages. They are maternity and sickness insurance, occupational accident and disease insurance, retirement and death insurance.

there are three main packages for a foreign employee working in vietnam

Foreign employees who are working in Vietnam also have to pay for social insurance to protect their benefits.

The ineffective problems of Vietnam social insurance

Even though all of the employees in Vietnam have to pay for social insurance at least 8% of the net salary, there are still negative issues of this insurance package.

Social insurance is not completed. It does not bring benefits to those who really need help from society. In specific, social insurance does not reach to issues like jobs, income, poorness, social supports, and essential social needs. Meanwhile, they have to pay for social insurance in Vietnam every month. Moreover, there is no connection between social insurance support and unemployees so that they can come back to work. Thus, the recovery of social insurance could not be improved. Additionally, there is no satisfaction in payment method of social insurance in companies. The payment of retirement does not satisfy retirer as well.

Furthermore, the principle of paying and inheriting is not reasonable. The ratio of employees pay for social insurance to retirers inherit is decreasing. Moreover, the total of the years that an employee has to pay for insurance is longer than the time that person gets the inheritance. However, the ratio of inheritance and payment has a big unbalance. Payment ratio is only 22% meanwhile, inheritance ratio is 70.1%. It causes a result that the government has to increase its expenditures.

social insurance essence is to protect benefits of vilnerable people

There are quite many problems with insurance currently.

Moreover, the database management system of social insurance in Vietnam is not working well. In the time that technology controls every business activities, it is necessary to apply technology to social insurance management. It does not only help to make time management more effectively but also increases the exactness in management. Additionally, there is a huge number of employees do not pay for social insurance in fact.


Although every employee has to pay for social insurance in Vietnam when he or she signs a contract with an employer, there is ineffectiveness in paying and inheritance on this fund. Moreover, the management system is not working well. The local government should improve not only the way to bring benefits to employees but also the management so that it saves time and approaches more vulnerable people.