The nation reported more than VND13 trillion (US$582 million) in total social insurance debt as of the end of September as many employers had evaded paying social insurance premiums for their staff.

Speaking at a conference in Hanoi on October 26, Nguyen Tri Dai from Vietnam Social Insurance said the figure accounted for nearly 6% of the agency’s collection plan. In the same period last year, the ratio was 6.03%.

Of the figure, social insurance debt was nearly VND9 trillion, unemployment insurance debt at VND480 billion and medical insurance debt at over VND3.5 trillion.

In recent times, the agency has applied many debt prevention solutions but results have remained meager. Most localities in the country have still reported outstanding debts or evasions, Dai said.

Regarding the VND9-trillion social insurance debt, loans overdue for six months or longer accounted for over 37%. Employers owing social insurance premiums included private enterprises, foreign-invested firms, State-run enterprises mostly in traffic and construction sectors and groups undergoing restructuring schemes.

Notably, many firms have evaded premium payments despite making profits from their production and businesses activities. Some have even failed to pay though they have already collected premiums from employees, the official said.

According to the agency, the situation has caused serious consequences to the national social insurance fund, violated legitimate rights and benefits of workers, and obstructed social security goals.

Explaining the reasons behind the problem, Dai said many employers, especially in the private sector, have not respected the law.

Meanwhile, most workers have not complained for fear of losing their jobs. Besides, trade unions at many enterprises do not protect workers.

In the coming time, the social insurance agency will name the names of enterprises that are owing social insurance premiums on the media and inform their trade unions and employees.

SGT