return icon Vietnamnet.vn

Social insurance debts cause for alarm

 VietNamNet Bridge – Businesses that evade paying social insurance premiums for workers should be punished more harshly, the deputy general-director of Viet Nam Social Insurance, Do Van Sinh, said at a meeting on Wednesday.

VietNamNet Bridge – Businesses that evade paying social insurance premiums for workers should be punished more harshly, the deputy general-director of Viet Nam Social Insurance, Do Van Sinh, said at a meeting on Wednesday.


{keywords}

 

Patients queue up at HCM City's Cho Ray Hospital. Firms evading social insurance payments should be punished harshly, or the problem can get out of hand, officials say. 

 

 

Enterprises owing social insurance premiums and medical insurance have been multiplying in every locality and sector, especially private firms and household businesses, Sinh said.

According to the Ministry of Labour, Invalids and Social Affairs, about 16 million workers should have mandatory social insurance. However, only 11 million workers have registered to join the compulsory social insurance scheme.

The Viet Nam Chamber of Industry and Commerce estimates that as many as 150,000 firms are currently behind in paying social insurance premiums for their workers. And social and medical insurance debt has grown to VND11.5 trillion (US$542 million), as of August's end.

"If we don't toughen our policies, it will be very difficult to attain the goal of having more than 50 per cent of the labor force covered by social insurance by 2020," Sinh said. "Slower economic growth and production is also playing a part in businesses delaying paying social insurance or avoid paying them completely."

Some of the policy barriers had to do with social insurance interest rate levied on businesses delaying paying social security is much lower than the bank's interest rate, thus tempting businesses to use social insurance money to invest in other matters, Sinh said.

Social insurance authorities aren't allowed to fine violating firms, and lax inspection policies make it difficult to collect outstanding debts, he said. The Criminal Code does not include evasion of social and medical insurance payment, so criminal prosecution is not permitted in such cases.

Nguyen Thien Nhan, chairman of the Viet Nam Fatherland Front, noted during the meeting that despite some progress, about 34 million workers still lack any form of social insurance protection, and about 27 million people lack health insurance.

The number of people under the voluntarily social insurance scheme has been particularly low, reaching only about 173,600 by the end of 2013.

Outside the Government and Party's efforts, social organizations play a key role in enhancing workers' and employers' awareness of the benefits of social insurance, Nhan said.

Mai Duc Chinh, deputy chairman of the Viet Nam Labour Federation, said the country must increase coordination among trade unions, the Government and social insurance offices at all levels. Trade unions, he said, must step up to protect workers, as the upcoming draft Law on Social Insurance would allow trade unions to sue businesses that evade paying social insurance.

Deputy Prime Minister Vu Van Ninh noted that government policies on social insurance and health insurance have gradually been adjusted, but more must be done, as many citizens still do not have insurance.

The Government is committed to do more to encourage businesses and workers and individuals to join voluntary social insurance scheme and increase punishment level for businesses that evade paying social insurance, he said.

Sinh of Viet Nam Social Insurance said the agency would expand efforts to file lawsuits against violating firms and release their names to the media.

The Viet Nam Social Security Fund could experience deficits by 2021 and run out of funds by 2034, according to the International Labour Organisation.

Viet Nam is still currently working to amend its social insurance law, which first came into effect in 2007.

VNS/VNN

MORE NEWS

Vietnam to attend ASEAN Tourism Forum 2023 in Indonesia

Vietnam will participate in ASEAN Tourism Forum (ATF) 2023 themed “ASEAN: A Journey to Wonderful Destinations”, and the Travel Exchange (TRAVEX) trade fair in Yogyakarta, Indonesia from February 2 – 5.

Hanoi and Ho Chi Minh City among safest cities in Southeast Asia

Hanoi and Ho Chi Minh City have both been included in a list of the safest cities in Southeast Asia, as compiled by statistics site Numbeo.

Action plan issued to accelerate national anti-corruption strategy building

Deputy Prime Minister Le Minh Khai, head of the steering committee on building the national anti-corruption strategy by 2030, has signed a decision on the issuance of the committee’s action plan.

VIETNAM BUSINESS NEWS JANUARY 31/2023

Latest guidance on one-way money transfers from Viet Nam

HCM City proposes removing hindrances to develop real estate market

Ho Chi Minh City authorities made a proposal to clear bottlenecks for healthy and sustainable development of the real estate market.

More high-value foreign investment projects needed as tax policies change

Vietnam needs to improve FDI quality, attracting high-tech projects that promise to bring higher added value.

Khmer's ginger cake of love and faithfulness

The ginger cake of the Khmer ethnic group in Soc Trang Province is a beloved traditional treat that is often offered to ancestors on important anniversaries such as the Tet (Lunar New Year) festival.

HCM City promotes digital transformation in education

Digital transformation is considered key to improving education and training quality, as proven by the effect of HCM City actively applying digital transformation over the past five years.

Hanoi to close fruit shops lacking proper food safety preparations

The capital city of Hanoi encourages the expansion of safe fruit businesses while clamping down on fruit shops that do not comply with food safety protocols, specifically street vendors.

Dutch diplomat donates Vietnamese paintings to national museum

Vietnam National Fine Arts Museum has received two paintings from former deputy ambassador Ellen Berends of the Netherlands to Vietnam.

Hanoi's unique rice cooking contest in photos

On the 8th day of the first lunar month each year (January 29, 2023), Thi Cam village in Hanoi’s Nam Tu Liem district holds a rice cooking contest.

Hanoi proceeds with park revitalization program

The implementation of Hanoi leaders’ promise to revive parks has begun: admission to Thong Nhat Park is now free after the removal of the fence, and Con Coc Flower Garden has a new look. However, there are still many things that need to be done.

Vietnamese farmers on board the ‘digital agriculture train’

In the digital era, next-generation farmers can fertilize and water their fields in Binh Phuoc from afar, even in a different country.

Vietnam forecast to become second-largest economy in Southeast Asia by 2036

2023 is predicted to be the year of many challenges for the Vietnamese economy due to the gloomy outlook of the global economy and multiple crises.

Prenn Pass leading to Dalat to be closed for expansion

Vehicles will be banned from using the seven-kilometer-long Prenn Pass to travel to Dalat City as work on the pass upgrade and widening project begins on February 6.
back_to_top