Social insurance services for foreign traders in Vietnam

Discover the essential social insurance services available for foreign traders in Vietnam, ensuring compliance and protection for your business and employees in a dynamic market. With the policy of global economic integration, there are many FDI companies headquartered in Vietnam, accompanied by a large number of foreign workers working in the territory of our country.

According to Clause 2, Article 2 of the Law on Social Insurance 2014, “Employees who are foreign citizens working in Vietnam who have a work permit or practice certificate or practice license issued by a competent agency of Vietnam are entitled to participate in compulsory social insurance according to the Government’s regulations.” Please refer to the social insurance service for foreign traders at Viet An Tax Agent to know more about the registration procedure as well as the benefits that employees are entitled to.

Are foreign workers required to participate in social insurance

Article 2 of Decree 143/2018/ND-CP stipulates that foreign traders must participate in social insurance when they are granted a work permit or practice certificate issued by a competent authority in Vietnam. At the same time, there is a labor contract signed between the employer and the employee with a definite term of 1 year or more or indefinitely.

Note that if the employee is a foreign trader who moves internally in the enterprise or has passed the working age, it is not mandatory to participate in social insurance.

Social insurance services for foreign traders at Viet An tax agency

Step 1: Request customers who wish to provide documents

If you need to use social insurance services for foreign traders, please contact us and provide some documents as prescribed. After receiving the dossier from the customer, the specialist at Viet An tax agent will be responsible for checking the individual’s social insurance participation process through the social insurance book and notifying the lump-sum social insurance amount that they have received.

Step 2: Screening and preparing documents

• Customer’s previous social insurance book (closed or incomplete, it is necessary to add information to complete the procedure first).
• Application for participation in social insurance according to form No. 14-HSB.
• For cases of foreign traders suffering from incurable diseases, critical illnesses, terminal cancers, infectious diseases such as HIV/AIDS,… it is necessary to provide additional medical records showing the status of not being able to serve themselves. For other diseases, employees need to provide a record of assessment of working capacity impairment certified by the medical examination board, showing a health impairment of 81% or more and inability to self-serve.
• Power of Attorney Form 13-HSB or Power of Attorney Contract in case a third party participates.
• Passports of foreign traders are pre-translated into Vietnamese and authenticated in accordance with Vietnamese law.

Step 3: Submit the application and receive the results

Viet An Tax Agent will be responsible for submitting social insurance dossiers of foreign traders through 2 main channels:

• Via public postal services.
• Pay directly at the social insurance agency.

Why should you use social insurance services for foreign traders?

The following are the benefits that foreign customers receive when choosing to participate in social insurance services for foreign traders in Vietnam:

• Save time and costs.
• The dossier is prepared carefully and accurately.
• There is no language barrier when communicating with the social insurance agency.
• Receive full advice and answers about the benefits enjoyed when participating in social insurance during the time of working and living in the territory of Vietnam.

Cases in which employees are eligible to participate in lump-sum withdrawal of social insurance

Here, Viet An tax agent will list the cases in which employees are entitled to participate in lump-sum social insurance withdrawal:

• Employees who are of the age to enjoy pensions in accordance with Vietnamese law but have not participated in social insurance for full 20 years.
• Employees suffering from infectious diseases, cancer, paralysis, complete loss of working capacity and other diseases as prescribed by the Ministry of Health.
• Employees who are eligible for pension but do not intend to continue living in Vietnam.
• Foreign traders who terminate labor contracts or practice certificates expire but do not renew them further.

The level of one-time social insurance entitlement of employees

The amount of lump-sum social insurance entitlement of employees is calculated according to the formula:

(1.5 x Mbqtl x Time of payment of social insurance before 2014) + (2 x Mbqtl x Time of payment of social insurance after 2014)

In which: Mbqtl is the average monthly salary on which social insurance premiums are based calculated according to the formula:

Mbqtl = (Number of months of social insurance payment x Monthly salary on which social insurance premiums are based x Annual adjustment) / (Total number of months of social insurance payment).

The period of social insurance payment with odd months from 1 to 6 months is converted to 1/2 year, from 7 to 11 months is rounded as 1 year. In case the period of social insurance payment before 2024 has odd months, those odd months will be transferred to the period of paying social insurance after 2024. If the employee has not paid for 1 full year, the insurance salary paid in 1 lump sum is equal to the paid amount, the maximum level is equal to 2 months of the average salary.

Above are some procedures to follow when participating in social insurance services for foreign traders – Please contact Viet An tax agent for more detailed information!