Vietnam Social Security (VSS) launched a Japanese language version of its social insurance mobile app the VSSID on Tuesday as part of the 50th anniversary of Vietnam-Japan ties.
The move aims to help Japanese firms, especially those investing in Vietnam, to manage their employees, Nguyen The Manh, director general of the VSS, said at a Tuesday dialogue between the VSS and Japanese firms. Vietnam’s social insurance, managed by the VSS, now covers staff of about 2,100 Japanese-invested businesses in Vietnam.
The social insurance premium paid by Japanese firms, featuring 547,100 laborers, accounted for 13% of those paid by all foreign-invested enterprises (FIEs) in Vietnam, according to the VSS.
The VSS strives to provide social insurance services to foreigners in Vietnam, in line with the country’s global integration, Manh highlighted, adding that there are about 24,000 Japanese people living and working in Vietnam and 500,000 Vietnamese people living and working in Japan. The VSS is cooperating with its Japanese counterpart to negotiate a bilateral social insurance treaty, he added.
Speaking at the event, Japanese Ambassador to Vietnam Yamada Takio called on the VSS to cooperate more with Japanese firms to update the social insurance legal framework, amid the government's plan to update the law on social insurance. This law has a great impact on investments by Japanese firms, the diplomat noted.
VSS data shows that as of end-September, Vietnam had 24,141 FIEs participating in social insurance, or 5.45% of the total of 442,632 participating businesses. Social insurance covered 4.62 million staff of FIEs, of whom, 547,117 were employed by 2,112 Japanese FIEs, down 1% and 10% year-on-year, respectively.
Regarding Japanese FIEs, in January-September, the VSS paid indemnification of VND8.55 trillion ($347.8 million) to 489,141 people for healthcare and maternity support, VND13.41 trillion to 247,932 people as they left the system, and retirement allowance of VND7.6 billion to 1,426 people.
As of September 20, Japan was the third biggest foreign investor in Vietnam with 5,203 licensed projects and total registered capital of $71.34 billion, according to the Ministry of Planning and Investment. The top two are South Korea with $83 billion and Singapore with $72.98 billion.