VSS Director General Nguyen The Manh addresses the dialogue with Japanese businesses on October 24. (Photo: tapchibaohiemxahoi.gov.vn)

Hanoi – Vietnam Social Security (VSS) on October 24 held a dialogue on social insurance and health insurance policies with 130 Japanese-invested enterprises operating in the north of Vietnam.

The dialogue provided an opportunity for Japanese businesses to better grasp Vietnam's legal regulations on social security, social insurance, and health insurance, and a venue for Japanese investors to voice their opinions to help improve policies on social insurance, hence facilitating stable business, long-term investment, and workers' rights in Vietnam.

Speaking at the event, VSS Director General Nguyen The Manh said that as of September 2023, the agency is serving over 92 million health insurance participants and 17.5 million social insurance participants, accounting for nearly 40 per cent of the workforce in Vietnam.

Over 2,100 Japanese firms in Vietnam with 547,100 employees including about 1,600 foreigners participate in social insurance. Social insurance premiums paid by Japanese enterprises accounts for over 13 per cent of the total collection from FDI enterprises in Vietnam.

Manh said that during and after the COVID-19 pandemic, despite difficulties, Japanese firms took measures to stabilise production and retain workers, which made important contributions to the country’s socioeconomic recovery and development.

“The majority of Japanese firms strictly follow Vietnam’s legal regulations, particularly those relating to social insurance and health insurance,” he said.

Vietnam and Japan are preparing negotiations toward a bilateral agreement on social insurance. "This is a milestone between the two countries for cooperation on social security", he said.

Japanese Ambassador to Vietnam Yamada Takio emphasized that the relationship between the two countries has developed better than ever in the fields of politics, culture and economics.

A recent JETRO survey of parent companies in Japan shows that Vietnam is the second country after the US that Japanese businesses want to invest more in. To large Japanese enterprises, Vietnam is the first destination they want to invest in, he said.

The ambassador said that with increasing investment in Vietnam, Japanese companies are required to understand and implement the host country's social insurance regulations and policies.

As Vietnam is amending its Social Insurance Law, changes to Vietnam's social insurance system will have a huge impact on investment trends from Japanese companies. Therefore, the ambassador said that he hopes those that compile the laws will listen to business opinions so the amended law will meet the needs of both employers and employees.

On this occasion, VSS launched the Japanese version of its app VssID which is expected to help Japanese employees in participating in social insurance and health insurance programmes.