HCMC – Unpaid social insurance premiums had amounted to VND14.2 trillion by end-October, up from VND13.1 trillion a month earlier, according to Vietnam Social Insurance (VSI).
VSI deputy general director Tran Dinh Lieu told a conference on how to collect social insurance debt in Hanoi on Wednesday that if social insurance debt owed by insolvent businesses was included, the sum would be bigger. Many companies did not pay social insurance though they already collected premiums from their workers.
Of VND14.2 trillion, VND9.55 trillion was owed to the social insurance fund, with VND6.87 trillion of it owed for at least three months, while unpaid unemployment insurance stood at VND516 billion and unpaid medical insurance at VND4.17 trillion.
VSI attributed the huge social insurance debt to economic difficulties and poor compliance with social insurance regulations by enterprises and insurance agencies at all levels. Debt collections by provincial agencies are below targets and some agencies do not report debt to local governments to find coping solutions.
Nguyen Tri Dai, head of the collection department at VIS, told the conference that the social insurance agencies in provinces rarely coordinate with the departments of finance to urge insurance payments by provincial budgets for certain groups of privileged people. Notably, such debt in An Giang Province amounted to VND66 billion in January-September.
According to the 2014 Social Insurance Law, the Vietnam General Confederation of Labor is tasked with taking legal action against those enterprises owing insurance premiums and hoarding money of employees.
Lieu said suing businesses owing social insurance premiums is a measure to reduce debt. The confederation of labor in Danang City sued a company but the result has yet to come out.
Provincial confederations of labor said they had encountered a slew of difficulties when suing businesses which are on the brink of bankruptcy. Even if they win the lawsuit, law enforcement could be hard.
Mai Duc Chinh, vice chairman of the Vietnam General Confederation of Labor, told provincial confederations of labor to take to court businesses that owe social insurance premiums.