Expats In Vietnam Unhappy About Compulsory Foreign Insurance

Published:  1 Dec at 6 PM
Want to get involved?

Become a

Featured Expat

and take our interview.

Become a

Local Expert

and contribute articles.

Get in

touch

today!

Vietnam is the new kid on the block as regards popularity with expats, but the new compulsory social insurance isn’t winning any prizes.

Vietnam’s growth potential, its low cost of living and the friendliness of its people has attracted a good number of expats over the past few years, overtaking its Southeast Asian neighbours as the place to be for lifestyle as well savings opportunities. However, a new government plan to introduce compulsory national insurance for foreign workers isn’t getting any support within the growing expat community.

Vietnam’s Ministry of Labour recently asked for public opinion on the potential new charges for working expats, which would entitle them to cover for occupational diseases, sickness, maternity leave and accidents, as well as retirement and death benefits. If the public opinion results are satisfactory, the new tax, similar to the tax paid by Vietnamese nationals, will be introduced on 1 January, 2018.

Comments from expats include the point that many foreign workers don’t intend to stay in the country permanently and will be unhappy about having to pay social insurance once in their home country and again in Vietnam. A spokesperson for the US Chamber of Commerce also pointed out that expats are often on short-term contracts and are therefore unable to make use of a Vietnamese pension.

Others, he said, may not be eligible for some reason, and the majority don’t want it. All told, he said, the new regulation will be impractical for almost all foreign employees. The plan’s draft gives a monthly payment of eight per cent of total salary to be put towards the death and retirement fund by employees.

Employers would contribute 18 per cent of each foreign worker’s monthly wages, made up of three per cent to the maternity and sickness fund, 14 per cent to the death and retirement fund and just one per cent to the accident and disease fund. The immediate question is the maternity portion, as the vast majority of expat workers in Vietnam are male and single.

Expatriates who are intending to return to their home countries are concerned over the currencies in which benefits would be paid, with others suspect companies will spend more on foreign labourers, thus reducing the competitiveness of local industries. For the Vietnamese government, it’s a huge cash cow as around 84,000 expats now live and work in the country.



Comments » No published comments just yet for this article...

Feel free to have your say on this item. Go on... be the first!

Tell us Your Thoughts On This Piece:

RECENT NEWS

Set-jetting In Sicily: Where To Find The Lavish Filming Locations Of Netflixs The Leopard

From an iconic Baroque square in Palermo to a lavish palazzo in Catania, here are the real-life backdrops of The Leopard... Read more

Beyond The Baccarat Tables: Macaos Rich Portuguese History Is Still Visible Today

Churches and cuisine stretching back centuries still reflect Portugal’s legacy as Macao integrates into China. Read more

Airport Theory, Seat Squatters And Check-in Chickens: Why These Viral Travel Trends Are A Disaster

Cabin crew can remove you from flights and gate agents can deny you boarding for disobeying rules. Read more

Is It Safe To Travel To Naples? Italy Prepares For Possible Evacuations Amid Earthquake Tremors

Residents have been warned that evacuations may be necessary if the seismic activity continues. Read more

A Two-storey Bar And More Leg Room: Inside Frances New High-speed TGV Trains

The TGV INOUI, run by national operator SNCF, will launch at the start of 2026. Read more

Swayed By Special Offers? Heres Where Your Holiday Budget Will Stretch Furthest In Europe

80 per cent of British holidaymakers said deals and prices in travel adverts were their main inspiration. Read more