Firms continuing to look the other way

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In June 2011, the Hanoi Social Securities (HSS) collected over VND3 billion ($145,000) worth in social insurance fees from nine out of 11 businesses it filled lawsuits against in late 2010 as those units owed HSS nearly VND6 billion ($290,000).

None of these firms were brought to court as they paid part of the debts before court dates.

Under current regulations businesses owing a huge debt for more than 12 months will be brought to the court.

If businesses incurring lawsuits pay part of the debt, they are removed from the internee list and might continue delaying the payment.

It took about six months for social insurance organisations to collect sufficient data and complete legal procedures to bring violators to court, according to HSS’s deputy director Nguyen Duc Hoa.

Common excuses for payment delays include hard times in the face of economic vulnerabilities, with firms operating in construction and transport claiming they struggled to pay workers’ wages, let alone social insurance fees.

“It is not easy to treat businesses which abuse loopholes in current regulations to evade [social insurance] payments. For example, they only sign less than three-month contracts with labourers,” said HSS’s director Nguyen Thi Phuong Mai.

“Businesses are unguilty if they do not pay social insurance fees for their short-term workers under current regulations,” said Mai.

Hanoi-based businesses currently owe it over VND700 billion ($33.8 million) in social insurance fees with 90 firms incurring debts exceeding VND1 billion ($48,000) each.

Some businesses with unpaid social insurance fees in Hanoi:

- Cienco 1’s Bridge 12 Joint Stock Company: over VND11 billion ($531,000)

- Cienco 1’s Bridge 14 Joint Stock Company: over VND7.1 billion ($343,000)

- Song Da Joint Stock Company 8: around VND6.4 billion ($309,000)

-  Thang Long Bridge 5 Joint Stock Company: over VND4.5 billion ($217,400)

- VIT Garment Company Limited: over VND5.9 billion ($285,000)

- East Sea Shipping Company: VND3.9 billion ($188,400)

- Orion Hanel Picture Tube Company Limited: over VND4.1 billion ($198,000)

- VimecoJoint Stock Company: around VND3.5 billion ($169,000)

- 1-5 Automobile Company Limited: over VND5.56 billion ($268,600)