VSS launches South Korea-based insurance product

VSS launches South Korea-based insurance product - VssID application

The Law on Social Insurance 2014 and Decree No.143/2018/ND-CP stipulates that foreign workers in Vietnam are eligible to participate in compulsory social insurance, which is a common concern of many foreign-invested enterprises (FIEs).

According to Vietnam Social Security’s (VSS) statistics, the group serves over 4,500 South Korean enterprises with 1.31 million employees participating in social insurance, of whom 1.29 million people are Vietnamese and over 12,000 people are foreigners. South Korean companies’ social insurance premiums account for nearly 25 per cent of the total of FIEs.

In order to optimise and ensure social security interests of workers in each country, VSS and the National Pension Service of Korea are negotiating to sign a bilateral agreement on social insurance between the governments of the two nations.

Nguyen The Manh, general director of VSS that VSS has conducted a survey of more than 100 South Korean businesses with a view to raising awareness as well as creating consensus and cohesion among businesses in implementation of policies on social, health, and unemployment insurance, and removing difficulties for businesses.

At the same time, the two sides discussed the best solutions in ensuring social security for employees at FIEs and foreign employees working in Vietnam.

In recent years, VSS has actively introduced a series of reform solutions to facilitate people and businesses in implementing social insurance policies by introducing the English version of the Vietnam Social Security Portal, simplifying procedures for settling and paying social insurance benefits, and encouraging businesses to choose electronic transaction methods and public postal services when dealing with social insurance agencies.

In the context that businesses as well as workers are facing many difficulties due to the impact of COVID-19, VSS also implemented solutions such as temporarily suspending contributions to the retirement and survivorship funds to support businesses to reduce difficulties amidst the pandemic outbreak, ensuring timely and full payment of unemployment insurance benefits for workers.

In particular, VSS has completed the development and implementation of an electronic collection and payment system and application of VssID on mobile devices for the purpose of establishing a communications channel for access to information and performing public services for individuals and organisations participating in transactions with social insurance agencies.

This can be considered a breakthrough in the application of IT to provide public services in the digital transformation process of VSS, according to the roadmap of building a digital government across Vietnam.