This guide provides a comprehensive social insurance registration guide for businesses planning to enter the Vietnamese market or already operating in Vietnam. As an important part of corporate compliance operations, correct social insurance registration is not only a legal requirement, but also a key step to protect employees’ rights and interests and reduce business risks. It mainly contains the legal basis for corporate social insurance registration , and will introduce the registration process and steps in detail , as well as a list of required documents and materials . There are also answers to frequently asked questions and practical advice , as well as precautions .

By reading this article, companies can gain an in-depth understanding of the entire process of social insurance registration in Vietnam, avoid common pitfalls, and ensure successful registration. Whether you are planning a Vietnam market entry strategy or are already doing business in Vietnam, this guidebook will provide you with valuable reference and guidance on valuable opportunities.

Overview of Vietnam’s social insurance system

Vietnam’s social security system is a core participant in the country’s social system, and its development history reflects Vietnam’s complex transformation process from a planned economy to a market economy. This system started in 1947 and initially only covered civil servants and military personnel. Since the implementation of the “Doi Moi” policy this year in 1986, Vietnam’s social insurance system has begun a comprehensive reform and expansion.

The Social Insurance Law of 2014 (effective from January 1, 2016) marks a new stage of development for Vietnam’s social insurance system. This law laid a solid legal foundation for the current social insurance system and clearly ranked mandatory social insurance and autonomous social insurance at the forefront. Social insurance is applicable to all enterprises employing full-time employees or above, covering six major insurance items: illness, maternity, occupational diseases, work-related injuries, retirement and survivors.

The coverage of Vietnam’s social insurance system is expanding year by year. As of 2023, more than 1,700 people are participating in social insurance, accounting for approximately 33% of the total labor force. The government plans to increase this proportion to 60% by 2030. Moreover, from January 1, 2022, foreign workers working in Vietnam will also be included in the coverage of social insurance, which has a significant impact on labor companies operating in Vietnam.

In terms of contribution collection, Vietnam adopts a model of joint collection by employers and employees. Under normal circumstances, employers are required to charge 17.5% of employees’ monthly wages, and employees are required to charge 8%. For foreign employees, employers levy 3.5% and employees levy 8%. It is worth mentioning that the Vietnamese government is exploring options to include informal sector workers in the social insurance system to further expand security coverage.

The management and operation of Vietnam’s social insurance system are handled by Vietnam Social Security (VSS). VSS not only manages social insurance funds, but is also responsible for policy formulation, payment expenditures, equity accounting and benefits payment, etc. tax revenue. VSS vigorously promotes informatization construction and launches an online declaration and payment system, which greatly improves management efficiency and service quality.

However, Vietnam’s social insurance system still faces firefighting challenges. Issues such as the accelerated aging of the population, the high proportion of informal workers, and fund sustainability have put pressure on the long-term development of the system. To address these challenges, the Vietnamese government is considering a series of reform measures such as raising the retirement age, adjusting contribution proportions, and expanding coverage.

For businesses investing or operating in Vietnam, it is crucial to have a deep understanding of foreign countries and strictly comply with Vietnam’s social insurance regulations. The correct performance of social insurance obligations is not only a legal requirement, but also a manifestation of corporate social responsibility, which is conducive to maintaining labor relations and improving quality. At the same time, companies also need to pay close attention to policy changes and timely adjust human resource strategies to adapt to the sustainable development and development of Vietnam’s social insurance system.

Legal basis for corporate social insurance registration

The legal basis for social insurance registration of Vietnamese enterprises mainly comes from the country’s perfect social insurance legal system. This system consists of multi-level legal documents such as laws, decrees, notices and guidelines, which together form the legal reference for enterprises to register social insurance.

The most important legal basis is the Social Insurance Law (No. 58/2014/QH13) passed in 2014 and effective on January 1, 2016. This law provides a comprehensive legal framework for Vietnam’s social insurance system. In particular, Article 2 of the law clearly stipulates the objects of social insurance and requires all employers and employees to participate in social insurance. Article 21 lists in detail the objects participating in social insurance, including employees with labor contracts of more than three months.

In October 2018, the Vietnamese National Congress passed Resolution No. 84/2015/QH13, amending some provisions of the Social Insurance Law. The most important change in this revision is the inclusion of foreigners in the social insurance system. According to the revised legal provisions, starting from January 1, 2022, foreigners working in Vietnam who hold a work permit, practice certificate or practice license must participate in Vietnam’s social insurance.

In order to further clarify the specific requirements for social insurance registration, the Vietnamese government issued Decree No. 143/2018/ND-CP in 2018. The decree stipulates in detail the specific procedures for social insurance participation, payment of premiums and enjoyment of social insurance benefits. Articles 23 to 27 clarify the employer’s responsibilities in social insurance registration, including the time limit and procedures for social insurance registration for new employees.

In 2020, the Vietnamese government issued Decree No. 135/2020/ND-CP to adjust the retirement age and pension calculation methods. Although this decree mainly focuses on pension insurance, it also has an indirect impact on enterprises’ social insurance registration contributions and fees, and enterprises need to adjust their human resources policies accordingly.

In terms of specific operations, the Vietnam Social Security Administration (VSS) has issued multiple notices to guide enterprises in social insurance registration. The latest and most important among them is Notice No. 42/2021/TT-BLDTBXH issued in December 2021. The notice stipulates in detail the social insurance registration procedures, required documents and the application process for various social insurance benefits. In particular, Articles 4 to 7 clarify the social insurance registration and reporting obligations of enterprises when employees join, leave, and change information.

In addition, regarding the social insurance issues of foreign employees, Vietnam’s Ministry of Labor, Invalids and Social Security, the Ministry of Finance (Ministry of Finance) and the Ministry of Health (Ministry of Health) jointly issued No. 39/2022/TTLT-BLDTBXH-BTC-BYT in 2022 notify. The notice stipulates in detail the conditions, procedures and payment standards for foreign employees to participate in Vietnam’s social insurance, providing clear guidelines for companies that employ foreign employees in Vietnam.

The Vietnamese government is actively promoting the digital transformation of the social insurance system. In 2022, the government finally formulated Resolution No. 101/NQ-CP, proposing the goal of achieving 95% of social insurance online processing by 2025. Although the resolution does not directly involve laws, it will significantly affect the actual operational process of corporate social insurance registration.

Enterprises also need to pay attention to some supplementary regulations that may be issued. For example, the Ho Chi Minh City Social Insurance Bureau frequently issues guidance documents to provide more specific operational guidelines for businesses in the region.

Detailed steps of registration process

Social insurance registration for enterprises in Vietnam requires enterprises to strictly abide by relevant regulations and complete various procedures on time. Before officially starting to complete registration, enterprises need to complete a series of preparations. First, make sure the business is legally registered in Vietnam and obtains a business license. Secondly, prepare the identity document of the valid representative of the company and collect the personal information of all employees, including the identity card number of Vietnamese citizens or foreign passport number. Finally, the company needs to prepare a company seal. This employee seal will be used on all official documents.

The first step in the registration process is to obtain a Social Security code. Enterprises need to submit an application to the local tax authorities, usually requiring a business license and legal representative identity document. The tax authority will generally issue an insurance social code within 3-5 working days, which is usually the same as the company’s tax ID number. After obtaining a social insurance code, the enterprise needs to submit an initial registration application to the Social Insurance Bureau. This step requires filling in the initial registration form (Form TK1-TS) provided by the Social Security Bureau, and submitting the company’s business license certification, legal representative’s identity document and company seal sample along with the form. If the company has foreign employees, these work permit documents must also be provided. All documents must be stamped with the company’s official seal by employees.

Secondly, the company needs to register for social insurance for the employees who finally meet the conditions. This requires filling out the Social Security Registration Form (Form D02-TS) and providing corresponding supporting documents. For Vietnamese employees, ID cards are required; for foreign employees, passports and work permits are required. If you have been insured by other companies before, you must also provide your social insurance card number or social insurance handbook. Enterprises should complete this step 30 days after the employee joins the company. After completing employee registration, the company needs to declare the employees’ wages to the Social Insurance Bureau as the payment base. At this time, use the wage declaration form (Form D02-LT) provided by the Social Security Bureau, and the declared wage shall not be lower than the minimum wage stipulated by the government. If the employee’s stock price fluctuates, the company needs to update the declaration 10 days after the fluctuation.

Based on the declared wage base, the enterprise needs to calculate and pay social insurance premiums. Enterprises can choose to pay monthly or quarterly, but must complete the payment within the specified period. Payment can be made through bank transfer or directly to the Social Insurance Bureau. After each payment, the enterprise should retain the payment voucher. In addition to regular payments, businesses are also required to conduct regular reports and information updates. This includes submitting monthly employee turnover reports (Form D02-TS) to the Social Security Bureau, supplementary registration for new employees, and handling insurance termination procedures when employees leave. At the end of each year, companies are also required to submit an annual social insurance usage report.

For newly insured employees, companies need to apply for a social insurance card or social insurance number. This requires filling out a Social Security Card Application Form (Form D01-TS) and attaching a photo of the employee. The Social Insurance Bureau generally issues social insurance cards within 15-20 working days. In order to improve efficiency, enterprises can register an online service account on the official website of the Vietnam Social Insurance Bureau and conduct electronic declaration, payment and inquiry operations through the online system. A digital signature certificate is required to use the online system, and companies can report the application to the relevant departments.

To ensure compliance, companies should conduct regular internal reviews to ensure that all social insurance-related documents and records are complete and accurate. At the same time, all social insurance registration, payment and reporting documents are kept and made available for inspection by the Social Insurance Bureau. Under special circumstances, if an enterprise merges, splits, or goes bankrupt, it must be reported to the Social Insurance Bureau and go through the corresponding procedures. For temporary employees on short-term or short-term projects, companies also need to conduct special social insurance registration. If an employee suffers a work-related injury or occupational disease, the company needs to report it to the Social Insurance Bureau within 24 hours.

During the entire process, if errors are discovered or objections are made to the Social Affairs Bureau’s decision, Enterprise Insurance can submit a correction application or appeal in accordance with the prescribed procedures. A detailed written explanation and relevant supporting documents must be provided when making an appeal. After completing the above steps, the company is basically required to register for social insurance. However, it should be noted that social insurance registration is an ongoing process, and companies need to constantly update information, pay fees on time, and comply with relevant regulations. At the same time, enterprises should also pay close attention to policy changes and promptly adjust their own social insurance management practices to ensure that they remain compliant.

List of required documents and materials

When registering corporate social insurance in Vietnam, it is also crucial to prepare complete and correct documents and materials , which not only ensures a smooth registration process but also avoids unnecessary symptoms and complicated procedures. First, the company needs to prepare core documents including notarized certification documents of the company’s business license. This document proves the company’s legal operating status in Vietnam and is the basis for all subsequent procedures. At the same time, the enterprise also needs to provide the identity document of the legal representative, usually a notarized passport or Vietnamese ID card. These documents need to be stamped with the company’s official seal to ensure their validity and authenticity.

Next, companies need to prepare a series of forms and documents directly related to social insurance. The most important one is the initial registration form (TK1-TS). This form needs to be filled in carefully, including basic information about the company and legal representative information . At the same time, the company also needs to prepare an employee social insurance registration form (D02-TS). The document form must be filled in separately for other qualified employees, including the employee’s personal information, job position, employee salary level, etc. For wage declaration, enterprises need to fill out the wage declaration form (D02-LT), detailing the salary composition and amount of employees, which will be used as a reference for calculating the social insurance payment base.

For foreign employees of a business, additional documentation is required. This includes a valid work permit, which is a document proving the legality of a foreign employee to work in Vietnam. In addition, the foreign employee’s passport is also necessary, especially the part containing the employee’s personal information page and the latest Vietnam visa page. If a foreign employee has a record of social security penalties in other countries before, providing relevant supporting documents will help ensure social security rights and interests in Vietnam.

The company also needs to prepare a list of employees, including their detailed full names, dates of birth, ID numbers (Vietnamese employees) or passport numbers (foreign employees), positions, dates of entry and other information. The list is not only for social insurance registration, but also an important document for corporate human resources management. For newly hired employees, the company needs to provide a labor contract, especially the salary and social insurance provisions stipulated in the contract.

During the document preparation process, companies cannot ignore the importance of the company seal. Vietnamese law requires that all official documents must be stamped with a company seal to be valid. Therefore, enterprises need to prepare a sample of the seal and ensure that all submitted documents are stamped correctly. In addition, if the enterprise chooses to use the online system for social insurance registration and management, it will also need to digitally apply for a signature certificate. This requires providing additional application materials to the relevant departments, which usually include a letter of authorization and identification documents from the legal representative of the company.

For enterprises that have established social insurance accounts, additional documents need to be prepared when making annual updates or information changes. This may include proof of social security contributions from the previous year, employee turnover reports (such as new or departing employees), adjustment notices, etc. If the enterprise undergoes major changes in wages, such as changing the factory representative, changing the company name or address, etc., it also needs to provide corresponding name change documents.

Enterprises can prepare a complete document list and carefully check and organize all documents. It is recommended to make multiple copies of all documents , submit them to the Social Security Bureau, and keep one copy with the company for future reference. At the same time, enterprises should also establish a sound document management system to respond to possible inspections or audits at any time. When submitting documents, it is recommended that the enterprise assigns a designated person to be responsible for ensuring that all documents are submitted as required and that any questions or supplementary materials that may be asked by the Social Insurance Bureau can be responded to in a timely manner.

Frequently Asked Questions and Answers

Vietnamese companies often encounter various questions during the social insurance registration process . The following are some frequently asked questions and their answers, hoping to provide reliable guidance for enterprises.

Q1 : When must a newly established company start paying social insurance for its employees?

A1 : According to Vietnamese law, enterprises must start the social insurance registration process 30 days after hiring the first full-time employee. Even if the company is still in the trial operation stage, as long as it has full-time employees, it must register and pay social insurance in a timely manner.

Q2 : Do foreign-invested enterprises need to apply for Vietnamese social insurance for foreign employees?

A2 : Yes. Starting from December 1, 2018, foreign employees working in Vietnam who hold a work permit, practice certificate or practice certificate must participate in Vietnam’s social insurance. This applies to all types of businesses, including foreign-invested businesses.

Q3 : What is the proportion of social insurance contributions? Who will bear it?

A3 : Currently, the total contribution ratio of social insurance is 32%, of which employers bear 21.5% and employees bear 10.5%. Specifically include: pension and survivor insurance (14% for employers, 8% for employees), sickness and maternity insurance (3% for employers), work-related injury and occupational disease insurance (0.5% for employers), medical insurance (3% for employers, 1.5% for employees), Unemployment insurance (1% for employers, 1% for employees).

Q4 : Can enterprises choose their own social insurance payment base?

A4 : No. The social insurance payment base shall be calculated based on the actual wages and allowances of employees. The payment base shall not be lower than the minimum wage stipulated by the government, nor shall it be lower than the upper limit stipulated by the government (currently 20 times the regional minimum wage).

Q5 : Do part-time employees participate in social insurance?

A5 : According to necessary regulations, only part-time employees whose working hours reach more than 75% of full-time working hours (usually refers to working 14 days or more per month) need to participate in social insurance. Part-time employees who meet this standard can voluntarily participate in social insurance.

Q6 : What will be the consequences of late payment of social insurance fees?

A6 : Social insurance will face penalties for late payment. The penalty amount is usually 0.03% per day of the amount due and unpaid. In addition, serious fines may result in the company’s business license being revoked, and the legal representative may also face criminal liability.

Q7 : Do employees need to pay social insurance during the probation period?

Q8 : Yes. As long as the employee has a labor contract with the company for more than one month (30 days), even during the probation period, the company must facilitate social insurance payments.

Q9 : If employees are unwilling to participate in social insurance, does the company meet the conditions and can not pay social insurance?

A9 : No. Social insurance is necessary. As long as the employees are willing, the company must pay social insurance for eligible employees. If financial conditions permit, companies may consider purchasing additional commercial insurance for their employees.

Q10 : How do companies apply for and manage social insurance cards for their employees?

A10 : Enterprises need to assist employees in applying for social insurance cards after they join the company and register for social insurance. When applying, you need to fill in the relevant forms and provide employee ID photos. After obtaining the social insurance card, the company should keep it properly and issue it to employees in a timely manner.

Q11 : How to handle social insurance if a company merges, splits or goes bankrupt?

A11 : In these cases, the enterprise must promptly report the changes to the Social Insurance Bureau. For mergers or divisions, the enterprise that accepts new employees needs to go through the social insurance relationship transfer procedures for employees again. If it is bankruptcy, the company must settle all unpaid social insurance premiums and assist employees in handling the transfer of social insurance relationships.

Q12 : How does an enterprise check and repay social insurance fees?

A12 : Enterprises can inquire through the following methods:

• Log in to the corporate account on the official website of Vietnam Social Insurance Bureau
• Use the mobile app provided by the Social Security Administration
• Go directly to the local Social Security Bureau clinic to check
• View monthly or quarterly social security payment notices

Q13 : If it is found that the previous social insurance payment is wrong, how to correct it?

A13 : Enterprises should immediately contact the local social insurance bureau and provide written explanations and relevant supporting materials. The Social Security Bureau will make corresponding adjustments after review. If it is an overpayment, it can be used to offset the future payable amount; if it is an underpayment, it will need to be paid back and late payment fees may be incurred.

Q14 : How do foreign employees apply for social insurance when they leave Vietnam?

A14 : Foreign employees can apply for a one-time payment of social insurance benefits after terminating their labor contract in Vietnam. Enterprises need to assist employees in applying for payment from the Social Insurance Bureau. Usually after receiving complete application materials after 60 years, the Social Insurance Bureau will process the payment.

Q15 : Can an enterprise hire a third-party agency to handle social insurance matters on its behalf?

A15 : Yes, enterprises can hire professional human resources service companies or accounting firms to handle social insurance matters on their behalf. However, it is important to note that even if a third party is hired, the enterprise is still legally responsible for social insurance compliance.

Q16 : How to deal with social security penalties for employees during long-term sick leave?

Q16 : For employees who take leave due to illness, the company still needs to pay normal social insurance in the first 6 months. Starting from the 7th month, if the employee is still unable to work, collection and insurance can be suspended, but medical insurance is still required. After employees resume work, they need to make up social insurance payments during the suspension period.

Q17 : Newly hired employees have previous social insurance payment records, how should they apply?

A17 : Enterprises need to help employees go through the social insurance relationship transfer procedures. A form will need to be completed and the employee’s previous social security card or social security number provided. This ensures the continuity of employee social insurance premium records.

Q18 : How do companies respond to inspections by the Social Security Bureau?

A18 : Enterprises should make the following preparations:

• Keep all social security related documents and updates
• Confirm that the social insurance premium status of all employees is normal
• Designate a dedicated person to be responsible for communicating with the inspectors
• Provide the required information truthfully and actively conduct assault inspections
• If you encounter problems, seek professional legal advice promptly

Q19 : Can companies pay social insurance amounts directly to employees in cash?

A19 : No. Social insurance premiums must be paid directly to the Social Insurance Bureau and cannot be paid directly to employees in cash or other forms. Doing so is not only illegal, but will also affect employees’ social security rights.

These Q&A content covers most of the common questions that businesses may encounter when dealing with social insurance matters in Vietnam. However, as the policy may be updated, businesses are advised to regularly monitor official notifications from the Vietnam Social Insurance Bureau to ensure that they are always complying with the latest regulations.

Practical advice and considerations

Carrying out corporate social insurance registration and management in Vietnam is a complex and ongoing task that requires companies to invest a lot of time and energy. To ensure that this process goes smoothly, companies must take precautions and be fully prepared. Ideally, companies should start preparations 2-3 months before they expect to start hiring employees, including thoroughly understanding relevant regulations, preparing necessary documents, designing internal processes, etc. For foreign companies setting up in Vietnam for the first time, it may require longer preparation time to become familiar with the local legal environment and operating procedures.

Considering the complexity and importance of social insurance matters, it is strongly recommended that companies set up a dedicated team or designate a dedicated person to take charge. The team should be composed of people who are familiar with Vietnam’s labor laws and social insurance regulations, as well as members with financial and human resource management backgrounds. For smaller businesses, you can also consider outsourcing some of the work to professional human resources service companies. No matter which approach you take, making sure you have professionals handling these matters is key.

In daily operations, maintaining information accuracy and consistency is a nursing task. When filling out various social insurance forms, be sure to ensure that key information such as employee personal information, salary data, etc. are consistent across different documents. Any inconsistencies or errors may occur resulting in the application being returned or causing unnecessary trouble. Establishing a centralized information database can greatly simplify this process and help to uniformly manage and update information in a timely manner. At the same time, it is also very important to strictly abide by the various declaration and payment time nodes. The Vietnamese social security system has very strict time requirements. For example, new employees must register on the 30th day of employment, and monthly social security declarations usually need to be completed before the 10th of the following month. Developing detailed employee schedules and setting up a reminder system can effectively avoid missing important early dates.

Vietnam’s social insurance policies are frequently updated and adjusted, so companies need to remain vigilant and pay close attention to the latest official policies and guidelines. You may consider subscribing to notification services from relevant government departments, or consulting professional legal advisors regularly. For major policy changes, companies should promptly assess their impact and make corresponding adjustments. Especially for companies that employ foreigners, they need to pay attention to changes in relevant regulations. Ensure that all eligible foreign employees are correctly insured. At the same time, attention should be paid to helping employees understand that they may need to handle it separately for short-term expatriate employees or special circumstances. It is recommended to communicate with the social security department in advance to confirm.

Employee education and communication are also an integral part of social insurance management that cannot be ignored. Many employees, especially young employees or foreign employees, may not know much about Vietnam’s social insurance system. Enterprises should take the initiative to explain to employees the importance of social insurance, pay employees to hold regular training or issue information brochures to help employees fully understand and utilize their social insurance benefits. At the same time, it is also important to establish smooth feedback channels, which not only helps to identify and solve potential problems of employees, but also improves employee satisfaction and loyalty.

In terms of document management, it is very important to preserve complete community social insurance-related documents. It is recommended to establish a systematic document management system, including electronic and paper versions. Important files should be backed up and updated regularly. Good document management not only benefits daily operations, but also provides strong support during audits or inspections. With the development of technology, the Vietnam Social Insurance Bureau is promoting an online declaration and management system. Businesses should actively take advantage of these online tools, which can maximize efficiency and reduce errors. At the same time, you can also consider using professional human resources management software. Many such software have social insurance management modules that can automatically calculate payment amounts, generate reports, etc.

In the process of social insurance management, it is inevitable to encounter some abnormal situations, such as long-term sick leave of employees, handling of part-time employees, work-related accidents, etc. For these special situations, enterprises should establish a rapid response mechanism, communicate with relevant departments in a timely manner, seek professional help, and recommend avoiding legal risks caused by improper handling. It is also essential to conduct regular internal audits, which can help identify and correct potential problems early and avoid major problems in official audits. It is recommended that internal inspections be conducted quarterly and a comprehensive audit be conducted annually.

Establishing a good working relationship with the local social insurance department is also very important. Regular, proactive consultation can help companies better understand policies and potentially gain more support in dealing with complex issues. But be aware that this relationship must be based on legal compliance. For foreign-invested enterprises, it is important to note that Vietnam’s cultural characteristics and working methods may be different from those in the home country. More patience and flexibility may be required when dealing with Social Security matters. Respecting local culture and understanding the characteristics of management procedures will help complete various tasks more smoothly.

In terms of management, social insurance expenditures are an important expenditure for enterprises, especially for labor-intensive enterprises. In financial planning, this part of financial expenditure should be fully taken into account and expenditure should be arranged reasonably. Even if we encounter temporary capital turnover difficulties, priority must be given to ensuring the timely settlement of social insurance to avoid high fines due to delays. When planning social insurance-related work, it is recommended to prepare buffer time and funds in advance to cope with possible bank processing delays or document modifications.

Finally, enterprises must attach great importance to data security and privacy protection. Social insurance management involves a large amount of employee personal information. Establishing strict information access control mechanisms, encrypting sensitive information, and conducting regular security training are all necessary measures. It is also necessary to improve emergency plans for possible problems, such as system failure that prevents timely reporting, or sudden large-scale identification situations. With detailed emergency plans, including emergency contact information and handling procedures with relevant departments, companies can respond calmly when encountering emergencies.

By implementing these, companies can better manage social insurance-related matters, reduce risks and improve efficiency. However, it needs to be seriously emphasized that social insurance management is a dynamic process. Enterprises need to remain vigilant, constantly learn and adapt. When encountering complex or uncertain situations, it is always wise to seek professional advice in a timely manner. Only in this way can enterprises develop steadily in Vietnam’s business environment, ensuring compliance with operations and protecting the rights and interests of employees.