06:53 (GMT +7) - Sunday 24/09/2017

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500 Hanoi companies not paying social insurance

Released at: 14:31, 30/08/2017

500 Hanoi companies not paying social insurance

Illustrative image (Source: vivabcs.com.vn)

Hanoi Social Insurance names 500 enterprises with outstanding social insurance debts.

by Ngoc Lan

Hanoi Social Insurance has released a list of 500 enterprises in the capital that have failed to pay social insurance premiums for their employees for three months or more.

The Lilama 3 JSC has VND27 billion ($1.2 million) in unpaid premiums accrued over the course of 55 months, while the VIT Garment Company has VND22.15 billion ($1 million) and the Xuan Kien Vinaxuki Company over VND16.83 billion ($740,520).

Along with publishing their names, Hanoi Social Insurance will also roll out measures to collect outstanding premiums and coordinate with other agencies to conduct inspections to protect the rights of workers, with debt collections expected to be completed in October.

Mr. Vu Duc Thuat, Deputy Director of Hanoi Social Insurance, said the enterprises have violated the law as well as the rights of their workers, negatively affecting the city’s social welfare and security activities.

Hanoi has the highest debts in social, health, and unemployment insurance, with VND3.378 trillion ($150 million) owed by 23,955 enterprises with 334,694 workers.

Some 55,747 enterprises and organizations contribute to social, health and unemployment insurance in the capital, including over 48,000 with more than 1.4 million workers.

Total premiums in Vietnam’s insurance sector during the first half of this year are estimated at over VND47 trillion ($2.07 billion), an increase of 20.77 per cent year-on-year, with payouts totaling VND13.33 trillion ($585.2 million).

Addressing a review of the insurance sector in the last six months, Ms. Pham Thu Phuong, Deputy Director of the Insurance Management and Supervision Department at the Ministry of Finance (MoF), noted that the sector maintained high and stable growth in the first half and that the financial capacity of insurers continues to improve.

Mr. Ngo Trung Dung, Deputy General Secretary of the Vietnam Insurance Association, said that MoF and the Insurance Supervisory Authority will work with enterprises, removing obstacles, shortening the time for handling administrative procedures, and creating a legal framework for the development of the insurance market. “State management agencies are studying and developing policies to develop more insurance products, such as agricultural insurance and micro insurance, and modifying compulsory fire and explosion insurance products,’ he said. “The Circular for Decree No. 73 provides detailed guidance.”

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