Persistent issues with late payments in Vietnam call for reform

A proposal to introduce separate criminal sanctions to address this issue has been raised.

The ratio of late payment of social, health, and unemployment insurance versus the amount of receivables has gradually decreased yearly, however, it remains at an elevated level, said Vietnam’s Social Security agency.

Late payment or evasion of social insurance payments is strictly prohibited under the 2014 Law on Social Insurance and the Health Insurance Law. 

These actions can result in administrative or criminal penalties, depending on their severity. 

However, the lack of clear definitions for late payment and evasion in current laws makes it challenging to enforce appropriate measures.

Administrative penalties for evasion are outlined in decrees, but the absence of a clear definition complicates enforcement. 

The Criminal Code addresses evasion, but ambiguity persists due to the absence of distinct definitions.

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The absence of tools to distinguish between evasion and late payment hampers the identification of violations. 

There's a proposal to introduce separate criminal sanctions to address this issue.

Concerns have been raised about the handling of late payments and evasion in the Draft Law on Social Insurance. 

Suggestions include clarifying and separating articles on late payment and evasion, enhancing sanctions, and imposing penalties such as exclusion from state-funded projects for late-paying entities.

There's also a call for criminal prosecution for late payment, similar to tax evasion, to ensure appropriate handling according to the severity of the violation. 

Clarifying the duration and frequency of late payments and stipulating administrative and economic sanctions are further recommendations for effective enforcement.