5 common misconceptions about social insurance that foreigners in Vietnam often have.

Many foreigners who have worked in Vietnam for years face a very common situation when preparing to leave: uncertainty about whether they are eligible to withdraw their social insurance contributions, and worry that their contributions could be completely lost if not processed promptly.

Below are 5 of the most common misconceptions about social insurance that foreigners often encounter in Vietnam.

1. Foreigners are not allowed to withdraw social insurance contributions in Vietnam.

This is the most common misconception. According to the 2014 Social Insurance Law and Decree 143/2018/ND-CP, foreign workers in Vietnam can participate in and receive social insurance benefits, including the right to withdraw social insurance contributions in a lump sum if they meet the conditions.

When can withdraw social insurance contributions in a lump sum?

Foreigners can withdraw their social insurance contributions in a lump sum in common cases such as:

• Termination of employment contract and no longer residing/working in Vietnam
• Meeting the eligibility requirements (usually after leaving employment, depending on the specific case)
• Not continuing to participate in social insurance

2. Withdraw social insurance contributions immediately after quitting your job.

Many people think, "I quit my job today, I can submit my social insurance withdrawal application tomorrow." But withdrawing social insurance doesn't just depend on quitting your job, it also depends on:

• Residence status in Vietnam
• Contract termination date
• Documents proving termination of employment

In some cases, a waiting period is required or all necessary documents must be prepared before submitting the application. If you are about to return to your home country, you should check the eligibility requirements at least 2-4 weeks in advance to ensure sufficient time for preparation.

Misunderstandings can lead to the following risks:

• Submitting your application too early → will result in rejection.
• Missing documents → multiple submissions required.
• There wasn't enough time to process it before leaving Vietnam.

3. Once you've returned to your home country, you can't withdraw your social insurance contributions.

This is a major concern for many customers. But the truth is, it is still possible to withdraw social insurance benefits even after leaving Vietnam, by authorizing someone else in Vietnam or working with a legal consultant to process the application.

Actual problem

Withdrawing social insurance benefits from abroad often encounters difficulties such as:

• Don't know how to properly authorize someone.
• Lack of proper documentation was used to take the item abroad.
• There is no profile tracker in Vietnam.

4. The procedure for withdrawing social insurance benefits is very simple and can be done quickly by yourself.

Many people underestimate the complexity of the procedure. But in reality, the procedure for withdrawing social insurance benefits for foreigners usually includes:

• Personal documents (passport, work permit, contract, etc.)
• Documents related to the work process
• Confirmation of contract termination
• Standard application form

In addition, there are other contributing factors such as:

• Incorrect information on the social insurance system.
• Missing social insurance book or inconsistent records
• The file requires further explanation.

If you are unfamiliar with administrative procedures in Vietnam, using Dedica's support services can help save time and reduce the risk of errors.

5. If you don't withdraw it immediately, your social insurance money will be automatically lost.

This is the most confusing misconception. The truth is that social insurance money doesn't disappear automatically, but you might encounter some problems such as:

• It may be difficult to retrieve records after a long period of time.
• Changes in legal regulations may affect how cases are handled.
• Proving information becomes more complicated.

Each case of social insurance withdrawal for foreigners depends on many factors such as: specific documents, length of residence, employment status, and legal regulations at the time of processing. This article is for informational purposes only and does not replace specific legal advice.

CONCLUDE

Misunderstandings about social insurance not only confuse many foreigners but can also lead to them missing out on legitimate funds accumulated over years of working in Vietnam. With experience working with numerous international clients, DEDICA Law Firm not only clarifies benefits but also directly assists in handling complex situations such as impending departure, returning home, or requiring authorization.

Contact DEDICA Law Firm for expert legal advice!

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