Vietnam Insurance Guide
At-a-glance
- •Social Insurance, Health Insurance, and Unemployment Insurance are mandatory for employers.
- •Motor Third-Party Liability Insurance is required for all vehicles.
- •Fire and Explosion Insurance is mandatory for high-risk facilities.
- •Construction Insurance is required for certain construction projects.
- •Other insurance types (property, liability, etc.) are recommended but not legally required.
Mandatory & Profession-Specific Business Insurance Requirements
Comprehensive overview of insurance requirements for businesses operating in Vietnam
| Insurance Type | Who Must Insure | Key Legal Basis & Authority | Minimum Coverage | Penalties for Non-compliance |
|---|---|---|---|---|
| Social Insurance | All employers with employees on labor contracts of 1 month or more | Law on Social Insurance (No. 58/2014/QH13); Vietnam Social Security (VSS)Official Source | Employer 17.5% + Employee 8% of monthly salary | Administrative penalties up to VND 150 million; interest on late payments |
| Health Insurance | All employees with labor contracts of 3 months or more | Law on Health Insurance (No. 25/2008/QH12, amended by Law No. 46/2014/QH13); Ministry of HealthOfficial Source | Employer 3% + Employee 1.5% of monthly salary | Administrative penalties; interest on late payments; potential business license issues |
| Unemployment Insurance | Vietnamese employees with contracts of 12 months or more | Law on Employment (No. 38/2013/QH13); Ministry of Labor, Invalids and Social AffairsOfficial Source | Employer 1% + Employee 1% of monthly salary | Administrative penalties; interest on late payments |
| Motor Third-Party Liability Insurance | All owners of motor vehicles | Law on Insurance Business (No. 08/2022/QH15); Ministry of FinanceOfficial Source | Minimum coverage for third-party bodily injury and property damage | Vehicle registration denied; fines; vehicle impoundment |
| Fire and Explosion Insurance | Businesses in high-risk sectors (manufacturing, warehousing, etc.) | Law on Fire Prevention and Fighting (No. 40/2013/QH13); Ministry of Public SecurityOfficial Source | Coverage for fire and explosion damage to property and third parties | Administrative penalties; potential business operation restrictions |
Regulators & Agencies Governing SME Insurance Compliance
Ministry of Finance – Insurance Supervisory Authority
The Ministry of Finance (MOF) is Vietnam's national financial regulator and oversees the insurance sector. Within MOF, the Insurance Supervisory Authority (Cục Quản lý và Giám sát Bảo hiểm) is responsible for licensing insurance companies and ensuring compliance with insurance laws.
The MOF issues and enforces the Law on Insurance Business and related regulations, which outline compulsory insurance requirements for businesses. For example, the law and its guiding decrees list classes of insurance that enterprises must carry (such as motor vehicle liability and construction insurance).
Official WebsiteVietnam Social Security – Social & Health Insurance
Vietnam Social Security (VSS) – Bảo hiểm Xã hội Việt Nam – is the government agency that administers compulsory social insurance, health insurance, and unemployment insurance for workers. VSS operates under the government and manages the Social Insurance Fund and Health Insurance Fund.
All employers, including SMEs, are required by law to register and contribute to these funds for their employees. The primary laws are the Law on Social Insurance 2014 (Law No. 58/2014/QH13) and the Law on Health Insurance 2008, amended 2014, which mandate that employees and employers participate in social and health insurance.
The Ministry of Labour – Invalids and Social Affairs (MOLISA) also plays a key role in social insurance compliance. MOLISA collaborates with VSS to issue implementing decrees and circulars on labor policies, including the implementation of social insurance and unemployment insurance laws.
Ministry of Health – Health Insurance Policy
The Ministry of Health (MOH) (Bộ Y tế) is the state authority responsible for health policy, including oversight of the health insurance system's design. While day-to-day collection and management of health insurance is handled by Vietnam Social Security, the MOH provides guidance on health insurance benefits, coverage, and provider networks.
The Law on Health Insurance is under MOH's purview. For SMEs, MOH's role is more about ensuring that the health services and insurance scheme function, whereas compliance (enrolling employees, paying premiums) is handled via VSS.
Official WebsiteMinistry of Construction – Compulsory Construction Insurance
The Ministry of Construction (MOC) (Bộ Xây dựng) is the government body that regulates the construction industry, including safety and insurance requirements for construction projects. Construction contractors and project owners are required by law to purchase specific insurance coverages.
These requirements are stated in the Law on Construction and detailed in government decrees. Decree No. 119/2015/NĐ-CP (2015) is a key regulation that MOC issued regarding compulsory insurance in construction activities. It lists which projects must carry insurance and the minimum coverage.
Official WebsiteMinistry of Transport & Traffic Police – Motor Vehicle Liability Insurance
Vietnam mandates motor vehicle owners to carry third-party liability insurance for civil liability in case of traffic accidents. The Ministry of Transport (MOT) (Bộ Giao thông Vận tải) sets transportation policy and vehicle regulations, while the Ministry of Public Security – Traffic Police Department (Cục Cảnh sát Giao thông) is the primary enforcement body.
The legal basis for compulsory auto liability insurance is provided by the Government. Most recently, Decree No. 03/2021/NĐ-CP (effective 2021) comprehensively regulates compulsory motor vehicle insurance. It details coverage requirements, minimum liability limits, and the duties of insurers and vehicle owners.
SME Compliance and Advisory Portals
Vietnam has several official portals and resources to help Small and Medium Enterprises understand and comply with regulations (including insurance requirements):
- National Business Registration Portal (dangkykinhdoanh.gov.vn): Managed by the Ministry of Planning and Investment, guides users through business registration procedures and provides information on post-registration obligations.
- Ministry of Planning and Investment (MPI) – SME Support Pages: Provides information on the Law on Support for SMEs and various support programs, including guidebooks that outline compliance requirements.
- Vietnam Government E-Portal (chinhphu.vn): The official government news portal featuring Q&A columns or articles explaining new regulations in layman's terms.
- Vietnam Social Security E-Portal: Offers online services and user manuals for social insurance compliance.
Risks of Being Uninsured
Social Insurance Compliance
Non-compliance can result in administrative penalties up to VND 150 million and interest on late payments. Employers remain liable for all benefits that would have been covered, which can be substantial in case of employee illness or injury.
Health Insurance
Failure to provide health insurance can result in administrative penalties, interest on late payments, and potential business license issues. Employers may also face difficulties in attracting and retaining talent.
Motor Vehicle Insurance
Vehicles cannot be registered without proper insurance. Driving uninsured vehicles can result in fines, vehicle impoundment, and unlimited liability for accidents, which can be financially devastating.
Fire and Explosion Insurance
High-risk businesses operating without fire and explosion insurance face administrative penalties and potential business operation restrictions. In case of an incident, the business would bear all costs for property damage and third-party claims.
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