Summary
I. Legal context and entry into force
The Agreement between Viet Nam and the Republic on Social Insurance was signed on 14 December 2021 in Seoul, with the aim of protecting the social insurance rights of migrant workers between the two countries.This is the first bilateral agreement in the field of social insurance concluded by Vietnam, marking a significant step forward in the process of international integration in social security.
2. Effective date
The Agreement officially entered into force on 1 January 2024, following the completion of the internal ratification procedures of both countries. On 8 December 2023, the two parties signed an Administrative Arrangement to provide guidance for its implementation. On 23 January 2024, Vietnam Social Insurance and the National Pension Service of the Republic of Korea signed an Implementation Record for the execution of the Agreement.
II. Core provisions of the Agreement
1. Objectives
- To prevent the duplication of social insurance contributions when workers are employed in the other Contracting State.
- To totalize the periods of social insurance coverage completed under the two countries for the purpose of determining entitlement to retirement and survivorship benefits.
2. Scope of application
- Vietnamese workers lawfully employed in the Republic of Korea, including dispatched workers, trainees, engineers, and experts…
- Korean workers lawfully employed in the Socialist Republic of Viet Nam.
- Employers are concerned in both countries.
3. Legal principles
- Employees shall be subject to social insurance contributions only in the sending country, and shall not be required to contribute in the receiving country.
- Upon submission of the certificate in the prescribed form, the employee shall be exempted from the obligation to pay compulsory social insurance contributions in the other country.
- Both parties shall mutually recognize the periods of social insurance contributions for the purpose of calculating retirement pensions, ensuring that no rights or entitlements are prejudiced.
- This Agreement is aimed at avoiding double social insurance contributions for Vietnamese and Korean nationals working in the other country. Specifically: Employees who are nationals of Viet Nam and the Republic of Korea shall be required to pay social insurance contributions only in one country; the periods of social insurance contributions shall be mutually recognized by both parties; The periods of participation in social insurance by employees who are nationals of Viet Nam and of the Republic of Korea shall be totalized as the aggregate of the periods during which such employees have contributed to social insurance in Viet Nam and in the Republic of Korea – such totalized periods shall serve as the basis for the Vietnam Social Insurance Fund and the National Pension Fund of the Republic of Korea to determine the employees’ entitlement to retirement pensions; the amount of benefits payable by the social insurance fund of each country to an employee upon retirement shall be determined on the basis of the periods of contribution and the contribution amounts paid by that employee to the respective fund; the calculation formula shall be governed by the legislation of each country.
III. Practical benefits of the Agreement
1. For employees
- Exemption from duplicate social insurance contributions, thereby reducing the financial burden.
- Ensuring the preservation of entitlements when transferring employment across countries.
- Aggregation of contribution periods to qualify for retirement or survivorship benefits.
2. For enterprises
- Exemption from the obligation to pay social insurance contributions for foreign employees who hold a valid certificate.
- Reduction of personnel costs and facilitation of compliance with international legal obligations.
- Enhancing management efficiency and conserving fund resources.
- Expanding international cooperation and standardizing operations in accordance with international practices.
- Strengthening national credibility in protecting migrant workers.
IV. Some practical recommendations
- To promptly issue a Circular providing detailed guidance on procedures, forms, and relevant authorities so as to elevate the legal effect beyond that of an official dispatch.
- To simplify administrative procedures – by digitalizing the certification process and integrating it through the VssID application.
- To organize specialized training for local social insurance officers on the provisions of the Agreement.
- To strengthen communication and dissemination of information on the rights and obligations under the Agreement through mass media channels.
- To expand negotiations for the conclusion of bilateral social insurance agreements with countries hosting large numbers of Vietnamese workers, such as Japan, Taiwan, Germany, Australia…
V. Conclusion
The Viet Nam – Republic of Korea Social Insurance Agreement and Official Dispatch No. 862/BHXH-TST represent a significant step forward in protecting the rights of cross-border workers and enhancing the efficiency of social insurance administration in the era of integration. The proper, comprehensive, and consistent implementation of the guidelines set forth in Official Dispatch No. 862 will contribute to:
- Building a transparent and sustainable international labor environment
- Enhancing Viet Nam’s credibility in its commitments to social security protection
- Fostering workers’ confidence, thereby promoting deeper socio-economic cooperation with the Republic of Korea
VI. About NYLA – Korean Legal Office
■ NYLA – Your Trusted Legal Partner in Korea
At NYLA, we understand that the success of foreign businesses in Korea requires not only a solid business strategy but also reliable legal support. With a team of experienced Korean attorneys and legal professionals, NYLA provides tailored legal services for companies, investors, and individuals operating or planning to establish a presence in Korea.
We support our clients throughout the entire business journey with comprehensive services, including:
- Legal consultation on company establishment, taxation, and immigration;
- Advice on commercial real estate, franchising, and product distribution;
- Support in human resources, marketing, and business strategy.
In addition to legal advisory, NYLA also represents clients in civil litigation cases related to business, labor, marriage, family, and inheritance to ensure their rights and interests are fully protected.
■ Contact NYLA
If you’re a foreign business or individual looking for a reliable legal partner in Korea, NYLA is here to help. We are committed to delivering effective, practical, and personalized legal solutions for every client.
With a proven track record of assisting hundreds of international clients, our team is equipped to help you navigate complex legal challenges—whether it’s commercial disputes, contract issues, or foreign investment guidance.
Don’t let legal matters hold you back. Let NYLA be your trusted guide in the Korean market.
■ Get in touch with NYLA for expert legal support
| Website: https://nylakoreanlegal.com/
FB: https://www.facebook.com/nyla.koreanlegal Tiktok: https://www.tiktok.com/@nylakoreanlegal Youtube: https://www.youtube.com/@NYLA-xd8qx Email: info.NYLAkoreanlegal@gmail.com SĐT: +82 10-3415-7859 |
 |