Vietnamese businesses owe $440 mln to social insurance fund

• Only 21 percent of the workforce benefits from social insurance
• Vietnam's pension books getting stretched to the limit

Vietnamese businesses owed more than VND9.92 trillion (nearly $440 million) of workers’ social insurance contributions at the end of 2015, and nearly half of those firms were based in Hanoi and Ho Chi Minh City.

The social insurance debts were up 5.5 percent from 2014, according to a new report by the State Audit.

Companies in the capital city owed VND2.17 trillion ($95.6 million) and those in the southern metropolis were nearly VND2 trillion in the hole.

Foreign companies owed more than 12 percent of the debt while state-owned firms had racked up nearly 10 percent of the figure.

Contributions to the social insurance fund pay for workers' pensions and other forms of compensation when they are sick or take paternity or maternity leave.

To be able to receive the maximum pension allowance, which is equal to 75 percent of the basic salary, workers are required to pay into the fund for at least 35 years for men and 30 years for women.

Vietnam’s social security fund has been in crisis for years with many businesses evading payments. The International Labor Organization forecast that the fund will be in a deficit in 2021 and may be depleted by 2034 unless changes are made.

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> Only 21 percent of the workforce benefits from social insurance

> Vietnam's pension books getting stretched to the limit