Latest regulations on social insurance refund for foreigners in Vietnam

Participating in social insurance (SI) is an important obligation for employees, including foreigners working in Vietnam. However, in certain cases, foreigners may be eligible for a refund of their SI contributions when leaving Vietnam. This article provides the latest updates on SI refund regulations for foreigners in Vietnam.

1. Eligible cases for SI refund

According to Vietnam’s Social Insurance Law, foreign employees may receive an SI refund if they fall into one of the following cases:

• Their employment contract in Vietnam expires, and they do not continue working in Vietnam.
• They leave Vietnam permanently and have no plans to return for work.
• They reach the retirement age but do not meet the conditions to receive a pension in Vietnam.

2. Conditions for SI refund

To be eligible for an SI refund, foreign employees must meet the following conditions:

• They have made mandatory SI contributions in Vietnam.
• They do not enter into a new labor contract in Vietnam.
• They can provide proof of departure from Vietnam, such as an airline ticket or confirmation from relevant authorities.

3. Procedures and Authorization in Case of Inability to Submit Documents Personally

In cases where a foreign worker has already left Vietnam or is unable to visit the Social Insurance Agency in person to complete the refund procedures, they may authorize a representative in Vietnam to act on their behalf.

According to current regulations, foreign workers must follow these steps:

• Prepare a Power of Attorney clearly stating that the authorized person (usually a Vietnamese national) is permitted to carry out the social insurance refund procedures on their behalf.
• The Power of Attorney must be legally notarized:
  • If the foreigner is still in Vietnam: notarization can be done at a Notary Office or a State Notary Department.
  • If the foreigner has left Vietnam: the document must be notarized at the Vietnamese Consulate in their country of residence, and consular legalization is required for it to be valid for use in Vietnam (if necessary).​​​​​​​

4. Required documents for SI refund application

Foreign employees must prepare the following documents:

• Application for SI refund (using the form issued by the SI authority).
• Certified copy of their passport.
• Labor contract and decision on contract termination.
• Proof of departure from Vietnam (if applicable)
• Power of Attorney (if any)
• Bank account details for receiving the refund.

5. SI refund process

Step 1: Submit the application

Foreign employees must submit their application to the SI authority where their company registered their SI contributions or to the provincial/city-level SI agency.

Step 2: Application processing

 The SI agency will review the application, verify the information, and calculate the refund amount.

Step 3: Receive the refund

 Once the application is approved, the employee will receive a one-time SI refund via bank transfer or another method specified by the SI agency.

Notes:

• Foreign employees can only receive an SI refund once and cannot request another refund after receiving it.
• The processing time for SI refunds can take 1 to 3 months, depending on the SI agency.
• If a foreign employee returns to Vietnam for work, they must re-enroll in the SI system under the new regulations.

Understanding the latest regulations on SI refunds helps foreign employees secure their financial rights. For further assistance, they can contact the local SI authority or consult Zora Consulting for professional guidance.