Hanoi names and shames firms

10:49 | 22/03/2018
Hanoi’s Social Insurance has published a list of 500 businesses with long overdue social insurance premiums, lasting between six months and two years.
hanoi names and shames firms
Social insurance transactions in Hanoi – VNA/VNS Photo

The total debt amounts to more than VNĐ322 billion (US$14.1 million).

The delay in paying off debts by these enterprises have affected more than 16,500 workers in the city.

According to the list, the largest debt owner is VIT Garment Co. Ltd in Me Linh District, with a debt amount of over VND18.7 billion ($820,930) from more than 900 workers in 16 months.

Four other enterprises own a debt of more than VND10 billion ($439,000). These include Cienco 1 Bridge 12 JSC in Long Bien District, Investment and Construction No. 4 JSC in Đong Da District, Bridge 17-CIENCO 1 Enterprise in Ba Dinh District and Song Tich Irrigation Company Limited in Son Tay District.

These enterprises owe debts ranging from VND10.5 billion to VNĐ11.8 billion between 10-24 months.

Some businesses only owe more than VND100 million ($4,390), but the debt duration is long, ranging from 23 to 24 months. Thus, employees of these businesses are derived of benefits such as social insurance, health insurance and unemployment insurance.

According to Hanoi’s Social Insurance, some enterprises have long overdue debts because of difficulties in business, bankruptcy or temporary suspension of operations.

Social Insurance has informed these enterprises about the delay in paying the debts.

Under the current law, employers who ignore or fail to pay social insurance, health insurance and unemployment insurance for employees can be punished up to seven years in prison and be fined up to billions of đong.

Last December, authorities in Hanoi had ordered the city’s inspectors to inspect enterprises with long overdue social insurance premiums.

According to Social Insurance, more than VND2.8 trillion ($122 million) in premiums for social insurance, unemployment insurance and health insurance are overdue as of last November, making up 8.47 per cent of the collection plan.

Hanoi is one of the localities with the highest social insurance, unemployment insurance and health insurance premium debts, directly affecting the legal benefits of nearly 760,000 labourers.

VNA

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