Ho Chi Minh City’s Social Insurance agency has proposed a comprehensive review of 6,787 licensed transport businesses across the city to verify whether they are fulfilling mandatory social insurance obligations for their workforce. The move follows growing concern over widespread contribution evasion and unpaid dues within the transport industry.
Nguyen Quoc Thanh, deputy director of the agency, presented the proposal during a working session with a monitoring delegation from the Federation of Labour. Highlighting the massive scale of the sector—which encompasses 324,473 permitted vehicles operating under co-operatives, commercial companies, and individual operators—he emphasised the urgent need for stricter oversight. To ensure thorough inspection, the agency requested the city’s Federation of Labour to recommend that the City People’s Committee mandate the Department of Construction to join the joint review.
Inspectors plan to scrutinise employment contracts to determine whether mandatory social, health, and unemployment insurance contributions are being properly paid for drivers and service staff. The agency specifically flagged instances where businesses utilise service contracts, co-operation agreements, or alternative arrangements intended to disguise formal employment relationships and evade statutory contribution obligations.
The enforcement push arrives amid troubling financial statistics. As of 30 September, delayed contributions across Vietnam’s three statutory insurance schemes reached nearly 13.6 trillion Vietnamese dong (VN$), representing more than 8.4 per cent of Vietnam Social Insurance’s total revenue target. Nationwide, roughly 158,273 units have fallen behind on payments. In Ho Chi Minh City alone, figures reported by Lao Dong reveal that 100 transport enterprises have defaulted for six months or longer, accumulating a combined debt of over VN$892 billion affecting nearly 13,500 employees. The agency has prioritised debt recovery, classifying non-compliant businesses by severity, cause, and recoverability.
This crackdown is bolstered by a tightened legal framework. Following the implementation of Vietnam’s updated Law on Social Insurance, which formally distinguishes late payments from intentional contribution evasion, the government issued Decree 283/2026/ND-CP to enforce distinct penalty regimes. Under-declaring salary bases or failing to settle debts after official reminders carries fines ranging between 18 per cent and 20 per cent of the evaded amount, capped at VN$75 million. Crucially, repeat offenders risk referral to law enforcement for criminal prosecution.
Despite widespread sector concerns, compliant operators welcome equal enforcement. A representative from a transport company based in eastern Ho Chi Minh City noted that all their drivers sign formal contracts and enter insurance schemes prior to employment. Ensuring full compliance is essential, the representative explained, as operational incidents quickly expose regulatory breaches, leading to severe penalties that damage commercial reputations and brand value.
For international brokers advising multinational corporations, logistics operators, and transport procurement partners in Vietnam, these regulatory developments mark a shift toward systematic enforcement. As Vietnam Social Insurance actively categorises non-compliant firms, maintaining transparent employment contracts and verifying partner compliance has become vital to mitigating legal, financial, and reputational risks.
