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Hiroshi Karashima, chairman of the Japan Business Association in Việt Nam, said a distinction must be made clear between foreign workers who are obliged to join the social insurance and those who can opt out. He also called for bilateral agreements on social insurance between Việt Nam and other countries so foreign workers won’t have to pay for social insurance in two countries. According to many businesses, most labourers are on short-term employment or project-based contracts, so they would like to be able to opt for short-term coverage, like illness, maternity, and occupational accidents. Labourers also want to know if they will receive insurance payouts quickly enough or in the currency of their choosing when their contract ends and they return home. Labourers also complained about the confusing terminology and language of the draft decree. Phạm Thanh Du, director of VSI’s Finance and Accounting Department, said the nature of social insurance for foreign workers would require social insurance staff to have a good command of foreign languages, IT knowledge, and familiarity with international practices, all of which would require State investment. Former MoLISA Minister Phạm Minh Huân said social insurance for foreign workers is a necessary move but would “not be easy to implement”, as it involves other countries’ laws. Bilateral agreements are a must, he said, otherwise, foreign workers would not be interested in the insurance, and the implementation would be met with resistance. The mandatory social insurance decree for foreign workers in Việt Nam is expected to take effect from the beginning of next year, 2018.
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