The Government has just issued Decree No. 212/2025/ND-CP dated July 25, 2025 detailing investment activities from social insurance, health insurance, and unemployment insurance funds.
The Decree clearly states that investment activities from social insurance, health insurance and unemployment insurance funds must comply with the investment principles of each fund as prescribed in the Law on Social Insurance, the Law on Health Insurance and the Law on Employment.
The priority for investment in Government bonds, especially long-term Government bonds, is decided by the Social Insurance Management Board (Management Board) in the annual investment plan and is determined by the ratio of the Government bond balance to the total investment portfolio balance of Vietnam Social Security.
Portfolio
The domestic market portfolio includes the following products:
1. Government debt instruments include Government bonds, Treasury bills, and national construction bonds;
2. Local government bonds, government-guaranteed bonds;
3. Deposits at state-owned commercial banks and joint-stock commercial banks with state capital of over 50% of charter capital; not investing in commercial banks under special control;
4. Bonds and deposit certificates of state-owned commercial banks and joint-stock commercial banks with state capital of over 50% of charter capital; do not invest in commercial banks under special control.
The investment portfolio in the international market is government bonds.
Investment method
According to the Decree, Vietnam Social Security carries out self-investment or entrusted investment.
In case of investment entrustment, Vietnam Social Security shall develop an implementation plan to report to the Board of Management for approval in the annual investment plan.
The investment plan by investment trust method as prescribed above includes the following main contents:
a) The need for investment by trust;
b) Principles and criteria for selecting organizations receiving investment trust (in which organizations receiving investment trust are fund management companies, securities companies, commercial banks with the function of receiving investment trust according to the provisions of relevant laws)
c) Entrustment contents: scope, entrusted products; rights, obligations, commitments of the parties; entrustment term; entrustment costs; other entrustment contents;
d) Solution in case the investment trust organization fails to carry out the entrusted contents;
d) Other contents as required by management.
Based on the plan approved by the Management Board, Vietnam Social Security selects an investment trust organization and signs a contract, which includes the contents specified in Points c and d above.
Annual risk reserve fund deduction not exceeding 2% of investment profit
The Decree clearly states that all profits from investment activities are used as follows:
The risk reserve fund for investment activities shall be set aside from the social insurance, health insurance and unemployment insurance funds according to the following principle: The maximum annual risk reserve fund deduction shall not exceed 2% of the profit from investment activities until the risk reserve fund balance is equal to 5% of the outstanding investment balance in the products specified in Clauses 3 and 4 of the above Investment Portfolio of the previous year. The specific deduction level shall be decided by the Director of Vietnam Social Security.
Unused risk reserve funds are invested in government debt instruments.
The remainder is allocated to social insurance, health insurance, and unemployment insurance funds according to the ratio of the profit contributed by each social insurance, health insurance, and unemployment insurance fund to the total profit of the social insurance, health insurance, and unemployment insurance funds in the year and used as follows:
- Profits are allocated to the social insurance fund after deducting expenses for organizing and operating social insurance according to the provisions of law, the remaining amount is added to the component funds according to the ratio of the profit contributed by each component fund to the total profit of the social insurance fund;
- Profits allocated to the health insurance fund are added to the reserve fund for use in accordance with the provisions of law;
- Profits allocated to the unemployment insurance fund are added to the unemployment insurance fund for use in accordance with the provisions of law.
The allocation and use of profit according to the above regulations is carried out monthly and is adjusted when making annual settlement.
All interest on accounts reflecting income and expenditure of social insurance, health insurance, unemployment insurance (including interest on term deposits by automatic money transfer method) shall be implemented in accordance with the provisions of the Government's Decree stipulating the financial mechanism of social insurance, health insurance, unemployment insurance, and expenses for organization and operation of social insurance, health insurance, and unemployment insurance.
Track and account for investments
The Decree stipulates that costs related to investment activities (custody, transaction and other costs as prescribed by law) are accounted for and paid according to the provisions of the Government's Decree stipulating the financial mechanism for social insurance, health insurance, unemployment insurance, and costs for organization and operation of social insurance, health insurance and unemployment insurance.
The principal amount received from the investment is monitored and accounted for independently for each fund (social insurance fund, health insurance, unemployment insurance, risk reserve fund), in which the social insurance fund is detailed for each component fund and is accounted for according to the accounting regime of Vietnam Social Security.
All profits earned from the investment (including profits from the risk reserve fund) shall be allocated to the social insurance fund, health insurance fund, unemployment insurance fund and component funds of the social insurance fund as prescribed in Article 13 of this Decree and shall be accounted for according to the accounting regime of Vietnam Social Security.
The amount recovered from overdue investment activities is accounted for in the order of collecting the principal first, then collecting the interest. In case there is a specific court judgment, the recovered amount is accounted for according to the court judgment.
Responsibilities of Vietnam Social Security and Director of Vietnam Social Security
The Decree also specifically stipulates the responsibilities of Vietnam Social Security as follows:
Vietnam Social Security shall organize investment in accordance with the provisions of the Law on Social Insurance, the Law on Health Insurance, the Law on Employment and this Decree; be responsible to the Management Board for investment from the social insurance, health insurance and unemployment insurance funds according to the long-term investment strategy and approved annual investment plan; and report to the Management Board and relevant ministries and branches on the situation and results of investment activities in accordance with the provisions of Article 19 of this Decree.
In addition, manage, store and preserve records of investment activities from social insurance, health insurance and unemployment insurance funds in accordance with the provisions of the law on accounting and relevant laws.
Fully and promptly report data and documents related to investment activities from social insurance, health insurance, and unemployment insurance funds to the Ministry of Finance, Ministry of Home Affairs, Ministry of Health and competent state agencies as prescribed or upon request.
The Director of Vietnam Social Security is responsible for promulgating professional regulations, deciding on the annual risk reserve fund allocation level, handling risks within his/her authority and performing the duties of the Director of Social Security as prescribed in this Decree.
This Decree takes effect from July 25, 2025; replaces Decree No. 30/2016/ND-CP dated April 28, 2016 of the Government detailing investment activities from social insurance, health insurance and unemployment insurance funds. The provisions at Point d, Clause 1, Clause 2, Article 4 and Article 11 of Decree No. 30/2016/ND-CP shall continue to be implemented until the Law on Employment No. 38/2013/QH13 dated November 16, 2013 ceases to be effective.
Vietnam+Source: https://baohaiphongplus.vn/ban-hanh-quy-dinh-chi-tiet-ve-hoat-dong-dau-tu-tu-cac-quy-bao-hiem-417367.html
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