The latest regulations on investment activities from insurance funds.

The Decree stipulates that investment activities from the Social Insurance, Health Insurance, and Unemployment Insurance funds must comply with the investment principles of each fund as prescribed in the Social Insurance Law, the Health Insurance Law, and the Employment Law. Prioritizing investment in government bonds, especially long-term government bonds, is decided by the Social Insurance Management Council (Management Council) in its annual investment plan and is determined by the proportion of the outstanding balance of government bonds to the total investment portfolio balance of Vietnam Social Insurance.

Investment portfolio

The investment portfolio in the domestic market 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 in state-owned commercial banks and joint-stock commercial banks with more than 50% state capital; no investments in commercial banks under special supervision;

4. Bonds and certificates of deposit issued by state-owned commercial banks and joint-stock commercial banks with more than 50% state ownership in their charter capital; no investment in commercial banks under special supervision.

The investment portfolio in the international market consists of government bonds.

Investment method

According to the Decree, Vietnam Social Security (BHXH Vietnam) undertakes self-investment or entrusted investment. In the case of entrusted investment, BHXH Vietnam develops an implementation plan to report to the Management Council for approval in the annual investment plan.

The investment plan using the investment trust method as stipulated above includes the following main contents: a) The necessity of investing through trust arrangements; b) Principles and criteria for selecting investment trustee organizations (in which investment trustee organizations are fund management companies, securities companies, and commercial banks with the function of receiving investment trustees as prescribed by relevant laws); c) Entrustment details: scope and products of entrustment; rights, obligations, and commitments of the parties; entrustment period; entrustment costs; other entrustment details; d) Procedures for handling situations where the entrusted investment organization fails to fulfill the entrusted responsibilities; 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 stipulated in points c and d above.

The annual risk reserve fund shall not exceed 2% of the investment returns.

Regarding the use of investment profits, The decree clearly states that all profits from investment activities shall be used as follows: A reserve fund for investment risks shall be established from the Social Insurance, Health Insurance, and Unemployment Insurance funds according to the following principles: The maximum annual risk reserve fund contribution shall not exceed 2% of the investment returns until the risk reserve fund balance equals 5% of the outstanding investment balance in the products specified in clauses 3 and 4 of the aforementioned Investment Portfolio for the preceding year. The specific deduction rate is determined by the Director of Vietnam Social Security. The risk reserve fund, while not in use, is invested in government debt instruments.

The remaining amount is allocated to the social insurance, health insurance, and unemployment insurance funds according to the ratio of the profit contributed by each fund to the total profit of the social insurance, health insurance, and unemployment insurance funds in the year, and is used as follows:

- Profits are allocated to the Social Insurance Fund after deducting expenses for the organization and operation of Social Insurance as prescribed by law. The remaining amount is added to the component funds according to the ratio of the profit contribution of 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 law;

- Profits allocated to the unemployment insurance fund are added to the fund for use in accordance with the law.

The allocation and use of profits as stipulated above are carried out monthly and adjusted during the annual settlement.

All interest earned on accounts reflecting the collection and disbursement of social insurance, health insurance, and unemployment insurance (including interest on time deposits via automatic money transfer) shall be calculated in accordance with the Government Decree stipulating the financial mechanism for social insurance, unemployment insurance, health insurance, and the organization and operation of social insurance, unemployment insurance, and health insurance.

Track and account for investments.

Regarding investment costs and the tracking and accounting of investments, The Decree stipulates that costs related to investment activities (custody fees, transaction fees, and other fees as prescribed by law) shall be accounted for and paid in accordance with the Government Decree regulating the financial mechanism for social insurance, unemployment insurance, health insurance, and the organization and operation costs of social insurance, unemployment insurance, and health insurance.

The principal amount received from the investment is tracked and accounted for independently for each fund (Social Insurance Fund, Health Insurance Fund, Unemployment Insurance Fund, Risk Reserve Fund), with the Social Insurance Fund detailed by component fund and accounted for according to the accounting regulations of Vietnam Social Insurance.

All profits earned from investments (including profits from the risk reserve fund) are allocated to the Social Insurance Fund, Health Insurance Fund, Unemployment Insurance Fund, and other component funds of the Social Insurance Fund as stipulated in Article 13 of this Decree, and are accounted for according to the accounting system of Vietnam Social Insurance.

The amount recovered from overdue investment debt is accounted for in the order of full principal repayment first, followed by interest repayment. If there is a specific court ruling, the recovered amount is accounted for according to the court's judgment.

Responsibilities of Vietnam Social Security and the Director of Vietnam Social Security

The decree also specifies the responsibilities of Vietnam Social Security as follows:

The Vietnam Social Security (BHXH Vietnam) shall organize and implement investments 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 Council for the implementation of investments from the Social Insurance, Health Insurance, and Unemployment Insurance funds according to the approved long-term investment strategy and annual investment plan; and report to the Management Council and relevant ministries and agencies on the situation and results of investment activities as prescribed in 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 accounting laws and relevant legal regulations. Report fully and promptly all data and documents related to investment activities from social insurance, health insurance, and unemployment insurance funds to the Ministry of Finance , the Ministry of Interior, the Ministry of Health, and competent state agencies as prescribed or when requested.

The Director of Vietnam Social Security is responsible for issuing operational regulations, deciding on the annual risk reserve fund allocation, handling risks within their authority, and performing the duties of the Director of Social Security as stipulated in this Decree.

This Decree takes effect from July 25, 2025; replacing Decree No. 30/2016/ND-CP dated April 28, 2016 of the Government detailing investment activities from the Social Insurance, Health Insurance, and Unemployment Insurance funds. Regarding the provisions in point d, clause 1, clause 2 of Article 4 and Article 11 of Decree No. 30/2016/ND-CP, they shall continue to be implemented until the Employment Law No. 38/2013/QH13 dated November 16, 2013 ceases to be in effect.

Source: https://phunuvietnam.vn/quy-dinh-moi-nhat-ve-hoat-dong-dau-tu-tu-cac-quy-bao-hiem-20250726220517901.htm