Social Insurance: Chinese Working in Vietnam and Vice Versa

Social insurance for Chinese working in Vietnam and vice versa: a full comparison

Chinese specialists working in Vietnam, Vietnamese engineers on long assignments in China — the questions "where to contribute, how much, can periods be combined" always follow. Cross-border social insurance is an area where a small mistake (wrong jurisdiction, missed coverage) can trigger large retroactive assessments on inspection.

This article compares the regimes for both directions of Vietnam–China labor mobility across 6 axes.

Contents

• 1. Axis 1 — Mandatory coverage
• 2. Axis 2 — Insurance schemes
• 3. Axis 3 — Contribution rates and salary base
• 4. Axis 4 — Bilateral social security agreements
• 5. Axis 5 — Maternity and sickness benefits
• 6. Axis 6 — Lump-sum withdrawal and cross-border portability
• 7. Summary comparison table
• 8. Hypothetical scenario: a specialist hit with retroactive assessment
• 9. Registration procedure for foreigners in Vietnam (general framework)
• 10. Common FDI mistakes
• 11. Recommendations for businesses with Vietnam–China cross-border workers
• 12. Social insurance for Vietnamese working in China: the general framework
• 13. Totalizing Vietnam–China insurance periods: status and practical fixes
• 14. Compliance checklist for employers with cross-border staff
• FAQ

1. Axis 1 — Mandatory coverage

Into Vietnam: Chinese working in Vietnam

Vietnamese social insurance law extends mandatory coverage to foreign workers in Vietnam in statutory cases — typically those holding a work permit, practice certificate or professional license issued by a competent Vietnamese authority, working under a labor contract at a Vietnamese enterprise.

The 2024 Law on Social Insurance (No. 41/2024/QH15, effective 01/7/2025) continues to affirm and guarantee foreign workers' right to participate in and benefit from social insurance in Vietnam. Non-covered cases (e.g. short-term intra-corporate transferees under international commitments, or agreement-based exemptions) must be determined case by case.

Into China: Vietnamese working in China

Chinese law subjects foreigners working in China to mandatory social insurance, except where exempted under a bilateral agreement. A key feature: China administers social insurance locality by locality (province/city), so eligibility conditions and registration procedures may differ between Beijing, Shanghai, Guangdong…

2. Axis 2 — Insurance schemes

Vietnam: social insurance covers sickness, maternity, work accident – occupational disease, retirement and survivorship; health insurance and unemployment insurance are separate schemes usually administered together.

China: the "five insurances" (五险): pension, medical, unemployment, work injury and maternity insurance. Foreigners join the schemes as provided, with some localities issuing their own guidance on scope.

3. Axis 3 — Contribution rates and salary base

Both countries use a shared-contribution model: employee and employer contribute at rates applied to the salary base, subject to a cap.

This article states no specific rates because they are frequently adjusted — the principles to remember:

• Salary base: the wage stated in the labor contract (including statutory wage allowances), capped at a maximum;
• Split: the employer bears the larger share; the employee's smaller share is withheld from salary;
• Cap: salary above the cap is not contributable — important for highly-paid specialists.

A common FDI mistake: contributing for foreign specialists on a low basic salary while actual pay is far higher — on inspection, the gap is retroactively assessed.

4. Axis 4 — Bilateral social security agreements

The ideal mechanism to avoid double contributions is a bilateral social security agreement, typically providing:

• Exemption from double coverage: workers seconded to the other country for a defined period contribute in only one country (usually the sending country);
• Aggregation of periods: contribution periods in both countries combine toward pension eligibility.

The conclusion status and scope of any Vietnam–China agreement must be checked at the time of advice — this changes and directly determines the contribution plan for each case. Without a covering agreement, each country applies its own law independently.

5. Axis 5 — Maternity and sickness benefits

Foreign female workers giving birth in Vietnam enjoy maternity benefits under Vietnamese social insurance law if contribution conditions are met. Conversely, Vietnamese women giving birth in China are covered under Chinese law.

Practical note: benefit procedures (hospital documents, translation, legalization) are far more complex for foreign workers — businesses should help prepare dossiers early rather than starting when filing deadlines loom.

6. Axis 6 — Lump-sum withdrawal and cross-border portability

When a foreign worker ends the contract and leaves, Vietnamese law permits a lump-sum withdrawal subject to statutory conditions (contract terminated, departure, no longer working in Vietnam…). Procedures run at the social insurance agency of contribution, with proof of departure/no longer residing or working.

Conversely, "carrying" benefits from China back to Vietnam (or vice versa) without an aggregation agreement follows each country's law independently — usually a lump-sum withdrawal where the contributions were made (if that country's law allows) rather than a transfer.

7. Summary comparison table

8. Hypothetical scenario: a specialist hit with retroactive assessment

The scenario below is hypothetical, built from common violation patterns seen in inspections — not a specific case of any company.

Suppose an FDI manufacturer brought in a group of Chinese specialists on 2-year labor contracts paying VND 60 million/month in real wages, but contributed social insurance on only VND 8 million/month — reasoning "foreign specialists don't need full contributions."

On inspection by the social insurance agency:

• retroactive assessment of the gap between the actual and declared contribution base for the whole period;
• administrative fines plus late-payment interest;
• the company spent months reworking payroll dossiers with the agency.

Lesson: contribution rules for foreign workers mirror those for Vietnamese workers — contribute on the actual salary base, subject to the cap. Under-declaring to save cost is the most expensive saving.

9. Registration procedure for foreigners in Vietnam (general framework)

1. Determine coverage: check the work permit/professional license, contract type and assignment duration;
2. Prepare the dossier: participation declaration, labor contract, work permit (copy), ID documents;
3. File with the social insurance agency of the employer's locality, within the statutory deadline after the employment relationship arises;
4. Receive the social insurance book and social insurance number for the worker;
5. Contribute monthly with the payroll cycle; report increases/decreases on headcount changes;
6. Close the book on contract termination: confirm the contribution period, hand the book to the worker.

For Vietnamese going to China: registration runs at the local social insurance agency of the workplace, usually handled by the Chinese employer; the worker provides passport, work permit and labor contract.

10. Common FDI mistakes

• Not registering foreign specialists, assuming "foreigners aren't mandatory" — wrong for most cases with a work permit and labor contract in Vietnam;
• Contributing on a low basic salary while actual pay is higher — retroactively assessed on inspection;
• Forgetting to report decreases when a specialist's contract ends and they leave — contributions keep accruing until reported;
• Not supporting benefit procedures (maternity, sickness) for foreign workers — leading to complaints;
• Confusing the schemes: social, health and unemployment insurance are three separate regimes, not "one payment covers all";
• Ignoring bilateral agreements (if any): paying in both countries when an exemption from double coverage was available.

11. Recommendations for businesses with Vietnam–China cross-border workers

1. Determine coverage correctly the moment a foreign worker arrives: mandatory or exempt (short intra-corporate transfer, agreement);
2. Register promptly and contribute on the right base (actual salary, not an under-declared figure);
3. Check bilateral agreements before choosing a contribution plan for seconded specialists;
4. Support benefit procedures for foreign workers (maternity, sickness) — prepare dossiers and translations early;
5. When workers leave: guide lump-sum withdrawal procedures (if eligible) and close books completely;
6. Keep records of foreign workers' social insurance participation carefully — inspectors ask for these first.

12. Social insurance for Vietnamese working in China: the general framework

The reverse flow — Vietnamese working in China — also needs the legal picture:

• General rule: foreigners working in China are subject to Chinese social insurance under Chinese law (covering pension, medical, unemployment, work-injury and maternity funds — details vary by locality given China's decentralized administration);
• Exemptions: some cases are exempt with a bilateral social-security agreement and a certificate of continued home-country coverage;
• Practice: many Vietnamese companies sending staff to China short-term (under 6 months) keep Vietnamese contributions and skip Chinese enrollment — but check the specific locality's rules, as application varies across Chinese provinces/cities.

Important: Chinese social-insurance law varies by locality and over time — any long-term assignment to China deserves local legal advice.

13. Totalizing Vietnam–China insurance periods: status and practical fixes

A common question: 5 years contributing in Vietnam + 5 years in China — can they combine into 10 years for pension purposes?

Agreement status: totalization depends on a bilateral social-security agreement. As of this writing (28/9/2026), Vietnam and China have no comprehensive bilateral social-security agreement in force covering this — check the agreement status at the time of application, as treaties may be concluded later.

Practical fixes without an agreement:

• Lump-sum withdrawal in the country of contribution (where permitted) upon terminating work and returning home;
• Preserve contribution periods in each country and claim benefits under each country's law independently when eligible (e.g., pension in Vietnam once age and years conditions are met there);
• Personal tracking: cross-border workers should track contribution periods per country separately and keep all insurance books and benefit decisions — don't lose papers and try to "restore" them later.

14. Compliance checklist for employers with cross-border staff

1. Screen coverage: list all foreign employees; determine who is mandatorily covered and who is exempt (with certificates);
2. Correct base: contribute on the actual statutory wage base — no under-declaring — subject to the statutory cap;
3. Timely enrollment: enroll foreigners as soon as eligible, not "after probation";
4. Bilingual files: prepare translated dossiers so foreign employees understand their benefits — fewer complaints;
5. On repatriation: guide lump-sum/closure procedures and settle fully — a clean goodbye prevents later disputes;
6. Periodic updates: assign someone to track SI law changes (both Vietnam and China) at least every 6 months.

Internal coordination note: cross-border SI compliance is a three-way coordination — HR (files, enrollment), accounting (contribution base, costs), legal (rule checks). Many companies hand it to one department and let each work alone, producing mismatches between SI declarations and PIT returns — exactly what joint inspections scrutinize most. Designate one owner for quarterly reconciliation.

FAQ

Q: Must Chinese nationals working in Vietnam join mandatory social insurance?

A: Yes, if they fall within mandatory coverage under Vietnamese law (holding a work permit, working under a labor contract at a Vietnamese enterprise…). The 2024 Law on Social Insurance (effective 01/7/2025) continues to guarantee foreign workers' right to participate in and benefit from social insurance in Vietnam.

Q: Must Vietnamese working in China join Chinese social insurance?

A: Under Chinese law, foreigners working in China are subject to mandatory social insurance, except where exempted under a bilateral agreement (if any). Check the current rules of the locality of work, as China administers social insurance province by province.

Q: Can contribution periods in Vietnam and China be aggregated?

A: Aggregation depends on a bilateral social security agreement (if any, and its scope). Without a covering agreement, contribution periods in each country are counted independently under each country's law.

Q: Can foreigners withdraw a lump sum of social insurance when leaving?

A: Vietnamese law allows a lump-sum withdrawal for foreign workers upon termination of the labor contract and departure, no longer working in Vietnam, subject to statutory conditions. Procedures are handled at the social insurance agency where contributions were made.

Q: Do Chinese nationals working in Vietnam under 3 months have to contribute?

A: Mandatory coverage depends on the labor-contract type and working duration under the rules. Very short stints (e.g., specialists installing machinery for a few weeks) are typically not covered — but check specifics: is there a labor contract, a work permit? Assignments under inter-company service contracts (not direct labor contracts) are treated differently. When unsure, consult the SI authority or counsel before deciding not to contribute.

Q: Are SI contributions for foreigners deductible for CIT?

A: In principle, mandatory SI/HI/UI contributions for employees (including covered foreigners) are deductible in computing taxable CIT income, with proper vouchers and lawful payment. Under-declaring not only violates SI law but also shrinks legitimate deductions — penny-wise and pound-foolish.

Q: Are foreign female employees entitled to maternity benefits in Vietnam?

A: If mandatorily covered in Vietnam and meeting contribution-period conditions under the SI Law, foreign female employees enjoy maternity benefits like Vietnamese staff — including the lump-sum childbirth allowance and paid maternity leave. Employers should guide them through claims, as many foreign workers don't know they have this right.

When to work with a lawyer

When onboarding foreign specialists with complex structures (intra-corporate transfer, salary paid from the parent); when facing retroactive social insurance assessments; or when building cross-border benefit policies for a group. FLAT Law Firm advises FDI businesses and the China Desk on labor and social insurance — hotline 0988424851.

References

• Law on Social Insurance 2024 (No. 41/2024/QH15), effective 01/7/2025.
• Labor Code 2019 (No. 45/2019/QH14), effective 01/1/2021.
• Chinese social insurance law and local implementing rules.
• Cross-checked at the time of writing (28/9/2026).

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