The Government issued Decree No. 212/2025/ND-CP on July 25, 2025, outlining regulations for the investment of social insurance (SI), health insurance (HI), and unemployment insurance (UI) funds.
The Decree explicitly states that investment activities involving the Social Insurance, Health Insurance, and Unemployment Insurance funds must adhere to the investment principles set out in the respective laws—the Law on Social Insurance, the Law on Health Insurance, and the Law on Employment. Priority is given to investing in government bonds, particularly long-term bonds, as determined by the Social Insurance Management Board. This priority is reflected in the annual investment plan and based on the proportion of government bond holdings relative to the total investment portfolio of Vietnam Social Insurance.
According to the Decree, Vietnam Social Security (VSS) may conduct investments either directly or through entrusted investment arrangements. In the case of entrusted investments, VSS must develop an implementation plan and submit it to the Management Board for approval as part of the annual investment plan.
The entrusted investment plan must include the following key elements:
a) The rationale and necessity for entrusted investment;
b) Principles and criteria for selecting trustee organizations, which may include fund management companies, securities firms, or commercial banks authorized to receive entrusted investments under relevant laws;
c) Trust contents, including scope, investment products, rights and obligations of involved parties, commitments, trust term, fees, and other related terms;
d) Remedial measures in the event the trustee organization fails to fulfil its obligations;
e) Any additional contents required by the management authority.
Once the plan is approved by the Management Board, VSS proceeds to select a trustee organization and formalizes the arrangement through a contract covering the trust terms outlined in points (c) and (d).
Regarding investment costs as well as monitoring and accounting of investments, the Decree stipulates that expenses related to investment activities such as custody fees, transaction costs, and other legally prescribed charges shall be recorded and paid in accordance with the Government’s Decree on the financial mechanisms governing social insurance, unemployment insurance, health insurance and the operational expenditures of their respective administrative bodies.