ONE-TIME SOCIAL INSURANCE WITHDRAWAL FOR FOREIGNERS IN VIETNAM

Thursday, 12/11/26

Foreign employees working in Vietnam under employment contracts are required to participate in compulsory social insurance in accordance with Vietnamese law. When their employment in Vietnam comes to an end or their Work Permits expire without renewal, they may be eligible to receive a lump-sum social insurance payment under applicable regulations.

However, the withdrawal process involves several important considerations, including eligibility requirements, social insurance contribution finalization, required documents, benefit calculation, and application procedures. For foreign employees who have already returned to their home countries, completing these procedures may also require additional coordination and authorization arrangements.

In this article, Visa5s.com provides practical guidance on one-time social insurance withdrawal for foreigners in Vietnam, helping you understand your entitlements, prepare the necessary documents, and navigate the application process more conveniently.

CAN FOREIGNERS WITHDRAW SOCIAL INSURANCE IN VIETNAM?

Foreign employees who participate in compulsory social insurance in Vietnam are entitled to claim a lump-sum social insurance payment when they meet one of the conditions specified under Clasue 2 Article 70 of Law No. 41/2024/QH15 about Social Insurance.

Under Social Insurance Law, foreign employees may qualify for a lump-sum social insurance payment in several circumstances, including the termination of their employment contracts or the expiration of their Work Permits, professional practice certificates, or practice licenses without renewal.

Unlike Vietnamese employees, foreign employees are subject to a separate set of eligibility conditions. Therefore, they do not have to satisfy the 12-month waiting period applicable to a particular category of Vietnamese employees withdrawing social insurance.

Below is detailed information of the related clause in Social Insurance Law:

Clause 2, Article 2 of Law No. 41/2024/QH15:

2. Foreign nationals working in Vietnam are subject to compulsory social insurance if they are employed under a definite-term labor contract with a duration of 12 months or more with an employer in Vietnam, except in the following cases:

a) They are intra-corporate transferees, as defined by the laws governing foreign workers in Vietnam;

b) At the time of entering into the labor contract, they have reached the retirement age stipulated in Clause 2, Article 169 of the Labor Code;

c) An international treaty to which the Socialist Republic of Vietnam is a party provides otherwise.

Clause 2 Article 70 of Law No. 41/2024/QH15:

“2. Individuals specified in Clause 2, Article 2 of this Law who have ceased participating in social insurance may, upon request, receive a one-time social insurance payment if they fall into any of the following categories:

a) They have reached the retirement age but have not yet completed 15 years of social insurance contributions;

b) They are suffering from one of the following conditions: cancer, paralysis, decompensated cirrhosis, severe tuberculosis, or AIDS;

c) They have a loss of working capacity of 81% or higher, or are classified as having a particularly severe disability;

d) They meet the requirements for a pension but no longer reside in Vietnam;

e) They have terminated their employment contract, or their work permit, professional practice certificate, or professional practice license has expired without being renewed.”

WHEN CAN FOREIGNERS APPLY FOR A LUMP-SUM SOCIAL INSURANCE PAYMENT?

Foreign employees may apply for a lump-sum social insurance payment when they fall under one of the eligible circumstances specified in Clause 2 Article 70 of Law No. 41/2024/QH15 and have completed the required social insurance finalization procedures.

For foreign employees, the eligible circumstances include:

Upon termination of the employment contract: A foreign employee may qualify for a lump-sum payment when their employment contract with the employer in Vietnam is terminated.
Upon expiration of the Work Permit without renewal: Foreign employees may also qualify when their Work Permits expire and are not renewed.
Upon expiration of a professional practice certificate or practice license without renewal: This applies to employees whose professional practice certificates or practice licenses expire without being renewed.

Before submitting the application, foreign employees should ensure that:

They meet at least one of the eligibility conditions specified under Clause 2 Article 70 of Law No. 41/2024/QH15.
Their employer has completed the social insurance finalization procedures.
They have received the finalized social insurance book or separate contribution record (social insurance record sheet) confirming their contribution history.

Once these requirements have been fulfilled, employees can proceed with preparing and submitting their application for a lump-sum social insurance payment to the competent social insurance authority.

REQUIRED DOCUMENTS AND APPLICATION PROCEDURES OF ONE-TIME SOCIAL INSURANCE WITHDRAW FOR FOREIGNERS IN VIETNAM

1. Required Documents

Under Clasue 01 Article 78 of Law No. 41/2024/QH15, the basic documents required for a lump-sum social insurance application include:

No.	Document Name	Discription
1	Application for Lump-Sum Social Insurance Payment	A written request for a lump-sum social insurance payment (Form No. 14-HSB).
2	Social Insurance Book Cover	The original social insurance book cover.
3	Separate Social Insurance Record Sheets	The original separate sheets recording the employee's finalized social insurance contribution history.
4	Decision on Labor Contact Termination	Original or Notarized true copy
5	Passport of the foreigner	Certified translation into Vietnamese
6	Work Permit	Photocopy
7	Power of Attorney Agreement	Must be carried out at a Notary Office Only applicable for case of submitting under authorization
8	ID Card of the authorized person	Only applicable for case of submitting under authorization

2. Application Procedures

The application process for a lump-sum social insurance payment for foreign employees in Vietnam generally involves the following steps:

Step Orders	Discription for each step
Step 1: Check Eligibility	Review the employee's eligibility for a lump-sum social insurance payment under Clause 2, Article of Law No. 41/2024/QH15. Determine whether the employee meets one of the applicable conditions, such as employment contract termination or Work Permit expiration without renewal.
Step 2: Finalize Social Insurance Contributions	Ensure that the employer has completed the social insurance finalization procedures and that all contribution periods have been properly recorded. The employee should obtain the finalized social insurance book cover and separate social insurance record sheets confirming their contribution history.
Step 3: Complete Authorization Procedures (If Applicable)	If the foreign employee cannot personally submit the application, they may authorize another person to handle the procedures on their behalf. In this case, the employee should prepare an authorization document and complete the necessary notarization procedures at a notary office in Vietnam. The authorized representative should ensure that the authorization document clearly specifies the scope of authority, including the submission of the application and other related procedures.
Step 4: Prepare the Required Documents	Prepare the application documents, including: Original social insurance book cover. Original separate social insurance record sheets. Application for Lump-Sum Social Insurance Payment (Form No. 14-HSB). Other supporting documents as mentioned in the above section.
Step 5: Submit the Application	Submit the complete application to the competent social insurance authority in accordance with the applicable submission procedures.
Step 6: Follow Up and Receive the Lump-Sum Payment	Monitor the application status and respond to any requests for additional documents or clarification from the social insurance authority, if necessary. Once the application is approved, the employee will receive the lump-sum social insurance payment through the payment method accepted by the competent authority. For example: bank transfer or cash.

CAN FOREIGNERS AUTHORIZE SOMEONE TO HANDLE THEIR APPLICATION?

Foreign employees who cannot personally attend to their social insurance application in Vietnam may consider authorizing another person to assist with the relevant procedures.

This can be particularly useful for employees who have already returned to their home countries.

The Authorization Process May Involve:

Identifying the Authorized Representative: Selecting the person who will be authorized to handle the lump-sum social insurance withdrawal procedures on behalf of the foreign employee.
Coordinating with the Notary Office and Translator: Confirming in advance that the notary office can assist with notarizing the power of attorney for the lump-sum social insurance withdrawal and arranging a qualified translator to support the notarization process.
Arranging the Required Attendance: Coordinating the attendance of all relevant parties, including the foreign employee, the authorized representative, and the translator, at the notary office to complete the notarization procedures, as required.
Reviewing the Authorization Documents: Carefully checking the power of attorney to ensure that the foreign employee's personal information, including their full name, passport number, nationality, and other relevant details, is accurate and consistent with their official documents. The scope of authorization should also clearly cover the intended social insurance withdrawal procedures.

What can an authorized representative assist with?

Depending on the scope of authorization and the receiving authority's requirements, the representative may assist with:

Preparing and reviewing application documents.
Submitting the application.
Following up on the application status.
Receiving documents or results.

PROCESSING TIME AND COMMON APPLICATION ISSUES

Processing Time

Under Clause 3, Article 79 of Law No. 41/2024/QH15, the social insurance authority is responsible for processing a lump-sum social insurance application within 07 working days from the date of receipt of a complete application.

If the application is not approved, the authority must provide a written response explaining the reasons.

The statutory processing period should be distinguished from the overall time required to prepare documents, arrange authorization, or resolve discrepancies in contribution records.

Common Application Issues

Foreign employees may encounter several issues during the application process:

Common Issues	Explanation
Missing Social Insurance Book	The employee cannot provide the required social insurance book.
Incomplete Contribution Records	Certain contribution periods have not been fully recorded or updated.
Incorrect Personal Information	Differences in passport details or personal information between documents.
Unclear Employment Termination Records	Supporting documents do not adequately establish the relevant employment termination circumstances.
Authorization Issues	The authorization documents do not meet the receiving authority's requirements.
Payment Information Issues	Incorrect or incomplete banking information affects payment arrangements.

Recommendation: Foreign employees should review their social insurance contribution history and verify their personal information before submitting an application to reduce the risk of delays or requests for additional documents.

FREQUENTLY ASKED QUESTIONS

1. Can foreigners withdraw social insurance after working in Vietnam for less than one year?
Yes. Foreign employees may qualify for a lump-sum social insurance payment even if they have contributed for less than one year, provided they meet an eligible condition under Clause 2, Article 70.

2. Do foreigners have to leave Vietnam before withdrawing social insurance?
No. Foreign employees do not have to leave Vietnam to claim a lump-sum payment if they qualify under the employment termination or permit expiration conditions specified in Clause 2, Article 70.

3. Can foreigners withdraw social insurance if their Work Permit expires?
Yes. Foreign employees may qualify when their Work Permits expire without renewal.

4. How long does it take to receive a lump-sum social insurance payment?
The social insurance authority must process a complete application within seven working days. Additional document preparation or verification may affect the overall timeline.

5. Can someone else withdraw social insurance on behalf of a foreign employee?
An employee may consider authorizing a representative to assist with the application, subject to the applicable authorization requirements and the scope of tasks accepted by the social insurance authority.

6. How much social insurance will foreigners receive when withdrawing?
For contribution periods from 2014 onwards, the benefit is generally calculated at two months of the average monthly salary for each year of contributions. The actual amount depends on the employee's official contribution records.

NEED ASSISTANCE WITH SOCIAL INSURANCE WITHDRAWAL IN VIETNAM?

Claiming a lump-sum social insurance payment in Vietnam can involve several steps, from checking eligibility and finalizing social insurance contribution records to preparing application documents and completing authorization procedures. Our team can assist you with:

Reviewing your eligibility and social insurance contribution records.
Advising on the required documents and application procedures.
Coordinating notarized authorization procedures, where applicable.
Supporting application submission and following up with the competent social insurance authority.
Assisting with the process until the application is resolved.

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