Prosecutors sue company over prolonged social insurance payment violations

A Hanoi court has opened a public-interest civil case against a company that continued to owe 158 million dong in social insurance payments after partially addressing its arrears.

The defendant, Company MD, is based in Luong Dinh village in Hanoi’s Ung Thien commune. It reports social insurance contributions for five workers, but authorities said the company had delayed or avoided payments over an extended period.

The Ung Hoa social insurance office referred the violation to the regional prosecutor’s office. Prosecutors then worked with the company and urged it to correct the problem. MD paid part of the overdue amount in May and June 2026, but records showed that 158 million dong remained unpaid by August.

Because social insurance authorities do not have the power to file the lawsuit themselves, the Ung Hoa office asked the regional prosecutor’s office to act. Prosecutors subsequently asked the court to require MD to fulfill its obligation to pay social insurance contributions.

The case is being handled under a pilot mechanism established by National Assembly Resolution 205/2025/QH15. The mechanism allows prosecutors to bring civil cases to protect the civil rights of vulnerable groups or the public interest. By the end of August 2026, Vietnam’s social insurance system had ordered inspections at 6,694 organizations, including 5,920 employers. Those inspections led to demands for more than 70.2 billion dong for 11,417 workers who lacked coverage or had insufficient contribution periods, and more than 128.2 billion dong for 40,146 workers whose contributions were below the required level. Authorities also recovered more than 330 billion dong in delayed or evaded payments.