Conference on reforming social insurance policy

Date modify: 11-30-2017
On November 29th, 2017, in Hanoi, Ministry of Labour – Invalids and Social Affairs in collaboration with International Labour Organization (ILO) in Vietnam held the international conference on reforming social insurance policy – international experience and recommendation for Vietnam. Attending the conference were Deputy Prime Minister Vuong Dinh Hue, Head of the Central Steering Committee on reforming wages, social insurance and preference for people with special contribution to the Country, Minister of Labour – Invalids and Social Affairs Dao Ngoc Dung, Mr. Chang Hee Lee, National Director of ILO Vietnam and representatives from international organization, embassies and ministries, sectors, localities…

According to Mr. Pham Truong Giang, Director General of the Department of Social Insurance (MOLISA), the situation of early retirement in the condition of aging population with life expectancy increasing will be the big difficulty for the Fund of Social insurance. The adjustment pension for the past years with unsuitable method led to the difference of pension of many subjects.  

Currently, Vietnam has about 11.2 million social insurance beneficiaries. Foreseen, by 2030, 5.4 million people are expected to be paid from the fund and by 2050, there will be 10 million people. The current retirement age is 57 years old but the reality is 54 years old, while life expectancy is about 78 years old. Therefore, the duration of enjoyment is about 25 years, while the participation time is only about 28 years.  

Minister of Labour - Invalids and Social Affairs Dao Ngoc Dung said that there were over 14.6 million people participating in social insurance, accounting for 30.4% of the labour in the labour age group and 27% of the outside of labour age group. Over 10 million people participate in Social insurance, accounting for 21% of the employees in the age of participating in Unemployment insurance. In 2016, the social insurance is estimated at VND 174.5 trillion, a 7-fold increase compared to 2007, the first year of implementation of the Social Insurance Law. ... Besides the achievement, the social insurance policy also revealed some limitation, inadequate. The coverage of social insurance is low due to the compliance with compulsory social insurance policies and regulations in the formal sector were still not very high and the rate of participation social insurance of the informal sector was at low level.

Addressing the conference, Deputy Prime Minister Vuong Dinh Hue asked functional agencies to overcome shortcomings, weakness and limitation, continue to promote social insurance policy reform as the important tool in order to contribute to effective implementation of the social security and sustainable development policy of the Party and the State. Social insurance is considered as one of the main pillars of the social security system, contributing an important part to implement the social progress and equality with the view that accessing to social insurance is a  social security right, associated with the goal of expanding the coverage of the entire population according to the appropriate roadmap. Vietnam was a country with a fast aging population and a large proportion of informal employment, the country would face to many challenges when building social insurance systems. Social insurance reform also should have a long vision of 20-30-40 years, because the policy latency is very long. However, it is required the quick action, the earlier conducting, the more space for reforming. In addition, there should be mechanisms, policies and administrative procedures to simplify the payment of social insurance, reduce the time to pay social insurance (currently 20 years) in order to attract participants.

Evaluation

(Hover your mouse on the stars to select a point)
   refresh_Capcha

Highlights

Promoting Gender equality in the digital age and integrationJapan wants to cooperate with Vietnam in high quality human resource trainingThe Prime Minister asks for efforts to reduce drug supply, demand and impactThe Children Law takes effect from June 1stObjective programme on developing a social support system for the 2016-2020 period From June 01st, 2017: Reducing of 0,5% of labour accident and occupational disease insurance premium rateImproving the quality of dispatching Vietnamese labourers working abroadDeputy Minister Nguyen Trong Dam receives the Delegation of Korean Society of Rehabilitation of People with DisabilitiesMinister Dao Ngoc Dung receives Japanese Ambassador to VietnamDeputy Minister Dao Hong Lan receives Vice President of International SOS Children's Villages40 years of cooperation between the Ministry of Labour- Invalids and Social Affairs and Kinderhilfe Hyvong Vietnam E.V OrganisationVietnam - Saudi Arabia to enhance cooperation on labor and employmentDeputy Minister Dao Hong Lan welcomed Vietnam delegation back from the 11th ASEAN Skills Competition 2016Minister Dao Ngoc Dung had a meeting with press agencies of Ministry of Labours-Invalids and Social Affairs (MOLISA)Minister Dao Ngoc Dung had a cordial meeting with Director of USAID