BackgroundTo achieve the target of 50 per cent covered by social security by 2020, and increase financial sustainability in light of an ageing population and economic slowdown, Vietnam reformed its Social Insurance Law in November 2014. The amendments started coming into effect as of 1 January 2016 and aim to tackle key issues of the social security system: coverage, adequacy and long term financial sustainability. Key adjustments include extending the scope of application of the law to all employees with contracts of at least one month of duration, improving voluntary participation among self-employed and workers in non-standard forms of employment, allowing more flexibility to payment schedules, re-defining the reference salary used to pay contribution, matching voluntary contributions with government subsidies, extending coverage to non-national workers, and strengthening labour and social insurance inspection.
In order to give effect to the Law on Social Insurance, 2014, MOLISA is appointed to continuously study and improve social protection policies, including social insurance; to preside and coordinate with relevant agencies the design and implementation of measures for the extension of coverage, in order to fulfil the goals set by the Party’s Central Committee and the Politburo.
To perform the tasks assigned, MOLISA prepared a Comprehensive Report on possible options for the extension of social insurance coverage with the comments provided by the Ministry of Finance and the Vietnam Social Security (VSS). The report will contribute to the preparation of a Master Plan for the Social Insurance Reform (MPSIR) by 2035 that will guide future reforms of the policy and legal framework, and the improvement of institutional capacity and governance of the social security system.
In March 2017, the Deputy Prime Minister and Minister of Labour chaired a High-level policy dialogue workshop on extension of social protection coverage, organized by MOLISA in collaboration with the International Labour Organization. Discussion during the workshop emphasized the importance of comprehensive and long-term vision to address impediments to extending social security coverage, and challenges to ensure adequacy and sustainability of the system.
ObjectivesTo resume the results gained from the 1st dialogue workshop in March 2017, the second one will be organized to discuss on options for expanding social security, including social insurance with concrete objectives:
- To present the Government report on the proposed reform options to extension of social insurance coverage.
- To provide international experiences on extension of social security coverage.
- To facilitate national dialogues on reform options for improving the system, in line with international labour standards.