The government official was speaking during an international workshop on "Extending Social Security Coverage—International Experiences and Recommendations for Vietnam," held jointly by the Ministry of Labour, Invalids and Social Affairs (MOLISA) and the International Labour Organisation (ILO) in Hanoi yesterday.
According to reports by MOLISA, by the end of 2016, more than 13 million Vietnamese people are participating in social insurance, accounting for about 28% of the labour force. Every year, about 4-5 million people are entitled to short-term social insurance and about 150,000 people enjoy long-term social security.
However, the coverage of social insurance in Vietnam is still low compared to other countries around the world. Many workers have not been involved in social security and have not been protected against risks in their work, such as illness, labour accidents and unemployment.
Along with that, the domestic social insurance system is not diversified and flexible, so it lacks appeal to people, while dossiers and procedures for implementing social insurance are not convenient, sometimes causing difficulties for enterprises and employees.
Addressing the conference, Deputy PM Dam emphasised that changes are needed in social insurance policy to increase its coverage, but the approach and solution proposed must be fundamental and consistent with the general trend of the world.
Such changes should be appropriate in the event that Vietnam becomes a rapidly aging country, in addition to being in sync with all social policies, such as education and healthcare, to ensure essential services for everyone, he stressed.
In order to improve the social security system in Vietnam, there is a need for action from the whole political system to make everyone understand the importance of social security, said the deputy PM.
He suggested MOLISA take the leading role in coordinating research and the standardisation of all data and concepts in the field of social insurance, in line with the ILO's recommendations, including labour force, pensions, social allowances for the poor and people with disabilities, etc., from which to provide accurate reports on the implementation of social insurance in Vietnam.
MOLISA Minister Dao Ngoc Dung said that Vietnam’s social insurance policy has been gradually improved with certain achievements and the increasing number of participants and beneficiaries.
The country aims to have half of its labour force participating in social insurance by 2020. However, the low coverage of social insurance is one of the major issues of the social security system that Vietnam is trying to address, the minister affirmed.
According to ILO Vietnam Director Chang-Hee Lee, Vietnam needs more effective implementation and enforcement policies, including strengthening the inspection of social insurance, to expand the coverage of social security.
Assessing that small and medium-sized enterprises, short-term contract workers and household businesses are largely outside the social insurance system, the ILO representative encouraged Vietnam to explore innovative solutions to reach this missed group.
The ILO also urged Vietnam to increase public spending on social services and financial support, ensuring that even the most vulnerable and those living in remote areas also get support to realise the goal of social security for all.
