Focusing On Improving the Legal Framework for Social Insurance

Source: Pano feed

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In nearly 20 years of operation, thanks to the attention of the Party, the State and the Government, the Vietnam Social Insurance system has enjoyed continuous improvement and growth; confidently embracing its position and role as the main pillar of social insurance and health insurance policies in the country’s social welfare system. Let’s take a look at efforts and contributions of officials and employees in the social insurance sector during the implementation of health and social insurance policy of the past two decades through a short conversation with Nguyen Thi Minh, Deputy Secretary – General Director of Vietnam Social Insurance. My Chau reports.Could you please specify the accomplishments Vietnam Social Insurance has achieved during 2013 and early 2014, and what is the plan for 2014?



In 2013, the sector has proactively coordinated with ministries, departments and agencies to implement Resolution 21/NQ-TW on strengthening the leadership of the Party on social and health insurance period 2012-2020; at the same time designing a Plan of Action for the sector. We have conducted research, reviews and contributed ideas on the amendment and supplement of the Social Insurance Act, the Health Insurance Law and other legal documents relating to social and health insurance policies. We also have coordinated with relevant ministries and agencies to organise numerous activities propagating, inspecting and supervising the implementation of the Social Insurance Act, the Health Insurance Law and implementing a number of other tasks. With those implementation, the number of social insurance and health insurance has experienced a high growth, reaching more than 61.9 million people, an increase of 2.8 percent compared to the same period in 2012; collecting VND 164,000 billion, achieved 103.32 percent of the goal; the number of people provided social insurance has been over 7.6 million, an increase of 13.2 percent over the same period in 2012; more than 128 million were paid health care costs under health insurance, rising 5.78 percent compared with the same period in 2012.


For 2014 (as of 4/30/2014), the revenues has reached VND 53,091.3 billion, equal 27.46 percent of the assigned plan. The policies for people under social insurance, health insurance have been done timely and conform to regulations, the rights of the people especially the workers have been better guaranteed with the quality of health services was continuously improved. During the first four months, there have been over two million people given social insurance, over 41 million have been paid health care costs under health insurance policy.


For the upcoming time, in addition to directing the implementation of assigned tasks and functions, Vietnam Social Insurance will actively and effectively cooperate with relevant authorities in the amendment and supplement of the Social Insurance Act, the Health Insurance Law and other legal documents relating to social and health insurance policies in order to create a comprehensive legal framework, consistent with the reality. At the same time, we will also strengthen the organizational structure, functions, obligations and rights of all units under Decree 05/2014/ND-CP dated 17/1/2014 of the Government regulating functions, rights, obligations and organizational structure of the Vietnam Social Insurance.


In addition, the sector will focus on guiding the social insurance in provinces and cities on actively advising the Provincial Party Committee, the Provincial People’s Committee, coordinating with local relevant functional sectors to promote payment collection and participants development, fully and timely giving social insurance and health insurance rights for employees; preventing actions of abuse and profiteering, ensuring fund balance, striving to exceed the 2014 targets allocated by the Prime Minister. Simultaneously, the sector will continue to review to complete rules and regulations towards administrative reform; promoting the application of information technology; strengthening information dissemination; enhancing the sense of responsibility in employees in the service to people to meet the increasing demands in the new period.


How has the implementation of health insurance policies been focused on and effectively implemented recently, ma’am?


Over recent years, the Vietnam Social Insurance has proactively implemented social insurance policies under regulations; Organising the collection and settlement of social and health insurance, the fund management on the basis of ensuring timely and fully workers’ rights and conducting administrative reforms in all fields of management. As a result, the quality of service to both employers and employees has been much improved.


In the coordinated implementation of policies of social insurance and health insurance, Vietnam Social Insurance has signed a coordination regulations with the Ministry of Labour, Invalids and Social Affairs, the Ministry of Health, the General Confederation of Labour of Vietnam and the General Police Department of preventing and combating crime, Ministry of Public Security in the implementation of policies of social insurance and health insurance; on that basis, ministries and agencies have also sent written guidance to PPCs on strengthening the state management of local social insurance and health insurance. The sector also has coordinated and proposed to people committees of provinces and cities to have written guidance on the implementation of local social insurance and health insurance policies and directed units in conducting solutions such as checking and punishing units who are deliberately avoid registering social insurance and health insurance for employees; inspecting and filing charge against units in debt; public the list of in-debt units on mass media and demanding to remove those units of the list of honour and reward.


Additionally, Vietnam Social Insurance has also proactively got involved with ministries and agencies in researching initiatives, proposing amendments and supplements to the Social Insurance Act, the Health Insurance Law to further improve the law on social and health insurance.


To improve the efficiency of the social insurance system in Vietnam, especially in the improvement of the legal framework for social insurance, what kind of changes or positive moves should Vietnam take?


The Project of Social Insurance Law (amended) (hereinafter referred to as the Bill) has been submitted to the National Assembly by the Government to bring to discussion on the May session. In my opinion, the operational effectiveness of social insurance systems should be assessed in three basic criteria: increasing health insurance coverage; ensured financial balance of the social insurance funds, especially long-term pension and death funds; improvement in the quality of service to participants and beneficiaries of social insurance policies.


To achieve those three criteria above and effectively complete the assigned tasks, from the angle of legal framework improvement, I think there should be mechanism adjustments to create favourable conditions for the sector to conduct that work. It can be seen that currently, the cases of social insurance evasion or debts are on the rise and difficult to control. Meanwhile social insurance institutions are defined as non-profit organizations so they are not allow to conduct activities like inspection and sanctions but only have to inspect and report on violations, this poses a challenge as specialized inspection forces of the Ministry of Labour, Invalids and Social Affairs is very scarce while the inspection scope is huge. Therefore, in addition to adjusting regulations towards heavier punishment, increased fines for evasion or slow insurance payment, adding types of violations on social insurance to the Criminal Code, the social insurance sector should also be empowered to inspect and sanction at least in the field of collecting and paying social insurance so that it can perform the tasks assigned effectively. In my opinion, if aiming to improve the efficiency of social insurance policy enforcement, it’s absolutely necessary to grant the power of inspection to social security institutions and the law can help with this problem.


Health insurance sector has many content of specific nature so the current regulations are not quite consistent with practical requirements. With this amendment of the Law on Social Insurance, I hope there would be adjustments to ensure compliance with each stage of development of the Vietnam Social Insurance, especially it’s important to pay attention to the application of information technology to create better conditions for the sector to successfully complete political tasks assigned by the Party and the State.




Đăng ký: VietNam News