Important milestones in 28 years of establishment and development of Vietnam's social insurance industry

18/02/2023 09:25 AM


28 years ago, on February 16, 1995, Vietnam Social Security (VSS) was established and created a turning point in the organization and implementation of social and health insurance policies in our country. With the results achieved in 28 years of establishment and development, it has affirmed the important position and role of Vietnam's social insurance industry in ensuring social security for the people, promoting social progress and justice for the sustainable development of the country.

The VSS portal will review the "milestones" on the 28-year journey of establishment and development of Vietnam's social insurance industry in particular and of social and health insurance policies in general.

The birth of VSS created a big "turning point" in the implementation of social insurance regimes and policies in our country

Since 1994, the Labor Code passed by the National Assembly has provided for the formation of a centralized social insurance fund, independent of the budget, self-accounting with contributions from employers and employees, protected by the State. Accordingly, on January 26, 1995, the Government issued Decree No. 12/CP promulgating the Charter of Social Insurance stipulating the implementation of compulsory social insurance for state officials and employees working in enterprises, marking a major turning point in the development of social insurance policies.

The VSS always accompanies enterprises in ensuring social security for employees

Consolidation of social and health insurance organizations to facilitate effective, professional and consistent policy implementation with world practices

On January 24, 2002, the Prime Minister issued Decision No. 20/2002/QD-TTg on the transfer of Vietnamese health insurance to Vietnam Social Security. On December 6, 2002, the Government issued Decree No. 100/2002/ND-CP defining the functions, tasks, powers and organizational structure of the Vietnam Social Security. Accordingly, the VSS is a non-business agency under the Government, having the function of implementing policies and regimes of social and health insurance and managing the fund of social and health insurance according to the provisions of law. The organizational system of the VSS consists of three levels: central, provincial and district levels.

The establishment of the Law on Social Insurance - An important step forward in institutionalizing the Party and State's innovative views on social insurance

On June 29, 2006, the National Assembly passed the Law on Social Insurance, which took effect from January 1, 2007 with the type of compulsory social insurance; from January 1, 2008 with the form of voluntary social insurance and from January 1, 2009 with the form of unemployment insurance.

The establishment of the Law on Health Insurance - An important milestone in the process of perfecting policies and legislation on health insurance

On November 14, 2008, the National Assembly passed the Law on Health Insurance, which took effect on July 1, 2009. The birth of the Law on Health Insurance marks an important step forward in the legal system on health insurance, towards the implementation of universal health insurance, creating favorable conditions for the implementation of the policy of socializing the protection, healthcare for people.

The Politburo promulgates a resolution on specialized leadership on social and health insurance

On November 22, 2012, the Politburo issued Resolution No. 21-NQ/TW on strengthening the Party's leadership in social and health insurance for the period 2012-2020.

The resolution is extremely important for the organization and implementation of the social and health insurance policies in our country; showed the Politburo's thorough and comprehensive attention, leadership and direction in unifying and directing the implementation of social and health insurance.

Unemployment insurance policy is prescribed in the Law on Employment

On November 16, 2013, the National Assembly promulgated the Law on Employment, which transferred the provisions on unemployment insurance policy from the Law on Social Insurance to amend, supplement and officially comply with the provisions of the Law on Employment from January 1, 2015. The unemployment insurance policies are implemented to pay unemployment benefits, pay health insurance premiums for unemployment benefit beneficiaries; supporting training, retraining and raising professional qualifications and skills to maintain jobs for employees; consulting, job introduction, etc.

Continue to amend and improve the Law on Social Insurance and the Law on Health Insurance

On June 13, 2014, the National Assembly passed the Law No. 46/2014/QH13 amending and supplementing a number of articles of the Law on Health Insurance, effective from January 1, 2015. This is an important breakthrough in perfecting the health insurance policy in our country with regulations on implementing compulsory health insurance for all people, improving the benefits of health insurance participants, contributing to ensuring the sustainability of the health insurance fund.

Social and health insurance policies have been gradually improved in the direction of expanding the benefits of policy participants and beneficiaries.

On November 20, 2014, the National Assembly passed the Law on Social Insurance No. 58/2014/QH13 to replace the Law on Social Insurance No. 71/2006/QH11, effective from January 1, 2016.

The Government promulgates Decrees to continue affirming the roles and tasks of the VSS and promoting electronic transactions in the field of social and health insurance.

On January 5, 2016, the Government issued Decree No. 01/2016/ND-CP stipulating the functions, tasks, powers and organizational structure of the VSS. Accordingly, the VSS is a state agency under the Government, having the function of organizing and implementing social and health insurance regimes and policies; organize collection and expenditure of unemployment insurance regime; management and use of social, unemployment and health insurance funds; specialized inspection of payment of social, unemployment and health insurance.

On December 24, 2016, the Government issued Decree No. 166/2016/ND-CP regulating electronic transactions in the field of social, health and unemployment insurance. Accordingly, the promotion of application of information technology (IT) in most professional activities of the VSS industry has contributed to promoting reform of administrative procedures, shortening the transaction time for people and units.

The Party Central Committee issued a Resolution on reforming social insurance policies

On May 23, 2018, the Party Central Committee issued Resolution No. 28-NQ/TW on social insurance policy reform. The resolution contains progressive social insurance reform contents that are close to the standards on social security in the Conventions and Recommendations of the International Labor Organization.

Developing a professional and modern VSS industry

On August 4, 2020, the Government issued Decree No. 89/2020/ND-CP stipulating the functions, tasks, powers and organizational structure of the VSS. Implementing this Decree, the VSS has actively innovated, rearranged the organizational apparatus in the direction of streamlined, efficient and consolidated, transforming 01 non-business unit into a Customer Service Center - to answer, support and advise on policy regimes for participants.

At the 38th ASSA Conference, the VSS was honored to receive the "Effective Practice" Award in the IT category for the smartphone application "VssID-Digital social insurance".

2020 is also the year that sets a "milestone" for the 25-year process of establishment and growth of the VSS with numerous significant and comprehensive achievements, especially impressive growth in coverage of social and health insurance; many breakthroughs in IT application and digital transformation, especially the introduction of the application "VssID - digital social insurance" on the mobile device platform.

The VSS is assigned to be the governing body of the National Insurance Database; The Government issued the largest ever monetary support package from the Unemployment Insurance Fund

On March 31, 2021, the Government issued Decree No. 43/2021/ND-CP stipulating the National Database of Insurance. With the advice of the VSS and related ministries and branches, the Government has issued support packages, especially the largest ever direct cash support package under Resolution No. 116/NQ- Government's CP to promptly resolve difficulties for employees with over VND 30,000 billion from the Unemployment Insurance Fund.

Breakthroughs in the field of digital transformation of social and health insurance, providing more services and utilities to serve people and businesses

The VSS has built and completed a database with information of over 98.7 million people; interconnection with nearly 13,000 medical treatment facilities; the electronic transaction system and the Health Insurance Assessment Information System receive about 300 million online transaction records per year, etc.

As one of the pioneer ministries and branches in implementing the Government's Project 06, the VSS has coordinated with the Ministry of Public Security to connect and share citizen identification information in the national database on insurance and population, which is an important premise for the implementation of the use of chip-based ID cards in health care services.

100% of the administrative procedures of the Industry have been provided with online public services and integrated on the National public service portal, helping people to transact with the social security agency anytime, anywhere.

In addition, throughout the year, the VSS implemented, restructured the process, coordinated with relevant units to provide online services and connected services on the National Public Service Portal and the Sector's Public Service Portal. With 100% administrative procedures implemented through public services, especially comprehensive online public services provided to individuals and organizations, ensuring simple and convenient declaration, without having to re-provide information already managed by the VSS.

Along with that is the spirit of solidarity, unceasing efforts and striving of civil servants, public officials and employees of the whole VSS industry to achieve many important and comprehensive achievements in all fields, in which the outstanding is the coverage of social and health insurance with impressive growth. The number of social insurance participants is 17.5 million people, reaching 38.08% of the labor force in the age group; The number of unemployment insurance participants increased from nearly 6 million people in 2009 to more than 14.3 million people in 2022, an increase of nearly 2.4 times; The number of health insurance participants increased from 7.1 million people in 1995 to more than 91.1 million people in 2022, an increase of 12.8 times, reaching the coverage rate of 92.04% of the population - basically fulfilling the target of universal health insurance.

These results are proof that the VSS industry is increasingly developing, gradually affirming its important position and role in ensuring social security for the people, promoting social progress and equity for sustainable development of the country.

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