VSS Deputy Director General Le Hung Son presides at the meeting with the WB delegation

Amended Law on Social Insurance to ensure people’s benefits and expand coverage

Addressing the working session, Deputy Director General Le Hung Son said VSS is working with relevant authorities to propose to the National Assembly issue the Law on Social Insurance (amended). Accordingly, the Law on Social Insurance (amended) aims to ensure social security for the people as well as resolve shortcomings in the implementation of social insurance policies. However, to that end, VSS needs the assistance and consultation from international organisations, including WB.

According to the Deputy Director General, the Party’s resolutions set the target to have 45 per cent and 60 per cent of the labour force joining the social insurance system by 2025 and 2030 respectively, which is currently reaching only 38 per cent.

"The figures reveal a real challenge for the social security coverage as Vietnam is facing an ageing population whilst the informal workforce accounts for three-fourth of the total labour force” said Son.

Regarding the multi-tiered social security model, the Deputy Director General said the draft Law on Social Insurance (amended) is projected to develop the social pension system as a tier of the social security system. Nevertheless, the most challenging is the development of linkage among parties concerned as well as that of the social pension tier with the compulsory and voluntary social insurance.

Regarding the lump-sum social insurance payment, the Deputy Director General asked for recommendations from the WB specialists to help VSS and relevant authorities to formulate and complete the draft Law on Social Insurance (amended) to ensure its adaptability and practicality in Vietnam and to ensure universal coverage.

Christophe Lemiere, the Program Leader for Human Development for Vietnam at WB, takes the floor

The Law on Social Insurance (amended) targets universal coverage

Christophe Lemiere, the Program Leader for Human Development for Vietnam at WB, said the Law on  Social Insurance (amended) is one of the significant laws that affect the social security for people in Vietnam. However, to achieve positive effects, especially the coverage expansion, it is necessary to have adjustments suitable with the reality in Vietnam.

Indicating the fact that certain people cannot have access to the social security due to low incomes as one of the existing shortcomings, Robert J.Palacios, a Lead Sepcialist in the WB’s Social Security for the East Asia and the Pacific, said it is essential to have specialised solutions, for example, the State should increase support levels for voluntary social insurance participants. But, the support must target right people and right purpose. He also said VSS should pay much more attention to communication which is seen as the “key” to raising the number of participants.

WB specialist makes recommendations for the Law on Social Insurance (amended)

During the working session, VSS representatives and WB specialists also discussed and analysed the crucial points in the draft Law on Social Insurance (amended). On the occasion, the WB specialists made some recommendations on social pension models in countries world-wide that Vietnam can learn from and develop its own.

Concluding the meeting, the Deputy Director General Le Hung Son said he appreciated the assessment and survey results as well as experiences and recommendations by the WB specialists, especially those relevant with what VSS concerns most in the formulation of the draft Law on Social Insurance (amended). VSS called for the WB to continue to accompany and support VSS in formulating, and amending related laws.