At the meeting between the Ministry of Labour, Invalids and Social Affairs and Carolyn Turk, World Bank (WB) Country Director for Vietnam, she congratulated the Vietnamese Government on effectively implementing social security packages in the context of complicated developments of the COVID-19 epidemic, which has been greatly affecting the lives of workers. On the basis of good cooperation in recent years, in the coming time, WB commits to provide input information and share ideas about the social security system from existing experiences; to accompany and cooperate with Vietnam in providing technical assistance to reform the pension system; to apply technical options and digital transformation technology in order to improve system performance and ensure transparency; to strengthen cooperation with the private sector, and jointly build a dynamic labor market information system; to promote the electronic system and non-cash digitization for social protection; to cooperate in vocational education, etc.

Illustrative image (source: internet)

At the same time, Carolyn Turk said that she will continue to accompany Vietnam in developing policies towards universal social security and making the best out of the advantages of digital technology. According to international practical experience, pension reform is complex, and the reform process of the pension system requires reforming its parameters and further promoting the system in the future. Therefore, in order to increase the coverage of the pension system, it is necessary to increase the participation of both formal and informal sector workers. “In which, the participation of the informal sector will be a challenge in the future. The Government's target of the social insurance coverage to reach 60% by 2030 is a difficult and challenging goal, but the WB has committed to join hands to achieve that target" - she affirmed.

According to Minister of Labor, War Invalids and Social Affairs (MOLISA) Dao Ngoc Dung, Resolution 28-NQ/TW clearly defines the development orientation of social insurance that by 2030, about 60% of people after retirement age will enjoy pensions and monthly social insurance and social pension benefits by 2030. This is quite challenging, but Vietnam is still determined to set the goal and believe it will be successfull since it has a practical basis. In 2019 alone, after Resolution No. 28 was implemented, voluntary social insurance recorded an impressive breakthrough with a new increase of nearly 300,000 people, equal to 10 years ago combined. In addition, by the end of 2020, voluntary social insurance reached about 1.1 million participants, an increase of 494,000 people, nearly double that of the previous year. "If the above issues are well implemented, the rate of participation in social insurance will reach the set target," Dung affirmed.

Illustrative image (source: internet)

In the coming time, the Minister suggested that the WB continue to help Vietnam in solving core issues in the field of social security, poverty reduction, narrowing the gap between regions... Vietnam is in the process economic development, focusing on developing social security policies according to the Resolution of the 13th National Party Congress, "Ensuring economic development in parallel with ensuring equity in social security". Therefore, the Ministry has set the task to continue to develop sustainable development policies with the goal of: Everyone has the opportunity to participate, enjoy the fruits of the socio-economic, and the gap between rich and poor, especially in ethnic minority areas, will be shortened.

"In the coming time, Vietnam will focus and pay attention to the issue of amending the Law on Social Insurance, building a multi-tiered and flexible social insurance with intergenerational sharing, and adjustment of the retirement age, etc. Vietnam wishes and proposes to the WB to support in making forecasts and different scenarios, creating a practical basis and promoting communication to create a change in awareness and consensus among the people, etc., thereby being able to solve issues such as: open policies, increased number of people participating in social insurance; raising people's awareness." Dung emphasized.