To enhance cooperation, ensure social security for Vietnamese labors in Germany

26/08/2024 09:50 AM


Germany is one of Việt Nam 's traditional and strategic partners in the field of vocational education. In recent time, Germany supports Vietnam to build health centers and facilities, cvocational training and social welfare;...Việt Nam wishes to further strengthen cooperation with Germany in vocational education and sending Vietnamese workers to the European country to work in the context of Germany's recent revision of its foreign worker reception policy.

Seminar seeks to draw skilled Vietnamese workers to Germany
The Vietnamese Embassy in Germany held a seminar on August 21 to explore measures driving cooperation in workforce recruitment and vocational training amid labour shortages there, with a particular focus on Mecklenburg-West Pomerania state.
Ambassador Vu Quang Minh underscored the urgent need for skilled workers in Germany, a crisis compounded by demographic shifts such as an aging population.

To strengthen collaboration, Minh proposed expanding vocational training courses that offer qualifications recognised by both Vietnam and Germany. He urged Germany to collaborate with Vietnamese associations in Mecklenburg-West Pomerania, particularly in Rostock city, to support newly arriving workers.

Thanh Long, founder and CEO of GEDU International GmbH, confirmed his company’s commitment to recruiting more workers for critical sectors with labour shortages in Germany, namely healthcare and medical services, hospitality and retail, and technology and craftsmanship - ranging from IT services and master electricians to microchip technology engineers. all within dual vocational training courses.

GEDU plans to invest in a training facility in Vietnam to accommodate up to 300 trainees annually, which will provide language training, cultural orientation, and candidate assessment before their vocational training in Germany begins, he said.

Parliamentary State Secretary of Mecklenburg-West Pomerania Patrick Dahlemann expressed his willingness to assist with paperwork and provide initial services for newly arriving workers.

Jochen Schulte, State Secretary at the Ministry of Economic Affairs of Mecklenburg-West Pomerania state, announced a new policy in collaboration with the state's Chamber of Industry and Commerce to establish a dedicated service centre for supporting immigrant workers.

Representatives from various companies also echoed the need for support from both Governments regarding visa issuance, immigration laws, and mutual recognition.
In recent time, Germany is one of Việt Nam 's traditional and strategic partners in the field of vocational education. The two sides have been implementing  projects and cooperation programmes at the national and regional levels. Cooperation with Germany has benefited Việt Nam in infrastructure improvement and human resources development, contributing to enhancing vocational training quality, adding that expanding labour collaboration with Germany has provided chances for Vietnamese workers in increasing their incomes and sharpening their skills.
Germany is also at the forefront of developing skills for green jobs, the German government has been cooperating with Việt Nam to promote the greening of jobs and vocational training according to international standards, creating opportunities for Vietnamese workers and youngsters to prepare for the global energy transition.
Given the new context of the world and regional economic and political affairs, Germany and Vietnam face many challenges, but also have opportunities to deepen good strategic partnership and create favourable conditions for businesses of the two countries to enhance and expand collaboration. Việt Nam wishes to further strengthen cooperation with Germany in vocational education and sending Vietnamese workers to the European country to work in the context of Germany's recent revision of its foreign worker reception policy. 


The Fourth Industrial Revolution has created many impacts on all aspects of life, especially the employment issues of workers. The Federal Government of Germany has been making changes in social security policies to adapt to the new context. 
These are valuable experiences that  Vietnam should take into account to build a sustainable, progressive and equal social policy system.
Firstly, coverage of the social security system to the entire population should be implemented. This is an outstanding point in the social security system that helps Germany not to have too much disparity between social groups. The German insurance system covers about 90 percent of the population, for everyone from birth (child allowance), through adulthood (health insurance, unemployment, maternity, sickness, disability insurance, etc.), and upon retirement (pension insurance). Vietnam social security system is trying to obtain this coverage. According to a report of Vietnam Social Insurance Agency, in 2022 there were about 17.5 million people participating in social insurance, reaching 38 percent of the labour force; about 14.3 million people participating in unemployment insurance, or 31 percent of the labour force. This ratio shows that the level of social insurance coverage increased compared to previous years but has not reached the expected level. Resolution 42-NQ/TW dated 24 November 2023 of the Central Committee of the Communist Party of Vietnam has set a target that by 2030, 60 percent of the people of working age will participate in social insurance, and 45 percent will participate in unemployment insurance.

Secondly, privatization of the supply of the social security system should be encouraged. In addition to the role of the state, the German government emphasizes the participation and responsibility of employers, employees, communities, and society in implementing social security policies, especially in contributing financial resources to social security benefits. This has created abundant financial resources for the social security system, an important basis for redistribution, ensuring balance in life of the whole population. In Vietnam, the Unemployment Insurance Fund is formed from: contributions of employees and employers; state support from the central budget; fund investment profits; and other sources. The rate of spending on social security in Vietnam is 5 percent of gross domestic product (GDP) - significantly lower than the averages globally (about 13 percent of GDP), and for South-East Asia and the Pacific region (about 8 percent of GDP). This low rate, along with weakness in social insurance management, low self-awareness and sharing of businesses and people, leads to limitations in revenue sources for social insurance. This will affect the distribution of social security policies to each beneficiary.

Thirdly, a transparent and effective management mechanism should be built. Germany has built a control mechanism of "legislative - executive - judicial" power branches in promulgating and implementing social security policies. Social insurance funds are managed independently and transparently, being independent of the state budget. Social organizations also have an important role in providing and monitoring social security services. This helps the process of implementing social security policies be more effective and cover more people. The German government's experience in preventing insurance abuse, exploitation, and improper use of insurance resources is very valuable to Vietnam. Vietnam can and must study Germany’s experience in managing insurance funds (health insurance, unemployment insurance, etc.), especially financial management process and process of identifying violations in the financial management of insurance funds. In Vietnam, insurance policies and implementation in general still have not fully demonstrated the principles of contribution and benefit; fairness, equality; share and sustainability. These are the limitations that Resolution No. 28-NQ/TW dated 23 May 2018 of the Communist Party of Vietnam on insurance policy reforms pointed out.

Finally, modernization of the administrative management should be implemented following the achievements of the Fourth Industrial Revolution. As a pioneer country in developing a modern social security system, the Government of Germany sees digitalization as an opportunity to improve the efficiency of state management and to improve people’s access to public services. Since winning the Chancellery in September 2021, the Social Democratic Party (SPD) has emphasized the need for stronger social protection by introducing the Bürgergeld, or “citizen’s money”, which replaced two previous payment systems for those seeking work and those unable to work, and raised both payment levels and eligibility thresholds. The current party line also favors raising the contribution assessment limits for social security contributions resulting in a stronger contribution from those on higher incomes. In general, modernization and digitalization activities in state administrative management in all fields will drastically reduce bureaucracy and save many people's waiting time. This is not only a choice of the Federal Republic of Germany but also a global trend that Vietnam must change and apply to its system.

Vietnam has outlined a Vision to 2045, to achieve a social policy system with comprehensive, sustainable, progressive and equal development, ensuring social security and welfare for the people, and a high human development index (HDI). For this to become a reality, it is important to research and learn from successful experiences from developed countries, especially Germany, which has one of the world’s oldest and most comprehensive national social security systems. This is an indispensable and urgent need, which requires political efforts, sharing and consensus of the entire political system.

PV