Responding to the demands of innovation in a socialist-oriented market economy, the development of a comprehensive social insurance system became necessary. On April 15, 1992, the Constitution of the Socialist Republic of Vietnam was adopted at the fourth session of the 13th National Assembly (1992 Constitution). To clarify the provisions in Article 56 of the 1992 Constitution, the Government issued Decree No 43-CP on June 22, 1993, temporarily regulating the social insurance regime and stipulating five specific regimes. Decree 43-CP serves as an important foundation for the reform of the Vietnamese social security system.

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From 1995 to 2001: Before merging social insurance and health insurance policy implementation apparatus

Social Insurance Apparatus: On September 26, 1995, the Prime Minister issued Decision 606/TTg, establishing the Vietnam Social Security (VSS) Board of Commissioners, which serves as the highest management agency of the VSS.

The VSS organisation was designed to operate at three levels: central, provincial, and district. This event marked a significant turning point in the innovation of social insurance policies in Vietnam, aligning with the transition to a socialist market economy.

The event established an independent social insurance fund, separate from the State budget. This fund operates on the principle of joint contributions from employees, employers, and the State.

The three-level model has also affirmed the contribution-benefit principle of the VSS and expanded the network of social insurance participants to all economic sectors, ending 50 years of implementing social insurance policies under a decentralized model.

By the end of 1995, the VSS had received a list of monthly social insurance payments for nearly 1.8 million people from the labor, invalids, and social affairs sector. The social insurance fund collected more than VND696 billion and allocated more than VND1.1 trillion to provincial and municipal social insurance agencies, with VND24.4 billion spent on pensions, sickness, and maternity schemes.

Health Insurance Apparatus: Since the end of 1998, Vietnam's health insurance has operated based on a three-level centralized system following Decree 58/1998/ND-CP. The Vietnam Health Insurance board of commissioners is responsible for managing and supervising the activities of Vietnamese health insurance, including representatives from the ministries of health, finance, labor, invalids and social affairs, the Vietnam General Confederation of Labour, and Vietnam Health Insurance.

By the end of 2001, nearly 3,000 cadres, civil servants and public employees joined the health insurance.

Comrade Ho Te, chair commissioner of the VSS board of commissioners and other VSS leaders inaugurated the VSS office at No 7 Trang Thi Street, Hoan Kiem District, Hanoi on February 4, 1999.

From 2002 to 2005: Merging social insurance and health insurance policy implementation apparatus

On January 24, 2002, the Prime Minister issued Decision No 20/2002/QD-TTg, transferring health insurance responsibilities from Vietnam Health Insurance to the Vietnam Social Security (VSS). This significant step established a centraliSed and unified social and health insurance system, aimed at protecting the rights of employees during the Doi moi (Renewal) period.

On December 6, 2002, the Government issued Decree No 100/2002/ND-CP, defining the functions, tasks, powers, and organisational structure of the VSS. Under this decree, the VSS was tasked with overseeing the health insurance regime and managing the health insurance fund. As a result of this merger, health insurance coverage increased from 28 per cent to 36 per cent within a year.

The highlight of this period was the shift in State policy from directly allocating budget to hospitals to supporting people to participate in health insurance, especially prioritising vulnerable groups such as the poor, ethnic minorities, students and near-poor households. As a result, public access to health services significantly improved, while the operational efficiency of the health insurance and social insurance systems has also been enhanced.

The 2002-05 period marked merging social insurance and health insurance policy implementation apparatus, creating favourable conditions for effective, professional policy implementation in accordance with international practices. The merger not only expanded health insurance coverage, but also improved service quality, ensured health and social security rights for citizens, especially vulnerable groups.

From 2006 to 2015: Completing policies and laws on social insurance, unemployment insurance, and health insurance

During this period, the Party and the State paid special attention to social insurance and health insurance policies as well as their implementation. This marked an important development in perfecting policies and laws on social insurance, unemployment insurance, and health insurance in order to build a sustainable social security system, protect workers in the context of various socio-economic fluctuations and developments.

Social insurance: On June 29, 2006, the National Assembly passed the Social Insurance Law (Social Insurance Law 2006), creating a solid legal corridor for the implementation of a more comprehensive and effective social insurance policy. The Law took effect from January 1, 2007 for compulsory social insurance; from January 1, 2008 for voluntary social insurance and from January 1, 2009 for unemployment insurance.

The 2006 Social Insurance Law introduced many important provisions to increase the number of participants and beneficiaries of social insurance, creating fairness and better support for employees. The law also laid the foundation for the unemployment insurance policy, marking a new development step in the social security system in Vietnam.

 Politburo member Le Hong Anh, standing member of the Secretariat, spoke at the national conference on implementing the Politburo’s Resolution No 21-NQ.TW on March 20, 2013.

The 2014 Social Insurance Law, which officially took effect in 2016, expanded the network of participants in compulsory social insurance, including individuals working under short-term contracts and foreigners with work permits. The law also provides flexible regulations for voluntary social insurance payments, allowing employees to select payment levels that match their financial capacity. This is further supplemented by the State's support policy to encourage participation.

Changes to the pension calculation method aim to ensure fairness and more accurately reflect employees' contributions, thereby improving the efficiency and sustainability of the social insurance system.

For the first time, the 2014 Social Insurance Law granted the Vietnam Social Security (VSS) authority to inspect the payment of social insurance, health insurance, and unemployment insurance, enhancing State management efficiency in this field.

Health insurance: The 2008 Health Insurance Law marked a significant milestone in universal health insurance. This law addressed and resolved the shortcomings of the 1992 health insurance regulations. By transitioning from service fee collection to insurance, it reduced the cost burden for patients and ensured access to basic health services.

The amended health insurance law of 2014 made health insurance mandatory for all citizens, extending participants' rights and ensuring more effective and efficient management of the health insurance fund.

Unemployment insurance: The 2013 Law on Employment separated unemployment insurance from the social insurance law to enhance management efficiency and policy implementation.

The Vietnam Social Security (VSS) remains responsible for managing the unemployment insurance fund. This policy supports unemployed workers by providing unemployment benefits, health insurance, and assistance with training and job placement. These measures have mitigated the adverse effects of unemployment, stabilized the socio-economy, and contributed to a sustainable social security system.

The Vietnam Social Security (VSS) has made significant progress in implementing universal health care and social insurance policies. The agency has also worked diligently to reform administrative procedures and promote the application of IT and digital transformation. Their guiding principle is "taking people's satisfaction as a measure; putting citizens, employees, and employers at the center of service."

From 2016 until now: Breakthroughs in universal health care and social insurance policies

The Vietnam Social Security (VSS) has made significant strides in improving service quality and applying technology. Key initiatives include the deployment of a multi-channel support system in 2017, responding to citizens’ inquiries, protecting the rights of participants, establishing a customer care and support service center, and launching the VssID application.

In addition to promoting digital transformation in both the industry and the nation, the VSS has been tasked with managing the national insurance database. The VSS has collaborated with various ministries and sectors to connect and share data between the national insurance and population databases. This positions the VSS as a pioneer in the initiative for the development of population data, identity, and electronic authentication (known as Project 06).

Between 2020 and 2024, the Vietnam Social Security (VSS) faced numerous challenges due to complex internal and international circumstances, particularly the conflict between Russia and Ukraine, the long-lasting effects of the COVID-19 pandemic, global inflation, high raw material costs, and disrupted supply chains. Despite the slow economic recovery, Vietnam's social insurance sector continued to struggle with a shortage of workers. The number of health insurance participants declined by 4.9 million compared to the end of 2021.

In response, the VSS, along with other ministries and sectors, proposed and implemented measures to support employees and employers affected by COVID-19.

Approximately 13.3 million employees received direct support from the unemployment insurance fund, with a payment rate of 99.3 percent via bank accounts. Affected employers received vocational training support worth over VND 15.4 trillion.

These achievements affirm the positive role of the Vietnam Social Security (VSS) in collaborating with the Government, ministries, and sectors to overcome challenges, ensure the rights of social insurance and unemployment insurance participants, stabilize people's lives, and promote socio-economic development.

In 2024, the VSS coordinated with central ministries and sectors to amend policies and laws on social insurance, unemployment insurance, and health insurance. The proposals made by the VSS were included in the draft laws and were approved by the National Assembly.

In summary, the VSS has made significant advancements and contributed to the nation's social security system over the past three decades. Policies for social insurance, health insurance, and unemployment insurance have been continuously enhanced since their inception. They have expanded coverage, improved service quality, and protected the rights of both employees and the general public.

Despite various socioeconomic challenges, the VSS has demonstrated its pivotal role through supportive policies./.