Plenary Session of ASSA 37 – Vietnam’s site

The presentation stated, located in Southeast Asia, Vietnam has an area of 331,699 km2 and a population of over 96 million people, of which the working age force is 49.34 million people; GDP per capita is over 2,700 USD per person. The number of people participating in social insurance is currently 15.89 million, accounting for 32.2% of the labor force; The number of people participating in health insurance is 87.05 million, reaching 90.1% of the population.

As an agency directly under the Government, Vietnam Social Security has the function of the policy implementation on collecting and managing funds and paying social, health and unemployment insurance premiums. To implement 7 out of 9 contents on social security, including: Sickness; Maternity; Labor accident and occupational disease; Pension; Survivorship; Medical examination and treatment with health insurance cards; Unemployment benefits.

Accordingly, the COVID-19 pandemic has had a comprehensive and profound socio-economic impact on all countries, and still remains complicated. The Vietnamese economy has a large openness and deep international integration that has suffered many impacts and seriously affected socio-economic fields. Specifically, GDP in the first quarter of 2020 increased by 3.82%, the lowest level in 10 recent years. Business development was greatly affected and most businesses are cautious in investing more capital in production and business activities. The number of newly established enterprises in the first 4 months slowed down; the number of enterprises temporarily suspending their business in the short term sharply increased over the same period (by 33.6%).

The report of the Ministry of Planning and Investment has shown that the growth rate of the gross domestic product (GDP) in the first 9 months of the year reached 2.12%; in 2020 it is estimated at 2-3%, 6.8% lower than the plan and compared with the increase in 2019 of 7.02%. The unemployment rate of workers in the working age in urban areas and the rate of trained workers did not reach the planned target. In particular, the target of the unemployment rate of workers in working age in urban areas is estimated to be 4.39%, compared with the target of staying under 4%, etc.

This has seriously affected the implementation of social security in general, and policies on social, health and unemployment insurance in particular. The risk of increasing social insurance debt has increased due to difficulties in production and business activities. The number of employees participating in social, health and unemployment insurance reduced due to job loss; the number of newly established enterprises has also not increased. Moreover, it has put pressure on the expansion of participants of voluntary social insurance due to the implementation of social distancing, difficulties in propaganda and advocacy, etc. If in December 2019, the number of people participating in compulsory social insurance was 15,200,000; in May 2020, this figure was only 14,404,000 people, a fall of 796,000; The amount of social insurance and health insurance debts increased by over 5% compared to the collection plan in April 2020. The only bright spot was that until May 2020, there were 26,730 participants added to the voluntary social insurance. If in April 2020, there were 538 enterprises and units that temporarily suspended their contributions to the retirement and survivorship fund with 54,873 employees and of the amount of 221 billion VND, then by May, there were 1,158 enterprises and units also did with 105,929 employees and of the amount of 391 billion VND; it was confirmed that the list of employees with postponement of labor contracts and unpaid leave was 79,936 people; The number of employees who stopped working was 111 people; Accumulated to November, there were 634 enterprises and units that temporarily suspend their contributions to the retirement and survivorship fund with 74,339 employees and of the amount of 325 billion VND; the confirmed list of employees who postpone their labor contracts and take unpaid leave was 168,163 people; The number of employees who stopped working was 585.

As soon as the epidemic broke out, the Government adopted specific solutions and the whole political system went into a drastic action, together with the consensus and solidarity of the entire people. The Government has launched a dual goal of both preventing the epidemic while ensuring socio-economic development and ensuring social security for the people. The Prime Minister issued Decision 447/QD-TTg dated April 1, 2020 on announcing the COVID-19 epidemic. The occurrence period started from January 23, 2020 (the time of determining the first case of acute respiratory infections caused by a new strain of Corona virus). Early epidemic announcement will create conditions for using resources for prevention, maintaining production development, and ensuring social security. The Prime Minister issued Directive No. 11/CT-TTg dated March 4, 2020 on urgent objectives and solutions for assisting businesses facing difficulties and assurance of social welfare amid COVID-19 pandemic. There were directing documents of the Government and the functional agencies implementing many support packages and practical measures to increase the resistance of businesses, gradually normalize or adjust policies to support people and businesses as in Resolution No. 42/NQ-CP dated April 9, 2020. In which, the employee has to postpone the implementation of the labor contract and must take unpaid leave (800,000 VND/person/month). The employer is allowed to lend money to pay a part of the salary for the employee. Individual business households that have to suspend their business operation was financially supported (1,000,000 VND/household/month). The employee whose labor contract or working contract has been terminated but is ineligible for unemployment benefits; The employee without a labor contract loses his/her job (1,000,000 VND/person/month). People with meritorious services to the revolution (additional allowance of 500,000 VND/person/month). Social protection beneficiaries (additional support 500,000 VND/person/month). Poor households, near-poor households (250,000 VND/person/month). Affected employers are entitled to temporary suspension of contributions to the retirement and survivorship allowance fund for no more than 12 months. The total value of the package is 62,000 billion VND (about 2.68 billion USD). The above policies continue to be maintained in Decree No. 154/2020/NQ-CP dated October 19, 2020 with reduced and more favorable conditions for enjoyment.

The Government has promptly issued directions and policies; to consider the top priority task is preventing, combating and controlling the epidemic, ensuring absolute safety for the people; to stabilize society, minimize damage to the economy, create conditions for maintaining and early restoration of production and business activities, and soon take advantage of opportunities after epidemic cessation for rapid and sustainable development. To concurrently carry out numerous measures to resolve difficulties and support the affected subjects to maintain production and business activities, ensuring social security; to make attempts to achieve the highest socio-economic development goals and tasks set out in 2020.

Mr. Duong Van Hao - Director of Department of Contribution Collection – Insurance Book and Card of Vietnam Social Security delivered a presentation at the Meeting

Vietnam Social Security has actively followed the situation and direction of the Government. We have seriously obeyed, proactively and promptly organized the implementation of undertakings, policies and directions of the Government, ministries and the National Steering Committee for Epidemic Prevention and Control. Reports on the situation were promptly and regularly submitted; we participated with the Government and Ministries on the implementation of the tasks and propose appropriate solutions to support the production and business activities of enterprises, stabilize the employee's life and ensure social security; building scenarios and closely monitoring the actual situation to come up with appropriate solutions. Focused on developing subjects participating in voluntary social insurance and in household health insurance. We also regularly monitored the situation among units and deployed necessary assistance; guided the enterprises to promptly pay social insurance premiums when the employees return to work, etc. Online working sessions and conferences with localities were held; IT applications, reform of administrative procedures and electronic transactions were strengthened; maintained the urging, guidance, notification and information to units, enterprises, participants of social insurance and health insurance through postal services, electronic means, telephone, and social networks. As well, we advocated people to participate in voluntary social insurance and health insurance through electronic media and social networking applications (Zalo, Facebook, etc.). IT application in medical care: booking health care schedules via phone calls or texts, via Website, managing and consulting patients on outpatient treatment through telehealth, etc. In addition, we made reform on administrative procedures in collection and settlement of benefits of social insurance, medical care and health insurance, promoted payment through electronic banking, non-cash electronic payment methods, etc.

As a result, by the end of November 30, 2020, the number of people participating in social insurance reached about 15,886 million, reaching 32.3% of the workforce in the age group; of which: 14,940 million people participated in compulsory social insurance; over 970 thousand people participated voluntary social insurance (an increase of 418 thousand people compared to 2019); The number of people participating in health insurance is 86,888 thousand, reaching 90.1% of the population.

As of November 2020, the whole country has settled for over 716,000 people to receive lump-sum social insurance allowance; over 6,664,000 people to enjoy the sickness benefits; over 1,662,000 to enjoy the maternity regime. In the first 4 months of 2020 when Vietnam announced the epidemic nationwide and when the national social distancing was applied, the health insurance fund still ensured payment for 45 million healthcare visits, equal to about 80% of the total visits for the first 4 months of 2019. In the first 11 months of 2020, the health insurance fund has also ensured payment of more than 151 million healthcare visits of the insured, equaling 90% compared to the same period of 2019.

Thus, although the COVID-19 epidemic remained complicated, the need for medical examination and treatment, one of the basic social security policies of Vietnamese people, has still adequately and promptly been addressed.

Along with that, in mid-November 2020, Vietnam Social Security announced the application named "VssID - Digital Social Insurance", which is a product of the digital transformation ecosystem on mobile devices that serves the people, as well as the result of the process and the determination to build and develop a digital technology platform in the implementation of policies on social insurance and health insurance.

It can be seen that, together with the Government, the Prime Minister, ministries, local agencies, socio-political organizations, unions, Vietnam Social Security has actively supported people and businesses affected by COVID-19 and storms and floods. In the coming time, Vietnam Social Security will continue to actively coordinate and contribute to the implementation of policies on social, health and unemployment insurance towards the business community and the people./.