Vietnam and Germany expand cooperation to ensure social security for labors

27/09/2024 09:30 AM


Germany has been the leading economic partner of Vietnam in Europe and Vietnam is one of Germany's major trade partners in Southeast Asia. Cooperation with Germany has benefited Việt Nam in infrastructure improvement and human resources development, ensure social security for labors... At the same time, the two countries' cooperation creates opportunities for Vietnamese workers and youngsters to access vocational training according to international standards​.

Germany is one of Vietnam's traditional and strategic partners in the field of vocational education, labor, social Security... The two sides have been implementing 10 projects and cooperation programmes at the national and regional levels, noted the official.
Mentioning future cooperation orientations between Vietnam and Germany  continue to strengthen cooperation, including Việt Nam's Vocational Training Reform Programme No.3 from March 2024 to February 2027, which has received funding commitment from Germany and will be integrated into the "VETVET Programme" of donors from the European Union (EU), the German Government, and the French Government. At the same time, ready to cooperate  as vocational education, human resources training, and sending young people and workers to work in Germany.The two sides agreed to expand cooperation in the fields of vocational training and labour migration and would soon negotiate and sign an agreement on high-quality vocational training, and an agreement on cooperation in fields including skilled labour migration, defence and security, education-training, science-technology, health, and culture, based on the potentials and interests of the two sides.
Currently, The Federal Government of Germany has been making changes in social security policies to adapt to the new context - The Fourth Industrial Revolution. Therefore, Vietnam learn from Germany's social security 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 30/9/2024, there were about 19,026  million people participating in social insurance; about 15,312 million people participating in unemployment insurance. 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 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. 

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 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. 
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. 
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