summary of doctoral thesis in economics the roles of government in social sercurity for farmer in vietnam

The general objectives: Basing on the theoretical and practice research of countries and Vietnam today, the thesis proposes orientations and solutions to strengthen the role of the Gove

Ministry of Education and Training National Economics University

 

PHAN THI KIM OANH THE ROLES OF GOVERNMENT IN SOCIAL SERCURITY

FOR FARMER IN VIETNAM

Specialized Research: Political Economic

Code : 62310102

SUMMARY OF DOCTORAL THESIS IN ECONOMICS.

Hanoi - 2013

THE RESEARCH IS COMPLETED AT NATIONAL ECONOMICS

UNIVERSITY

2 Associate Prof.Dr To Duc Hanh

Reviewer 1 :

Reviewer 2 :

Reviewer 3:

The thesis will be reviewed and marked by Government Thesis Examination Committee

At :………

At……… On ……

You can read and refer more about the contents of research at:

- State library

- Library of National Economics University

INTRODUCTION

1 Reasons to do the reaseach:

According to active facts of economic innovation implementation within

30 years which has provent that the Party’s policies and decisions are correct

and approriate steps Development of market economy had profoundly effected

Vietnamese economic and society Economic has grew fastly, economy

structure has moved toward progress, average income of employees has

increased, economic life of citizen and society have improved markedly

However, the implications of market economic development such the trends of

inequality, the gaps between rich and poor people tend to increase from rural

areas to urban areas

In order to ensure the political system remains stable and Vietnam’s

economy will develop sustainable under the way of market-oriented socialism

Those require the government needs to build and rapidly develop a social

sercurity system instead of following the focused planning economy as previous

time Because this can contribute and cordinate the rights and obligations of all

citizens in community and thereby regulating social conflicts which have been

and will be arising

Since independence, Vietnam is still a backward agricultural country with

over 80 % of the population who are farmers Although under the leadership of

the Vietnam Communist Party, the country now is fast moving on the path of

industrialization and modernization but in the near future, this rate can not

reduce to under 40% yet It can being said that farmers are still a major

workforce and they specially are always a vital social and political force in

ensuring social stability and national security

Because of the productivity of agricultural labor and products in Vietnam

is not high Therefore the contribution of this sector to GDP is still low For this

reason, in a long time policy makers forgot or delayed issues which related to

social welfare to farmers or only approached problems to express the

superiority of the socialist regime but they seem not to put it in the category of

government management yet

Up to recent years, the Party and Government have made guidelines and

policies to address the general issues which relate to social security and

particularly for farmers Many policies such as social insurance, health insurance,

social protection packages, social priority packages have been amended and supplemented and codification by Government However, social welfare system

in general and for for farmers in particular remains many shortcomings and inadequacies as well as not to meet the demand when the country has a fluctuation in economic and politics Thus it requires to have an additional research to make it becomes better and to complete it in scientific way

There are several meticulous research on social welfare and social welfare for farmers in Vietnam However, the results of these research had not applied or slowly applied to actual living of citizens For these reasons, author of this research found that doing a research of the role of government in social welfare for farmers in Vietnam is very nessesary and now is an urgent job for the country That is reason why the author has choosen the topic: "The Role of the Government in social welfare for farmers in Vietnam " for her research in the doctoral thesis in economics politics

2 The objectives of the thesis research:

2.1 The general objectives:

Basing on the theoretical and practice research of countries and Vietnam today, the thesis proposes orientations and solutions to strengthen the role of the Government in social welfare for farmers in Vietnam in next years

2.2 Specific Objectives:

- To clarify the theories of the role of the Government on social welfare for farmers which bases on the basis of theoretical research and experience of some countries around the world

- To analys factual effect of the roles of the Government on social welfare for farmers in Vietnam then pointing out the achievements, constraints and root causes which limited these roles

- To suggest a directive proposal and solutions to enhance the roles of the State the Government on social welfare for farmers in Vietnam in next years

3 Subjects and scope of research

3.1 Research subjects:

The research’s subject is the roles of the Government in social welfare in Vietnam However, this subject is quite broad Therefore, this thesis mainly focus on the roles of the Government in legal system construction, policy

mechanism, policies, policy coordination organization and management

organization, monitoring and supervision in order to set up the system and

creating the conditions to ensure the operation of social welfare system

Regarding the establishment of a social welfare system, the thesis

considers to build up the social welfare system which bases on the principles of

contribution – get benefits and the social welfare system not just is contribution

principle

To create the conditions to implement the roles of the Government in

social welfare for farmers, the thesis has focused on analyzing policies and

viewpoints of the Party, economic capacity to ensure that farmers have a chance

to take part in and the the Government’s ability of financial assuarance,

management capacity farmers awareness about social welfare system

In respect of farmers, a research’s objective, the thesis just select and

research lives of farmers in the north central areas where economic growth

level is average compared to other areas in Vietnam Additionally, here also

have farmers who live in different terrains such as midland, coastal and

mountainous areas Those can present for most of farmers over the country

3.2 Scope of the Study

- In space: Research is done on a national scale, but data is collected

through surveys which were implemented in three North Central provinces of

Thanh Hoa, Nghe An and Ha Tinh

- On time: the information and data in the research are collected then

choosen from datas which were published from 2000 to 2012, and the proposed

solutions is suggested for the 2020s

4 Thesis’s contributions:

- To buid a conceptual framework of the roles of the Government in

social welfare for farmers through integration of researchs in Vietnam and

abroad which are based on practical experiences of some countries

- Through secondary document systems from the ministries and related

departments as well as analysing the data, survey which were conducted and

interviewed in three north-central provinces of Ha Tinh , Nghe An and Thanh

Hoa The thesis analyzed and assessed the reality of the Government’s roles in

social welfare for farmers in Vietnam and then pointed out achievements,

limitations and causes

- Providing recommendation of directions and solutions to enhance the

roles of the Government in social welfare for farmers in Vietnam in next years

5 Thesis’s Structure

The thesis includes an introduction, conclusion, list of references, appendices of the processing of information, data and survey results as well as the contents of the four following chapters

Chapter 1: Overview and research methodology of the roles of the

Government in social welfare for farmers

Chapter 2: The roles of the Government in social welfare for farmers:

theoretical issues and practical experiences

Chapter 3: Evaluating actual condition of the roles of the Government in

social welfare for farmers in Vietnam today

Chapter 4: Viewpoints and solutions to enhance the roles of the

Government in social welfare for farmers in Vietnam in next few years

Chapter 1

Overview and research methodology of the roles of the Government in social welfare for farmers

1.1 OVERVIEW OF RESEARCH ON the roles of the Government in social welfare FOR FARMERS:

1.1.1 The contexts of research in overseas:

In an overview of the research in the world, the thesis refers to the group

of problems: 1) Studies which involve the roles of the Government in building legal framework and institutional policies of social welfare for farmers; 2) a piece of research which relates to the role of the Government in the coordination of economic – social policies in social welfare for farmers; 3) The research entails the role of the Government in organizing inspection and supervision the implementation of social welfare policies for farmers

1.1.2 The contexts of research in Vietnam:

After analysing several domestic research, the thesis has clarified three following issues: 1) The relevant research on the participation forms of farmers

in Vietnam on social welfare activities, 2) Studying the contents of related

issues to the roles of the Government in social welfare for farmers; 3) Studying

the conditions to ensure the implementation of the Government's roles in the

development of the social welfare system in Vietnam

Since then, the thesis raises three issues must be addressed: Firstly, how

do farmers engage to any form of social welfare mode? In other words, social

welfare for farmers that will include how many components and who are major

pillars? Secondly, How did the establishment status of welfare legislation

system and institutional policies achieve to encourgate farmers to participate in

the system, was it appropriate or inappropriate? Thirdly, what is the limitation

of roles of the Government in social welfare for farmers now? What does the

Government need to do to continue to help the social welfare system to work

into actual lives of farmers

1.2 METHODOLOGY

1.2.1 Approaching method:

The research is carried out though approaching the topics from

theoretical to practical studies, from general to specific as well as systemic

approach and interdisciplinary approach

1.2.2 Research Mode

The research carries out studying model which bases on the following

basis:

1.2.2.1 Contents of the role of the Government in social welfare for

farmers:

The research focuses on analyzing three later issues: Firstly, the

Government builds law systems, mechanisms and policies of social welfare for

farmers The thesis will analyze the development process of legislation system

and related policies to social welfare in general and in particular for farmers

Secondly, the Government builds and coordinate social welfare policies with

other social – economic policies such as the application of technology and

science to argicultural production process, to create jobs, to improve income

and to reduce poor rate Thirdly, the Government monitors and supervises the

implementation of policies on social security for farmers

Table 1.1: Research Framework

Government in social welfare

Assesment criteria

Government’s

viewpoints

Setting up legal system,

mechanism, policies on social

welfare

Government’s roles:

- Adequacy, uniform, the consistent of legal system

- Efficiency and effectiveness of policy coordination, inspection and monitoring

and farmers

Coordinating

policy with other

social policies

Management Ability on social

welfare

Monitoring and

suppervising

2 Participation of

welfare:

- The coverage

- Level of impact

Social awareness

of social welfare

1.2.2.2 The factors that ensure the State's role in social welfare for farmers

The thesis focuses on the following groups : First , the State 's view on the development of social security system for farmers Second, the ability to ensure that budgeting for farmers to participate in the principle of social security plays - enjoy , as well as state funding Third, the capacity of the plant general manager of social security , in particular for farmers In this thesis refers to machinery , staff management social security for farmers Fourth, social awareness and advocacy measures of social awareness about social security for farmers

1.2.2.3 Evaluating criteria for the roles of the Government on social welfare for farmers

To evaluate the roles of the Government on social welfare for farmer,

researcher has used two criterion groups The first group is the criteria for

performance level of the contents of the Government on social welfare for

farmer, such: 1) The degree of completeness, consistency and compliance of

legal systems and mechanisms, policies as well as assurance and commitment

on financial support from government budget for social welfare for farmers; 2)

the effectiveness of the coordination of social welfare policies with economic -

social policies; 3) The honesty, effective and efficient of monitoring works in

implementation of policies of social welfare for farmers The second criterion

group is evaluation of farmers' participation in the social welfare components,

how does it work? Because after all , the participation of farmers in social

welfare is a vital measure criterion on validity and effectiveness of the

implementation of the Government's role in social welfare for farmers This

group includes the criteria of coverage and level of impact of social welfare on

farmers

1.2.3 Research Methodology:

In order to carry out research which follows the mentioned model, the

conducted thesis conducted uses both qualitative and quantitative method

during studying progress

1.2.3.1 Qualitative methods

Based on the methodologies of dialectical and historical materialism,

researcherb has used statistical method and comparative approach method to

analyze and to compare the approach on the role of the Government in

developing and improving the social welfare system, the advantages and

difficulties in enforcing roles of the Goverment in over the country as well as

in three north central provinces , the opportunities and challenges in achieving

the objectives of social welfare implementing progress in incoming stages, then

finding appropriate models to apply and expand social welfare system for

farmers in Vietnam in general and in three central provinces in particular, as

well as analyzing and pointing out factors which affect sustainable development

of the social welfare system for farmers, since then indicating what efforts need

to make to achieve given objectives

1.2.3.2 Quantitative Methods

In order to use for targeted quantitative studies , researcher had collected

secondary data from reports of government management departments and local

departments where their functions and duties related to the roles of the Government in social welfare for farmers

Besides the secondary data, the thesis has also collected primary data to specifically evaluate and specify the roles of the Government in social welfare for farmers and these surveys are conducted in three provinces of Ha Tinh, Nghe An and Thanh Hoa Questionnaires for the primary document are divided into two groups of respondents that are the group of farmers and the group of managers

1.2.3.3 Data processing

In the thesis, researcher had used descriptive statistical methods to compare insurance participation status and the rate of surveyed farmers who involved in support programs of government, to collect and analyze viewpoints of managers

at all levels on conformity and necessary adjustment which need to implement from current social welfare system for farmers

In this research, researcher has implemented cross-checking to limit errors during the data entry process

Chapter 2

THE ROLES OF THE GOVERNMENT IN SOCIAL WELFARE FOR FARMERS: THEORETICAL ISSUES AND PRACTICAL

EXPERIENCES 2.1 DEFINITION, CHARACTERISTICS AND THE ROLES OF SOCIAL SECURITY FOR FARMERS:

2.1.1 The concept and necessity of social welfare system:

2.1.1.1 The concept of social welfare:

According to the research, social welfare is an income guarantee and

other certain essential conditions for individuals, families and communities under significant changes on economic, society and nature which had impacted their lives and make them reducing or losing their ability to work or losing their jobs because of their sickness, disease or a worse case is death This guarantee may help vulnerable people such elderly peole, orphans, disabled people, the victims of war and natural disasters reduce their hurt and can survive

2.1.1.2 The need of a social welfare system

Firstly, to prevent, limit and overcome risks due to growing demand of

human nature

Secondly, to overcome the defects which had been occured in the difficult

time and financial crisis during the development cycle of the market economy

Thirdly, the impact of industrialization, modernization also requires to

have a social welfare system for substanable lives of citizens

2.1.2 The concept and characteristics of social welfare to farmers

2.1.2.1 The concept of social welfare for farmers:

The research refers that social welfare for farmers is a system of policies

and methods that the Government, family and society had done to help farmers

to deal with the risks which were happened due to the social - economic crisis,

Those impacted farmers’ lives and make them reducing or losing their income

then falling into poverty and impoverishment

2.1.2.2 The basic characteristics of social welfare for farmers

Firstly, social welfare for farmers is inextricably linked between the form

of contribution - beneficiary and the form which is not based on the principle of

contribution Secondly, social welfare for farmers is belonged to the field of

social security for the unofficial sector (non- structural) Thirdly, farmers who

are people wherether most of them have low and unstable incomes therefore the

sustainability and stability of financial capacity of them to take part in a form

of social welfare is not high

2.1.3 The roles of social welfare for farmers

The research analyzes the social welfare for farmers to show that this

system has contributed to political stability role besides contributing to

implement social equality and to develop sustainable society and economy

2.2 THE ORIGIANAL, CONTENT AND AFFECTING FACTORS ON THE

ROLES OF GOVERNMENT IN SOCIAL SECURITY FOR FARMERS

2.2.1 The original and importance of the roles of the Government on social

welfare system for farmers

2.2.1.1 The original of the Government’s roles on social welfare system for

farmers

In the researcher’s perspective, original roles of the Government in social

welfare for farmers is the Government to build a system of policies and

measures to help farmers to deal with the risks which were happened due to the

social - economic crisis, Those impacted farmers’ lives and make them reducing or losing their incomes then falling into poverty and impoverishment

The research illustrates that the roles of the Government in social welfare

for farmers have reflected the basis of Government as well as reflecting social

responsibility of the Government in the distribution and the use of national product

2.2.1.2 The importance of the role of the Government in social welfare for farmers

Firstly, to help the Government to prevent risks and keep the lives of

farmers – one of the most vulnerable group in stable

Secondly, to help the Government to achieve the objectives of sustainable

economic development

Thirdly, to contribute to improvement of social - economic management

tools of the Government

2.2.2 Contents of roles of the Government in social welfare for farmers:

The thesis focused on three major content groups : 1) Government builds and enhances legal environment and institutional policies on social welfare for farmers; 2) The Government coordinates the implementation of social welfare policies for farmers with other social - economic policies, and 3) The Government monitors and suppervises the implementation progress of policies

on social welfare for farmers

2.2.3 The factors affect the roles of the Government in social security for farmers

The research analyzed four groups of factors: 1) The Government perspective on social welfare for farmers; 2 ) The financial capacity of the Government and farmers' income; 3) The capacity of the management system

on social welfare for farmers and 4) Social awareness about social security for farmers

2.3 SOME EXPERIENCES OF SOME COUNTRIES OVER THE WORLD

ON THE ROLES OF GOVERNMENT IN SOCIAL WELFARE AND PRACTICAL EXEPERIENCES IN VIETNAM:

From the analysis of the experience of the Federal Republic of Germany and China in the development of social welfare system for farmers, the research concludes:

Firstly, the establishment of a social welfare system for farmers is

necessary for all countries in the developing process of economic market

because it is the most effective method to help farmers - one of the vulnerable

groups of society to prevent, remedy and mitigate risk

Secondly, depending on each different model of social welfare and the

specific conditions of each country, the Government has different roles on

social welfare deployment for farmers However, the most common role of the

Government is reflected on the establishment of legal system, institutional

mechanisms and policies to supervise and monitor the implementation of social

welfare policies

Thirdly, It also depends on the different types of institutions, social -

economic conditions whether each country will has various ways to operate the

different social welfare system Therefore, the scope of the Government’s role

in social welfare for farmers varies widely or narrow in different In some

countries, their government directly intervene in the operation of the social

welfare system as well as directly organise income and expenditure of social

welfare funds Besides that other countries asign to social welfare organisation

to manage and operate by them-self

Fourthly, although in some extents, there are differences, but generally

most government must have a financial support policy for farmers to participate

in the social welfare system Without this support, social welfare mode is hardly

to implement and expand

Chapter 3 THE STATUS QUO OF THE GOVERNMENT ON THE ROLES OF

SOCIAL WELFARE FOR FARMERS IN VIETNAM TODAY

3.1 ANALYZING THE STATUS QUO OF THE GOVERNMENT’S

ROLES IN SOCIAL WELFARE FOR FARMERS IN VIETNAM TODAY

3.1.1 Government establishes and enhances legal environment, policy

institutions for farmers to participate in social welfare system

3.1.1.1 Government establishes and enhances legal environment, policy

institutions for farmers to participate in social welfare system according to

the principles of contribution – getting benefits

The research analyzes two following problems: Firstly, the government

establishes and improves legal environments and policy institutions to help

farmers to participate in voluntary social insuarance system Secondly, the

government establishes and improves legal environments and policy institutions

to help farmers to participate in voluntary medical insuarance system

3.1.1.2 Government establishes and enhances legal environment, policy institutions for farmers to participate in social welfare system not based on the principle of contribution:

Thesis refers to three issues : Firstly, the government establishes and improves legal environments and policy institutions of normal social assistant packages in the community Secondly, the government establishes and develops

a system of unexpected social assistant packages for farmers Thirdly, the Government encourages social organizations and individuals to help from the community

3.1.2 Government coordinates the implementation of social welfare policies for farmers with other social - economic policies

The thesis had analyzed the implementing coordination between social welfare policies for the farmers and other social economic policies in order to contribute to socials support and to encourage farmers to take part in as well as

to ensure the implementation of the Government's roles on social security for farmers

3.1.3 The Government sets up management mode, inspection and supervision modes on the general social security and the social welfare for farmers in particular

The thesis has described the development and improvement steps of the organizational model of voluntary social and medical insuarance and the organization of self - management on social participation for farmers in Vietnam

3.1.4 Results of farmer participation in the social welfare system today

3.1.4.1 The participation of farmers in social welfare system under the principle of contribution – getting benefits

The research shows some participation results of voluntary social and medical insuarance in particular, which involved farmer participation during the years of

2008 – 2012

Commenting on the involvement and impact of social welfare system under the principles of contribution – getting benefits on the farmers

Table 2 Statistic of social and medical insuarance participation rate

of farmers in Vietnam

1 The number of official labor

(thousand people)

The number of official labor who

bough forced social insuarance

8.500 8.800 9.400 10.104,5 10.436,8*

The rate of official labor who

bough forced social insuarance (%)

2 The number of unofficial labor

(thousand people)

The number of unofficial labor who

bough voluntary social insuarance

6.110 41.193 67.319 96.400 134.000*

The rate of unofficial labor who

bough voluntary social insuarance

(%)

3 Total of Vietnamese citizens

(thousand people)

The number of people who bough

medical insuarance in general

The number of forced medical

insuarance and medical insuarance

for poor people:

29.100 34.700 47.000

The number of people who bough

voluntary medical insuarance

10.600 15.300 4.200

Cover rate of voluntary medical

insuarance (%)

4 Voluntary social insuarance

and medical insuarance for

farmers through survey datas

The number of farmers who did

survey (person)

258

The rate of farmers who bought

voluntary social insuarance (%)

9,3

The rate of farmers who bought

voluntary medical insuarance (%)

28,8

Reference sources: Department of invalids and social affairs (Cục TBXH) 2010; Vietnam social

insuarance (BHXHVN 2013); research survey 2011; * researcher’s projection

1) According to research results show that social welfare system which is

run under the principles of contribution – getting benefits until 2012 just had

0,38% participation rate on voluntary social insuarance and 10,3% on

voluntary medical insuarance At the surveyed provincinces in 2011, these rates were higher but there was only 9.3 % of farmers who took part in voluntary social insuarance and 28.8 % on voluntary medical insuarance, respectively This result is quite low The implementation of the guidelines and policies of the Party and Government on social welfare for farmers into actual lives has been still slow

2) The participants on voluntary social insuarance mainly those who have taken the time to participate on forced social insuarance then turn to on voluntary social insuarance or the people who are over working age but not enough working time to get retired pensions or the farmers who had incomes from medium to high rate…etc,.The amount of money which is choosen to participate voluntary social insuarance still remains at low level, normaly they choose a higher level of the minimum wage

3) According to a survey in a number of localities, up to now there are very few farmers who received pensions from voluntary social insuarance However, the overall pension rate is quite low, It normaly ranges from 725,000 VND to 1,300,000 VND /person / month With a pension level is lower than minimum wage or higher than it a little bit, that is very difficult for beneficiaries from the voluntary social insuarance to pay living expenses and get a stable life

3.1.4.2 The participation of farmers in social welfare which are not based on the principle of contribution

The thesis presents the participation of farmers in normal social assistant packages, unexpected social assistant packages from government budget and expected social assistant packages from community and has drawn the following comments:

1) The coverage and level of impact of normal social assistant packages

in general and for farmers in particular is low In 2010, the rate of assisted cases just reached 1.65 % in comparation with the population In three investigated provinces, in 2009, the coverage rate of normal social assistant packages is higher than national average rate but it only reached 3.19 % The impact level of normal social assistant packages is low Social assistant standard compared to the poverty line period 2006 - 2010 is by 60 %

rural poverty standard In the three mentioned provinces in 2009, the average

amount of received money was 135.416 VND/person/ month

2) The unexpected social assistant packages from the Government’s

budget in terms of crop failure, natural disasters, etc, normaly are very low

There are still many cases which are incorrect addresses or identifiable moral

support than offseting losses

3) The unexpected social assistant packages from community activities

have been implemented at the local level, especially for the average, poor and

very poor households However, this support is not stable and the level of

assistance is not high

3.2 EVALUATE THE ROLE OF THE GOVERNMENT IN SOCIAL

SECURITY FOR FARMERS

3.2.1 Achievements and limitations the role of the Government in social

security for farmers in Vietnam currently

3.2.1.1.Achievements and limitations in developing and improving the system

of laws, policies and social security for farmers

Firstly, regarding achievements, the Government built and is gradually

improving the legal system of social security for farmers, including social

security based on get –pay principle (including voluntary social insurance and

voluntary health insurance) and social security not based on the contribution

(including regular social assistance, unexpected social assistance from the

national budget, community social assistance from individuals and social

organizations

Secondly, there are still some limitations in creating a legal environment

of social security for farmers

1) Social security system which is based on pay-get principle

- The proportion of contribution between compulsory social insurance

(CSI) and voluntary social insurance (VSI) is equal but those who are enrolled

in CSI receive major support from the Government and enterprises while the

farmers have to pay the entire 18%

- The average income of farmers is very low, less than the minimum wage

of present society, therefore it is unfair to pay VSI if based on the minimum wage

- Those who are enrolled in CSI have five benefits (illness, retirement,

death, maternity, labor accidents and occupational diseases), while those who enrolled in VSI only have two benefits which are retirement and death

- If the retirement pension is less than the minimum wage, those who are enrolled in CSI will be compensated by the minimum wage, and those who

enrolled in VSI will not

2) Social security which is not based on contribution

Although the number of beneficiaries of social protection policies is expanding, there are still many limitations regarding irrational approaches and synchronization with other social policies

Thirdly, having a general evaluation on legal law and policy

- Regulation on social security based on the pay-get principle is not suitable for the contribution ability of farmers The principle of receiving voluntary social insurance is not equal with the principle of receiving compulsory social insurance

- The legal system of social support in Vietnam lacks a system of uniform standards; it is based more on humanity than on the rights of the people Many regulations are not suitable for the social economic conditions which lead to inefficient implementation, causing conflicts and social inequality

- The allowance has many discrepancies and inconstancies with other social policies; identifying the beneficiaries is still based on many complicated criteria which lead to difficulties

- The socialization in voluntary social insurance and compulsory social

insurance’s regulation is still poor

3.2.1.2 Achievements and limitations of the Government in combining social security with other social economic policies

Firstly, in general, poverty alleviation policies are more appropriate than the market labor polices for farmers

Secondly, the influence of social economic policies on social security is not substantial Loans are the most effective policy; other policies such as

employment and labor market access policy are still poor

3.2.1.3 Achievements and limitations of the Government in managing and observing social security implementation for farmers

Many measures have been implemented but the implementation is still

inadequate The mechanism is not transparent; therefore, the solutions which

should handle errors are not serious enough, limiting the effectiveness and

efficiency of the social security program for farmers in our country

3.2.2 The causes of the limited role of the Government in social security

for farmers

3.2.2.1 Social security is still new to farmers, and its guidelines have not kept

pace with the reality

The regulations on the managing and organizing models are not suitable

for the reality of farmers This has resulted in a low participation of farmers in

pay-get system as well as other system which does not require farmer’s

contribution

3.2.2.2 The income of farmers is low which causes difficulties for them to

enroll in social security which is based on the pay-get principle

The research results show that only households who have an average

income above 3.244 VND / month can participate in social security which is

based on the pay-get principle Other households with an average income of

around 927.166 VND/ month did not participate in social security

The thesis analyzed the causes of low income status of farmers:

Table 3 Income of households participating social security

in pay-get principle

The total number of households having

information

(Household)

Total income

of household having

information

(million/ year)

Average income of a househould having

information

(million/ year)

Number

of people

in a

family

(Person)

Average income of a

person

(thousand VND/ month)

1 General income of

investigated

households

2.Households

enrolling in social

security in the pay-get

principle

3 Households did not

enroll in social

security in the pay-get

principle

Source: Author’s research results

3.2.2.3 National budget and community budget to support social security which is not based on the pay-get principle for farmers is still limited

Financial support from these sources is still limited Compared with some

other countries in religion, social security expenditure is still low

3.2.2.4 The ability of social security management to farmers still has many limitations

Specificity: Firstly, social security network based on the pay-get

principles has not delivered to communal and ward levels to mobile people to enroll in social security system Secondly, the number and quality staff working

in social security have not met the requirement

3.2.3.5 Social awareness of farmers about social security and the propagation and dissemination of information on social security to people is limited

Chapter 4 DIRECTIONS AND SOLUTIONS TO STRENGTH THE ROLE OF GOVERNMENT IN SOCIAL SECURITY FOR VIETNAMESE FARMERS

IN THE NEXT FEW YEARS

4.1 CONTEXT OF STRENGTHENING THE ROLE OF THE

GOVERNMENT IN SOCIAL SECURITY FOR VIETNAMESE FARMERS

IN THE NEXT FEW YEARS 4.1.1 Social economic context has influence on the role of Government in social security for farmers in the next few years

4.1.1.1 Career structure in rural areas

Although modernization and industrialization has spurred economic restructuring towards increasing the proportion of industry and services, reducing agriculture's share in GDP, but by 2011, in rural Vietnam, the structure of agricultural producers is still big, accounting for 62.0% share of industrial households and construction accounting for 14.73%, the proportion

of service households accounting for 18.4% Furthermore, the proportion of households with the greatest income from agriculture, forestry and fisheries households is lower than the proportion of agriculture, forestry and fisheries

This is creating challenges for social security policies