The role of local authorities in promoting voluntary social insurance (VSI) in rural areas the case of melinh district, hanoi

THE ROLE OF LOCAL A UTH O RITIES IN PROM OTING VOLƯNTARY SO CIAL INSURANCE VSI IN RURAL AREAS: THE CASE OF M ELINH D ISTRICT, HANOI.. Key vvords: Voluntary social insurance, rural area

THE CASE OF MELINH DISTRICT, HANOI

Local supervisor: Assoc.Prof Dr Tran Thi Thanh Thuy

H a n o i, J a n u a r y - 2 0 Ỉ 5

THE ROLE OF LOCAL A UTH O RITIES IN PROM OTING

VOLƯNTARY SO CIAL INSURANCE (VSI) IN RURAL AREAS:

THE CASE OF M ELINH D ISTRICT, HANOI.

Level: Thesis o f M aster Program in Public M anagement

Author: Le Thi Lan

Supervỉsor:

Swedish supervỉsor: Dr Sven-Erik Svard

Vietnamese supervisor: Assoc Prof Dr Tran Thi Thanh Thuy

M aster deíense day: Dec 5th, 2014

Aim:

Voỉuntary sociaì imurance (VSI) is created for mobilizing resources from the society and encouraging the responsibilit}’ o f the people, reducing the

dependences o f the people to State budget, whiìe improving their readiness to

solve their own problem and that o f community as it comes Hoxvever, i t ’s diffìcuỉt to promote VSI in general and in ruraỉ area in particular due to the limitation o f job and opportunities, low income and awơreness

Accordingly, local authorities supposed to abide well the regulation on the one hand and creatively and actively adapt and promote policies that match with the speciíìc context o f the locality This thesis used the case o f Melinh district (Hanoi, Vietnam) to tell a story and to dravv some lesions to be shared on this topic This research aims to:

- Review related theories;

- Summarize key related policies and regulations o f the Central govem m ent,

Hanoi and M elinh authorities

- M ake a stake-holder analysis and overvievv o f the current situation, shedding a light to the achievem ents, shortcom ings, cause and effects o f VSI effort in M elinh

This research has employed both desk-based research revievv and empirical research including: interview, survey questionnaire to gather information for analyzing (100 random interviews with native farmers have been conducting, bringing in lots o f insight about the avvareness, need and capacity o f farmers

in taking part in VSI scheme); a com parative approach for analyzing information (betvveen policy and practice; theory and policy, practice; intem ational and Vietnam; Socson district and M elinh district) Quantitative analysis and qualitative interpretation o f data have been used The triangulation helps limiting disadvantages vvhile enhancing the advantages o f each method for ensuring the reliability and validity o f the íindings

A stake-holder analysis and the Force Field model o f the drivers and the restraints o f the change analysis have established the backbone o f analysis o f the research Attaching to that, K otter’s theory on leading change helps to shed a light on the interpretation o f the related policy and practice

Result & Conclusions:

- Pursuing sw is o f importance to any states, regardless types and time

- SI is the one o f main tools o f sw Hovvever, the burden to the State budget

on this matter creates a place for many initiatives including VSI

- VSI has a great advantage in m obilizing idle and ready Capital o f citizens for

budget and increases the sense o f the people in preparing for the risk situations in the future by VSI, helping the people ensure their better life in future, enhancing welfare and social developm ent in general, especially in rural areas However, “voluntary” capacity requires a number o f conditions for the mem bership to afford and take part such as awareness, effectiveness o f legal system, incom e

- In Vietnam, VSI in rural area has been the subject o f a system o f law and regulations, practice and research

this research has found out:

+ Achievem ents o f VSI: avvareness, regulate, organization structure, incentives Thanks to the effect o f Vietnam Social insurance, NGOs, mass-

media, famers, Central govem m ent and local authorities.

+ A num ber o f shortages due to a range o f constraints: Local authorities take for granted; men move to city to find a jo b because o f urbanization in rural area, m atter such as needs more time for family members to discus

+ A ccording the role o f local authority in the future (im plem enting policy better by m aking regulations, choosing key person vvho in charge o f prom oting VSI, choosing mass-m edia and speakers ), change must be in

place if the situation to be improved and leading change should be a subject

for discussing K otter’s 8-steps model o f change can be a good reference for local authorities

Suggestions for future research:

Further research can be conducted to explore the way VSI can be better prom oted in the future through integrating practically socio-economical developm ent strategy with VSI

Contribution o f the thesis:

-Thesis indicates the potential for the Central government and ỉocaì authorities:

+ Stake-holder analysis suggests a better analysis o f íorces in the society in the course o f prom oting VSI

+ Some speciíĩc solutions

+ Suggest better leadership skills to lead change

- For researcher:

+ Helps researcher understand, better use and adapt some theories and approach

Key vvords: Voluntary social insurance, rural areas, Melinh, local authorities,

K otter’s leading change, quality o f life

LIST OF ABBREVIATIONS AND A C R O N Y M S 2

LIST OF TABLES AND FIG U R ES 2

1 IN T R O D U C T IO N 3

1.1 B ackground 3

2.2 Research q u estio n 7

2.3 Research p urpose 7

3 FRAM E OF R E FE R E N C E 8

4 RESEARCH M E T H O D S 9

5 EM PIRICAL D A T A 11

6 DESCRIPTIVE A N A L Y S IS 11

6.1 Social insurance and Voluntary social Insurance as a policy tenn 11

6.1.1 Social Insurance (SI) 11

6.1.2 Voluntary sociaỉ insurance (VSI) 14

6.1.4 From policy to reality 19

6.2 The case o f M elinh d istrict 20

6.2.1 Brieffor Melinh district 20

6.2.2 The farmers willing to have VSI 23

6.2.3 The reality 26

6.2.4 Stake-holder analysis 29

7 REFLECTIONS AND C O N C L U SIO N S 34

REFEREN CES 39

APPENDIX 1: 41

1 INTRO DUCTIO N

1.1 Background

The concept o f social welfare can be understood as the protection o f society, as the guaranteed society or the safety o f society) has appeared since the govem m ent o f President Roosevelt (1933-1945) and attached to it is íìnding the vvay to decide on Human Rights 1948 contract United States o f America Social welfare or guarantee society can be understood that the most com m on is the guarantee o f an individual's life or the basis o f the members live in society because society made It enables m em bers o f society to avoid the basic loss o f income, empIoyment from risks to stabilize social life 1

T.H M arshalTs (1950) proposed that social citizenship constitutes the core idea o f a welfare State.2 But the concept must involve the granting o f

social rights W elfare State cannot be understood ju st in terms o f the rights it

grants It must also be taken in to account how State activities are interlocked

with the m arket’s and the fam ily’s role in social provision The vvelíare State

is as a system o f stratiíication.3

However, in relation to economic policy, the concept o f social

w elfare is understood as the uniíòrm measures o f social policy has a direct effect not onỉy contribute to im proving living facility but also protect the basis

o f each member's life in society from risks the direct impact to ensure survival and socio-economic strata o f the population

If according to the objectives o f the Com m ission o f the International Labor Organization (ILO) in 1951, on the minim um standards o f social vvelíầre is to be achieved: the medical examination, treatm ent and prevention

o f disease by doctors medicines, medical equipment and health Service when

people get sick; life assurance as involuntary loss o f all or part o f their income

1 Dr Thanh, N euyen Dinh (2012), The main pillars o f the National Social Security System , Social Insurance joum al.

Esping-Andersen (1990), The three political econom ies o f the welfare-state p 2 l.

■ Esping-Andersen (1990), The threc political econom ies o f the welfare-state.

as well as keep the additional welfare payments for income them selves and family m em bers on a regular basis When the above conditions have been met, this understanding o f the interests or goals o f social welfare have been made.4

Social welfare (SW ) is o f importance in every State, at any stages o f development Thus, s w refers to those policies issuing protective in order to protect people from risks o f economic and social loss or suffering Theoretically, social welfare supported to cover up all population groups

M ore speciíically, social welfare refers to the protection o f society for its

m em bers by a series o f public measures to shore up the deíicit cantilever economic and social loss or reduction due to sudden pow er income because o f sickness, m atem ity, occupational accidents and occupational diseases, unemployment, disability, old age and death, including the protection o f health care and care for íam ilies with small children or when encountering disaster groups

Each nations, depending on political trends, economic levels - social, historical developm ent and different conditions that build a social welfare system with the range o f participants and enjoy sales, financial methods and different implementations

Based on de-com modifìcation and stratification, welfare states are different regimes in the difference countries There are three welfare State regimes that including the conservative regime (as Japan), the socialist regime (as Svveden) and the liberal regime (as United State o f A m erica).5

Social Insurance is one o f the main pillars o f the social security system, contributing to the progress and social justice, stabilize people's lives, social and political stability Given its signiíìcance, the state’s capacity and budget are unable to cover everything because it needs to ensure public investment in all sectors Thereíbre, voluntary social Insurance (VSI) is

4 Dr Thanh, Nguyen Dinh (2012), The main pillars o f the National Socia! Security System , Social Insurance ịoumal

5 Espins-Andersen (1990), The three political econom ies o f the welfare-state.

created for m obilizing resources from the society and encouraging the

responsibility o f the people, reducing the dependences o f the people to State,

vvhile improve their readiness to solve their ovvn problem and community

w hen it c o m e s

VSI has many advantages and beneíits H owever, it’s diffícult in

im plem entation o f VSI It has many difficulties due to many reasons,

especially for the rural areas with the lovv living Standard, lack o f awareness

o f SI and social responsibilities

In Vietnam, accompany economic developm ent are proíòund changes

in social policy system and especially social welfare system Until now, the social welfare system in Vietnam, despite various íeature o f a developing country but have gradually improved and integrated with the social welfare system o f the world, both in terms o f theoretical and practice

The social security reform was carried out in 1995 and also ửequently supplem ent or am endm ent promptly in accordance with the current situation

o f State o f the economy - social stages Social insurance is considered as an

important m anagem ent tool in providing the íinancial and material readiness and support for the people in the case o f vulnerable or disadvantage situations

SI is come to tenn

Law on SI is the crucial framework based on it, the State regulates,

reflecting com m itm ent and the competence o f govem m ent to protect the future, to ensure the readiness for any circum stances to happen and to continuously improve the quality o f life In particular, law on SI and its regulations creates a guideline to direct behavior and activity o f both individual and groups tovvards fulfillment o f respectively rights and obligations; sharing and providing support, ensuring equity and sustainability

o f the system.VSI in the rural areas faces the status that it’s agriculture

economy with low income, high risk in income and living Standard due to the

dependence to the nature And rural areas are transitioning towards industrial

So it’s a dilem m a that although agriculture product is still the key but agriculture area is narrovv, urbanization changes rural life vvays, income from agricultural iníluences It changes their minds on SI It’s suggested that self-

fm ancing for se lf protections should be applied and motivated for them in

order to get avvay for that situation

Given the fact that, it’s noted that social Insurance (SI) in general and VSI in particular have faced diffículties in getting introduced Several causes have been cited including:

1- From the public policy perspective: policy many shortcomings o f the benetìts o f those who voluntarily participate in

2- From the perspective o f the citizen,s capacity: that again is divided into two categories: the awareness and economic situation and status

3- From the perspective o f professional system: In which Vietnam Insurance has a role to play

Given that, the local govem m ent’s capacity plays a crucial role This is shown as a nevvly emerging tendency in Vietnam, matching the new philosophy

o f public administration within public refonn process

In Hanoi and Melinh district, atĩer the Social Insurance Law in 2008, studies has not proposed to VSI in rural areas o f Hanoi and the role o f local govem m ent In using a case study o f M elinh district in Hanoi, this research discovers the underlying advantages o f VSI, requirem ents to boost up the participation and the challenges that hinder the process All o f this will be conducted under the light o f an attempt to justify the role and capacity o f the local govem m ent in the relation with related stake holders

Before this research, there has been intensive research on social

Insurance, social welfare studies that aim to provide solutions that cover

Social, Health, unemployment Insurance or social insurance fund safety

through im provem ent o f policies, adm inistrative reíòrm s, such as the role o f

the State in the implementation o f social Insurance policies(Bui Van Hong,

1997); Reíòrm o f adm inistrative procedures in the process o f im plem enting

social security policies in Vietnam (Linh Nguyen, 2010); Social security for farmers in market economy context (Mai Ngoe Anh, 2009) The People's

Com m ittee o f Hanoi also had Planning o f social network developm ent base in

the province o f Hanoi in 2020, Vision 2030

T here’s a shortage o f researches o f VSI in the vvorld and in Hanoi

M elinh is a suburban district o f Hanoi city with a large agricultural area So

we need an in-depth research o f VSI in M elinh district for sam pling o f rural area in Hanoi The thesis indicates potential for this policy can be

im plem ented more effectively to creating better quality o f life for rural citizens The theories and analysis frameworks o f leading change, leadership skills were used throughout the research

K otter’s theory on leading change shed a light on the judgm ent o f the related policy and practice

2.2 Research question

This thesis’s conduction to answer the following questions:

1 What are the benefits o f SI in general and VSI in particular?

2 What role do local authorities play in promoting VSI in rural areas in Vietnam?

3 What are factors hinder them to play that role?

4 What type o f leadership and m anagem ent system should be in place for them to do it effectively?

2.3 Research purpose

This research aims at:

1 U nderstanding the theoretical and íoundation o f SI and VSI from policy perspectives

2 Brieíìng about the policy and regulations setting in Vietnam on that

2 T aking a picture on the case o f Melinh district, showing the

achievem ents and shortcom ings in introducing and prom oting VSI to the

com m unities, indentiíying the underlying causes

4 Provide som e im plications for policy formulation and

im plem entation to increase the gap o f quality o f life betvveen the urban and

rural areas

The purpose o f this study is not out o f desire to improve, promote

participation ín voluntary social insurance o f the people, períorm s social

w elfare policies in rural areas better A nd hope to narrovv the gap quality o f

life betw een the inner city and suburban residents

3 FR A M E O F R E FE R E N C E

The K o tter’s m odel o f leading change is selected since its relevance

and usetulness for the analysis It has 8 steps belovv:

Change leadership is associated w ith putting an engine on the whole

change process The change process w ill be made go íaster and more

effíciently

6 Plan to create quick wins

5 Empowerothers to act on the Vision

4 Communicatethe Vision

8 lnstitutionalizethe new approach

7 Build on the achieved change and add more

1 Create urgency

D ỉagram 1: K otter’s 8-steps model

This theory helps to understand the essences and challenges o f change, not impose but self-aw areness; hovv to introduce o f change in public sector; sustain the change impact through sense o f changing, convening the coalition for change, capacity building bring in stake holders; Vision dravving in the prosperity It’s o f im portance, especially in public sector Example: The citizens want to participate in VSI but not afford to do it (because o f living

cost) If the State wants the people take part in, the govemment has to create

In seeing the knovvledge and availability as well as the voluntary behavior as the key to prom ote the advantages and beneíits o f VSI, the Leading change theory helps to bring in a supplementary methods for current

m anaging change efforts that have been used in VSI promoting

4 RESEARCH M E TH O D S

This research has used both desk revievv and empirical research for this study Some methods to collect data as: desk-based, intervievv, survey questions, to analyses, com parative study (betvveen policy and practice; theory and policy, practice; intem ational and Vietnam; Hanoi and Melinh district)

We have combined both o f quantitative analysis and qualitative interpretation o f data The triangulations help us limiting dovvnside and enhancing the advantages o f each method

Desk-based review has many advantages as cheap, rich o f information, wide know ledge and variety data from policy, researches,

joum als But it has some disadvantages likely out o f date, extremely Our desk study has included some vvorks as belovv:

- We reviewed the policies o f VSI o f State from the Central to Melinh district We have collected related regulations and data on implement policy

o f VSI in M elinh district from 2009 to 2014 and continuing to collect docum ents and data in some rural areas o f Hanoi vvhich have similar duty as

M elinh (reports from Vietnam Social Insurance Agencies, Hanoi Social Insurance Agencies) So we have collected data on VSI prom oting roles o f local authorities o f some other district in vvhich has the same natural conditions and has a similar population size (Soc Son district)

- We studied on many researches They are scientiíĩc joum als, M aster

thesis, Ph D thesis, nevvspapers

- We studied information on Vietnam social insurance’s website

- Reading some books and articles vvhich related to the subject to get more information for the research

We made some survey questionnaire to collect information o f diffículties or obstacles that local governm ent face in implementing and sam pling in 500 citizens o f 8 communes We have done in-depth intervievvs with 9 civil-servants in charge (M anager and executives in Social Insurance Department)

We made analyses aíter we had described the situation to participate

in voluntary social insurance, which in Melinh district:

- We used the theoretical framework to identiíy some points, including: the issues vveakness, the shortages and the achievem ents o f prom oting VSI in Melinh in the connection to VSI policy in general, the local social and economic status, and the tired budget

- We used the Force Field model to analysis the drivers and the restraints o f the change

- Some diagram s and charts are have been used as tools to get

overview the research

These analyses m ake me identiíying the problems in prom oting VSI participation I clearly that issue is the local govem m ents stand betvveen the two sides, one side is a policy, the other side is the citizens

- Closed to the situations

Empirical data gained is show n and reílected in the next sections The designs are both structured and sem i-structure interviews

In Processing, there's alw ays note-taking, cross-checking by data gathered from desk-based

6 DESCRIPTIVE A N A L Y SIS

6.1 Social Insurance and Voluntary social Insurance as a policy term.

6.1.1 Social insurance (SI)

Insurance is considered as policy tool to help for social security With their inherent nature, SI is not "insurance" for workers them selves that

"insurance" for their income O nly w hen em ployees participate in social

Insurance and their income is reduced, or lost due to lost or reduced capacity

to work, or working ability cannot be used due to the risk and Insurance

events , then they are "insured" In other w ords, reíers to "offset" clause is lost

or reduced income o f the em ployee, the subject o f social security income Impact also object (or objects assurance) o f SI are laborers and their families

in accordance with the provisions o f the social security legislation o f each country

Thereíòre, it is necessary to distinguish between objects SI, SI

object's impact; benefíciaries o f social Insurance and social Insurance

participants:

Social security beneficiaries are the vvorkers and their families (as deíĩned by law o f SI) SI arises vvhen the employee meets the insured event or the risk insuring, the newly social security beneíìts (as deíìned by the Vietnam Social Insurance law current events and the risks covered include: sickness, m atem ity, occupational accidents and occupational diseases, unemployment, retirem ent, death) SI Participants who are employees, the

em ployer and the State in some cases Thus, em ployees can be both as social Insurance participants and beneíĩciaries o f social Insurance For example,

when employees participate in the social insurance, sickness, retirem ent

they are also beneíiciaries o f social Insurance, social insurance allowance

when they are sick or when they retire

The operational objective o f social Insurance is implementing social

policies o f the State, contributing to a stable life for vvorkers and members o f their families Therefore, operation o f social insurance is non-profit activities and aims o f social security The value o f SI is the difference that the type o f

commercial Insurance market does not get, because they operate for proíìt.

In Vietnam, policy and legal framework are shown on the resolutions, lavvs and many regulations The social insurance law was passed by the

N ational A ssem bly o f the Socialist Republic o f V ietnam XI, Session 09th

on 29/06/2006, w ith effect from 01/01/2007; particularly for voluntary social Insurance and unem ploym ent insurance from 01/01/2008 from 01/01/2009 O rganization structure o f V ietnam has a system vvhich

im pỉem ents policies o f SI

Social Insurance is a guarantee to replace or compensate for part o f the income o f the employee vvhen they are reduced or lost income due to sickness,

matemity, occupational accidents, occupational diseases, unemployment, vvorking age, or death, based close to the social insurance fund.6

And social Insurance principles in Vietnam SI Lavv as belovv:

The level o f social Insurance beneíits are calculated on the basis o f

premiums, vvhile social Insurance contributions and shared among the

participants o f social insurance

The level o f compulsory social Insurance, unemployment Insurance is

calculated on the basis o f salary and vvages o f workers Social Insurance prem ium s are calculated on a voluntary basis income worker by choice, but this income is not less than the minimum wage

The employee had paid com pulsory social insurance had paid voluntary social insurance are entitled to pension and death allovvances based

on time o f social insurance contribution

Social Insurance Fund is managed uniíied, democratic, open and transparent, which is used for the right purposes, are accounted for independent com ponent tunds o f mandatory social insurance, voluntary social insurance and unemployment insurance.7

The social insurance system is written in Article 4 o f SI Lawx as below:

- Compulsory social insurance includes the following modes: illness; Matemity; occupational accidents and occupational diseases; Retirement; Death survivorship

- Voluntary social insurance includes the following modes: Retirement; Death survivorship

- Unemployment Insurance covers the íòllovving modes: Unemployment beneíìts; Support for vocational training; Support to fínd work

6 The national assem bly o f the socialist republic o f Vietnam, 2006, Law o f SI article 3.

7 The national assem bly o f the socialist republic o f Vietnam, 2006 Law o f SI

* The national assem bly o f the socialist republic o f Vietnam, 2006 La\v o f SI

Hovvever, it shouldn’t rely on the State due to the gives íinancial

responsibility and burden it has to bear In that sense, VSI is initiated and designed to share with the State and promote the citizen’s responsibility for them selves In public m anagem ent perspective, VSI is a particular mechanism

o f participation or public-private-partnership in dealing social issues

6.1.2 Voluntary social insurance (VSI)

Voluntary social Insurance is a form o f social Insurance that

em ployees voluntarily participate, selected levels and modes o f play in accordance with their income for social insurance.9 VSI has many advantages

as íbllovvs:

- State mobilizes idle and ready Capital o f citizens for budget and increases the sense o f the people in preparing for the risk situations in the future

by VSI

- VSI helps the people ensure their better life in íìiture

- VSI enhances welfare and social developm ent in general, especially

in rural areas

VSI and SI are also protection measurements Promoting SI and VSI

is an im plem ent to share the burden for the budget, share social responsibility

am ong mem bers o f society

Fund resources o f SI to be safe for always readily and timely payment

to the participants beneíĩt from the regime Because o f the risk o f life are alvvays in a State o f permanent, it can come to anyone, at anytime SI fùnd is also funding to achieve the objective o f general social welfare o f all people10 Thereíore, VSI to be used safely, ensuring balance in the long tenn; must be increased coverage This is diffìcult but must drastically A ccording to the Resolution no.21: "Respect voluntary social insurance is very important direction because this is the object occupies a large num ber o f social, as

9 The national assem bly o f the socialist republic o f Vietnam, 2006, Law o f SI

10 Sinh, D o Van (2 014), The People joum al no.205, p27

tầrm ers, íreedom labor , the low income is vulnerable” 11 However, they differ in the audience participation and coverage in short.

In Vietnam, under the provisions o f the current Law on Social Insurance, the insured object is a national voluntary Vietnam in w orking age are not subject to compulsory social insurance Meanvvhile, the subjects o f

com pulsory social Insurance in 5 groups include: people working under labor

contracts vvith a term o f three months or longer sufficient; officials and public servants; defense workers, police workers; offĩcers, professional military people's army; Officers, non-com m issioned offícers and proíessional officers, non-com m issioned officer in the police technical people; workers as salaried cipher for the people's army and police people; com m issioned officers and soldiers o f the People's Army and com m issioned officers and soldiers o f the People's Police served a term; who work abroad have a term that vvas previously compulsory social Insurance Thus, participants in voluntary social

Insurance are quite sizable.

Hovvever, in practice, the number o f voluntary social Insurance

accounts for only about 0.3% o f the subịects involved This figure seems contrary to the wishes o f the majority o f people, especially people living in rural areas The consultation process the draft Social Insurance Law (as

am ended) o f the Commission Regarding social issues that many individuals

w ishing to participate in voluntary Insurance to receive a certain amount as

they become aging Sum nature o f self defense is especially important for people who living in rural areas, because o f the risk o f fanning is very large, low- and no high stability M oreover, people desire to participate in VSI as vvell as hieh safety, sponsored by the State, while comm ercial Insurance to potential risks and disadvantage.12

11 Sinh, D o Van (2014), The Peop lejou m al no.205, p27

12 Ha, 2 014, The Peop lejou m al no.205, p28

C hapter IV o f V ietnam SI Law is about VS1 Section 1 (from article

69 to article t6) is regim e o f retirem ent and section 2(from article 77 to article 79) is death allo w an ce.13

A ccordingly, we can see, the current law has no provision m atem ity allow ances, sick for subjects participating in voluntary social insurance This

is different from the object o f m andatory social insurance participants

Based on proíitability criteria and participant criteria, there are many issue types as follows:

T able 1: T he location o f VSI in Insurance market

regime, retirement regime )

CCI

(exp: non-life Insurance

Products as compulsory

Insurance o f civil liability

o f motor vehicle ovvners)

(exp: many others life and

non-life insurance Products

as travel insurance, fire

6.1.3 Institution framework

In recent years, the policy o f voluntary social insurance is the level Party and g ovem m ent interest That policy embodied in the vvritten guidance from the Central to local levels o f VSI, as follows:

- R esolution No 21-N Q /T W o f the Politburo on strengthening the

leadership o f the Central Party on social Insurance, medical insurance period

2012-2 0 2 0.

- Government Decree NO.190/200/ND-CP o f the Government dated

28/12/2007 guiding a number o f articles o f the Law o f Social Insurance on voluntary social insurance The provisions o f this Decree have done írom 1/1/2008

- Program o f A ction No 19-CTr /TU o f Hanoi Party Committee

- Planning No 82/K H -People's C om m ittee o f Hanoi City People's

C om m ittee on strengthening the leadership o f the W orking Party on Social, Health period 2012- 2020

- D ecision N0.999/Q D -SI, O ctober, 2014 from the Director General

o f Vietnam Social Insurance prom ulgated the Regulation on active agents o f

social Insurance voluntary so cia l insurance, health Insurance.

- And the nevvest is Law on Social Insurance 2014 (Amendment) vvhich has adopted by parliam entary o f the republic o f the socialist Vietnam

on N ovem ber 20th, 2014 14

R esolution No 21-N Q /TW o f the Politburo vvith big goals, consistent unpopular w idely deployed across the country Im plem entation o f Resolution

No 21-N Q /TW dated 17.04.2013, Hanoi Party Com m ittee issued the program

o f action o f 19 -C Tr/TU im plem entation o f city-w ide party Action Program m e aim s to raise avvareness and responsibilities o f committees, organizing bodies, units and cadres, party members, civil servants, offícials and people in the Capital in the im plem entation o f Resolution No 21-NQ/ CT;

im plem ent effective policies, social insurance, m edicaỉ insurance period

ĐAI HỌC QUÔC GIA HÀ NỘI I

V _ ^ Tllir\ /ICM

14 w w w b aoh iem xah oi.gov.vn , (N o v , 2 0 1 4 ) ĨRUNG TAM THÔNGTỊN THƯVỊÊN

( J T 0 5 / I O T O Ắ Q Í

2012-2020; increased coverage o f social insurance participants, especially

voluntary social Insurance, towards the goal o f universal health Insurance

Program m e o f A ction o f the Hanoi Party C om m ittee set specific goals to strive to 2020, the city o f H anoi, about 55% o f em ployees participate in social

Insurance; 45% o f em ployees participated in unem ploym ent; over 85% o f the

insured population; Im proving the quality o f medical care Insurance, to meet

the needs and treatm ent o f the insured; Use safety and ensure the balance o f

the term; system o f social insurance, health Insurance is built in a modem ,

proíessional, efficient, m eet the requirements o f industrialization and

m odem ization o f the econom ic Capital.13

People's C om m ittee o f Hanoi create the Plan N o.82 to implement the program o f action N o l9 -C T r/T U o f the City Party Committee, Vice

C hainvom en o f People's C om m ittee, Nguyen Thi Bich Ngoe said: “At present the rate o f the social insurance in Hanoi is about 32%, the percentage o f the insured is 69 % , w hich is very rem arkable results have yet to match the requirem ents o f socio-econom ic developm ent o f the C apital” '6 To enhance the im plem entation o f stronger policies o f social and health insurances in the

province Capital, V ice chairwomen emphasized some important work needs to

be done to focus, such as: The governm ent com m ittees in districts district should closely follow the direction and im plem entation o f policies and social

participating social insurance, com pulsory health insurance which assigned speciíĩc responsibilities for organizations locally in the propagation and

expansion o f social Insurance participants, MI; actively interested in

supporting people classified as poor, informal workers, farmers, pupils,

m em bers o f these groups to conditionally participate in social insurance, health insurance more Social insurance agency o f Hanoi and all districts have

'*ĐH (M ay, 2 0 1 3 ), Hanoi city m unicipal d ep loys the resolution no.21, website: http://baohiem xahoi.gov.vn/ lhN g o c, N guyen Thi Bich (M ay, 2 0 1 3 ), Hanoi city municipal deploys the resolution n o 2 !, website:

http://baohiem xahoi.gov.vn/

to strengthen and actively coordinate vvith relevant agencies to revievv updates

o f new businesses subject to social insurance, com pulsory health insurance,

b u sin ess requirem ents this strict im plem entation o f social Insurance law, health Insurance District leaders also have to strengthen the inspection, test and urging the im plem entation o f p olicies on social Insurance, health

Insurance, and to take m easures to rem ove difficulties and social security

agencies especially in reducing arrears, inspections, check Processing

enterprises violate SI, H ealth insurance Im proving the quality o f Service at VSI, quality m edical care Insurance in hospitals and clinics as well as content

to prom ote íu rth er im plem entation.17

R eview the progress o f the policy:

- T ends increasingly better

- M ore and m ore speciíically

- Integration with other policy refonns on social and economic

d ev elo p m en t, w elfa re and raising Capital.

6.1.4 From policy to reality

VSI in Vietnam: "The im plem entation o f pension payments and the mode prescribed by law, the rights o f participants are increasingly expanding

In particular, the formation, with the balance and preservation, grovvth,

contributing to invest in socio-econom ic development o f the social Insurance

fund is considered one o f the great successes o f the organization o f social Insurance system VN However, coverage is still lovv, 20% reached crisis workforce; State enterprise arrears, evasion SI m uch.18 Thus creating no small challenge with SI: potentially deíìcit; ability to meet, especially in health care (insurance) is not h ig h |i;

17 ĐH (M ay, 20 1 3 ), Hanoi city m unicipal d ep loys the resolution no.21, \vebsite: http://baohiem xahoi.eov.vn

18 Sinh D o Van (2 0 1 4 ), The People joum al n o.2 0 5 , p26

19 Sinh, D o Van (2 0 1 4 ), The P eople joum al n o.2 0 5 , p26