To achieve this "position", social insurance policy itself and the implementation of social insurance policies must make appropriate adjustments to adapt to the real situation. First, it derives from the challenges facing each country, including the increasing pressure on the budget and the social insurance fund, as well as an aging population, and low social insurance coverage, among others. In particular, after the country's Doi Moi (reform) policy, Vietnam implemented important reforms in its social insurance policy in 1995, such as establishing a system of agencies specialising in implementing social insurance policy at three levels; establishing a social insurance fund independent from the state budget which is formed on the contributions of both employers and employees; in addition to expanding the scope of subjects participating in compulsory social insurance and implementing voluntary social insurance; among others. Thanks to these important reforms, the social insurance fund has become the largest welfare fund; the organisational model of the social insurance system has promoted its effectiveness in policy implementation; and the number of employees participating in compulsory and voluntary social insurance has continuously increased (reaching 13.9 million people by the end of 2017, an increase of seven times compared to 1995). However, besides these important achievements, the implementation of social insurance in Vietnam also shows inadequacies, including the low coverage of social insurance; the social insurance system being designed in a single-stage manner with loose connections to other social policies; and compulsory social insurance also omits some groups of people with the demand and ability to participate in it.

Source: VietNamNet News May 15, 2018 03:56 UTC