Social insurance coverage remains low despite favorable policy
HANOI - Although Vietnam’s social insurance policy is considered among the most generous in the world, the coverage of social insurance has reached only 24%, experts said at an international conference on social insurance in Hanoi on March 29.
Doan Mau Diep, Deputy Minister of Labor, Invalids and Social Affairs, noted the Government had set a target of having half of the nation’s labor force covered by social insurance by 2020. However, this rate reached only 23.9% by end-2016.
Although many measures have been taken, the socially insured has remained very low in recent years.
In addition to the slow growth of social insurance penetration, the social insurance fund is at risk of imbalance in the long term. According to Pham Truong Giang, head of the Social Insurance Department under the Ministry of Labor, Invalids and Social Affairs, the early retirement age of Vietnam (60 for men and 55 for women) and the fast aging population will be a big burden for the social insurance fund in the future.
At the conference, Michael Cichon, senior expert of the International Labor Organization (ILO), proposed changing the social insurance system based on four key measures: increasing the contribution rate, reducing the beneficiary rate, reducing the pension rate, and combining many other solutions.
According to a representative of the Vietnam General Confederation of Labor, some businesses wrongly enumerate the rate of social insurance they pay for their employees. Moreover, the social insurance agency cannot verify the headcount of an enterprise.
Therefore, Deputy Prime Minister Vu Duc Dam said the current priority is to determine the exact number of people who hold social insurance policies based on international standards, and that the social insurance agency should improve services for its customers.