27 Years Dedicated to Social Security Development

On February 16, 1995, the Government issued Decree 19-CP establishing Vietnam Social Security on the basis of unifying the social security organizations at central and local levels under the system of Labor - Invalids and Social Affairs and Labor Union. The system of Vietnam Social Security was organized and managed centrally and uniformly from the Central level to the district level. Since then, after 27 years of development, Vietnam's social security industry has obtained remarkable achievements, gradually affirming the policy of social insurance and health insurance as a main pillar of the social security system.

The social security network is strengthened and expanded

The coverage of social security and health insurance has been increasingly expanded even in the context of the country's difficulties due to the impact of the COVID-19 pandemic. Notably, the number of people participating in health insurance has grown impressively, basically fulfilling the goal of universal coverage; the number of people participating in voluntary social insurance has exceeded the target set out in Resolution 28-NQ/TW; the coverage of social insurance and health insurance has focused on disadvantaged groups. The number of people participating in compulsory social insurance increased from 2.3 million in 1995 to 12.1 million in 2015 (5.3 times higher than in 1995); reaching 15.1 million people in 2021 (1.25 times higher than in 2015). Compared to 1995, up to now, the number of people participating in compulsory social insurance has increased by 12.8 million (nearly 6.6 times), with an average increase of 0.5 million people per year. Compared to 2008 - the first year of implementing the voluntary social insurance policy, up to now, the number of people participating in voluntary social insurance has increased by 1.4 million people (an increase of 241.7 times), with an average annual increase of over 100,000 people. Compared to 1995, up to now, the number of people participating in health insurance has increased by 81.7 million people (12.5 times), with an average annual increase of more than 3 million people. Compared to 2009 - the first year the unemployment insurance policy was applied, up to now, the number of people participating in unemployment insurance has increased by 7.41 million people (2.24 times), with an average increase of 0.6 million people per year.

It can be seen that, along with 27 years of development of Vietnam's social security industry, the coverage of social insurance, health insurance and unemployment insurance has grown rapidly year by year. The number of people participating in health insurance has approached the goal of covering the entire population, effectively extending the social security network to all people and laborers, firmly consolidating the country's social security. The social insurance and health insurance fund has become the largest social security fund, which is managed and used for the right purposes, safely, effectively, openly and transparently under the supervision of the National Assembly, the Government, and the Vietnam Social Security Management Council. The proportion of expenditures from the social insurance fund is increasing; accordingly, the proportion of spending from the State budget for social insurance is decreasing, affirming the correct position of the Party in encouraging people to improve their capacity to ensure their own social security.

Changing the mode of operation, ensuring the best interests of participants

The settlement of social insurance, health insurance and unemployment insurance regimes and policies is timely and in accordance with regulations; especially effective conversion of management methods from manual to modern, the settlement of social insurance and health insurance regimes is based on the management data of the process of participating in payment of social insurance and health insurance premiums, ensuring the principle of "payment - enjoyment". The mode of operation of the system of Vietnam’s social security industry has been renewed in the direction of service, promoting electronic transactions, increasing the use of public services, shortening the settlement time, reducing troubles, ensuring the rights of employees and people.

In particular, in 2020 and 2021, in the context of the complicated and prolonged COVID-19 pandemic, Vietnam Social Security closely followed the actual developments, quickly and flexibly adapted to the pandemic situation to effectively deploy solutions in order to ensure the best interests of participants. From 1995 to the end of 2021, the whole sector handled about 135.7 million requests of payments for sickness, maternity, convalescence and health rehabilitation (over 5 million beneficiaries per year on average). From 2010 to the end of 2021, it handled payments for over 8.7 million people entitled to unemployment insurance benefits. By the end of 2021, the total number of people receiving pensions and monthly social insurance benefits was about 3.3 million people (increasing by 179% compared to 1995). From 2003 to 2021, the whole industry coordinated with medical facilities to ensure examination and treatment benefits for over 2,217 million hospital admissions.

Notably, in the context that the COVID-19 pandemic has severely affected the lives, employment and jobs of people and laborers, Vietnam’s social insurance industry has actively and drastically joined the ministries and sectors advising the Party, State, Government and Prime Minister to promulgate many mechanisms and policies, especially Resolution 42/NQ-CP, Resolution 68/NQ-CP and Resolution 116/NQ-CP on policies to support people, employees and employers facing difficulties due to the COVID-19 pandemic.

The total amount of money that Vietnam Social Security has deployed to support is nearly VND44,786 billion. In which, support from the Unemployment Insurance Fund is more than VND38,000 billion; from the Labor Accident and Occupational Disease Insurance Fund is VND4,322 billion; and from the Retirement and Survivorship Fund is VND1,905 billion.

Accelerating administrative procedure reform, IT application, digital transformation for the satisfaction of participants

Up to now, , the entire Social Security Industry has nearly 20,000 civil servants and public employees, with a large network covering all districts of 63 provinces and cities; daily and hourly serving more than 16.5 million people participating in social insurance and unemployment insurance, nearly 88.8 million people participating in health insurance.

The administrative procedures in participating in and settling benefits related to social insurance and health insurance are increasingly improved and shortened (from 263 administrative procedures in 2009 to 25 administrative procedures). 100% of administrative procedures are offered online at level 4; a number of procedures for handling policies to support employees and employers are shortened from 5 days to only 1 working day; along with that, it has promptly provided 8 more public services on the Industry’s Public Service Portal; connecting and integrating on the National Service Portal to organize the implementation of policies to support employees and employers facing difficulties due to the COVID-19 pandemic.

The Industry's IT application has been promoted since 2015, gradually modernizing to meet the requirements of building e-Government in the era of technology revolution 4.0. Up to now, impressive results have been achieved such as: building a smooth e-government system throughout the Industry; completing the issuance of social insurance identification numbers for 97 million people, of which nearly 86 million people are participating in health insurance; The health insurance assessment information system connecting the social insurance agency with nearly 13,000 health care facilities with health insurance (reaching nearly 100%) nationwide.

Regarding digital transformation, Vietnam Social Security has completed a database of more than 98 million people, which is the foundation of the national insurance database (one of six national databases creating the foundation for e-Government development); connecting and sharing data with Ministries and sectors, especially connecting, sharing and synchronizing data with the national population database (this has been shared to authenticate information of over 32 million citizens); sharing data for agencies to serve the prevention and control of the COVID-19 pandemic.

In particular, the introduction of the "VssID - Digital Social Insurance" application is considered a strong step forward in administrative reform and IT application of Vietnam’s social insurance industry, contributing to the building of an e-Government. By the end of December 31, 2021, there were nearly 30 million people installing and using to manage and control the process of participation, benefiting from policies, and performing public services; more than 570,000 visitors using the image of the health insurance card on the application to go to medical facilities nationwide. It can be seen that the VssID application has led to initial success in the digital transformation of the Industry.

The synchronous implementation of IT application in various professional activities of the Industry has changed the perception, fundamentally changing the way of management, working and transactions of leaders and officers of the social insurance industry with people and businesses. Thanks to the above results, for four consecutive years from 2017 to 2020, Vietnam Social Security is assessed as an effective implementation agency and ranked second in the ministries and sectors; and first in the e-Government ranking of government agencies.

It can be said that, from 1995 up to now, with the efforts and attempts of various generations of civil servants and public employees, Vietnam Social Security has strived to overcome all difficulties and challenges to accomplish many important achievements, especially in the implementation of social insurance and health insurance policies, the pillars of the social security policy system. With the achieved results, the whole Vietnam Social Security will be determined to overcome all difficulties, complete the tasks well, deserving the trust of the leaders of the Party, State and People.

By Vietnam Business Forum