analysis the efficency of resolution 68 nq cp in supporting employees in difficulty due to covid 19 pandemic

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND LAW GROUP ESSAY ANALYSIS AND EVALUATE EFFICIENCY ON CERTAIN POLICIES TO SUPPORT EMPLOYEES IN DIFFICULTY D

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY

UNIVERSITY OF ECONOMICS AND LAW

GROUP ESSAY

ANALYSIS AND EVALUATE EFFICIENCY ON

CERTAIN POLICIES TO SUPPORT EMPLOYEES

IN DIFFICULTY DUE TO THE COVID-19

PANDEMIC UNDER RESOLUTION 68

CLASS: K20403C

LECTURER: MA NGUYEN THI THU TRANG

GROUP MEMBERS NUMBER NAME STUDENT ID MISSIONS EVALUATE

CHAPTER 1: THE BASIS OEF EEFFECTTVE PROGRAM EVALUA TION 3

1.1 The need of policy In CoIvd- [9 COTi[€XÍ á Á Là LH HH Hà HH Hà HH Hà 3

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SUPPORTING EMPLOYEES IN DIFFICULTY DUE TO COVID-19 PANDEMIC 10

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2.2.2 B€n€ÍlCIATI€S - ó4 án Tàn Hà HT Hà HH Hà To Tà HH Tà HH Tà Hà Hà HH gà 16

2.3 Overall assessment of the efficiency of Resolution 68 in supporting employees 20

CHAPTER 3: CONCLUSION AND RECOMMENDA TIONGS -ce-cseeeeesces 22

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3.2 Recommendations and policy development

GENERAL CONCLUSION

INTRODUCTION

1 Reasons for choosing the topic

The SARS-CoV-2 (Covid-19) influenza pandemic has posed unprecedented challenges and difficulties for the entire world economy All macroeconomic pursuits were virtually frozen during the crisis This non-traditional shock causes Vietnam's economy to suffer from double pressure from the supply side due to production activities and the demand side due to a sharp cut in spending by consumers As a result, for the first time in

10 years, the Vietnamese economy witnessed a serious decline in the number of labor market participants and the number of people employed It is not only about socio- economic losses but also the burden of disease with the number of deaths increasing continuously causing serious damage to human psychology and health

The fact that the economy cannot operate according to the law of supply and demand cannot create surplus value due to prolonged delay, the situation of people losing their jobs and being unable to produce is inevitable At this time, employees, the group of people who are said to be the main labor force, playing an important role in the economy, begin to become the object of interest When they are constantly struggling and having many difficulties in maintaining a normal state of life, it is worse when it comes with a whole series of consequences on social security

To minimize the damage caused, requires leaders from central to local levels to promote the initiative, innovate and innovate methods The government needs to identify appropriate targets to build a fiscal support package with a large enough scale to intervene, meeting the criteria of being timely, to the right audience, long enough and inclusive enough

to be effective

With the theory and practice of the group, we chose the topic “Analysis and evaluate efficiency on certain policies to support employees in difficulty due to the covid-19 pandemic under resolution 68” based on evaluating the support policy of the state, from which to make judgments, evaluate, and propose solutions to give views objectively contribute to strengthening the state policy system

State

3 Objects and the scope of the topic

- Objects: Resolution 68/NQ-CP 2021 dated July 1, 2021, on certain policies to support employees in difficulty due to the Covid-19 pandemic

- Scope: Research content, implementation methods, and results

- Spatial Range: Nationwide

- Time range: 2021-2022

- Scope of content: Analysis of resolutions and effectiveness of implementation of support packages for employees

4 Research methods

The group uses qualitative methods, specifically:

e About data collection: collect and refer to secondary data from relevant research articles, books, newspapers, magazines, e-newspapers, and portals, etc

e About data analysis: synthesize, select and process appropriate information From there, analyze and evaluate the effectiveness of the program

5 Topic’s structure

The topic has 3 chapters, including:

Chapter 1: The basis of effective program evaluation

Chapter 2: Analysis the efficiency of Resolution 68 in supporting employees in difficulty

Chapter 3: Conclusion and recommendations

CHAPTER 1: THE BASIS OF EFFECTIVE PROGRAM

EVALUATION 1.1 The need of policy in Coivd-19 context

The Covid-19 pandemic has been a negative impact on the production and market

of our country Hundreds of thousands of employees have lost their jobs and millions of employees must furlough and reduce their income Many businesses have been forced to shut down In view of the situation, the 68 /NQ-CP was issued by the government in time, which restricts the negative impacts of the pandemic, recovery business, stabilizing the labor force, maintaining dual goals, anti-pandemic, and the Government's economic development At the beginning of 2021, Vietnam had to deal with the Covid-19 pandemic for the third and fourth time consecutively In particular, the 4th wave broke out in late April 2015 and is continuing to contract complex development, directly affecting the production of businesses and people’s lives The pandemic has caused resistance from businesses, including large, large-scale enterprises, and signs of the market falling due to the prolonged pandemic The lives of most employees are affected by reduced income and loss of employment

According to the data of the General Statistics Office, the labor and employment in the first quarter and 6 months of 2021: A country of 12.8 million people aged 15 and up has been affected by the pandemic, compared to the first quarter of the pandemic, which has increased by three million employees In the first five months of the year nearly 60,000 businesses across the country must measure, pause or explain, an increase of 23% from the same period by 2020 As a result, the government desires to pass Resolution 68/NQ-CP to address this issue and support employers and employees who are facing difficulties due to the COVID-19 pandemic

Resolution 68/NQ-CP was a resolution to the desire to perform “dual goals" as both anti-pandemic development and the Government's socio-economic development

1.2 Market failure

According to the General Statistics Office survey findings, there were 49.1 million persons in the labor force who were working in agriculture, forestry, and fishery areas; industrial and service areas and gross domestic price of the three regions each contribute

13.96%, 34.49%, and 41.64% of the national GDP, respectively

In general, paid employees earn 6.7 million VND per month on average in 2019 with male employees earning 7.1 million VND, female employees earning 6.3 million VND, urban employees earning 7.8 million VND and rural employees earning 5.9 million VND Given the above-average salary, it is clear that under ideal circumstances, employees’ incomes are rather modest, and they are extremely vulnerable individuals Employees are forced to deal with a crisis of job loss, source of income and lack of money

to cover their living expenses, according to the labor and employment survey from the first three quarters of 2020, which shows that Covid-19 has had a negative impact on employees Life activities and quality are drastically diminished

The average employee income in 2020, while considering the effects of the Covid-

19 pandemic, is 5.5 million VND, a 2.3% decrease from 2019 The income of service

employees fell the highest by 215 thousand VND and was followed by that of those in agriculture, forestry, and fisheries which fell by 156 thousand dong The lowest monthly income decline for employees in industry and construction is 100,000 VND per person Why did employees immediately find themselves in challenging circumstances after the Covid-19 pandemic struck when the state had laws in place to support them before the pandemic both directly and indirectly through the labor market? According to Decree No 61/2015/ND-CP issued July 9, 2015, assistance for employees includes the Employment Support Policy and the National Fund, as well as 2019 unemployment compensation Enterprise employees have the right to contribute to social insurance funds in the event of hardship However, the Covid-19 outbreak did not benefit employees because of previously approved governmental laws proving that they are ineffective

1.3 State failure

Prior to the outbreak of the pandemic, the state established support policies or labor market-based policies to support employees, but when the pandemic started, those policies failed to address the issue The market's issues throughout the pandemic demonstrate how poorly the government's policies have been implemented which has led to its failure Lack of market information and limited information The state bases its social security policy design on the practical requirements of its constituents However, the policy

of providing access only applies to the district and commune authorities and the primary beneficiaries are experiencing an information gap The state will be more knowledgeable about the social security support package than the people because the government is the one who is implementing the program and the policy therefore the initiative in the execution Besides, beneficiaries of support struggle to receive support packages because there is little information available, and some municipalities implement the packages in a way that is opaque to most people

The previous policies have not been closely observed, administered or given much attention by the government The policy's success is therefore not assured when it is put into operation and the loophole exists and is not identified until the pandemic has already started Additionally, there are several difficult and time-consuming processes that must be completed before receiving support from before policies can be granted This might delay the employee's application by up to a month’s source of income They hope to use that money to support themselves financially Prior policies did not make it obvious who was who, which resulted in "free rider problem" being the wrong subject but still receiving benefits

Gender disparity is a result of market defects Women had to wait 99 years before they could expect to be treated equally to males before the pandemic broke out The gender gap generated by COVID-19 will take 136 years to fill, as opposed to 100 years, according

to the World Economic Forum's gender gap report for 2021 When inequality is rising at the same time in most nations, it may be claimed that the Covid-19 pandemic has created a risk that has never been seen before Because women tend to work more in certain industries, the pandemic's effects in 2020 resulted in a 4.2% global reduction in women's

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employment compared to a 3% decline for males Up to 87.2% of enterprises in Vietnam were reportedly impacted by the Covid-19 outbreak, according to the report on the topic When inequality is rising at the same time in most nations, it may be claimed that the Covid-19 pandemic has created a risk that has never been seen before Because women tend to work more in certain industries, the pandemic's effects in 2020 resulted in a 4.2% global reduction in women's employment compared to a 3% decline for males Up to 87.2%

of enterprises in Vietnam were reportedly impacted by the Covid-19 outbreak, according

to the report on the topic

Since there has always been gender imbalance in society, the State first passed the Law on Gender Equality No 73/2006/QH11 of the 11th National Assembly on November

29, 2006, in which Article 13 was particularly reserved The National Strategy on Gender Equality for the period 2011-2020, which specifies objectives and solutions to reduce gender gaps in the fields of economy, labor and employment was approved by Prime Minister's Decision No 2351/QD-TTg dated December 24, 2010 and regulations on gender equality in the labor field and measures to promote gender equality in the labor field increased access to economic resources and the job market for low-income rural women and women from racial and ethnic minorities yet gender inequality does not generally decline throughout this time, but rather rises compared to before the breakout throughout the pandemic

Social imbalance is brought on by income inequality As the gap between the rich and the poor increases and threatens socio economic stability, the pandemic has revealed income disparity Building, developing and organizing the implementation of social programs has long been a priority for the Vietnamese government, which sees this as both

a goal and a driving force for the nation's sustained growth and sociopolitical stability The main goals of social policy are to promote equality and social progress, ensure social stability and continuously improve and enhance peoples’ quality of life in terms of their possessions, spirits, equality, and happiness However, social security policies were unable

to assist people as the Covid-19 pandemic spread It can be noted that: Unprotected groups

of employees such as independent contractors, working-class laborers, etc In the

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meanwhile, because they lack access to vacation and sick leave policies and are less protected by social security policies, migrant employees are expected to be badly harmed

by the pandemic

The group of persons with average income and above are entitled to sick leave, access to medical services, and continued employment should they contract an infection Some persons from close relationships may be able to utilize the vaccination first during the period of vaccine shortage when the state cannot distribute vaccines to the entire population However, the pandemic is like a nightmare for individuals at the very bottom

of the income scale Many people who lack health insurance are at a significant risk of passing away It was exceedingly challenging for them to acquire medical treatments when they were ill because the outbreak caused them to transition from having a poor income to having no income owing to losing their jobs Even if they do recover, they risk becoming poorer because there are no benefits to replace their lost income

1.4 The government’s intervention

The Vietnamese government worked to put several significant regulations into place and introduced assistance programs, social security programs, and initiatives to aid those impacted by the disease The rapid release of resolutions was greatly appreciated, and the people had high hopes for the social security support package outlined in Decree 68/NQ-

CP (VND 26,000 billion) Direct cash assistance for policy recipient the poor, self- employed and unemployed employees, business households are among the major costs such

as:

Suspension of payment to the retirement and survivorship fund: The employees and the employers are entitled to a 6-month suspension of payment to the retirement and survivorship fund from the date of application submission

Job retention training programs for employees: Employers are entitled to financial support from the unemployment insurance fund for training, retraining, and skill enhancement if they have fully paid unemployment insurance premiums for employees for

a full 12 months or more at the time of requesting support Cooperate with a vocational

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education institution in developing a plan for training, retraining and skill enhancement in order to secure the jobs for employees as prescribed The maximum monthly assistance is 1,500,000 VND per employee, with a maximum support term of six months

Assistance to employees on suspension of employment contracts, unpaid leave: Employees will be entitled to lump-sum support if they have worked for enterprises, cooperatives, public sector entities that cover their own recurrent expenditures or investment and recurrent expenditures, people-founded and private preschools, kindergartens, primary schools, junior high schools, high schools and vocational schools that temporarily cease operations at the request of competent authorities for the prevention and control of the

COVID-19 pandemic, with a start date between May 1, 2021, and December 31, 2021; and

they have contributed to compulsory social insurance up to the time of suspension of employment contracts or unpaid leave as follows: The rate is VND 1,855,000 per person for

15 consecutive days or more but less than 1 month, and VND 3,710,000 per person for 1

month or more

Assistance to furloughed employees: Employees will be entitled to lump-sum support of VND 1,000,000 per person if they have worked under an employment contract and have been put on furlough under Clause 3, Article 99 of the Labor Code and have been quarantined or in a locked-down area as required by the competent authority for 14 days or more during the period from May 1, 2021, to the end of December 31, 2021; and they have contributed to compulsory social insurance up to the time of furlough

Assistance to employees with terminated employment contracts: Employees will

be entitled to lump-sum support of VND 3,710,000 per person if they have worked for enterprises, cooperatives, public sector entities that cover their own recurrent expenditures

or investment and recurrent expenditures, people-founded and private preschools, kindergartens, primary schools, junior high schools, high schools and vocational schools that temporarily cease operations at the request of competent authorities for the prevention and control of the COVID-19 pandemic and their employment contracts have been terminated

from May 1, 2021, to the end of December 31, 2021, with a start date between May 1, 2021,

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and December 31, 2021; and they have contributed to compulsory social insurance but are not eligible for unemployment benefits

As for employees without an employment contract (self-employed) and some other specific entities: The provinces and cities shall, based on the specific circumstances and budget capacity, develop criteria, determine the beneficiaries and the support amounts, but the support rate is not less than VND 1,500,000 per person per time or VND 50,000 per person per day based on the actual number of days of suspension at the request of the provinces and cities

Policy instruments: Decrees Nos 20/202 1/ND-CP, 33/202 1/QD-TTg amending, and 23/2021/QD-TT¢g of the Prime Minister on measures and regulations on supporting people

in difficulty due to the 8 COVID-19 pandemics were also issued in a timely manner to hasten the implementation and deployment of a support package worth VND 26,0000

CHAPTER 2: ANALYSIS THE EFFICIENCY OF RESOLUTION 68/NQ-CP IN SUPPORTING EMPLOYEES IN DIFFICULTY DUE

2.1.2 Applicable subjects

Resolution 68 focuses on 7 groups of employees:

Group 1: Employees eligible for occupational accident and disease insurance (except for officials, public employees, people in the people's armed forces, employees in the agencies of the Party, the State, administrative agencies, public sector entities on the payroll of the state budget)

Group 2: Employees on suspension of employment contracts, unpaid leave Group 3: Furloughed employees

Group 4: Employees with terminated employment contracts

Group 5: Pregnant employees and children

Group 6: The employees who have worked under employment contracts and have contributed to compulsory social insurance if it resumes the business after suspending operations at the request of the competent authority to prevent and control the COVID-19 pandemic

Group 7: Employees without an employment contract (self-employed) and some other specific entities

2.1.3 Objectives, principles, methods, and funding resources

Objectives:

Support for employees and employers facing difficulties because of the COVID-19 pandemic, contribute to the recovery of production and business, mitigate the negative effects of the pandemic, and stabilize production, business, and guarantee employees’ life and safety

d) Encourage all levels, branches, and local governments to take the initiative, based

on specific circumstances, to deploy objectives, and principles, and promptly flexibly support policies

e) The support of the government budget is done as follows:

Provinces and cities with a revenue distribution percentage to the central budget of more than 60% are self-financed to offer budget support

The central budget shall support the remaining provinces and cities on the following principles:

e 80% of the actual expenditure as prescribed in this Resolution for the mountainous provinces and the Central Highlands

60% of the actual expenditure as prescribed in this Resolution for the remaining provinces that have not yet balanced their budgets (besides the mountainous provinces, the Central Highlands)

40% of the actual expenditure as prescribed in this Resolution for the provinces and cities that have remaining revenue distribution percentage to the central budget The provinces and centrally affiliated cities actively use 50% of the local budget reserve (including the three levels of province, district, and commune) and 70% of the local financial reserve fund, and salary reform balance to follow the principles and provide categories of support specified in this Resolution

Methods: loans, one-time subsidies, dairy subsidies, reduction in insurance payments, food allowance

Funding resources: Government budget

2.1.4 Actors of Resolution 68

Ministry of Labour - Invalids and Social Affairs

The Ministry of Finance

Ministry of Culture, Sports, and Tourism

Ministry of planning and investment

The State Bank of Vietnam

Vietnam Bank for Social Policies

Vietnam Social Insurance

People’s Committee of provinces, cities under (the jurisdiction of) the central government

Ministry of Information and Communications

Central Committee the Vietnam Fatherland Front

Viet Nam Confederation of Labor

2.2 Analysis of efficiency policy in supporting employees

2.2.1 Social package