GIẢI PHÁP HOÀN THIỆN CÔNG tác QUẢN lý tài CHÍNH tại bảo HIỂM xã hội VIỆT NAMe

GIẢI PHÁP HỒN THIỆN CƠNG TÁC QUẢN LÝ TÀI CHÍNH TẠI BẢO HIỂM XÃ HỘI VIỆT NAM SOLUTIONS TO IMPROVE FINANCIAL MANAGEMENT IN VIETNAM SOCIAL SECURITY TABLE OF CONTENTS INTRODUCTION 1 THE RATIONALE OF THE STUDY RESEARCH OBJECTIVES RESEARCH OBJECTS AND SCOPE OF RESEARCH METHODOLOGY THEORETICAL CONTRIBUTIONS AND IMPLICATIONS OF THE STUDY THE CONTENTS AND STRUCTURE OF THE RESEARCH 2 2 CHAPTER 1: LITERATURE REVIEW ON SOCIAL INSURANCE AND FINANCIAL MANAGEMENT IN SOCIAL INSURANCE 1.1 OVERVIEW OF SOCIAL INSURANCE 1.1.1 The necessity of social insurance 1.1.2 Definitions of Social Insurance (SI) .6 1.1.3 Nature and role of social insurance 1.1.4 Operation principle of SI .9 1.1.5 The mechanisms of social insurance 11 1.1.6 Social Insurance Fund 13 1.2 OVERVIEW OF FINANCIAL MANAGEMENT IN SOCIAL INSURANCE 16 1.2.1 Definition of social insurance financial management 16 1.2.2 The content of financial management in social insurance 19 CHAPTER 2: THE REAL STATUS OF FINANCIAL MANAGEMENT IN VIETNAM SOCIAL SECURITY 29 2.1 INTRODUCTION TO VIETNAM SOCIAL SECURITY 29 2.1.1 Foundation and development .29 2.1.2 Organization structure of Vietnam Social Security 31 2.1.3 Staffs and employees of Social Insurance 35 2.2 THE REAL STATUS OF FINANCIAL MANAGEMENT IN SECURITY VIETNAM SOCIAL 35 2.2.1 Fee collecting management of social insurance 35 2.2.2 Payment management of social insurance 42 2.2.3 Investment management for preservation and growth of social insurance fund .45 2.2.4 Fund balance management 48 2.3 EVALUATION OF FINANCIAL MANAGEMENT IN VIETNAM SOCIAL SECURITY 49 2.3.1 The strengths and achievements: .49 2.3.3 The causes of the above limitations 57 CHAPTER 3: SOLUTIONS TO IMPROVE FINANCIAL MANAGEMENT IN VIETNAM SOCIAL SECURITY 64 3.1 THE STRATEGIC SOCIAL SECURITY ORIENTATION OF FINANCIAL MANAGEMENT IN VIETNAM 64 3.1.1 Point of view 64 3.1.2 Objectives 64 3.2 SOLUTIONS 66 3.2.1 Macro-solutions 66 3.2.2 Micro-solutions 70 3.3 RECOMMENDATIONS 77 3.3.1 Recommendations to National Assembly: 77 3.3.2 Recommendations to Government: 77 3.3.3 Recommendations to competent authority 78 3.3.4 Recommendations to People’s Committee of Provinces and Cities: 79 CONCLUSION .80 COMMITMENTS I hereby commit that I clearly acknowledge and understand the examination regulations of Paris Graduate School of Management, France and I represent that I have conducted this thesis in true manner in compliance with regulations of School Hanoi, August 20, 2014 Student Le Thi Tuyet Minh i LIST ABBREVIATIONS No Abbreviations Meaning Agribank Vietnam Bank for Agricultural and Rural Development A ATM Automatic Teller Machine BIDV Joint Stock Commercial Bank for Investment and B Development of Vietnam H HI Health insurance I ILO International Labour Organization IT Information technology L LAN Local Area Network MoF Ministry of Finance M MoH Ministry of Health MOLISA Ministry of Labour – Invalids and Social Affairs P PC Personal computer S SBV The State’s Bank of Vietnam SI Social insurance VI Voluntary insurance Vietinbank Vietnam Joint Stock Commercial Bank for Industry V and Trade VND Dong Vietnam VSS Vietnam Social Security W WAN Wide Area Network ii LIST OF TABLES AND APPENDIXES Table 2.1 Summary of SI participants in period 2010-2014 Table 2.2 SI fee collection situation in period 2010 – 2014 Table 2.3 SI, HI and unemployment insurance debt in period 2010-2013 Table 2.4 Summary of monthly SI regimes beneficiaries in period 2010 – 2014 Table 2.5 Payment situation of SI regimes in period 2010 – 2014 Table 2.6 Expenditures for VSS organizational structure management in period 2010 – 2014 Table 2.7 Investment capital structure in period 2010-2013 Table 2.8 Gain allocation and use in period 2010-2013 Table 2.9 Collection-payment balance in Vietnam Social Security period 20102014 Appendix Contribution level schedule under Law on Social Insurance in period 2010 – 2014 Appendix Compulsory SI participants under enterprise form in period 2010 – 2014 Appendix SI collection structure under enterprises form in period 2010 – 2014 iii INTRODUCTION The rationale of the study Social insurance (SI) is considered as one of the most important policies of the Vietnamese Communist Party and the Government for employees in the country These policies aim to ensure quality-of-life for workers and their families in the cases of sickness, maternity, impaired labour skills, unemployment, or death of all working age The social insurance policies in our country have been carried out since the establishment of the Government Over the sixty-year period, during the implementation process, social insurance policies have been improved, constantly renewed, and supplemented to ensure its appropriateness to the current conditions of the country Along with the economic reform after the 6th National Congress of the Communist Party of Vietnam, social insurance policies and institutions responsible for operation management of social insurance have also had many positive changes in different aspects First, the presence of social insurance not only makes significant contributions to promoting the life stabilization of workers, but also encourages them to actively participate in production to create common wealth for the society and for developing the national economy During the implementation process, social insurance has had the continuous development in both quality and quantity aspects The number of participants has been quickly increased and been extended to different types of employees Moreover, the mechanism of managing social insurance has also experienced the radical shifts Most importantly, the organizational system is operating under the uniform structure on a national scale with the 3-level model based on vertical sectors from the Central to local levels Besides these accomplishments, during its application process, Social Security Fund has revealed several limitations which exist in the current policies and implementation Even though the policies and mechanisms of social insurance have been constantly modified, supplemented, and supported by other social policies (e.g., labour policies, employment and wage policies), there are still many issues related to abuse of the social insurance fund, which leads to imbalance of the fund as well as "overspending" status in near future Therefore, in addition to continuous amendment and improvement of Social Insurance Law, there should be additional rules and solutions to order to avoid the abuse or financial losses of the social insurance fund Based on the above analyses on the rationale of the study, I decided to propose the research topic “Solutions to improve financial management in Vietnam social security” for my graduation thesis The purposes of the research are to analyze, evaluate, and examine the real status of financial management in Vietnam Social Security in the recent years From these evaluations, the study identifies the current problems, obstacles, and their relative causes Next, I will propose new viewpoints and make useful recommendations to enhance financial management in Vietnam Social Security in the current period Research objectives The research on financial management in Vietnam Social Security aims to: - Analyze the real status of financial management in Vietnam Social Security - in the recent years Identify the strengths, limitations, and their relative causes in financial - management in Vietnam Social Security Propose useful solutions to improve financial management in Vietnam Social Security Research objects and scope of research - Research objects: Financial management in Vietnam Social Security - Scope of the Study: Financial management of the Social Insurance Fund in Vietnam Social Security during the four-year period (from 2010 to June, 2014 Methodology The research employs the specific research methods such as: Statistics method combine with comparison, collection and analysis method Theoretical contributions and implications of the study - In terms of theoretical contributions, the study proposes the theoretical foundation for financial management of social insurance - With regard to practical aspects, the research demonstrates the real status of financial management during from 2010 to June 2014 Based on these evaluations, I will propose the useful and appropriate solutions to improve financial management in Vietnam Social Security The contents and structure of the research In addition to the introduction, conclusion and list of references, this thesis is presented in chapters as follows: Chapter 1: Literature review on social insurance and financial management in social insurance Chapter 2: The real status of financial management in Vietnam Social Security Chapter 3: Solutions to improve financial management in Vietnam Social Security CHAPTER 1: LITERATURE REVIEW ON SOCIAL INSURANCE AND FINANCIAL MANAGEMENT IN SOCIAL INSURANCE 1.1 Overview of social insurance 1.1.1 The necessity of social insurance Before living and development, human must eat, wear, live, etc In order to meet such minimum demand, human must work to produce necessary products The bulky wealth the society is, the higher the satisfaction level is However in order to obtain many wealth, human must work and work more; it means that the demand satisfaction shall depend on work skill of human In actual life, not all people have enough health and capacity as well as other conditions to fulfill their job, work or make a happy and wealthy life In contrast, many people face with difficulties, misfortunes or risks that they shall reduce, loose their income or other living conditions, such as sickness, accident, loss of bringing person, senior citizen, death, etc Moreover, life of humankind majorly depends on many natural conditions and living environment Unfavorable natural conditions or social conditions (accidents, disaster, acts of god, etc.,) have made some people to fall in bad conditions that need some help to ensure their normal life In such case, essential demands of human shall not reduce for such reason In contrast, the demands shall be increased, evenly new demands shall appear In case of sickness, people must buy medicine; when giving birth, mothers shall buy napkin and supplies for new born; and mothers shall be provided with more nutrients, etc Therefore, people and mankind shall find and actually have found many other solutions In order to handle such risks and misfortune to minimize burdens for family, in ancient time, people can remedy by themselves by reservation; at the same time, employees also receive sharing, protection and help of community and protection of society The help shall be gradually enlarged and developed in different forms Such solidarity and union have positive impacts on awareness and social work of State under different social regimes This is the first appearance of Social security and social insurance afterward During social development, especially after the industrial revolution, social security system in general and social insurance in particular have the bases - Cooperate with public mass media, Ministries, Industries, associations, political - social organizations to direct and guide the propagandize the SI and HI policies and regimes - Innovate contents, forms of editing, printing and issuing the editions and versions disseminating SI and HI in which pay attention to voluntary participants - SI newspaper, SI magazine and SI electronic homepage shall remain the special page, icons on newspaper and central as well local television broadcasting stations Improve dissemination quality; reflect the program implementation result, Development strategy of Industry Promptly detect and comment as well as introduce the groups and individuals who well perform SI and HI policies as well as laws; at the same time criticize the illegal activities in SI and HI 3.2.2.2 Improve qualification and skill for SI staffs and employees Qualification of SI finance management staffs are one of significant factors to improve the efficiency of SI finance Therefore, in order to well perform the SI finance management, it is required to focus on completing and improving the efficiency of SI organizational structure at levels, develop resources, stabilize income regime for staffs, employees, civil servants and employees - Manage personnel in each position and civil servant branch, staffs structure under professional title Recruit enough human resource with proper qualification in consistence with work demand, especially in health insurance appraisal and fund investment - Enhance training, educating to improve qualification of staffs, employees and civil servants with basic operations in SI business: Basic knowledge in finance management of enterprises, administrative units; basic operations in economic activities analysis, financial situation analysis of employer; operation on SI fund management - Improve the recruitment quality for financial staffs provided that qualified staffs shall be selected to meet job requirements - Subdivide the independence and bear responsibilities for unit leader in using staffs and management expenditure assigned, establish and use funds of units; fix responsibilities with benefits of staffs, civil servants, employees and employees 71 in operation activities, continue arranging the refined organizational structure, improve performance, well complete the tasks assigned As follows: + Establish, make standards for staffs, civil servants, employees title in compliance with working requirements of industry At the same time, recheck and arrange the staffs, employees and civil servants groups in consistence with professional skill and working requirements proposed + Recruit and train to enhance all aspects for staffs, employees and civil servants of industry provided that they are good at profession, qualified in skill and good conduct as well as behavior + Invest, equip the infrastructure, modern facilities to meet operation requirements of social insurance in new situation + Enhance the physical and mental life for staffs, employees and civil servants in industry by allocating income properly, fairly to make them effort in work 3.2.2.3 Conduct administration reform and simplify the SI procedures Enhance the administrative reform method in implementing the SI and HI policies in simple, easy and convenient manner to ensure rights and benefits of participants; speed up the one-gate mechanism in handing regimes and policies; make public the administrative procedures to people, organization and units As follows: - Complete and apply the administrative procedure set issued under Resolution No 49/NQ-CP dated December 09, 2010 of Government on simplifying the administrative procedures of VSS - Establish and complete the procedures on collecting, paying and issuing the SI book, HI card, handle SI and HI regimes and policies; apply IT in simplifying direction to meet management requirements that ensure convenience to employees and participants of SI and HI policies - Speed up the IT application in office operation under Directive No 15/CT-TTg dated May 22, 2012 of Prime Minister on enhancing the electronic application in operation of State’s agencies to save administrative costs, improve quality of report, information and synthesis - Perform efficiently the step of receiving documents and handle administrative procedures in one-gate mechanism and deploy the quality management system under 72 standard ISO 9001-2008 at Vietnam Social Security and SI agencies at provinces and cities 3.2.2.4 Apply the information technology in SI collection and payment management - Set up the finance management software program to monitor participants when they start contributing SI fee until they enjoy SI regimes, such software must meet the following requirements: The first: For SI collection operation, system shall allow user to enter all data registered and adjust the contribution level of each unit and each individual joining in SI and allow collection staff to print to all collection report including the detailed collection book, general collection report and make report to each unit, etc SI collection management shall provide the collection balance management functions of each unit participating into SI, allow user to enter all information joining SI, information of adjusting the contribution level User may use the collection management functions to print list of SI participants, list of fee contribution level adjustment of unit and at the same time, collector may print the collection report and detailed collection book Collection reports submitted to SI agencies directors and upper level shall be printed from collection management function The second: For accounting operation, system shall allow user to enter all bank’s documents, state’s treasury, fund documents as well as materials input sheet, accounting sheets to transfer capital source, balance of accounts and allow to print to all accounting books of industry from collection and payment report, payment report to organizational structure management expenditure report, etc All the accounting accounts system, account balance, documents arising on accounts under Chapter, Type, Clause, Item of State’s budget or according to units joining SI shall be all managed by functions in this sub-system The beginning functions shall be established for inputting data into account when system is newly put into operation, functions of inputting documents are designed to handle documents of cash payment, receipt documents, deposit, ex-factory documents and 73 capital sources adjusting sheets This system shall allow Accountant to easily carry out balance to books and financial statements at any time The third: For operation of approving the payment for sickness – maternity – health rehabilitation allowances, system shall allow user to enter all necessary approval information from documents and shall calculate the amount enjoyed of participants, then transfer payment request to Planning and Finance section and allow to print all payment approval result reports for each unit joining SI The forth: For operation of approving the long-term regime payment (Retirement, death, etc.), system shall allow to export all data on service years, documents information of objects to approval and management system for approving and managing the payment In line with social and economic development, SI receipt and payment is more enhanced to meet the general requirements of society It is required to enhance IT application in management in order to implement and manage sufficiently Details as follows: - Invest, improve, construct new operation management software in central processing model at central level; upgrade, newly construct the database of industry; enlarge, complete the online public service system on Internet; enlarge and complete the internal control software in electronic office direction; continue completing and enlarging the WAN network capacity of provinces and industries; continue improving and upgrading the LAN network at all three levels - Invest to procure server, workstation, storage device and specialized equipment to meet industry’s requirements - Invest to construct the Main Data Center in Hanoi, Regional Data Center in Ho Chi Minh City and Da Nang, Disaster Recovery Center in case of big accidents in Main Data Center - Invest to implement synchronously the database system and complete IT infrastructure for the whole industry, at least to 2017, inter-link and connect information among units in the whole Social insurance industry in nationwide scale; as of 2020, inter-link and connect information among agencies under VSS system with health care and examination facilities under HI regime and units as well as organizations implementing unemployment policies and regimes of labour industry 74 3.2.2.5 Fulfill the management method of SI collection Enhancing the collection provided that SI fees must be collected correctly without loss and outstanding of compulsory SI and HI fee In order to well manage SI collection, it is required to apply the following measures: - Cooperate with related competent authority to manage sufficiently compulsory SI and voluntary SI participants, especially it is required to fully understand the number of companies and employees who are participating into social insurance in private sector In order to manage such companies, it is required to cooperate with authority in charge of issuing the license and incorporation of enterprise, local tax authority And it is necessary to apply other operation measures in SI participation management of employer for employees - Issue the full SI book for employee and make full record of their SI participation and their contribution level into SI fund Study and use the new management technology to replace the present manual management method, supervise management and make sufficient record of employees fluctuation of each companies, contribution period and SI construction level of each company - It is required to strictly cooperate with Labour Inspection Organization, State’s Supervision, public organizations and social – political organization (The Communist Party, The Federation of Labour, The Public Associations, etc.) to inspect, monitor and speed up the labour registration, salary fund and SI contribution The strict penalties and high settlement methods must be applied for cases that intentionally avoid and fraud in SI participation and contribution - Fix the settlement of SI regimes and policies to employees with their obligations to contribute SI fee and employer - It is required to provide reward and encouragement policies with individuals and companies that have good achievements in collection and management of SI collection - Moreover, SI fund must not be misused and lost such as: SI collector or company uses SI fee for other purposes, fraud in collection and management that cause loss In order to recover the SI fee of enterprises that have account in commercial banks, VSS must enter into Inter-agreement in deducting to collect SI and HI debt 75 from account “Payment deposit” of enterprises to “SI collection deposit” of provincial SI at bank’s branches 3.2.2.6 Enhance the SI fund balance capacity in long-term Enhance the management of SI fund collection and payment in order to balance SI fund, solve the SI fund deficiency, as follows: - Propaganda and educate employees to participate into social insurance that make employees and employer to believe into policies of State and SI implementation authorities in order to expand the SI participants, especially the voluntary social insurance participants - Enhance the management of social insurance fund receivables, ensure to collect sufficiently and accurately without SI outstanding Use the SI receivables for right and proper purposes - Make payment of SI regimes timely in compliance with regulations and regimes of State, ensure rights and benefits of SI participants - Control strictly payment procedures of regimes, especially the sickness, maternity, labour accidents, occupational diseases regimes and unemployment allowances for proper objects under applicable regulations, minimize the SI misuse situation - Comply with procedures on documents as well as SI book management applicable to monthly SI regime beneficiaries - Speed up the inspection, check and supervision of legal compliance with SI and HI: Strictly cooperate with competent authority in inspecting and checking the social insurance and health insurance; promptly detect and propose the solutions of violations, especially the contribution evasion, owe SI and HI fees and negative activities to enjoy and seek profit social insurance and health insurance - Enhance the internal inspection and monitor in collecting, paying and handling the social insurance regimes, sign in health examination and treatment and health examination expenses payment in consistence with regulations; timely handle industry’s negative activities - Enhance the investment performance to grow fund; investment must be conducted under investment forms, proper objects in order to develop and grow fund 76 - Conduct statistic, accounting and final settlement financial report of component SI funds under current regulations and laws of State and MoF 3.3 Recommendations 3.3.1 Recommendations to National Assembly: - It is highly requested The National Assembly to amend and supplement the Law on Social Insurance to comply with actual conditions, as follows: + Expanding the compulsory SI participants to contractual employees and staffs from month to less than months signed in writing Expand the VI participants provided that shall not regulate the maximum participation age to encourage the more than 45 years old for male and 40 years old for female to buy such social insurance + Amend the retirement age and SI fee contribution amount to balance the retirement and death fund + Increase the violation penalty on SI payment + Amend and add the investment forms to grow SI fund - It is recommended to study and add to the Criminal Law the crime named occupation of SI fund for leaders of companies and employers that collect SI fee of employees, they however not pay the SI and such companies and employers are fined the administration violations, they however continue violating It is requested to handle SI debt, SI evasion the same as tax debt and evasion - It is highly requested The National Assembly, People’s Council at levels to enhance monitoring of objects who must participate SI to ensure rights and legal benefits of employees 3.3.2 Recommendations to Government: - After The National Assembly has issued the amended Law on Social Insurance, Government shall amend the Decree No 152/2006/NĐ-CP dated December 22, 2006 guiding some articles of Law on Social Insurance on compulsory insurances - Request to supplement the Decree guiding Law on Social Insurance and Health Insurance: Budget source for basic construction investment of Social 77 Insurance Industry that is deducted from profit of investment activities to grow SI and HI fund that base on estimation assigned annually by Prime Minister - It is highly recommended Government to expand the portfolios, investment limit, growth investment activities to increase collection for Vietnam Social Security Fund In addition, Government should propose policies to encourage and give incentives for investment activities of SI industry as well as tax incentives policies 3.3.3 Recommendations to competent authority - It is requested MOLISA to review and submit to The National Assembly to amend Law on Social Insurance and amend Circular No 03/2007/TT-BLĐTBXH dated January 30, 2007 of MOLISA guiding to implement some articles of Decree No 152/NĐ-CP dated December 22, 2006 of Prime Minister guiding some articles of Law on compulsory social insurance - It is requested MoF to amend Clause 1, Article of Circular No 134/2011/TT-BTC dated September 30, 2001 detailing and guiding implementation some articles of Decision No 04/2011/QĐ-TTg dated January 20, 2011 of Prime Minister on financial management applicable to VSS as follows: Organizational structure management payment estimation deducted according to percent of social insurance, unemployment insurance, health insurance receivables assigned by competent authority (including the expenditures for paying retirement salary, social insurance allowance provided by State’s budget) - It is highly requested the MOLISA, MoF and State’s competent authorities, subject to its specific functions and powers to study and issue the document guiding some content specified in Law on Social Insurance that has not been guided (reward the employers that are good at labour hygiene and safety as specified in Clause 2, Article 133, Law on Social Insurance, regulating the allocation and management among social insurance funds): Study to amend and supplement the documents related in compliance with regulations of Law on Social Insurance (Prepare the labour accident documents, regulate the issuance of certificate of leave to enjoy SI) and promptly guiding some unclear contents during implementation - Study to establish the specialized inspection team on social insurance to 78 inspect and handle the violations in social insurance to have measures for uncontrolled violations at present - Unemployment insurance policies are being management by agencies that require close cooperation during implementation of unemployment policies in order to offer convenience for employees It is requested to study and assign one authority provided that employees shall not waste time for submission and reduce the overheads - It is requested the Ministries, Industries concerned to amend and supplement the documents relating to documents and procedures so that VSS has bases to issue the guidelines to simplify the procedures in social insurance sector under Resolution No 49/NQ-CP 3.3.4 Recommendations to People’s Committee of Provinces and Cities: It is highly recommended the People’s Committees of provinces and cities take more concern in directing Labour – Invalids and Social Affairs, Finance, Planning – Investment, Labour Union organization, Inspection to closely cooperate with Social insurance of provinces and cities at their localities to well perform the social insurance and health insurance policies at localities in which focus on inspecting, checking to handle SI violations to protect’s rights and benefits - Guide and direct Departments, authorities and competent agencies when reviewing the business registration for enterprises, it is required them to participate social insurance, request companies and enterprises to strictly comply with regulations on social insurance participation for employees 79 CONCLUSION In line with social – economic development, social insurance has been innovated since 1995 Social insurance management reform also creates new financial mechanism for social insurance receivables and it is managed independently with State’s budget In Vietnam, social insurance is foundation for social stability and development, it shall both meet development demand and accord to general trend of society and show its advantages and natures of social as well political regime that our country is pursuing Social insurance fund established by contributions of employees and employers is mainly used for paying regimes to compensate risks of employees In order to properly manage the social insurance fund, ensure the long-term solvency, Vietnam Social Security (VSS) should apply the finance management under State’s current regulations In this thesis, the author has clarified the role of social insurance policies in social life, role of VSS in implementing SI policies, factors affecting financial management in VSS This thesis also studies the financial management status at VSS in SI fund management, evaluates the limitations and shortcomings of social insurance policies that affect social insurance fund, SI collection – payment, fund investment growth and balance of SI funds By analyzing, summarizing and evaluating the financial management in period 2010 – 2014 and forecast of social – economic situation that affecting the balance of long-term social insurance fund, this thesis has propose the solutions to 2020, as well as give some recommendations to competent authorities in establishing and amending policies provided that Vietnam Social Security shall be implemented better and better to protect employees’ benefits and ensure social insurance balance 80 Appendix Contribution level schedule under Law on Social Insurance in period 2010 – 2014 No I + + + II III Object Compulsory SI Contribution level Employee Employer Sickness, maternity Labour accident – occupational disease Retirement, death Applicable to noncommissioned officer, soldiers, Public security officers (Employer pays under minimum salary) Labour accident – occupational disease Retirement, death Collection of VI fee (Paid by employee) Unemployment insurance Employee Employer State’s budget 2010 2011 2012 2013 2014 22% 6% 16% 3% 22% 6% 16% 3% 24% 7% 17% 3% 24% 7% 17% 3% 26% 8% 18% 3% 1% 12% 1% 12% 1% 13% 1% 13% 1% 14% 19% 19% 21% 21% 23% 1% 18% 1% 1% 1% 1% 18% 20% 20% 22% 18% 18% 20% 20% 22% 3% 1% 1% 1% 3% 1% 1% 1% 3% 1% 1% 1% 3% 1% 1% 1% 3% 1% 1% 1% 81 Appendix 2: Compulsory SI participants under enterprise form in period 2010 – 2014 Unit: Million people 2014 2010 N Unit o Numbers Total State’s own enterprises Foreign investment capital enterprises Private enterprises Administration, communist party associations Army forces Others 2011 Percent 2012 Numbers Percent 2013 Numbers Percent (Estimated) Numbers Percent Numbers Percent 9,441 100% 10,104 100% 10,432 100% 10,632 100% 11,233 100% 1,268 13% 1,252 12% 1,220 12% 1,208 11% 1,189 11% 2,014 21% 2,306 23% 2,508 24% 2,558 24% 2,756 25% 2,542 27% 2,681 27% 2,742 26% 2,825 27% 3,152 28% 2,262 24% 3,449 34% 2,446 23% 2,495 23% 2,557 23% 1,040 11% 1,074 11% 1,100 11% 1,100 10% 1,100 10% 315 3% 417 4% 415 4% 447 4% 478 4% The and Appendix 3: SI collection structure under enterprises form in period 2010 – 2014 82 Unit: Billion VND 2010 2011 2012 2013 2014 (Estimated) Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent N Indicator o Total 49.549 100% 62.058 100% 89.260 100% 102.038 100% 127.459 100% State’s own enterprises 6.926 14% 7.640 12% 10.087 11% 10,849 11% 12.094 9% Foreign investment capital enterprises 10.652 21% 14.973 24% 22.250 25% 25,492 25% 33.925 281% 10.228 21% 13.738 22% 19.700 22% 23,913 23% 32.959 97% 12.757 26% 15.674 25% 23.413 26% 25,830 25% 29.985 91% Army forces 7.467 15% 7.467 12% 11.030 12% 12,612 12% 14.284 48% Others 1.519 3% 2.566 4% 2.780 3% 3,342 3% 4.212 29% Private enterprises Administration, communist party associations The and Source: VSS 83 LIST OF REFERENCES The National Assembly (2006), Law on Social Insurance No 71/2006/QH11 dated June 29, 2006, Vietnam The National Assembly (2014), Law on Job No 38/2013/QH13, Vietnam The Prime Minister (2006), Decree No 152/NĐ-CP guiding some articles of Law on Social Insurance The Prime Minister (2011), Decision No 04/QĐ-TTg on Financial management applicable to Vietnam Social Security Ministry of Finance (MoF) (2011), Circular No 134/TT-BTC guiding Decision No 04/QD-TTg on financial management applicable to Vietnam Social Security MOLISA (2007), Circular No 03/2007/TT-BLĐTBXH guiding implementation some articles of Decree No 152/NĐ-CP dated December 22, 2006 of The Prime Minister guiding some articles of Law on Social Insurance Vietnam Social Security, Financial Settlement Reports in 2010, 2011, 2012, 2013, Vietnam Vietnam Social Security, Summary reports in 2010, 2011, 2012, 2013, Vietnam The Prime Minister (2014), Social Insurance collection – payment estimation, payment for Vietnam Social Security organizational structure management in 2014, Vietnam 10 Vietnam Social Security (2011), Decision No 1111/QĐ-BHXH dated November 25, 2011 of Director General of Vietnam Social Security on issuing the regulations on managing SI and HI collection, managing SI book, HI card, Vietnam; 11 Director General of Vietnam Social Security (2012), Decision No 488/QĐ-BHXH dated May 23, 2012 issuing the regulations on managing social insurance regimes payment; 12 Director General of Vietnam Social Security (2012), Decision No 1288/QĐ-BHXH dated September 26, 2012 issuing the internal expenditure regulations applicable to units directly under VSS system; 13 Director General of VSS (2013), Decision No 1066/QĐ-BHXH dated October 08, 2013 issuing the investment management regulations of SI 84 and HI funds; 14 The Prime Minister (2013), Decision No 1215/QĐ-TTg approving the development strategy of Vietnam Social Security to 2020, Vietnam; 15 Political Bureau (2012), Resolution No 21-NQ/TW dated November 22, 2012 of Political Bureau on enhancing leadership of The Communist Party for social insurance and health insurance activities period 2012 – 2020; 16 Ministry of Planning and Investment (2013), Circular No 02/2013/TTBKHĐT guiding implementation some contents of Vietnam sustainable development strategy in period 2011-2020 17 VSS (2012), Decision No 449/QĐ-BHXH implementing the Social economic development strategy period 2011-2020 and orientation as well as tasks of developing Industry in years 2011 – 2015 18 Deputy Director General of VSS Do Van Son, monthly People’s Newspaper (2014) http://www.nhandan.com.vn/hangthang/kinh- te/item/23405502-giai-phap-phat-trien-quy-bhxh.html 19 The Standing Deputy Minister Dam Huu Bac takes chairperson of Conference “Evaluating the current social insurance system and reform proposals ” http://congdoan.most.gov.vn/tin-chung/42-tin-chung/540 anh-gia-h-thng-bo-him-xa-hi-hin-ti-va-nhng xut-ci-cach-.html? showall=1 20 VSS (2013), Report on evaluating the Law on Social Insurance implementation 85 ... that employ the Vietnamese employee, unless the international treaty or convention otherwise specifies that Vietnam is a member; 19 Moreover, voluntary SI participant is Vietnamese citizen within... and value In the last, the living principle has been established and recognized for a long-term named Young people relay on their parents, old people shall rely on their children, many people... conclusion, there are many principles to organize operations of SI However, two principles of SI named “Indemnity” and “Taking majority to offset minority” have created the difference and strong