Hoàn thiện quá trình thực hiện chính sách bảo hiểm thất nghiệp tại tỉnh thái nguyên

Thai Nguyen University Socialist Republic of Vietnam Southern Luzon State University Republic of Philippines EVALUATING THE IMPLEMENTATION OF UNEMPLOYMENT INSURANCE IN THAI NGUYEN PROVINCE DOCTOR OF BUSINESS ADMINISTRATION BY PHUNG THI CAM CHAU – ROSE August, 2013 ACKNOWLEDGEMENTS I would like to extend my sincere thanks to Thai Nguyen University (Vietnam), International training center (Thai Nguyen University, College of Agricultural and Forestry), Southern Luzon State University (Philippines) for having organized this doctorate training course in business administration training, which I have found a valuable opportunity for me to further upgrade my knowledge and capacity I feel grateful for my lectures have provided their students with their great knowledge and guidance throughout the course I am indebted to the administrators of Thai Nguyen College of Economics and Finance, and Vietnam Trade Union University for their facilitation for my attendance to this course I owe my deep gratitude to Assoc Prof Dr Do Anh Tai, my supervisor and instructor, for his kind instructions and valuable remarks towards my completion of this thesis I would also like to say thanks to my relatives, friends and colleagues Without their donations of materials, data processing, and translation, this thesis would not have been made possible I am indebted to many other people They are writers of useful materials in books, internet, and newspapers And finally, my big thanks to my family whose encouragement and supports have always been with me from the beginning to completion of this thesis i TABLE OF CONTENTS ACKNOWLEDGEMENTS i TABLE OF CONTENTS ii ABSTRACT v LIST OF TABLES vii LIST OF FIGURES viii CHAPTER I: INTRODUCTION BACKGROUND OF THE STUDY STATEMENT OF THE PROBLEM SIGNIFICANCE OF THE STUDY SCOPE AND LIMITATIONS DEFINITION OF TERMS CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES 11 REVIEW OF RELATED LITERATURE 11 Unemployment insurance 11 Coverage of unemployment insurance 19 Conditions for the enjoyment of unemployment insurance 21 Unemployment insurance fund 23 Unemployment insurance regimes 25 Procedures for unemployment insurance regimes 28 REVIEW OF RELATED STUDIES 34 CONCEPTUAL FRAMEWORK 35 CHAPTER III: METHODOLOGY 37 LOCALE OF THE STUDY 37 ii RESEARCH DESIGN 41 POPULATION AND SAMPLING 41 RESEARCH INSTRUMENTATION 42 VALIDATION OF THE INSTRUMENT 43 DATA GATHERING PROCEDURE 43 DATA PROCESSING METHOD 44 STATISTICAL TREATMENT 44 CHAPTER IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 46 PROFILE OF RESPONDENTS 46 THE IMPLEMENTATION OF UNEMPLOYMENT INSURANCE IN THAI NGUYEN PROVINCE 51 Coverage of unemployment insurance 51 Conditions for the enjoyment of unemployment insurance 58 Unemployment insurance fund 62 Unemployment insurance regimes 66 Procedures for unemployment insurance regimes 70 CHAPTER V: SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATION 78 SUMMARY OF THE FINDINGS 78 Characteristics of the respondents 79 The respondents ’perception on the implementation of unemployment insurance 80 The differences between the perceptions of employees are grouped in terms of type of unit that employees had worked before unemployment 83 CONCLUSIONS 85 RECOMMENDATION 86 iii Recommendations on the coverage of unemployment insurance 86 Recommendations on conditions for the enjoyment of unemployment insurance 88 Recommendations on unemployment insurance fund 88 Recommendations on unemployment insurance regimes 89 Recommendations on procedures for unemployment insurance regimes 89 BIBLIOGRAPHY 91 APPENDIX A 94 APPENDIX B 95 APPENDIX C 100 APPENDIX D 104 iv ABSTRACT The main purpose of this study is evaluating the implementation of unemployment insurance (UI) in Thai Nguyen province in 2012 and propose some recommendations to improve the implementation of the policy in the coming years In solving the research problem mentioned previously, this study has the following objectives: (1) to describe the characteristics of the respondents, (2) to determine the perception of the respondents on the implementation of UI in terms of: coverage of UI; conditions for enjoying UI; UI fund; UI regimes; procedures for UI regimes, (3) to compare the perceived implementation of the UI when the respondents are grouped in terms of: type of unit that employees had worked before unemployment, (4) to propose some recommendations to improve the implementation of UI in Thai Nguyen province in the coming years In terms of structure, the thesis has five chapters The thesis begins by defining the research problem and questions, and providing a justification for the research study Chapter one also reviews the research background, and presents definitions of terms, significance and scope of the study Chapter two examines the UI theory, current UI policy in Vietnam and its implementation This chapter also reviews previous research related to UI Chapter three discusses aspects of the research methodology including research design, data collection and data analysis methods, and hypothesis testing to support the model Objectives of this chapter are: (1) to justify the research methodology of this study, (2) to explain research methodology used in the study, and (3) to demonstrate how research design, and data collection and analysis can be utilized in this study to answer the research questions outlined in the chapter one v Chapter four presents descriptive findings of the profile of respondents, the implementation of UI in Thai Nguyen province Objectives of this chapter are present gathered data, analyze and interpret about them Finally, chapter five where findings and conclusions are summarized and recommendation are indicated for the current UI policy and its implementation in Thai Nguyen province This study attempts to know the status of the implementation of UI in Thai Nguyen province in 2012, especially points out shortcomings of UI and the difficulties and limited problems of implementation process of this policy It also provides valuable recommendations refer to the UI policies promulgate agencies and the UI management agencies in Thai Nguyen province in particular and the country in general, have issued this policy more completely, have many solutions to implement it more effectively vi LIST OF TABLES Table 1: Profile of respondents 46 Table 2: Respondents’ perceptions on implementation of UI in Thai Nguyen province in terms of coverage of UI 54 Table 3: Implementation of UI in Thai Nguyen province in terms of coverage of UI based on the evaluation of the respondents have been grouped 55 Table 4: Respondents’ perception on implementation of UI in Thai Nguyen province in terms of conditions for the enjoyment of UI 60 Table 5: Implementation of UI in Thai Nguyen province in terms of conditions for the enjoyment of UI based on the evaluation of the respondents have been grouped 61 Table 6: The respondents’ perception on implementation of UI in Thai Nguyen province in terms of UI fund 64 Table 7: Implementation of UI in Thai Nguyen province in terms of UI fund based on the evaluation of the respondents have been grouped 65 Table 8: The respondents’ perception on implementation of UI in Thai Nguyen province in terms of UI regimes 68 Table 9: Implementation of UI in Thai Nguyen province in terms of UI regimes based on the evaluation of the respondents have been grouped 69 Table 10: The respondents’ perception on implementation of UI in Thai Nguyen province in terms of procedures for UI regimes 72 Table 11: Implementation of UI in Thai Nguyen province in terms of procedures for UI regimes based on the evaluation of the respondents have been grouped 73 Table 12: Implementation of UI in Thai Nguyen province based on the evaluation of the respondents have been grouped 75 vii LIST OF FIGURES Figure Conceptual Model Showing the implementation of Unemployment insurance in Thai Nguyen province 36 Figure Map of Vietnam 39 Figure Map of Thai Nguyen province 40 viii CHAPTER I INTRODUCTION Today, besides the development of all aspects, the world is faced with many challenges of economic, political and social Along with large uncertainties such as war, violence, crime, social inequality, etc., unemployment is also becoming a hot concern, exceeding all matters of common worrying, especially when the economic financial crisis knock to each individual, each household in each country Unemployment affects not only for each employee and their families Unemployment of large numbers of individuals will also have very negative impacts on society: for individuals, for economy, for the nations However, in market economies, unemployment is inevitable phenomenon It means that if there is a market economy, there is still unemployment The problem posed is to control the allowed unemployment rate According to economists, maintaining a certain unemployment rate can stimulate economic growth But the unemployment rate increase exceeding the permitted level will affect greatly to the socio-economic development of the country Because of the impact of scientific and technological revolution and globalization, unemployment is worsening Unemployment became one of the problematic issues in lots of countries, which influences strongly on the development and stability of economic - political - social status of each country So governments have the responses policies to resolve these two issues depending on their conditions in each period Among them, the UI policies are built or improved in many countries to protect workers avoiding the feeling of uncertainty about the economy and society - The Government should have some strict sanctions to employees, employers and the authorities concerned who have not done or done improperly, incomplete, untimely their obligations in process the implementation of procedures for UI regimes For the implementation of policy - Employers need to implement seriously their obligation: certifying the social insurance books, supported employees to complete theirs dossier to enjoy UI regimes - The competent authorities should have better coordination, avoid the back and forth several times to contact of the employed Need training staff have an ethical and expertise to carry out the process of solving the UI regimes - While the enjoyment of unemployment allowance, the employed need informing to labor agency about of their job search status 90 BIBLIOGRAPHY Cam Phong (2011) Should "further look" the unemployment insurance Chung Pham Van (2012) Unemployment insurance: Save in time when employees lose their jobs Cuc Thu (2009) Implementation of unemployment insurance: Employees are passive Dinh Nguyen Van (2008) Organization of unemployment insurance in Vietnam, p43 Dung Pham Do (2012) Status of implementation of unemployment insurance in Vietnam, p37 Giang Tay (2010) Unemployment insurance only for hunger relief Hai Pham Van (2010) Unemployment insurance - Situation and complete solutions in Vietnam, p Hien Van (2012) Unemployment insurance fund at risk of rupture Hong Do Thu (2010) Unemployment insurance program and its implementation in Hanoi, p6 10 Law on Social Insurance (2006) 11 Milan Vodopivec and Minna Hahn Tong (2008) China: Improving unemployment insurance, p13 12 Ministry of Labour, Invalids and Social (2010) Circular No 32, issued on 10/25/2010 Guiding the implementation of some articles of Decree No 127, issued on 12/12/2008 Regulations detailing and guiding a number of articles of Social Insurance Law on UI 13 Ministry of Labor, Invalids and Social (2010) Circular No 04, issued on 03/01/2013 To amend and supplement a number of articles of Circular No 32 91 14 Minh Nguyen Le (1988) Source of employment and labor, p20 15 Nhung Dang (2011) Shortcomings in the implementation of unemployment insurance 16 Nhu Tran (2012) UI System: Enterprises are still difficulty 17 Nguyen Pham (2012) Binh Duong: Nearly 100 thousand unemployed workers "false" to get the insurance money 18 Phuong Nguyen Hien (2008) "Social Security - the problems of theoretical and practical”, p45 – 46 19 Thai Nguyen Job placement center (2011) Report on the implementation of unemployment insurance in 2010 20 Thai Nguyen Job placement center (2012) Report on the implementation of unemployment insurance in 2011 21 Thai Nguyen Job placement center (2013) Report on the implementation of unemployment insurance in 2012 22 Thanh Kim (2012) Many workers are not entitled to unemployment benefits 23 The Government (1995) Decree No 19 issued on 02/16/1995 24 The Government (2008) Decree No 94 issued on 22/8/2008 25 The Government (2008) Decree No 127, issued on 12/12/2008 Regulations detailing and guiding a number of articles of Social Insurance Law on unemployment insurance 26 The Government (2008) Decree No 100, issued on 11.21.2012 to amend and supplement a number of articles of Decree No 127 27 Tien Mac Van (2010) The relationship between unemployment, unemployment insurance and social security in Vietnam, p35 92 28 Tiep Nguyen (2011) unemployment insuranceCurriculum, p20 – 23 29 Tinh Tran Xuan (2010) The "holes" of unemployment insurance 30 Tho Pham Quy (2003) Vietnam Labor Market - Status and development solutions, p28 31 Thu Le Thi Hoai (2008) Unemployment insurance law of the market economy in Vietnam, p50 – 51 32 Vietnam Social Insurance (2011) Report on the implementation of unemployment insurance in 2010 33 Vietnam Social Insurance (2012) Report on the implementation of unemployment insurance in 2011 34 Vietnam Social Insurance (2013) Report on the implementation of unemployment insurance in 2012 35 Website: http://www.entrepreneur.com/encyclopedia) 36 Website: http://www.molisa.gov.vn) 37 Website: http://www.mof.gov.vn) 93 APPENDIX A Letter of Request to the Respondents Republic of the Philippines SOUTHERN LUZON STATE UNIVERSITY and Socialist Republic of Vietnam THAI NGUYEN UNIVERSITY February 5, 2012 To the respondents, I am Phung Thi Cam Chau, a doctor of Business Administration student from Southern Luzon State University in the Republic of the Philippines and Thai Nguyen University of the Socialist Republic of Vietnam Currently I am working on the Doctoral Thesis entitled “Evaluating the implementation of unemployment insurance in Thai Nguyen province” In this regard, I am requesting for your invaluable help by accomplishing the attached questionnaire Please not leave any blank, and be rest assured that all your responses will be treated with confidentiality and use for academic purposes only Thank you very much for your help in attaining the objective of this research study Very truly yours, Phung Thi Cam Chau Researcher 94 APPENDIX B QUESTIONNAIRE Part I: Profile of respondents Directions: Please accomplish the followings by putting a checkmark on the item that corresponds to your choice Rest assured that any information provided will be treated with trust and confidentiality Age: (1) Less than 30 years old (2) From 30 to 40 years old (3) From 40 to 50 years old (4) More than 50 years old Sex: (1) Male (2) Female Type of unit that you had worked before unemployment: (1) Service units of the State (2) Large enterprises (3) Small and medium enterprises Type of labor contract/ work contract had been signed before the unemployment: (1) An indefinite term contract (2) A definite term labor contract (from 12 months to 36 months) (3) A labor contract for a specific or seasonal job with a duration of less than twelve (12) months 95 Your salary (according to your labor contract/ work contract) before the unemployment: (1) Less than million dongs (2) From million to less than million dongs (3) From to 10 million dongs (4) More than 10 million dongs Current job status: (1) Have not found a new job (2) Have a new job with lower salary (3) Have a new job with same salary (4) Have a new job with higher salary Duration has participated in UI: (1) Less than 12 months (2) From 12 months to 24 months (3) Over 24 months Times entitled to UI: (1) Have enjoyed a time (2) Have enjoyed times (3) Have enjoyed more than times Part II The implementation of unemployment insurance in Thai Nguyen province Directions: The following items pertain to your perception on the implementation of UI in Thai Nguyen province Using the scale below, please accomplish by checking (X) the item that corresponds to your choice Weighted Scale Very good Good Fair Weak Bad 96 The assess degrees The evaluation problems Coverage of UI Your understanding on the coverage of UI before insuring UI Your understanding on the coverage of UI at present Your corporate propagates UI program to you The labor agencies meet the requirements to provide information regarding UI The social insurance organizations meet your requirements to provide information regarding UI Your assessment of the issue: The current UI is only prescribed for mandatory participants without voluntary participation Your assessment of regulation: Laborers working under labor contracts or working contracts a term of less than twelve months not entitled to participate in UI Conditions for the enjoyment of UI Your understanding on conditions for the enjoyment of UI before the insuring UI Your understanding on conditions for the enjoyment of UI at present 10 Your assessment on regulation by 97 which an unemployed persons are entitled to UI when they satisfy the condition: “Having paid UI premiums for full twelve months or more within twenty four months before they become unemployed” 11 Your assessment on regulation by which an unemployed persons are entitled to UI when they satisfy the condition: “Having registered their unemployment with the social insurance organization” 12 Your assessment of regulation by which an unemployed persons are entitled to UI when they satisfy the condition: “Having not yet found a job within fifteen days after the date of making unemployment registration” UI fund 13 Your assessment of regulation: “Laborers' payment of 1% of the monthly salary or remuneration on which UI premiums are based” 14 Your assessment of regulation: “Employers' payment of 1% of the fund of monthly salaries and remuneration of laborers who participate in UI on which UI premiums are based” 15 Your UI fee payment 16 Your employer ’s UI fee payment 17 Your assessment of the ability to balance UI fund at the moment 98 UI regimes 18 The effect of UI regimes for you 19 The effect of unemployment allowance for you 20 The effect of vocational training support for you 21 The effect of job-seeking support for you 22 The effect of health insurance for you Procedures for UI regimes 23 Your assessment on the legal provisions of the procedures for UI regimes 24 Your assessment of regulation of many different agencies to consider, resolve and implement UI regimes 25 Your assessment of regulation about UI regimes considering and resolving duration of the agencies 26 Your implementation of regulation about unemployment registered duration 27 Your implementation of regulation about inform labor agency of the job search while the enjoyment of unemployment allowance 28 Your business certified your social insurance book about your UI fee payment 29 Your business supported you to complete the dossier to enjoy UI regimes 30 The competent authorities helped you enjoy UI regimes 99 APPENDIX C TABULATION AND COMPUTATIONS OF DATA The implementation of UI in Thai Nguyen province in terms of coverage of UI SUMMARY Groups Count Sum Average Variance Employees in service units of the State 27.71429 3.959184 0.222546 Employees in large enterprises 20.6 2.942857 0.217415 Employees in small and medium enterprises 14.28758 2.041083 0.214401 ANOVA Source of Variation SS df MS Between Groups 12.89219 6.446097 Within Groups 3.926171 18 0.218121 Total 16.81836 20 100 F 29.5529 P-value F crit 2.06E-06 3.554557 The implementation of UI in Thai Nguyen province in terms of conditions for enjoyment of UI regimes SUMMARY Groups Count Sum Average Variance 16.14286 3.228571 1.47551 Employees in service units of the State Employees in large enterprises 15.97143 3.194286 0.135673 Employees in small and medium 12.61111 2.522222 0.335434 enterprises ANOVA Source of Variation SS df MS F P-value F crit Between Groups 1.58629 0.793145 1.222343 0.328729538 3.885293835 Within Groups 7.786471 12 0.648873 Total 9.372761 14 101 The implementation of UI in Thai Nguyen province in terms of UI fund SUMMARY Groups Sum Average Variance Employees in service units of the State 18.57143 3.714286 0.377551 Employees in large enterprises 15.45714 3.091429 0.592 14.98693 2.997386 0.73575 Employees in small and medium enterprises ANOVA Source of Variation df MS Between Groups F P-value F crit 0.758951 1.335161 0.299536 3.885294 Within Groups 12 0.568434 Total 14 The implementation of UI in Thai Nguyen province in terms of UI regimes SUMMARY Groups Count Sum Average Variance Employees in service units of the State 19.28571 3.857143 0.581633 Employees in large 16.34286 3.268571 0.797796 enterprises Employees in small and medium enterprises 15.63399 3.126797 0.571588 ANOVA Source of Variation SS df MS Between Groups 1.499868 Within Groups 7.804066 12 0.650339 Total 9.303934 14 F P-value F crit 0.749934 1.153143 0.348278 3.885294 102 The implementation of UI in Thai Nguyen province in terms of procedures for UI regimes SUMMARY Groups Count Sum Average Variance Employees in service units of the State 23.28571 2.910714 2.116254 Employees in large enterprises 19.51429 2.439286 0.569315 Employees in small and medium enterprises 18.06536 2.25817 0.163319 ANOVA Source of Variation SS df MS F Between Groups 1.815632 Within Groups 19.94222 21 0.949629 Total 21.75785 23 P-value 0.907816 0.955969 0.400547 F crit 3.4668 The implementation of UI in Thai Nguyen province SUMMARY Groups Count Sum Average Variance Employees in service units of the State 30 105 3.5 1.081985 Employees in large enterprises 30 87.88571 2.929524 0.49558 Employees in small and medium enterprises 30 75.58497 2.519499 0.487421 ANOVA Source of Variation SS df MS F P-value F crit 7.78EBetween Groups 14.54946 7.274729 10.56869 Within Groups 59.88458 87 0.688328 Total 74.43403 89 103 05 3.101296 APPENDIX D CURRICULUM VITAE Name: Phung Thi Cam Chau (Rose) Date of birth: September 9, 1982 Place of birth: Thai Nguyen province, Viet Nam Address: Hoang Van Thu ward, Thai Nguyen city, Thai Nguyen province, Viet Nam Educational background Master: Law Faculty, Viet Nam National University Course: Master of Law Year graduated: 2008 University: Ha Noi Law University Course: Bachelor of Law Year graduated: 2004 Upper Secondary School: Thai Nguyen Gifted Upper Secondary School Year graduated: 2000 Lower Secondary School: Thai Nguyen Gifted Lower Secondary School Year graduated: 1997 Elementary School: Doi Can Elementary School Year graduated: 1993 Working experiences: 2004 to 2012: Lecture in Thai Nguyen College of Economics and Finance 2013: Lecture in Viet Nam Trade Union University 104