Annex 3 - The Public Social System in Vietnam

Summary

The Vietnamese social system can roughly be divided into two major parts: a social insurance and a social assistance component (see also Figure A.3.1). Several ministries including the Ministry of Planning and Investment (MPI), the Ministry of Social Affairs, Labour and Invalids (MOLISA), the Ministry of Health (MOH), the Ministry of Education and Training (MOET), the Ministry of Agriculture and Rural Development (MARD), the Committee for Ethnic Minorities (CEM) and the Ministry of Finance (MOF) are involved in the different programs and schemes of the Vietnamese social system. The social (health) insurance agency Vietnam Social Security (VSS), the People's Committees and the local departments of ministries are in charge of implementation, while the mass organizations and the People's Councils are supervising the different programs.

MOLISA has the prime responsibility in assisting the government in managing the different social programs and coordinating with the concerned ministerial branches. The Ministry of Finance (MOF) is supposed to ensure the funding for social relief programs in cooperation with the MPI, which is the first contact point for donors and investors. The MOH is responsible for guidance on disease prevention, check-up and treatment for social relief beneficiaries and the assessment of the degree or type of disablement of persons. The Ministry of Education and Training (MOET) is in charge of the exemption and reduction of school fees and other contributions for students who are social relief beneficiaries. The Ministry of Agriculture and Rural Development (MARD) in cooperation with MOLISA determines the seriousness of natural calamity consequences, crop failures and pre-harvest hunger. The provincial People's Committees and centrally-run cities manage social relief beneficiaries and social charity establishments in their respective localities.

Social Insurance

The social insurance system dates back to 1947. Prior to 1995, employees paid a small premium for employees. Employees did not have to pay anything (MOLISA 1999: 19). Starting from 1995 (Decree No. 12/CP, 26 January 1995), social insurance has become mandatory for employees in SOEs as well as in private enterprises with more than 10 employees.