Developing voluntary social insurance in Nghe An: Potential and challenges

In 2020, despite many difficulties due to the Covid-19 pandemic, with the attention, leadership, and close and timely direction of Vietnam Social Security, the Provincial Party Committee, the People's Council, the Provincial People's Committee, the participation of Party committees and local authorities, along with the efforts of the entire industry, in Nghe An province, voluntary social insurance is gradually becoming an important foundation for implementation.universal social insurance targetin the spirit of Resolution 28-NQ/TW of the Party Central Committee on reforming social insurance policies.

Efforts to bring social insurance policy to the people

Since the beginning of the year, the Social Insurance from the province to the district has proactively consulted with Party committees and authorities at all levels; closely coordinated with departments, branches, sectors and organizations to mobilize the participation of the political system to strengthen and promote the dissemination of policies and laws on voluntary social insurance with practical forms, contents and flexible approaches.

Officials and employees of the provincial Social Insurance and Nghe An Provincial Post Office organized a parade to promote health insurance and social insurance policies. Photo: Cong Kien

In particular, through hundreds of propaganda conferences and policy dialogues held mainly on holidays and at night in hamlets, villages and hamlets; seriously implementing the Plan of theVietnam Social Security, of the Provincial People's Committee, May and July every year are the peak months for implementing propaganda work on social insurance and health insurance, on that basis, organizing launching ceremonies and launching ceremonies simultaneously from the province to districts and towns, contributing to spreading social insurance policies to the masses.

Propaganda for people about social insurance and health insurance policies. Photo: PV

Thanks to the efforts to synchronously deploy solutions, the awareness of all classes of people has been increasingly raised, the number of people participating in voluntary social insurance in the province has achieved remarkable results. It is estimated that by the end of December 2020, the whole province had 75,012 people participating in voluntary social insurance, an increase of 25,047 people compared to 2019; currently, Nghe An is the locality leading the country in the number of people participating in voluntary social insurance, accounting for more than 8% of the total number of participants nationwide. In particular, many local Party committees and authorities have paid close attention and directed, the number of people participating in voluntary social insurance in the locality has increased rapidly such as: Yen Thanh, Tan Ky, Do Luong, Nghia Dan, Thanh Chuong, TX. Hoang Mai...

Potential and challenges

Although after 2 years of implementing Resolution No. 28-NQ/TW of the 12th Central Committee on reformsocial insurance policyThe work of developing voluntary social insurance participants has achieved positive results and targets, but the implementation of voluntary social insurance policies in the coming time in the province still faces many difficulties and challenges.

Directly propagating and consulting on social insurance and health insurance policies for small traders in markets in the city: Photo courtesy of Phan Lien

Currently, the social insurance coverage rate (including the number of people participating in compulsory social insurance and voluntary social insurance) only reaches about 17% of the working-age workforce; this result is too far from the national coverage rate (32%) and the target set in Resolution No. 28-NQ/TW. The number of people participating in voluntary social insurance is not commensurate with the potential, accounting for a small proportion compared to the working-age workforce of the province.

These difficulties stem from the following causes: Nghe An is a province with a large area, complex geographical location, terrain, and difficult transportation; a large population, ranked 4th in the country with over 1.8 million people of working age, of which farmers and workers in the informal sector account for a large proportion (about 70%); most farmers and workers in the informal sector have low and unstable incomes; coordination in organizing policy implementationVoluntary social insuranceThe communication between levels and sectors with social insurance agencies is not regular; some places consider this the task and responsibility of the social insurance agency alone.

Consulting on voluntary social insurance policy for people in Hung Dung ward (Vinh city). Photo courtesy of My Ha

Mr. Le Viet Thuc - Deputy Director of OperationsNghe An Social Insuranceshared: “Those are only short-term difficulties. In addition to the above-mentioned “short-term” difficulties, the social insurance policy also has its own characteristics, which is to ensure social security in the long term. Therefore, in order to develop sustainable voluntary social insurance, towards universal social insurance, in the coming time, it is necessary to thoroughly grasp and strictly and synchronously implement the groups of solutions in Resolution No. 28-NQ/TW of the Central Committee on reforming social insurance policies, in particular, thoroughly grasp the viewpoint that implementing social insurance policies well is the task of the entire political system, the responsibility of Party committees at all levels, authorities, the Fatherland Front, political and social organizations, enterprises and each citizen. Strengthen, promote and give top priority to the role, capacity and effectiveness of State management of social insurance”.

Resolving policies for people at Vinh City Social Insurance. Photo courtesy of My Ha

Particularly for the social insurance sector, focus on implementing key solutions: Continue to proactively advise the Provincial Party Committee, People's Council, and Provincial People's Committee in directing the implementation of voluntary social insurance policies in localities; closely coordinate with all levels, sectors, political and social organizations, and unions to strengthen and promote the dissemination of policies and laws on voluntary social insurance in practical forms and contents suitable for each target group; in which, focus on implementing the form of propaganda and mobilization, associated with guiding and supporting people to declare and register to participate through organizing direct propaganda conferences in blocks, hamlets, villages, and residential communities, thereby helping people to resolve difficulties and concerns, clearly understand the practical and meaningful benefits of participation, and further strengthen trust and satisfaction with participation.

Continue to develop, expand, improve and enhance the quality and operational efficiency of the collection agent system. Effectively implement the plan of Vietnam Social Security on promoting IT application, gradually modernizing the management system, and promoting administrative reform in a simple and convenient way for people to participate.

To support people participating in voluntary social insurance, recently, Vietnam Social Security has proposed the Ministry of Finance to study and submit to the Government an increase in the level of support from the State for voluntary social insurance participants, especially those from poor and near-poor households, so that more people can afford to participate in voluntary social insurance, limiting the number of people who are participating but because they do not have the conditions to continue participating, they have to stop paying and receive social insurance one time. Specifically: Increase the support level from 30% to 50% for poor households; from 25% to 30% for near-poor households and from 10% to 20% for the remaining subjects.