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Vietnam determines to further expansion of social insurance coverage
Vietnam determines to further expansion of social insurance coverage
16/2/20
Vietnam has basically achieved the target of
health insurance for all, but it still needs to further expand the coverage
of social
insurance, according to Prime Minister Nguyen Xuan Phuc.
The Government leader made the request at a teleconference held by the Vietnam Social Security (VSS) in Hanoi on February 15 that reviewed the 25-year implementation of social and health insurance policies.
Highlighting the VSS’s role as the main pillar in the social security system over the last 25 years, he noted that while Vietnam is still a lower-middle-income country with per capita income of over 2,800 USD in 2019, the average life expectancy of Vietnamese people has surpassed 73.6, which is high compared to the world’s average, and the multidimensional household poverty rate has been brought down to under 4 percent.
As of the end of 2019, social insurance had covered nearly 16 million people, equivalent to 32.3 percent of the workforce, and health insurance, nearly 86 million people or 90 percent of the country’s population.
Given this, Vietnam has basically achieved the target of health insurance for all ahead of schedule, the PM said, adding that it took some developed nations 40 – 80 years to attain universal health insurance coverage.
Caring for people’s life, health and prosperity is the responsibility of the Party and State, and it is necessary to have a social security system that covers all people and matches international standards. To that end, social insurance coverage must be expanded, he emphasised.
He pointed out that as only one-third of labourers nationwide have taken part in social insurance, the target is still far away. Stronger efforts are needed to raise the social insurance coverage to 35 percent in 2021 and 45 percent in 2025 as targeted in Resolution 28 of the Party Central Committee.
At the meeting, PM Phuc requested regular overhauling of social and health insurance policies and laws in line with international practices, stronger administrative procedure reforms, completion of the national database on insurance, better connection and information sharing among ministries and sectors, and processing of administrative procedures on the National E-Document Exchange Platform to help build an e-Government./.
The Government leader made the request at a teleconference held by the Vietnam Social Security (VSS) in Hanoi on February 15 that reviewed the 25-year implementation of social and health insurance policies.
Highlighting the VSS’s role as the main pillar in the social security system over the last 25 years, he noted that while Vietnam is still a lower-middle-income country with per capita income of over 2,800 USD in 2019, the average life expectancy of Vietnamese people has surpassed 73.6, which is high compared to the world’s average, and the multidimensional household poverty rate has been brought down to under 4 percent.
As of the end of 2019, social insurance had covered nearly 16 million people, equivalent to 32.3 percent of the workforce, and health insurance, nearly 86 million people or 90 percent of the country’s population.
Given this, Vietnam has basically achieved the target of health insurance for all ahead of schedule, the PM said, adding that it took some developed nations 40 – 80 years to attain universal health insurance coverage.
Caring for people’s life, health and prosperity is the responsibility of the Party and State, and it is necessary to have a social security system that covers all people and matches international standards. To that end, social insurance coverage must be expanded, he emphasised.
He pointed out that as only one-third of labourers nationwide have taken part in social insurance, the target is still far away. Stronger efforts are needed to raise the social insurance coverage to 35 percent in 2021 and 45 percent in 2025 as targeted in Resolution 28 of the Party Central Committee.
At the meeting, PM Phuc requested regular overhauling of social and health insurance policies and laws in line with international practices, stronger administrative procedure reforms, completion of the national database on insurance, better connection and information sharing among ministries and sectors, and processing of administrative procedures on the National E-Document Exchange Platform to help build an e-Government./.
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All comments [ 20 ]
Vietnam has 85.39 million health insurance holders as of the end of 2019, accounting for 90 percent of the population.
By expanding the coverage of social insurance and health insurance, the premiums increased to 361.55 trillion VND (15.67 billion USD) in 2019, 0.54 percent higher than the year’s plan.
The Government had run a policy of financial support for voluntary social insurance participants, but the support levels should be increased.
Vietnam has laid a firm ground for remarkable successes in the promotion and protection human rights, especially, not only of Vietnamese but also foreigners living and working in Vietnam.
Now social insurance participants will have to pay premiums at a little bit higher level but they will receive much more benefits in return.
Viva Vietnam!
The Law also provides for organization and management of social insurance; order and procedures for participating in social insurance and settling social insurance regimes; and complaints, denunciations and handling of violations related to social insurance.
It is necessary for Vietnam to start implementing a compulsory social insurance scheme for foreign laborers, thus ensuring their interests, establishing equality between foreign employees and their local counterparts and keeping their mind at work
For migrant workers who work abroad, the Government as well as social the social insurance agency should sign bilateral agreements to help them access the social security policies of the nations they moved to.
Besides the high growth in revenue, insurers have also set to increase their total assets by 13.3 percent against last year to 514.80 trillion VND in 2020.
The authority would continue to improve mechanisms and policies, focusing on restructuring to make the insurance market develop transparently, safely and efficiently as well as in line with international standards.
The fast-growing domestic insurance market should keep thriving thanks to rising living standards and a high gross domestic product (GDP) growth of more than 6 percent annually over the next three years.
The Prime Minister has approved a project on accelerating the supply of level-four online services in the field of insurance and other public services based on data sharing between the Vietnam Social Security and related sectors.
There might be a possibility that a foreigner coming to Vietnam for work has participated in social insurance in his home country or vice versa. To cope with this situation, the Government has directed the Ministry of Labor, Invalids and Social Affairs to negotiate and sign bilateral agreements with other countries so as to avoid double social insurance coverage.
The building of an online social security database should be basically completed this year, along with a national insurance database, thus allowing the connection and sharing of information with databases of ministries, sectors, localities and related agencies, serving the reform and streamlining of administrative procedures.
Proposed amendments to the Health Insurance Law will add multiple benefits for insured patients.
Vietnam's health insurance fund would cover insured patients' costs for preventive therapies for chronic diseases or people with HIV; rehabilitation; periodic pregnancy examinations, prenatal and newborn screening; screening for diagnosis of non-communicable chronic diseases; healthcare services provided at home for seniors and people with disabilities; and products for treatment of malnutrition for children under six years old.
Vietnam has achieved positive results while also faced many challenges, requiring breakthroughs and reforms so that social security policies, including social insurance policies achieve the goals of social progress and equity, ensuring social security right of people.
Expanding covered healthcare services for insured patients will be good if the health fund has enough to cover the expenditures.
Social insurance policy has become the most important pillar of the social security system in the world with increasing share of the community, encouraging people’s participation to ensure their own well-being to deal with risks in life in development process which may derive from sickness, illness, unemployment, work accidents, occupational diseases, old age and inability to work and earn income.
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