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INTRODUCTION
1. Rationale of the research
Foreign-invested enterprises have been developing strongly, attracting and
using a huge amount of labors, contributing positively to economic growth, which is
a factor that promotes technological innovation and enhances competitive capacity,
creating a pervasive effect on other economic sectors. However, the labor turnover
of the market leads to the unemployment and complex fluctuations of the economy
in general and the production and business situation of enterprises in particular, that
cause to the increase of risks, such as illness and labor accidents. In addition, the
average number of employees out of foreign-invested enterprises with high capital,
the status of violating the law of participation and contribution to social security are
common, which are shown by the rate of enterprises not registering to participate in
social security or registering with incorrect number of labors or paying in based on
incorrect salary paid to employees. That means to protect employees, the state
authority has to strengthen the role of managing social security premium collection
for foreign-invested enterprises.
The State plays an important role in regulating social security policies. In fact,
in recent years, state management on social security still exists some issues, for
example: lacking of specific orientation for social security collecting in foreign-
invested enterprises, lacking of synchronization and reality among several policies,
regulations related to social security, inspection activities are not timely; the
application of state management model on social security premium collection in
general and social security premium collection for foreign-invested enterprises in
particular have not been reviewed in a complete and scientific way, etc. From the
above practical issues, the study of state management on social security premium
collection for foreign-invested enterprises in Vietnam has becoming necessary. In
order to seek for an effective management model of social security premium
collection for foreign-invested enterprises, it is critical to have an in-depth and
systematic research of state management of social security to identify the current
shortcomings and find out a more effective management model. That's why the
author chose the topic "The management of social security premium collection for
foreign invested enterprises" as the research topic.
2. Aim and Research question
Analyzing and assessing the state management of social security premium
collection for foreign-invested enterprises, thereby giving solutions to improve it.
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3. Research subjects and research scope
3.1. Research subjects
a. The project focuses on state management on social security premium
collection for foreign-invested enterprises.
3.2. Research scope
-Research content: The research focuses on the state management of social
security premium collection for foreign-invested enterprises, including three major
groups of contents: policy making, organizational structure and decentralization of
management and supervision and treatment of violation
In the content of policy making and inspection, supervision, the object of
research is the state management of the Ministry of Labor, War Invalids, & Social
Welfare.
In the collecting management activities of social security agencies, the
research studies three main activities: management of social security registration;
declaration management and payment management of social security; supervision
and monitoring and debt handling activities (excluding Health insurance, voluntary
social security, unemployment insurance and fund investment growth activities)
-Research room: studying State management activities on social security
premium collection for foreign-invested enterprises in Vietnam.
-Duration of research: The thesis conducts primary data from July 2016 to
April 2018 to study the state management of state budget revenue on social security
of foreign-invested enterprises; secondary data from 2014-2018; proposes solutions
to enhance the state management on social security premium collection for foreign-
invested enterprises by 2020, with a vision of 2025
4. New contributions of the research
New academic and theoretical contributions: The research has systematized
and clarified the theoretical basis, analyzed the factors affecting the state
management on collecting social security for foreign invested enterprises and
evaluation criteria. State management of social security revenues for foreign
invested enterprises includes: (i) Criteria of validity, (ii) performance criteria, (iii)
Appropriate criteria, (iv) Sustainable criteria.
New contributions to practice: The research has evaluated the state
management of social security premium collection for foreign-invested enterprises
according to the criteria and according to the state management contents: (i) Issuing
policies, law; (ii) Implementation of social security premium collection, (iii)
Checking and inspecting activities.
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New contributions for solutions: The research has proposed 4 solutions to
improve the state management of social security premium collection for foreign
invested enterprises
CHAPTER 1: LITERATURE REVIEW AND METHODOLOGY
1.1. Overview of studies related to the research
1.1.1. Research on the principles and functions of state management of
social security premium collection for foreign invested enterprises
1.1.2. Research on the content of state management on collection of social
security for foreign-invested enterprises.
The content of state management on social security premium collection for
foreign-invested enterprises includes 3 contents: issuing policies and laws;
organizational implementation for collecting social security; inspection and
checking.
1.1.3. Research on the evaluation criteria of state management on social
security premium collection for foreign invested enterprises
Overview research on evaluation criteria including determining criteria and
evaluation methods.
1.1.4 Research gaps
There is currently a "gap" in both theory and practical assessment of state
management on social security premium collection for foreign-invested enterprises:
- Theoretical basis of the content, state management process on social security
premium collection in general, social security premium collection for foreign
invested enterprises in particular;
- Contents of state management on social security premium collection for
foreign-invested enterprises in Vietnam;
- Factors affecting state management and criteria to assess the level of state
management on social security premium collection for foreign invested enterprises;
- Comprehensive surveys and assessments on the state management on social
security premium collection for foreign invested enterprises in Vietnam;
1.2. Research questions
In order to achieve the objectives, this research focuses on answering these
research questions:
-What is the difference between managing social security premium
collection for foreign-invested enterprises in Vietnam compared to other countries?
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What is the difference between managing social security premium collection for
foreign-invested enterprises compared to domestic enterprises?
-What is the current situation of state management for social security
collecting activities of foreign-invested enterprises in Vietnam today?
-What criteria are used to assess the state management of social security
premium collection for foreign-invested enterprises?
-What is the solution to improve state management of social security
premium collection for foreign-invested enterprises in Vietnam in the upcoming
period? What Should/should not the government do in related to the social security
collecting activities?
1.3. Research framework
The thesis applied the model of Tim Cadman in 2012, combined with the
factors affecting the state management on social security premium collection for
foreign invested enterprises and the basic criteria of state management quality
assessment: effectiveness and performance, suitability, sustainability
Figure 1: Research framework
1.2. Methodology
1.3.a.1. Research methodology
The thesis approaches research objects based on the application of dialectical
materialism method as a general methodology.
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1.3.a.2. Specific methodologies
1.3.2.1. Qualitative method
1.3.2.2. Quantitative methods
CHAPTER 2: THEORETICAL AND PRACTICAL BASIS ON
MANAGEMENT OF SOCIAL SECURITY PREMIUM COLLECTION FOR
FOREIGN-INVESTED ENTERPRISES
2.1. Theoretical basis for management of social security premium
collection.
2.1.1. The definition and role of social security in the economy.
2.1.1.1. The definition of Social security.
"Social security is a guarantee to replace or compensate a part of the income
of employees when his/her income is reduced or lost due to illness, maternity, labor
accidents, occupational diseases, unemployment and working age or die".
Social security is a social policy that is legalized according to the specific
conditions of each country. Employees participating in social security and their
families are the direct beneficiaries of social security policies, when there are
insurance events that occur, resulting in reduced or lost income. It is necessary to
rely on a monetary fund contributed by employees, employers and sponsors of the
State in order to organize and implement social security policies.
2.1.1.2. The role of social security in the economy.
The implementation of social security has a role for all parties in the social
security relationship: employees, employers, and society.
2.1.2 Definition of management of social security premium collection.
“State management of social security premium collection is the state to
issuance and implementation of legal documents, Propagating social security
policies, Status of organizational management, social security premium collection
process, inspection and examination of social security implementation in foreign-
invested enterprises in order to adjust social security premium collection process
relationships”.
The state sets out a policy of social security premium collecting, influencing
and regulating the collection activities of social security in order to put social security
premium collection activities into the general trajectory of social security policies. The
strengthening of state management for social security premium collection activities
aims to create a fair and democratic mechanism and policy to ensure the legitimate
rights and interests of employees when participating in social security.
2.1.3 The necessity of managing social security premium collection.
2.1.3.1. Management of social security premium collection ensures benefits
for employees