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INTRODUCTION
1. Rationale
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In Vietnam, workers’ rights as well as unemployment issue are always
paid attention to by the Party and the Government in each period of the socio-
economic development process. In the period before 2009, the government
budget spent hundreds of billions of VND each year to support financially for
tens of thousands of workers through severance allowances, job-loss
allowances or allowances regimes for redundant laborers when re-arranging
State-owned enterprises,….In order to better ensure the benefits for workers
when they are unemployed and to reduce the burden on the state budget, at the
9th session of National Assembly, term XI, the Law on Social Insurance was
promulgated and Unemployment Insurance (UI) regulations became effective
from 1stJanuary 2009. After five years of implementation, the Unemployment
Insurance has been more comprehensive in the Employment Law passed by the
National Assembly, term XIII, at its 6th session and took effect on 1st January
2015. After the process of formation and modification up to now, UI has
gradually come to life and is "lifeline" for workers when they lose their jobs.
According to data of Vietnam Social Insurance by 2015, Vietnam has over
10.3 million laborers participating in UI system with the revenue of over 9.7
trillion VND and over 4.5 trillion VND was spent for more than 545,000
beneficiaries. Thus, the UI budget is not only enough to pay the regimes but
also surplus over 49 trillion.
In addition to the achievements, the management of UI system still
reveals many inadequacies in policy such as: employees who contribute to
UI but do not benefit from retirement policy, there is no age limits for being
entitled to unemployment insurance benefits. Therefore, some workers who
retire from work benefit from the UI regime first then apply for retirement
allowances. , maternity beneficiaries actively quit their jobs to enjoy both
maternity and unemployment benefits,…
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In the implementation organization, the fraud of UI benefits is still
occurring in various forms, affecting the management and preservation of
UI budget and being expressed as: employees actively take leave or
corporate with employers to carry out procedures to enjoy UI benefits,
while the company still can arrange jobs for these employees; unemployed
workers are having unemployment allowance but at the same time still
work and contribute to social insurance (SI) and UI in other localities to
avoid being detected; Some companies have dodged the law for evading to
contribute to UI system by signing labor contracts with employees who
have less than 3 months of employment or insufficiently contribution by
lower the number of employees and salaries, UI out-standing debts, ...
Employment information is limited; vocational training is reasonable in
terms of time, funding and training industry; not meeting the needs of the
labor market. The coordination mechanisms in policy implementation and
inspection between agencies and organizations is not enough strict. On the
other hand, UI is mainly aimed at paying unemployment benefits with
absolute amount of allowances is much greater than that of other regimes,
the allowance for training, retraining and upgrading of vocational skills to
maintain unpaid labor, the policy to limit the situation of job dismissal,
supporting UI contributions rate or enhance the role of the labor market are
not paid enough attention…then lead to great surplus of UI fund.
With the above-mentioned issues, "The Management of
Unemployment Insurance Fund in Vietnam" is the topic chosen by the
author to study in order to overcome shortcomings and inadequacies still
remain, thereby contributing to the management of UI fund more
strict ,effective and lawfully.
2. Research Goals
a. Overall Goal:
Evaluating the actual situation of UI fund management and proposing
some key solutions to manage UI fund in Vietnam stricty, effectively and
lawfully.
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b. Specific Goals:
- To systematize, supplement and clarify basic theoretical issues on
UI fund and the management of UI fund;
- To analyze and evaluate the status of revenue and expenditure
management, balance of the UI fund, also to clarify the factors affecting the
management of UI fund in Vietnam;
- To Propose solutions and recommendations to manage UI funds
closely, effectively and lawfully.
3. Research subjects and scope
a. Thesis’ research subjects is managing UI fund.
b. Thesis research scope
- Content: The thesis researches the theoretical issues and the practical
management of the UI fund. In particular, mainly researching on management
of revenue - expenditure and the balance of UI fund in Vietnam.
- Location: UI fund management in Vietnam.
- Period: period from 2011 to 2015
4. Methodology
- The thesis uses the methodology of dialectical materialism, historical
materialism to systematize and to clarify basic theoretical issues on UI fund
management.
- The dissertation uses the synthesis of statistics research methods such
as: synthesize, analysis, comparative evaluation and lessons learned.
- During researching process, the thesis combines both qualitative and
quantitative methods. In order to implement these methods, primary and
secondary data sources are collected from the Vietnam Social Insurance, the
Ministry of Labor, Invalids and Social Affairs and the relevant ministries and
agencies and via field survey sheets.
5. Literature Reviews
5.1. International Research
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- Wandner, S. A., & Stengle, T. (1997). “Unemployment insurance:
Measuring who receives it”;
- Schwartz, J. (2009). “Essays on unemployment insurance and the
business cycle”;
- Mullins, S. D. (2012). “The Unemployment Impact of the 2008
Extension of Unemployment Insurance”;
- Carter, J., Bédard, M., & Bista, C. P. (2013). “Comparative review
of unemployment and employment insurance experiences in Asia and
worldwide”;
- Hu, Y. W., Impavido, G., & Li, X. (2009). “Governance and Fund
Management in the Chinese Pension System”.
5.2. Local Research
- Sinh, D.V. (2005). “Improving the management of Social Insurance
Fund in Vietnam”.
- Quang, N.V. (2009). “Models and experiences of implementing
unemployment insurance in the world "
- Dinh, N.V. (2008). " Organizing Unemployment Insurance in
Vietnam";
- Trung, L.Q. (2001) and his team. Ministry level Research. "Solutions
to promote non-state enterprises participating in unemployment insurance up to
2020".
- Centre of regional social and environmment development Vietnam
(CERSED). (2013). "Assessing the status of the unemployment insurance fund
and proposing plans to transform the fund model".
- Thao, L.T.P. (2014). "The management of unemployment insurance
fund in Hung Yen Social Insurance Branch";
- Giang. P.T (2010). “Completing the collection mechanism of social
insurance contribution in Vietnam";
- Chinh, N.T. (2010). "Completing the organizations system and
