1. Comments on the social welfare policies in Vietnam
In recent years, the social welfare policies in Vietnam have affirmed its crucial role in helping people overcome life’s difficulties. Employment, income enhancement, and poverty reduction policies have achieved many positive outcomes, when both the unemployment rate and the poverty rate have significantly decreased. The social insurance and health insurance policies have been supplemented and amended to expand participation opportunities and benefits for the people, and to strengthen the financial sustainability of the insurance funds. Recently, at the recent 7th session of the 15th National Assembly, the draft revised Social Insurance Law was passed. This is a significant step forward in ensuring social welfare rights in Vietnam, addressing fundamental issues and shortcomings from practice, expanding and increasing benefits to attract workers to participate in social insurance. Moreover, the efforts to reform the Labor Code in 2012, along with the expansion of the social insurance and social welfare systems, provide an opportunity to enhance dynamism and increase productivity in the labor market while still protecting workers from inevitable contingencies.
Although reforms have been implemented, the current Vietnamese social welfare policy is still not sustainable and has many limitations. Poverty reduction is not yet sustainable, the number of near-poor households remains high, and the annual rate of households falling back into poverty is still high. Creating jobs and ensuring sufficient, sustainable employment for certain groups, especially rural youth and workers, continues to be a significant challenge. Social insurance participation rate is low, mainly derived from the official labor groups. Moreover, due to early retirement age regulations, the contributory pension scheme is financially unsustainable despite some reforms in the Labor Code.
Therefore, the social welfare policy in Vietnam has made significant progress, but further improvements are needed to ensure sustainability and fairness in the distribution of social services. Enhancing resources and improving distribution mechanisms will help increase the effectiveness of these policies, contributing to the building of a fair and sustainable society.
2. The role of the National Assembly in general and in making social welfare policies
The National Assembly stands as the highest representative body of the people and the supreme organ of state power in Vietnam. It holds the exclusive authority to adopt and amend the Constitution and laws, positioning it as the central legislative body. It is responsible for determining fundamental domestic and foreign policies, socio-economic tasks, and national defense and security issues. Additionally, the National Assembly plays a crucial role in supervising all state activities to ensure the effective implementation of laws and policies. Through these functions, the National Assembly ensures that the government operates within the legal framework and in the best interest of the people.
In terms of social welfare policy, the National Assembly is the highest legislative body, tasked with enacting laws and policies related to social welfare, such as health insurance, social insurance, unemployment benefits, and other welfare programs. Moreover, the National Assembly oversees the implementation of enacted social welfare policies. This oversight ensures that the policies are not only properly executed but also align with the actual conditions and needs of the people. It regularly holds sessions, discussions, and questions the government and relevant agencies to evaluate the effectiveness of social welfare policies, also serving as a forum for receiving the opinions and aspirations of voters, which helps in adjusting and improving social welfare policies to make them fair and appropriate. For instance, during the 6th session of the 15th National Assembly, many deputies discussed and emphasized the need to continue ensuring the social welfare network. Experts and researchers have recommended improving social welfare policies and laws to meet the requirements of a socialist rule-of-law state. These policies aim to ensure that all citizens enjoy basic social welfare rights, especially vulnerable groups like the elderly, children, and people with disabilities.
Therefore, the role of the National Assembly is indispensable in building a comprehensive social welfare system that ensures all citizens are protected against economic and social risks.
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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.