Social security must be guaranteed: PM

The guarantee of constantly improved social security is a major task for the Party and the State, says Prime Minister Nguyen Tan Dung in an appraisal of Vietnam's draft Socio-economic Development Strategy 2011-20.
The guarantee of constantly improved social security is a major task for the Party and the State, says Prime Minister Nguyen Tan Dung in an appraisal of Vietnam's draft Socio-economic Development Strategy 2011-20.

The people's wellbeing not only reflects the nature of the administration but plays a significant role in ensuring socio-political stability and sustainable development, he writes in the article posted on the Government's website.

The Prime Minister says the alleviation of poverty should be sought in three ways:

Increasing the poor' s access to public services, especially health, education, vocational training, legal aid, housing and potable water; promoting policies that secure productive land; preferential credits; encouraging both agriculture-forestry and aquaculture and developing crafts; and developing infrastructure for disadvantaged communes, hamlets and villages.

The policies and solutions for poverty reduction have had significant results and are highly appreciated by both the people and the international community, he says.

The figures show the rate of poor households has fallen from 29 percent in 2002 to about 10 percent this year; the divide in the standard of living between urban and rural Vietnam has fallen from 2.3 times in 1999 to twofold in 2008.

The people's material and spiritual life has been considerably bettered.

The National Goal for Employment has benefited through many practical policies and generates more than 1.6 million new jobs for labourers each year to reduce the urban unemployment rate from 6.42 percent in 2000 to about 4.6 percent this year.

The utilisation of rural labour has partly raised income and living standards with per capita income up about 2.3 folds during the past ten years.

Three categories: Compulsory, voluntary and unemployment have been used to popularise social insurance:

The number of people buying compulsory insurance increased, from 4.8 million in 2001 to 9.4 million last year or 18 percent of the total work force.

About 96,600 have bought voluntary social insurance since it was introduced almost three years ago and the number of unemployment insurance buyers is expected to reach 5.8 million this year.

The State fund for regular assistance and the number of its beneficiaries have increased from 113 billion VND for more than 180,000 people in 2001 to 4,500 billion VND for more than 1.6 million people this year.

But shortcomings still hamper the guarantee of social security and welfare so that numerous households slip in and out of poverty and a high rate fall below the poverty benchmark each year.

Life for some, mostly the isolated and those in the highlands, remains difficult and the income still very wide.

Rural and urban underemployment still prevails.

Social security and welfare resources are scarce and mostly dependant on the State budget so that coverage is limited and pensions low.

Insurance services have not met the people's demands; their quality is poor and their procedures bureaucratic.

The PM says the weaknesses are rooted in maladministration, poor management, inefficiency, and inadequate awareness of the need for social security and welfare.

"We have not created a widespread social security and welfare system with active and sustainable mechanisms," he says.

"A system that can provide solid support for the poor people and help them escape poverty.

"And we have not mobilised the entire society's strong commitment to the guarantee of social security and welfare."

The draft Socio-economic Development Strategy says economic growth must harmoniously combine with social progress and equality.

Its task is to:

- Ceaselessly better the people's quality of life;

- To develop an abundant and effective social security system; and

- Create equal opportunities for all people to enjoy fundamental services and well-being.

The PM says the following tasks and solutions must be met to meet these requirements:

Accelerate the realisation of socio-economic development programmes linked with job generation.

"We must perfect policies to encourage investment and provide preferences for enterprises which employ numerous labourers, especially in rural areas," he says.

"The National Goal for Employment must continue with the project for renewing and developing vocational training to 2020 together with vocational training for rural labourers via comprehensive, integrated and effective measures enforced.

"The labour market must be developed."

Develop, diversify and improve the insurance system, while designing sound preferential policies to encourage people to participate.

The development of an insurance system with the people's strong participation is an important way to share risk and help buyers of insurance deal with negative socio-economic and environmental impacts, says the prime minister.

This is particularly true within the context of the negative impact of the market economy, climate change and the rise of natural disasters and epidemics.

Implement a sustainable poverty-reduction programme.

"It is necessary to quicken the implementation of socio-economic development programmes to eradicate poverty in a quick and sustainable manner," the P M says.

"These should focus on the National Poverty Reduction Programme 2011-20 with a new poverty benchmark that suits our country's development and international standards.

"Policies and solutions for poverty reduction must be practical and consistent in production development and life assistance, job generation, and market access."

Apply preferential policies and social assistance policies to beneficiaries.

The task is to perfect policies and develop a flexible system of social assistance that can respond to disasters and accidents, boost prevention and response to natural calamities and the impact of climate change, especially in the regions regularly hit by storms and floods.

To establish local reserve funds and mechanisms to quickly help people.

Increase the State's resources so that it plays its role in bettering social welfare and diversifying fundamental social services.

The PM says it is necessary to boost the development of three types of social welfare funds: State-managed centralised funds; corporate funds; and community-based funds.

Services should also be diversified and integrated on a larger and larger scale, with higher and higher quality.

"We must transparently stipulate different types of social security and welfare services while removing difficulties and red-tape to facilitate the people's access to these services," he says.

Mobilise social participation in social security and welfare work.

Mechanisms and policies must be further perfected so that all entities can engage in providing more public services of better quality, the PM says. Favourable conditions for all citizens to exercise their responsibility and capacity to partake in the guarantee of social security and welfare services./.

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