REVIEW
of
FINANCE -
November, 2018
35
determining the cost of managing social insurance
is complex, subjective. The allocation of funds for
eachactivityof revenue, expenditure, investment...
have not been active. “In the 2011-2017 period,
the country has only three ministries, namely the
Ministry of Finance, the State Bank of Vietnam
and the Vietnam Social Insurance, to carry out the
internal audit work. To manage and use the funds
of the attached administrative and non-executive
agencies through their independent sections with
the financial management sections to carry out
the internal inspection work.
In addition, some other costs that affect
the effectiveness of social insurance collection
including:
- Expenses for inspection and examination:
In 2016, Vietnam Social Insurance was assigned
by the Government to inspect. Inspections were
intensified as well, with the priority given to
increased coordination between the VSS and
ministries. As a result, the inspection expenses for
the 700 focal points were VND 231.9 billion; an
increase of 63% compared to VND 142 billion for
inspections and inspections in 2015.
Costs for enterprises, lost for time to participate,
learn and pay social insurance: In 2016, 72% of
businesses said they lostmore than 5%of their time
budgets in the year to understand and implement
administrative regulations, which meant that the
corresponding amount of time it would take to
manage and business development. This rate is
significantly higher than the historic low in 2010
(56%) “(VCCI, 2016).
Solutions for improving state management
over the collection of social insurance for FDI
enterprises
- Increase of social insurance contributions
of foreign invested enterprises is based on two
factors: increase the number of participants and
the salary. Social insurance should promote
information to eachworker, knowFDI information
from the investment office, local management
office. Vietnam Social Insurance should continue
to apply technology in management, use
feedback channels, increase connectivity and
transparency. In addition, the effectiveness of
inspection, especially post-inspection, should be
strengthened.
- Enhance the application of information
technology and administrative reform to
minimize the time for collecting social insurance
contributions: Vietnam Social Insurance continues
to improve the application of software to declare
information on online social insurance, (especially
The free channel)
- Measures to increase revenue and
administrative reform connect with the level of
cost savings. Expenditures in the early stages
of implementation process usually exceed
the normal level. However, social insurance
should implement reform measures with long-
term strategy, cost estimation and efficiency
evaluation.
References:
1. European Commission (2012), Analysis of the main systems of social
security contribution collection in the European Union based on the
experience of 12 Member States;
2. Economic Research-Ekonomska Istraživanja (2015), The collection of
pension contribution: a comparative review of three central European
coutries;
3. ILO (2001), “Social Security Handbook”;
4. ISSA, Good governance in social security administration;
5. Louis D. Enoff and Roddy McKinnon (2011), Social security contribution
collection and compliance: Improving governance to extend social
protection;
6. S. Chiavo Campo và P.S.A Sundaram (2003), Serving and maintaining-
improving the public administration in a competitive world, National
Political Publishing House;
7. Tim Cadman, (2012), Evaluating the Quality and Legitimacy of Global
Governance: A Theoretical and Analytical Approach; Griffith University.
8. Decision No. 152 / QD-TTg dated January 28th, 2015 of the Prime
Minister approving the budget for implementation of information
technology application plan in activities of Vietnam social insurance
sector in 2012-2015 period management fee;
9. VSS report 2007-2017.
State management of social insurance will
directly affect the process of creating social
insurance fund. The State sets out the social
insurance policy, impacts and regulates
the collection activities of social insurance,
the activities of collecting social insurance.
Improving State management over social
insurance collection activities with a view to
creating a fair and democratic mechanism.
