Bureau of Employment Ministry of Labour, Invalids and Social Affairs UNEMPLOYMENT INSURANCE – PRACTICAL EXPERIENCES FROM VIETNAM

Contents I. UI POLICIES IN VIETNAM II. IMPLEMENTATION OF UI AND EMPLOYMENT SERVICES IN VIETNAM III. DIRECTION AND SOLUTIONS FOR FUTURE DEVELOPMENT OF THE SCHEME.

I. UI POLCIY IN VIETNAM 1. Legal framework : -Law of Social Insurance passed by National Assembly on 29/6/2006; -Decree issued by Government: Decree #127/2008/NĐ- CP on 12/12/2008 guiding implementation of selected UI articles of SI law; Decree #100/2012/NĐ-CP dated 21/11/2012 revising and supplementing Decree#127127/2008/NĐ-CP; -Other related guidance issued by concerning ministerial agencies: MoLISA, MoF, Vietnam Social Security and others.

I. UI POLICY IN VIETNAM 2.Key features of UI programme: a.UI coverage: - Worker: those are on labour/working contract of either indefinite term, or fixed term of 12 months or more; - Employer: employ 10 workers or more.

I. UI POLICY IN VIETNAM 2. Key features of UI programme: b. UI contribution: - Worker: 1% of monthly salary ; - Employer: 1% - Government: 1% (transfer once per annual).

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t) c. Qualifying conditions: -Have contributed for 12 months or more within the last 24 months before unemployed; -Have made a registration of unemployment to labour agency; -Have not found a job after 15 days since the date when unemployment registration was made.

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t) d. UI benefits: -UI allowance: 60% of the average salary comprised by 6 months preceding the date of unemployment; Duration of benefitsDuration of contribution 3 monthsFrom months 6 monthsFrom months 9 monthsFrom months 12 monthsFrom 144 months or more

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t) : d. UI benefits (con‘t): -Vocational training support: The implementation of VT support is organized by labour agency; VT support should be made based on the cost of training and on monthly basic. The government decides and updates the cost norms regularly; Duration of VT support depends on the period that training requires but should not be over 6 months. Starting time counts from the date that unemployed enjoyed monthly allowance.

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t) : d. UI benefits (con‘t): -Job seeking services: Unemployed on UI benefits can use this service free The service is delivered by labour agency Any time, during the period of UI allowance enjoyment. - Health Insurance: HI card shall be provided to unemployed who are qualified to UI benefits. HI premiums shall be paid by Vietnam Social Security (the agency manages UI fund).

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t) đ. Registration of unemployment: An unemployed who wish to receive UI benefits should register his/her unemployment status to labour agency within 3 months after his/her contract terminated. e. Report on job seeking activities: on monthly basis, the unemployed who are on UI benefits should report to labour agency about the efforts they have made in seeking a job.

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t) f. Suspension of UI benefit - If an unemployed does not come to Employment Service Center (ESC) to report on job seeking activities; - Being put in detention. g. Resuming UI benefits - If the monthly report on job seeking activities is made to ESC; - After the detention.

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t): h. Termination of UI benefits - Have used up all UI benefits; - Found a job; - Perform a military service; - Receive pension; - Made 02 job refusals without good causes to the job offers that introduced by ESCs;

I. UI POLICY IN VIETNAM 2. Key features of UI programme (con’t): h. Termination of UI benefits (con’t) - No monthly visit was made to ESCs for 03 consecutive months; - Oversea settlement; - Those are on administrative sanctions in reform school, re-training center, health clinics, prison; - Die. i. Lump sum allowance: - if found a job ; - if performing military services.

II. PERFORMABCE OF UI AND EMPLOYMENT SERVICES IN VN 1. Participation and collection of UI YearInsured Members (million) Contributions (billion) , , , ,973.8

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 2. Performance of UI # Contents 2010 (case) 2011 (case) 2012 (case) Total (#cases) 1 # registration of uenmployment #qualified to UI benefits # cases transfering in/out of a province # received employment services # received vocational training support

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 3. Payment for UI benefits : According to VSS report, total expenses for this year is about VND609.3 billion : VND1,250.4 billion : VND2,784.9 billion. It can be said that the existing benefit-contribution ratio appears reasonable to ensure the fund integrity.

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 4. Achievements - Legal framework and guidance have been developed by a timely and responsive maner to help the system meeting the needs of UI clients properly. - Special attention was made by all provinces to attain the readiness of system (staffing, facilities) for UI operations. - Good collaboration mechanism was established among MoLISA, VSS, MoF, trade unions to desseminate information, provide trainings, and solve all problems, etc.

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 5. Functions and responsibilities of ESCs in Vietnam -Carry out counseling services on topics of career development, vocational training, and industrial relationship; - Provide Job matching service and labour supply; -Collect, analyze and release labour market information; -Organize VT course ; -Receive registration of unemployment, and process UI claims.

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 6. Results of employment services: Counseling service: From up to date, served about 8 million cases (job counseling: 56,63%; VT counseling: 23,52%; other labour related policy: 13,71%); Job matching and labour supply during : annual average at 400,000 cases; Vocational training service: During period, annual average reached 200,000 trainees. The ESCs in Vietnam are growing and expanding its coverage rapidly in response to increasing demand of labour market.

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 7. Role of ESCs in UI operations - Providing counseling and job matching services to unemployed; -Facilitating the access of unemployed to VT courses; - Supplying market information to unemployed and others; - Receiving unemployment registration and processing claims.

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 8. ESCs, important actor to enhance the linkage between UI and employment services. ESCs, with its existing functions and roles, proved to be an optimal connection point between UI and employment services ; it helps strengthen the linkage between unemployment allowance and VT, job counseling and matching service; It creates favorable conditions to both workers and employers in the following aspects:

II. PERFORMANCE OF UI AND EMPLOYMENT SERVICES IN VN 8. ESCs, the important actor to enhance the linkage between UI and employment services (con’t) Receive and process UI claims; Keep records and track on employment status of uemployed; Provide labour market information to unemployed; Organize to provide VT course to unemployed; Conduct Job counseling, job matching services for both sides; To ease the conduct of job interviews (Job fairs; mobile job fairs) Disseminate information on labour, employment and UI policy and procedures to both sides.

III. Solutions for the near future 1.Continue to improve UI legislation. 2.Further develop ESCs to be compatible and closer to the working principles and rules set by World Association of Public Employment Service. 3.Improve capacity of UI staff in performing UI operations with a focus on counseling services, job matching, etc. 4.Establish a system and measures for labour management. 5.Improve facilities and financial resource of ESCs to operate UI and employment services. 6.Enhance the system of monitoring and evaluation for both tasks (UI and employment services). 7.Strengthen international cooperation on this field./.

Thank you very much!