>>Development of the law on social security
Pham Diem
State and Law Institute of Vietnam
Though Vietnam has neither code nor law on social security, social security principles and regulations can be found in various legal documents, including the 1992 Constitution; the Labor Code, which was passed on June 23, 1994, then amended twice in 2002 and 2006, containing a chapter on social insurance for wage earners; and the Law on Social Insurance, passed on June 29, 2006, by the National Assembly.
Generally, Vietnam’s social security law contains the following basic principles:
1. All members in the society are entitled to social security
The social security rights are specified by the 1992 Constitution (revised): “ The State provides for working times, wage scales, regimes of rest and social insurance for state employees and wage earners; it encourages and promotes other forms of social insurance for the benefit of the working people” (Article 56); “the State attends to the organization of health insurance and create necessary conditions for all citizens to enjoy healthcare” (Article 39); “War invalids, diseased soldiers and the families of fallen soldiers enjoy preferential policies of the State. War invalids will be given conditions for their physical rehabilitation and be given employment suited to their state of health and assistance in securing stable living conditions. Individuals and families credited with meritorious services to the country will be given commendation and reward and be cared for. Aged people, disabled persons and orphans without support will receive assistance from the State and society” (Article 67).
Enjoyment of social security is a right of citizens, which is effected equally among members of the society. This constitutes a principle. However, to enjoy any support regime, beneficiaries must satisfy certain conditions. For instance, beneficiaries of the social insurance regime must be laborers who pay social insurance premiums under law. Entitled to social relief are persons who are facing risks, disadvantages or difficulties, which they themselves cannot surmount, or persons eligible for preferential social allowances must be those who have made great contributions to the country.
2. The State performs the unified management of social security
This principle stems from one of the basic functions of the State, that is the social function. As the supreme owner, the bigger employer and the representative of the entire population, the State must naturally perform the unified management of social security, which is demonstrated in the following aspects:
First, the State maps out social policies as well as economic, cultural, security and defense policies. At the same time, it establishes a legal system on social security to institutionalize social policies. If this system is absent, the State cannot settle, regulate and efficiently control social security matters.
To effectively enforce legal documents, the State sets up social security functional bodies while inspecting their organization and implementation of social security policies and regimes. The social security function is undertaken directly by such agencies as the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Health, the Ministry of Agriculture and Rural Development, the Committee for Ethnic and Mountainous Affairs, and their respective subordinates at various local levels.
Second, the State, in its capacity as national owner, directly contributes or provides support in resources for the realization of social security regimes. For instance, it makes contributions to, or provides supports for, the social insurance fund in addition to contributions by employers and employees, for the realization of social insurance regimes. The social preference fund and the social relief fund are financed largely by the state budget.
3. Harmonious combination of economic policies and social security policies as well as of economic growth and social progress and justice in each step and throughout the process of social development in Vietnam
This principle stems from the State’s perception that humans serve as the objective and also the motive of social development. Social policies aim to promote the strength of human factor and to serve humans. Meanwhile, human resources constitute a fundamental element for social development and fast and sustainable economic growth. In turn, economic development serves as the basis and material prerequisite for realization of social policies. Therefore, harmonious combination between economic development and social security constitutes a strategic line of the Vietnamese State.
Though the economy remains weak and underdeveloped after 30 years of war, not to mention frequent natural disasters, the State has always attached importance to the settlement of social security matters in each period and throughout the process of economic development.
It can be said that Vietnam’s social security law clearly demonstrates the harmonious combination of economic and social policies.
4. Harmonious combination of the principle of “enjoyment according to contribution” and the principle of “majority compensating minority”
This principle typifies the social security law with the combination of two separate but complementary principles.
The principle of “enjoyment according to contribution” in the social security law is the concretization of the social justice principle which prevails various aspects of social life. For a developing country like Vietnam, enjoyment corresponding to contribution constitutes an inevitable and necessary principle, which is usually applied to the payment of social insurance allowances and preferences to persons with meritorious services to the country.
The principle of “majority compensating for minority” demonstrates humanity, mutual assistance and mutual affection. It is usually applied to social insurance and social relief. The basic content of this principle is that contributions and assistance of many people will help limit and minimize difficulties and disadvantages for a number of others.
Depending on each aspect of social relations or each step of each regime and on each category of social security beneficiaries, these two specific principles are flexibly and properly applied.
5. Diversification and socialization of social security activities
As social security covers diverse areas, the causes of risk are numerous and security demands of members in society are different, social security activities must, therefore, be diversified to ensure that social security is timely and effective and a safe “shield” of the society.
The implementation of social security first of all rests with the State. However, in Vietnam, the State cannot settle all social security matters with its own resources due to its limited budget. The State only plays the core role while mobilizing and creating favorable conditions for citizens, enterprises, social organizations and foreign individuals and organizations to participate in the effective settlement of social security matters. At present, the state budget represents about 60% of the total social security financial source, which is expected to reduce to around 20% by 2020 under the State’s policy.
In order to step up the diversification and socialization of social security activities, such fine traditions and practices in Vietnam as “benevolence and faithfulness,” “when drinking water one should remember its source”, “the untorn leaf wraps up the torn leaf” should be brought into full play.-