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Current status of voluntary social insurance participation of workers in the informal sector: Case study of Tay Ho district, Hanoi city - 2

LIST OF TABLES


Table 2.1. Number of interviews with participating and non-participating workers

Voluntary social insurance in Tay Ho district, Hanoi city 73

Table 2.2. Survey sample structure 75

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Table 3.1. Number of employees participating in voluntary social insurance 85

Table 3.2. Number of employees participating in voluntary social insurance in Tay Ho district 89

Current status of voluntary social insurance participation of workers in the informal sector: Case study of Tay Ho district, Hanoi city - 2

Table 3.3. Monthly income of informal sector workers.. 91 Table 3.4. Correlation between age groups and education costs for children of workers participating in voluntary social insurance 93

Table 3.5. Correlation between age groups and sanitation and fuel costs of workers participating in voluntary social insurance 94

Table 3.6. Time of voluntary social insurance participation of employees. 105 Table 3.7. Correlation between employment and time of voluntary social insurance participation 106

Table 3.8. Voluntary social insurance contribution rate of employees 110

Table 3.9. Access to information on voluntary social insurance 113

Table 3.10. Assessment of the level of conformity of the regulations 116

Voluntary social insurance policy 116

Table 4.1. Correlation between education level and participation intention of workers 143

Table 4.2. Correlation between income level and social insurance participation 145

Table 4.3. Correlation between monthly income and intention to participate in voluntary social insurance of employees 148

Table 4.4. Forms of propaganda for voluntary social insurance 157

Table 4.5. Communication content on voluntary social insurance 158

LIST OF TABLES


Table 3.1. Employee expenditures in 1992

Table 3.2. Accumulated resources of workers 95

Table 3.3. Household items 97

Table 3.4. Purpose of voluntary social insurance participation of employees 101

Table 3.5. Proposal to adjust and supplement voluntary social insurance regime 117

Table 3.6 Gender and the need for additional benefits for workers118 Table 3.7. Education level and the need for additional benefits119

Table 3.8. Level of satisfaction with the benefits received by employees or family members 125

Table 3.9. Reasons why workers have not participated in voluntary social insurance ... 129 Table 3.10. Ability to participate in voluntary social insurance of workers in the informal sector who have not participated 131

Table 4.1. Identification of voluntary social insurance participants 139

Table 4.2. Summary of the level of understanding of employees participating in voluntary social insurance about the subjects of participation according to legal regulations 140

INTRODUCTION

1. Reason for choosing the topic

In the current social security system in our country, social insurance is one of the four important pillars, receiving special attention from the Party and the State. The most specific expression is in Resolution No. 28-NQ/TW dated May 23, 2018 of the Central Executive Committee on reforming social insurance policies, emphasizing the acceleration of the process of increasing the number of workers participating in social insurance in the informal sector. Accordingly, the Resolution clearly states: " Promoting enterprise development in the spirit of Resolution No. 10-NQ/TW dated June 3, 2017 of the 12th Central Executive Committee on developing the private economy into an important driving force of the socialist-oriented market economy. Research and design short-term social insurance packages with contribution levels, benefits, and transaction methods suitable for workers in the informal sector" (Central Executive Committee, 2018). In fact, the field of social security for workers in the informal sector is one of the issues that many authors, researchers, and policy makers have exploited from many aspects. Workers in the informal sector occupy an important position in the labor market system. In 2016, the total number of informal workers in Vietnam was more than 18.01 million people, an increase of 2.8% compared to 2015; of which, women accounted for more than 7.8 million people, equivalent to 43.56%. (Finance Magazine, 2018). The informal sector has easily recognizable characteristics such as: workers have precarious and unstable jobs, no labor contracts or verbal contracts, low income, long working hours, no social insurance (SI), health insurance (HI), no allowances and other social benefits for workers (Dang Nguyen Anh, 2016). Research by foreign authors also points out similar characteristics. Hu, Y. and F.Stewart (2009) argue that, compared to formal sector workers - who often participate in compulsory pension systems -

forced – informal sector workers are often not fully covered by modern pension systems. Informal workers may also come from groups with lower incomes and education levels (compared to formal sector workers), have limited knowledge and understanding of pensions and savings products, and have limited resources for long-term savings. Therefore, access to structured pension systems is a challenge for this group of workers (Yu-Wei Hu, Fiona Stewart, 2009).

The voluntary social insurance policy in Vietnam was implemented in 2008 with the goal of providing a stable life for workers who are not in the group participating in compulsory social insurance, creating equality in social insurance among workers working in different economic sectors. After participating in voluntary social insurance for 20 years and reaching retirement age, workers will receive a monthly pension and a death benefit in case of an accident. Thus, workers will have a security support when they are no longer able to work to generate income. However, although the number of workers participating in voluntary social insurance increases every year, the rate of participation in voluntary social insurance remains low, reaching only 227,506 workers in 2017, or 0.47% of the working-age workforce (Government, 2018). By the end of 2019, there were 551,000 voluntary social insurance participants and the whole country had about 30 million people who had not participated in social insurance [139]. Most of the participants are those who have participated in compulsory social insurance for a period of time after retiring and then switched to voluntary social insurance to qualify for retirement benefits. The number of new participants, especially young workers, is still small. The coverage of voluntary social insurance is not high in the context of the aging population, which is likely to lead to many consequences related to social security in the near future.

Research on voluntary social insurance for workers in the informal sector in the current context in our country is one of the key issues of social security, aiming to find effective solutions to attract workers.

Actively participate in voluntary social insurance, contributing to the implementation of Resolution 28-NQ/TW dated May 23, 2018 of the Central Executive Committee of the Communist Party of Vietnam.

The topic of social insurance, issues related to labor, employment, and social insurance of informal workers has received much attention from researchers in recent times. Some notable studies in Vietnam include: Social insurance and the informal sector in Vietnam: Is it possible to move towards universal insurance for all by Paulette Castel (2010); Female workers working in the informal sector and the level of access to social insurance by Hoang Ba Thinh (2012), Topic : Theoretical basis and practice in developing policies to encourage participation in voluntary social insurance for poor workers, ethnic minority workers, and farmers with average income or lower by the Institute of Labor Science and Social Affairs (2013)... In addition, there are many studies and proposals from individuals and policy-implementing units related to voluntary social insurance for workers such as: Some issues on voluntary social insurance by Mac Tien Anh (2008); Social security in the informal sector: need to identify social insurance as an important network by Bui Sy Tuan and Do Minh Hai (2012); Proposal to improve voluntary social insurance policy by Pham Do Nhat Tan (2014a); Development of voluntary social insurance: some issues of concern from the practice of Hanoi by Nguyen Thi Phuong Mai (2017)... However, there have not been many studies applying sociological theories in the study of voluntary social insurance participation of employees to explain the current situation of voluntary social insurance participation of employees, the considerations, calculations, and choices of employees when participating; factors affecting participation. From there, propose appropriate solutions to increase the number of employees participating in voluntary social insurance, towards creating social stability.

Tay Ho District was established in 1995 on the basis of wards: Uoi, Thuy Khue, Yen Phu of A Dinh district and communes: Tu Lien, Nhat Tan, Quang An, Xuan La, Phu Thuong of Tu Liem district. The urbanization process has caused the

The occupational structure in the district has changed, a part of the people have shifted from pure agricultural production to commercial services. People who were compensated for land from growing rice and crops have switched to services, others have gone to work for hire or created their own jobs to sustain their lives. The urbanization process has also caused the number of migrant workers in the ward to increase rapidly, leading to a large number of workers working in the informal sector. The number of workers participating in voluntary social insurance is higher than in other districts in Hanoi, but still accounts for a small proportion compared to the number of workers in the informal sector in the district. In such a context, the doctoral student's approach to the study "The current status of voluntary social insurance participation of workers in the informal sector in Tay Ho district, Hanoi " will provide a comprehensive picture of voluntary social insurance participation of workers in the informal sector based on the description of the number of workers participating; awareness, needs, and aspirations of the group of workers who have participated in voluntary social insurance and the group that have not participated, and at the same time identify factors affecting the participation of workers in voluntary social insurance from a sociological perspective. The research results also propose recommendations to increase the participation rate.

Voluntary social insurance in Hanoi city.

2. Scientific and practical significance

2.1. Scientific significance

The thesis contributes to systematizing and clarifying theoretical and practical issues on social insurance and voluntary social insurance. The thesis uses a number of sociological perspectives and theories such as the theory of rational choice, the theory of participation, the theory of functional structure, with the approach of social insurance to explain the research problem; Thereby, further affirming the role of sociological theories in analyzing the needs of workers in the informal sector to participate in voluntary social insurance, choosing to participate or not to participate in voluntary social insurance on the basis of regulations and benefits.

2.2 . Practical significance

The thesis provides information on many aspects of the current status of voluntary social insurance participation of workers through the results of analysis, generalization, explanation of authentic practical evidence; the findings, conclusions and recommendations are the basis for implementing further studies. At the same time, based on the research results, the thesis contributes to helping those implementing social insurance policies grasp the current status of voluntary social insurance participation of workers in the informal sector in Tay Ho district, the factors affecting voluntary social insurance participation and feasible solutions to increase workers' participation in voluntary social insurance nationwide in general and in Tay Ho district in particular. The research results can contribute policy and practical implications to social security policy makers, urban managers, as well as to social science research on social security.

3. Research objectives and tasks

3.1. Research purpose

The thesis focuses on studying the current status of voluntary social insurance participation of workers in the informal sector and the factors affecting voluntary social insurance participation of workers. On that basis, recommendations are made to increase the rate of voluntary social insurance participation of workers.

3.2. Research tasks

Determine the theoretical and practical basis for voluntary social insurance participation of workers in the informal sector, on that basis clarify the system of conceptual tools: social insurance, social insurance, voluntary social insurance, informal sector, informal employment, informal sector workers; at the same time, select theories to apply in the research: rational choice theory, participation theory and functional structure theory.

Identify the current status of voluntary social insurance participation of employees

The current informal sector is based on the description of the number of participants; contribution level, method, and period of contribution; the assessments of voluntary social insurance participants on the regime and policies; the needs and aspirations of the group of workers who have participated in voluntary social insurance and the group that have not participated in voluntary social insurance.

Analysis of factors affecting voluntary social insurance participation of informal sector workers including: psychological factors, awareness, demographic factors of workers; regimes, policies and communication work on voluntary social insurance.

Provide some recommendations on solutions to contribute to increasing the participation of informal sector workers in the field of voluntary social insurance.

4. Subject, object and scope of research

4.1. Research subjects

Current status of voluntary social insurance participation of workers in the informal sector.

4.2. Research subjects Include groups:

+ Informal sector workers of working age participate in voluntary social insurance

+ Informal sector workers have not participated in voluntary social insurance

+ Representatives of leaders of wards in the district

+ Officer in charge of collecting voluntary social insurance at wards

4.3 . Scope of research

Time range: 2018-2020.

Spatial scope: The study was conducted in 8/8 wards of Tay Ho district, Hanoi city.

Scope of content:

- Explore the participation of informal sector workers

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