- Complete the information technology infrastructure (computer network, server, workstation, network security, industry data center and software system, database, online public services on the Internet) to resolve social insurance and health insurance policies and regimes. By 2020, it is necessary to connect and interconnect information between agencies under the Vietnam Social Insurance sector with medical examination and treatment facilities under health insurance in the health sector and units implementing unemployment insurance policies and regimes in the labor sector;
- Building a system of offices for Social Insurance at all levels that is spacious, modern, convenient for transactions and services; ensuring requirements on scale and long-term use;
- The goal by 2030 is to complete a modern social insurance management model, in line with world trends, the context of global labor mobility, demographic changes and better serve the needs of employees and employers to participate in and enjoy policies. Effectively implement social insurance and health insurance policies in accordance with international treaties on social insurance and health insurance; and similar to countries in the region and the world.
Thus, with the above development orientations, the Vietnam Social Insurance industry needs to maximize its resources to contribute to building a sustainable, effective and modern social insurance system in Vietnam. Therefore, the development and completion of social insurance financial policies in Vietnam is very necessary and urgent in the current period.
4.2. VIEWPOINTS ON IMPROVING SOCIAL INSURANCE FINANCIAL POLICY IN VIETNAM
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4.2.1. General viewpoints on perfecting social insurance financial policies in Vietnam
When perfecting the social insurance financial policy system in Vietnam, the following general views must be ensured:
Firstly, the social insurance financial policy system in Vietnam must ensure equal opportunities to participate in social insurance for all classes of people, and implement
better implement social insurance regimes. Strive for social insurance to be a key pillar of the social security system in a socialist-oriented market economy, making an important contribution to achieving social progress and equity, and ensuring political stability.
- society, people's lives, sustainable development of the country.
Social insurance is one of the essential needs in human life. The purpose of social insurance is to provide necessary protection for people against threats of reduced or lost income due to causes such as unemployment, work accidents or occupational diseases, illness, old age or other risks. As society develops, the need for social insurance becomes more urgent, especially in the current context, the trend of population aging, climate change and environmental pollution, the trend of globalization is taking place rapidly leading to the consequence of unemployment, increasing diseases, so the need for insurance is very urgent.
Currently, the problem of inequality in the right to social insurance in our country still exists, the majority of workers in the informal sector are not able to fulfill their obligations, responsibilities and rights to enjoy social insurance regimes. This is something that social insurance financial policies need to overcome in the coming time.
Second, the social insurance financial policy system in Vietnam must aim to build a long-term financially sustainable social insurance system, develop a flexible, diverse, multi-layered, modern, internationally integrated social insurance policy system; mobilize social resources according to the nation's tradition of mutual love; aim to cover the entire population according to a roadmap suitable to socio-economic development conditions; harmoniously combine the principles of contribution - benefit; fairness, equality; sharing and sustainability.
Building a sustainable social insurance financial system in the long term is a necessary and important condition to ensure fairness for social insurance beneficiaries. To ensure the increasingly better implementation of the income redistribution function and ensure the increasing impact of social insurance on social life, it is necessary to continue to supplement and perfect the law on social insurance. First of all,
For the pension and death insurance system, it is necessary to ensure more fairness and rationality. With the forecast that Vietnam will become the country with the highest population aging rate in Asia in the period of 2020 - 2050, along with historical factors and unique characteristics of the Vietnamese pension system, the reform of Vietnam's pension insurance system needs to have a suitable roadmap, aiming at the goal of ensuring long-term balance of the social insurance fund on the basis of consensus of the whole society.
Third, the social insurance financial policy system in Vietnam must support the social insurance industry to fundamentally innovate in the direction of ensuring streamlining, professionalism, efficiency, modernity, enhancing attractiveness, strengthening trust and satisfaction of people as well as social insurance participants; improving the capacity to manage investment activities to create long-term sustainability of the social insurance fund.
The social insurance financial policy system in Vietnam needs to contribute to reforming the administrative institutions and organizational structure of the social insurance sector. Strengthening the direction, management and coordination between units in handling professional work, actively coordinating with relevant departments and agencies with employers to effectively implement social insurance policies.
Identifying information technology as an important factor in implementing administrative procedure reform on social insurance, it is necessary to improve the qualifications of social insurance officers to operate computer software well in managing records, implementing social insurance revenue and expenditure management. Implementing well the administrative reform program in the Vietnam Social Insurance system, improving the efficiency and effectiveness of the management of the organizational system and staff.
Fourth, the social insurance financial policy system in Vietnam must ensure balance in a dynamic state .
Because the amount of cash in the Social Insurance Fund fluctuates according to different Social Insurance subsidy regimes, the number of employees fluctuates frequently, so in management, especially in the planning stage, attention must be paid to this issue. This is also a characteristic of the Insurance industry in general and Social Insurance in particular because of its inverse nature.
Counter-cyclical business means collecting fees first to pay for the following policies. Although there is support from the State budget, the social insurance financial management policy must contribute to reducing the burden on the State budget and still implement this social policy in the best way.
Fifth, in the current process of international economic integration, it is very necessary to perfect the social insurance financial policy system in Vietnam with a high level of internationalization.
In order to create favorable conditions for investors and foreign organizations to conduct business activities and develop their businesses in Vietnam more easily and conveniently, the social insurance financial policy system in Vietnam also needs to be standardized according to international practices. It can be seen that the social insurance financial policy systems that developed countries in the world are applying as well as modern social insurance fund investment management models are valuable lessons for perfecting this policy system.
4.2.2. Specific views on perfecting social insurance financial policies in Vietnam
Based on the analysis and assessment of the current status of social insurance financial policies in Vietnam in recent times, combined with the country's socio-economic development strategy and the direction of activities of the social insurance industry in the coming time, the thesis provides specific viewpoints to guide the improvement of social insurance financial policies in Vietnam as follows:
Firstly, perfecting the social insurance financial policy in Vietnam must be based on the interests of workers, the State and the interests of the whole society.
* Basis of opinion:
- Social insurance and health insurance are two important social policies, the main pillars of the social security system that must be gradually expanded, increasing the number of participants, contributing to social progress and equity, and ensuring political stability.
- society and socio-economic development. The purpose of implementing financial policies
The main purpose of social insurance in Vietnam is to ensure the implementation of social insurance's responsibilities towards employees, so financial policies applied to social insurance must always put the interests of employees first.
- The Social Insurance Fund is an extra-budgetary financial fund that aims to ensure a stable life for workers. Therefore, the collection, expenditure, preservation and growth activities of the Social Insurance Fund must always aim at the goal of fund growth, gradually reducing the burden on the State budget.
- The purpose of the Social Insurance Fund is to contribute to the stability and development of the socio-economic system, so financial policies related to Social Insurance must effectively contribute to increasing social benefits - that is, creating more jobs, increasing income, and ensuring social justice.
* Basic orientation:
In financial policies on revenue, expenditure, preservation and growth of the Social Insurance Fund, it is necessary to have a clear and correct viewpoint when evaluating and selecting implementation options. The process of establishing and analyzing investment projects to increase the fund must demonstrate two main groups of objectives of the activity, which are the group of financial objectives and the group of socio-economic objectives.
+) For the financial target group, the investment activities to increase the social insurance fund must achieve a certain rate of return, at least equal to the inflation rate, so that the investment activities, if not increasing the fund value, at least preserve the investment capital.
+) For the socio-economic target group, the investment activities of the social insurance growth fund must contribute to solving the country's socio-economic problems, such as population, employment, environment, social justice, etc.
Second, financial policies to develop social insurance in Vietnam are suitable to the country's socio-economic conditions and synchronized with the development of social services.
* Basis of opinion:
- Vietnam is basically still an agricultural country, the level of education
is still low, social infrastructure is still in the development period. Therefore, financial policies to develop social insurance in Vietnam must be synchronized with the development of social services. The State creates conditions for the Vietnam Social Insurance sector to invest in developing advanced technology and technical means to apply in management to organize and implement well the social insurance and health insurance regimes and policies.
- Awareness of compliance with labor law and social insurance law of a part of the employers is poor. Meanwhile, the mechanism to control and limit this situation still has many shortcomings and limitations, so it is not possible to grasp the number of employees subject to compulsory social insurance participation as a basis for urging social insurance registration. Inspection and examination work of the social insurance sector is not regular and continuous due to limited resources.
* Basic orientation:
- We must be more flexible in planning social insurance policies, which means offering more flexible social insurance packages, creating favorable conditions for employees to have many suitable options to participate. In planning policies, there must be specific calculations to ensure the contribution-benefit principle, ensuring the sustainability of the social insurance fund.
- Promoting propaganda so that employers can see their rights and legal responsibilities, as well as helping employees better understand their rights when participating in social insurance is also one of the key solutions that Vietnam Social Security will focus on in the coming time. Along with propaganda, Vietnam Social Security has made many efforts to simplify and modernize social insurance procedures, in order to facilitate businesses and people when transacting with social insurance agencies.
Third, the collection and disbursement of the social insurance fund must be a prerequisite for the investment of the social insurance fund and vice versa.
* Basis of opinion:
Financial policies to preserve and grow the Social Insurance Fund are intentional actions to increase the size and real value of the fund. There is always an organic relationship and interaction between the activities of preservation and growth.
Social insurance fund collection has the impact of increasing the size of the fund and at the same time creating a premise for creating capital for investment and growth activities; Social insurance fund disbursement activities have a direct impact on the existence of the Social insurance fund and an indirect impact on the scale of idle capital in the fund's investment activities. On the contrary, fund growth investment activities have a direct impact on generating revenue, adding more capital and increasing the size and real value of the Social insurance fund.
* Basic orientation:
- In the activity of generating revenue for the Social Insurance Fund, it is necessary to mobilize the maximum number of participants and implement the principle of " using the majority to compensate for the minority ", paying special attention to preventing losses and long-term social insurance arrears. Increasing the social insurance contribution rate must have a roadmap and depend on the socio-economic development conditions of our country in each period.
- Management of social insurance payments must be based on strict management of beneficiary records, avoiding abuse and falsification of records for personal gain. The issuance of policies and regimes related to the benefits of insurance participants must be calculated and considered to avoid the phenomenon of achieving the goal of increasing the benefits of employees but affecting the possibility of imbalance in the social insurance fund in the future.
- To achieve high efficiency with financial policies to preserve and grow the Social Insurance Fund, there needs to be a synchronous coordination between solutions on revenue generation, payment management and fund growth investment.
Fourth, investing in financial assets is a long-term investment strategy and the most important strategy in financial policies to preserve and grow the social insurance fund.
* Basis of opinion:
- Based on the principles of social insurance fund investment activities, especially the safety principle and liquidity principle. To ensure the liquidity of investments, Vietnam Social Insurance needs to prioritize capital investment in financial assets.
- Based on the characteristics of the investment capital of the Social Insurance Fund, which is only temporarily idle, investment with this capital source must be directed towards financial assets that meet the liquidity requirements of investment activities such as stocks, bonds, and other valuable papers on the money market.
- The financial market in our country is in the stage of development and completion, financial assets have appeared and are increasingly diverse and bring good profit opportunities. Therefore, in the long term, investing in financial assets will have to be the most important investment activity of the Social Insurance Fund.
* Basic orientation:
In order for the investment of the Social Insurance Fund into the financial market to be consistent with the characteristics of the investment capital, the Social Insurance needs to clearly distinguish between short-term investment capital and long-term investment capital because each of these capital sources has different durations and usage requirements. After distinguishing the capital sources, it is necessary to develop a capital allocation strategy into financial assets that are consistent with the nature and characteristics of each capital source.
For short-term capital, it should only be used to invest in short-term financial assets. These assets must be highly liquid and capable of generating income in a short period of time. Based on this requirement, we see that the most suitable investment activities for this capital source are: buying and holding short-term bonds (State Treasury bills, commercial bank bills...), buying and selling stocks to benefit from price differences.
For long-term capital, priority should be given to investing in long-term securities. These securities must satisfy the following requirements: the ability to generate high and stable income; the required holding period of the securities must coincide with the expected payment period of long-term social insurance regimes; the interest rate of fixed-income securities plus the interest rate earned from reinvesting that income must be greater than the assumed interest rate used as the basis for calculating long-term social insurance premiums. From this, it can be seen that investing in bonds is the most important investment strategy in social insurance fund investment activities because only bonds, especially government bonds, can satisfy the above requirements.