MEASURING AND MONITORING SOCIAL PROTECTION IN VIETNAM: Challenges and Future

Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

Jakarta, 14 May, 2013

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1. Overview of current social protection system in Vietnam

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1.1 Country profile (2012)

1. GDP growth rate, %
2. Total population, mil of people 5,03 88.0

3. GDP per capita, US$

4. Total employment, mil people 5. Informal employment ,% 6. Unemployment rate, % 7. Poverty rate, % 8. Gov. spending on social protection, % of GDP
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1.200 52.2
75.5

2.9
9,45 4.5 3

1.2 Social Protection (2012)

1. Social Health Protection Coverage (% of population) 2. Social Insurance (SI) Compulsory SI (% of labour force) 20.0 0.3 %

68.2

Voluntary SI (% of labour force)

= Total labour force covered by SI 3. Unemployment insurance (% of LF) 4. Social Assistance (% of population)
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20.3
15.0 2.6
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2. SOCIAL PROTECTION SYSTEM IN FUTURE, 2012-2020

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2.1 Legal framework

Party Resolution No 15 (1 June 2012), strongly committed to develop Social Protection system for years 2012-2020 Right of Social protection has been sit in the current revising National Constitution

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2.2 Country Context, 2012-2020

(i) Still faces with a number of war victims and national devotees to revolutions (ii) Large number of poor (absolute and relative poor) due to econimic growth slowing down (iii) Economy integrates more to international markets >> new risks associated with econimic reforms, political reforms, inequalities and needs for social cohesion.. (iv) Climate change impacts: Vietnam is one of the countries has been more influenced
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2.3 Goal of Social Protection Systems (2012-2020)

By 2020, basically achieve social protection to covered to whole population, making contribution to gradual enhancement of incomes, ensuring secured living and happiness of the people. Ensuring minimum levels of employment, income, education, housing, clean water and basic information.
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2.4 Priorities
1. Target group: Priorities are given to 10 vulnerable groups, including the poor; ethnic minority; people living in remote, mountainous areas; workers in rural areas and informal sector; the unemployed; the disabled; children; old-age and sick people; those affected by natural calamities, economic and social risks. 2. Areas of priorities: Health, Employment, income, services (followed ILO social Protection floor: health, income for unemployment, disable and children)
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2.5 Key principles of Social Protection Systems (2012-2020)

Right based: Government should guarantees for all people have the right and access to social protection system (informal workers issues); Solidarity, the linkage, support, sharing between individuals, between social groups and the state; Equitability and sustainability, binding responsibilities and benefits, between contributions and benefits; Promoting responsibility of individuals, families and communities in ensuring the social protection;

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SOCIAL PROTECTION IN SYSTEM

EMPLOYMENT, MINIMUM INCOME AND POVERTY REDUCTION JOB CREATION Special Credit policies Vocational training Employment services and labor export

SOCIAL INSUREANCE (SI)

SOCIAL ASISTANCE FOR SPECIAL GROUPS REGULAR ASISTANCE In social protection center or at home Cash transfer for special groups EMERGECY ASISTANCE

BASIC SOCIAL SERVICES

COMPULSORY SI Sickness Maternity leave Work accidents and disease Pension Survivor benefits

EDUCATION HEATH CARE HEALTH INSURANCE HOUSE

CLEAN WATER

COMUNICATION

PUBLIC EMPLOYMENT POVERTY REDUCTION

VOLUNTARY SI Pension Survivor benefits UNEMPLOYMENT INSURANCE

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SUPPLEMENTARY Indonesia, 14 May 2013 SOCIAL INSURANCE

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2.6 Social Protection main indicators 2012-2020

TT
0

Indicators
Population Participation in health insurance (millions) Of which: Fully subsidized Partly subsidized

2015
91.7 73,4 29.4 36.9

2020
96.2 86,6 25.5 38.7

- Coverage rate by health insurance ( %)

2 Participation in social insurance (millions) - Compulsory (formal sector) - Voluntary (informal sector)
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80.0
20.2

90.0
28.4

16.0
4.2

22.0
6.4

- Coverage of total labor force (%) Indonesia, 14 May 2013

35.0

50.0 12

2.6 Social Protection main indicators (cont.)

T T
3

Indicators Participation in Unemployment scheme (million) Coverage of total labor force (%)

2015 10.0 19.1

2020 15.7 28.6

Paticipation in social assistance schemes (million)

of which: Regular assistance - Coverage of population, % of which, coverage of regular assistance,

2.6
2,3 2.8 2.1

3.0
2,5 3.0 2.4
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Hanoi, ILT GIZ

Part II MONITORING SOCIAL PROTECTION SYTEM IN VIETNAM

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3. 1 Long list of Ministries involved

Ministry of Labor, Invalids and Social Affairs; (MOLISA) Ministry of Finance Bank for the social policies Social organizations (women, youth ), Vietnam Social Security (VSS) Ministry of education and training (MOET) Committee on Enthics Minority (CEM) Ministry of Health (MOH) Ministry of Constrution (MOC) Ministry of Agriculture and Rural development (MARD) Ministry of Information and Communications (MOIC) National office of Taxation (NOT) .......
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3.2 Quite fragmented polices and programs - More than 100 polices on social
protection - More than 50 programs on poverty reduction - Polices focus vs. national focus

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3.3 Problems of measurements and monitoring at all levels

1. Indicators (disaggregate and by big groups) 2. Data: GSO (VHLSS + supplementary module on social protection; Labor force survey..): Timing, accessibilities,.. State budgeting data: Other data sources: Administrative (reliable, timing, exclusion issues) and inter-linkage International data

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3.4 Problems of measurements of SPI, 2009

Most of the data is based on the 2008 Viet Nam Household Living Standards Survey (VHLSS) and other secondary sources (mainly MOLISA, VSS). Since all the current social protection programs and activities, are gender-blind and do not segregate women beneficiaries both as target groups or participants,

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3.5 Calculation of SPI: Basic Statistics for 2009

Statistic GDP (current prices) GDP per capita (current prices) GNI (current prices) Total Population Number of unemployed/ underemployed*** Population aged 60 years and over Employed Population Population living below national poverty line Disabled population Children aged 0 to 14 years Per capita poverty line expenditure (annual) Average household size Exchange rate****
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Unit *
Millions VND VND Billions VND Millions Millions

2009 Value 1,658,389,000.0 19,278,000.0 1,567,553.0 86.0 4.6 7.7 47.7 9.7 6.7 21.5 299,320.0 3.8 17,799.6

Source of Data National Accounts National Accounts National Accounts Census LFS Census LFS Poverty Assessment MOLISA Census Poverty Assessment Census Central Bank
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Millions

Millions Millions

Millions Millions VND

persons US$1= Indonesia, 14 May 2013

3.5 Social protection expenditure,Expenditure 2009

Categories (VND millions) 45,280,246 12,792,300 7,869,655 65,942,201 942,188 2,604,200 270,966 1,106,200 5,037,284 9,960,838 2,486,000 78,389,039 1,658,389,000 4.7 Pensions Health Insurance Other Social Insurance ALL Social Insurance Assistance for Elderly Health Assistance Child Protection Disaster Assistance and Relief Other Social Assistance ALL Social Assistance Labour Market Programs TOTAL EXPENDITURE GDP
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% 57.8 16.3 10.0 84.1 1.2 3.3 0.3 1.4 6.4 12.7 3.2 100.0

Social protection expenditure Indonesia, 14 May 2013 Indicator (%)

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Social protection Index and its components , 2009

Social and health Insurance
Social Assistance

Labour Market Programs

All SP Programs

SP expenditure (Bill. VND) Beneficiaries (Mill. Persons) Reference population (Mill. Persons) 25% of GDP per capita (VND) Depth = SP expenditure*1 billion/ (Beneficiaries*1 million*25% GDP per capita) Breadth = Beneficiaries/Reference population SPI = Depth * Breadth
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65,942.2 41.5 55.4 4819500

9,960.8 37.0 37.9 4819500

2,486.0 0.6 4.6 4819500

78,389.0 79.1 97.9 4819500

0.330

0.056

0.832

0.206

0.424 0.140
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0.378 0.021

.006 0.005

0.808 0.166
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4. The future of SPI

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4.1 Plan of Gov to streamline the programs and policies at operating level (province, household..) to avoid overleaping and fragmenting programs
1. Simplifying polices and program 2. National standing committee led by Vice Price Minster and involved by all relating ministries 3. At national level: Concentration on MOLISA functions to monitor SP progress (National SP report, SP indexes) to Ensuring employment and minimum income 4. At province level: Required integrating policies and programs, more power to implement the programs

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4.2 Overcome issues of measurements and monitoring at all levels

1. Indicators (disaggregate to sub-national levels, by groups, by gender) 2. Data used: GSO data (VHLSS, Labor force survey..) State budgeting data Other data sources: Administrative (reliable, timing, exclusion issues) International data: time bound

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4.3 Mobilizing financial resource to develop system

Total expense for social protection required: 7-8% GDP (ILO: 3% for SP floor) States expenses: Accounts for 50% of total expenses for social protection; or 15-18% of State budget

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4.4 Enhance monitoring at all levels

1. National Report on Social Protection 2. Social Protection Index for 2013

To be submitted by November 2013

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Thank you very much for your attention!

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