Expanding Coverage in Vietnam’s Voluntary Social Insurance Scheme

Insights andRecommendationsPublic Disclosure Authorized Himanshi Jain, Nga Thi Nguyen, Agastya Yeachuri, Pham Bao Ha, Koustav De Expanding Coverage inVietnam’sVoluntary SocialInsurance scheme: Insights andRecommendations Himanshi Jain, Nga Thi Nguyen, Agastya Yeachuri, Pham Bao Ha, Koustav De TABLE OF CONTENTS LIST OF ABBREVIATIONS8ACKNOWLEDGEMENTS....................................................................................................................... 9EXECUTIVE SUMMARY......................................................................................................................10I. OVERVIEW OF THE VOLUNTARY SOCIAL INSURANCE SCHEME...............................................15II. INSTITUTIONAL ARRANGEMENT AND RECENT LEGISLATIVE, AND ADMINISTRATIVECHANGES TO THE VSS.......................................................................................................................22Targets for expansion of social insurance coverage....................................................................25Modernization of the social insurance system.............................................................................25III. DELIVERY SYSTEMS ASSESSMENT OF THE VOLUNTARY SOCIAL INSURANCE SCHEME......291. Assess..........................................................................................................................................301.1. Outreach............................................................................................................................................................... 301.2. Registration......................................................................................................................................................... 362. Enroll............................................................................................................................................382.1. Verification............................................................................................................................................................ 382.2. Onboarding.......................................................................................................................................................... 393. Contribute...................................................................................................................................403.1. Contribution......................................................................................................................................................... 403.2. Benefit Eligibility................................................................................................................................................. 424. Provide........................................................................................................................................434.1. Withdrawal (for one-time social insurance allowance)............................................................................. 434.2. Benefit payment.................................................................................................................................................. 445. Manage........................................................................................................................................455.1. Monitoring............................................................................................................................................................ 465.2. Exit.......................................................................................................................................................................... 47 IV. SURVEY TO INFORM CHANGES IN DESIGN, DELIVERY, AND INCENTIVES IN VOLUNTARYSCHEME...............................................................................................................................................47a) Participation status of individuals is correlated with some observable socio-economiccharacteristics.................................................................................................................................52b) Scheme awareness is most effective through word of mouth but awareness onscheme specifics like government incentives or estimation of benefits is poor.......................59c) Contributors depend on VSS agents for registration and contributionwhich makes it easier to perform transactions............................................................................62d) Lower vesting, additional short-term benefits, more generous state subsidy,and a link to social pension would make the scheme attractive but results point to aheterogeneity in preferences.......................................................................................................64RECOMMENDATIONS........................................................................................................................68ANNEX 1. LIST OF ADMINISTRATIVE PROCESS