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    TIẾN SĨ Evaluating the implementation of unemployment insurance in Thai Nguyen province

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  6. Evaluating the implementation of unemployment insurance in Thai Nguyen province

    Luận án tiến sĩ năm 2013
    Đề tài: Evaluating the implementation of unemployment insurance in Thai Nguyen province
    Hoàn thiện quá trình thực hiện chính sách bảo hiểm thất nghiệp tại tỉnh Thái Nguyên
    Luận án bằng tiếng Anh


    TABLE OF CONTENTS
    ACKNOWLEDGEMENTS i
    TABLE OF CONTENTS . ii
    ABSTRACT v
    LIST OF TABLES . vii
    LIST OF FIGURES viii
    CHAPTER I: INTRODUCTION . 1
    BACKGROUND OF THE STUDY . 3
    STATEMENT OF THE PROBLEM 5
    SIGNIFICANCE OF THE STUDY . 6
    SCOPE AND LIMITATIONS . 8
    DEFINITION OF TERMS . 8
    CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES . 11
    REVIEW OF RELATED LITERATURE 11
    Unemployment insurance . 11
    Coverage of unemployment insurance 19
    Conditions for the enjoyment of unemployment insurance . 21
    Unemployment insurance fund . 23
    Unemployment insurance regimes 25
    Procedures for unemployment insurance regimes . 28
    REVIEW OF RELATED STUDIES 34
    CONCEPTUAL FRAMEWORK . 35
    CHAPTER III: METHODOLOGY 37
    LOCALE OF THE STUDY . 37
    RESEARCH DESIGN . 41
    POPULATION AND SAMPLING 41
    RESEARCH INSTRUMENTATION 42
    VALIDATION OF THE INSTRUMENT 43
    DATA GATHERING PROCEDURE 43
    DATA PROCESSING METHOD 44
    STATISTICAL TREATMENT 44
    CHAPTER IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA . 46
    PROFILE OF RESPONDENTS . 46
    THE IMPLEMENTATION OF UNEMPLOYMENT INSURANCE IN THAI
    NGUYEN PROVINCE 51
    Coverage of unemployment insurance 51
    Conditions for the enjoyment of unemployment insurance . 58
    Unemployment insurance fund . 62
    Unemployment insurance regimes 66
    Procedures for unemployment insurance regimes . 70
    CHAPTER V: SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATION 78
    SUMMARY OF THE FINDINGS . 78
    Characteristics of the respondents 79
    The respondents ’perception on the implementation of unemployment insurance . 80
    The differences between the perceptions of employees are grouped in terms of
    type of unit that employees had worked before unemployment . 83
    CONCLUSIONS . 85
    RECOMMENDATION . 86
    Recommendations on the coverage of unemployment insurance 86
    Recommendations on conditions for the enjoyment of unemployment insurance 88
    Recommendations on unemployment insurance fund . 88
    Recommendations on unemployment insurance regimes 89
    Recommendations on procedures for unemployment insurance regimes . 89
    BIBLIOGRAPHY . 91
    APPENDIX A . 94
    APPENDIX B . 95
    APPENDIX C . 100
    APPENDIX D . 104


    ABSTRACT
    The main purpose of this study is evaluating the implementation of
    unemployment insurance (UI) in Thai Nguyen province in 2012 and propose some
    recommendations to improve the implementation of the policy in the coming years.
    In solving the research problem mentioned previously, this study has the
    following objectives: (1) to describe the characteristics of the respondents, (2) to
    determine the perception of the respondents on the implementation of UI in terms of:
    coverage of UI; conditions for enjoying UI; UI fund; UI regimes; procedures for UI
    regimes, (3) to compare the perceived implementation of the UI when the respondents
    are grouped in terms of: type of unit that employees had worked before
    unemployment, (4) to propose some recommendations to improve the implementation
    of UI in Thai Nguyen province in the coming years.
    In terms of structure, the thesis has five chapters. The thesis begins by defining
    the research problem and questions, and providing a justification for the research study.
    Chapter one also reviews the research background, and presents definitions of
    terms, significance and scope of the study.
    Chapter two examines the UI theory, current UI policy in Vietnam and its
    implementation. This chapter also reviews previous research related to UI.
    Chapter three discusses aspects of the research methodology including
    research design, data collection and data analysis methods, and hypothesis testing to
    support the model. Objectives of this chapter are: (1) to justify the research
    methodology of this study, (2) to explain research methodology used in the study, and
    (3) to demonstrate how research design, and data collection and analysis can be
    utilized in this study to answer the research questions outlined in the chapter one.
    vi
    Chapter four presents descriptive findings of the profile of respondents, the
    implementation of UI in Thai Nguyen province. Objectives of this chapter are present
    gathered data, analyze and interpret about them.
    Finally, chapter five where findings and conclusions are summarized and
    recommendation are indicated for the current UI policy and its implementation in
    Thai Nguyen province.
    This study attempts to know the status of the implementation of UI in Thai
    Nguyen province in 2012, especially points out shortcomings of UI and the
    difficulties and limited problems of implementation process of this policy. It also
    provides valuable recommendations refer to the UI policies promulgate agencies and
    the UI management agencies in Thai Nguyen province in particular and the country in
    general, have issued this policy more completely, have many solutions to implement it
    more effectively.


    CHAPTER I
    INTRODUCTION
    Today, besides the development of all aspects, the world is faced with many
    challenges of economic, political and social. Along with large uncertainties such as
    war, violence, crime, social inequality, etc., unemployment is also becoming a hot
    concern, exceeding all matters of common worrying, especially when the economic
    financial crisis knock to each individual, each household in each country .
    Unemployment affects not only for each employee and their families.
    Unemployment of large numbers of individuals will also have very negative impacts
    on society: for individuals, for economy, for the nations.
    However, in market economies, unemployment is inevitable phenomenon. It
    means that if there is a market economy, there is still unemployment. The problem
    posed is to control the allowed unemployment rate. According to economists,
    maintaining a certain unemployment rate can stimulate economic growth. But the
    unemployment rate increase exceeding the permitted level will affect greatly to the
    socio-economic development of the country. Because of the impact of scientific and
    technological revolution and globalization, unemployment is worsening.
    Unemployment became one of the problematic issues in lots of countries, which
    influences strongly on the development and stability of economic - political - social
    status of each country. So governments have the responses policies to resolve these two
    issues depending on their conditions in each period. Among them, the UI policies are
    built or improved in many countries to protect workers avoiding the feeling of
    uncertainty about the economy and society.
    2
    When workers lose their jobs, they lose income. Hence, one of the positive
    solutions is to invest to create new jobs. However this is not always possible.
    Sometimes putting more money into the not strong capital economy can lead to
    inflation and economic crisis, exacerbated unemployment. There is another solution
    to protect workers avoiding the inadequacy of the lost jobs, so that society needs to
    give them an income to offset income lost through UI. This is one of the measures
    which have been interested in many countries because it not only ensures life for
    individuals who are unemployed but also contributes to social stability. UI is the
    process of formation and use of funds through the financial contributions of the
    employee, the employer and the help of the state, in order to support of income for
    workers in period they have lost their jobs, enabling them to find new jobs in the
    labor market. This has important implications for individual workers and companies,
    contributing to balancing role in the economy, helping to decrease social stress
    caused by unemployment. That is one of the tools to implement social security
    policies of each country.
    Since Vietnam has begun its switch to market economy and integration into
    the world economy, besides the economic - social achievement, unemployment has
    been one of the very urgent problems. In our labor market, labor supply is greater than
    labor demand. Every year, from 1.1 to 1.2 million people entered the work force, but
    the labor’s absorptive capacity of the economy is limited. In addition, no trained or
    skilled workers are high, basic training and technical workers is short. This is the
    cause of unemployment or underemployment is increasingly severe. Although the
    labor market needs but the level of workers do not meet the criteria of the job.
    Besides, in the process of industrialization, modernization and economic
    3
    restructuring, innovation, sort of state enterprises, quite huge number of workers, so
    many different cases, are terminated their work contracts. Moreover, in the context of
    economic crisis in recent years, many small and medium enterprises, department
    accounting about 98% of enterprises in Vietnam, to cut staff, proceed to or went
    bankrupt, leaving workers lose their jobs. The unemployed workers fell into economic
    difficulties, depressed in spirit, very easy to fall into evils. This effects to social order
    - security largely.
    In this situation, UI, as a mode of social insurance and a component of social
    security, has been built and was officially implemented in 2009.
    BACKGROUND OF THE STUDY
    In Vietnam, UI was adopted formally from 01/01/2009 under the provisions of
    Law on Social Insurance was enacted in 2006 with the following main contents:
    coverage of UI; conditions for the enjoyment of UI; UI fund; UI regimes; procedures
    for UI regimes.
    UI is a policy to assist the unemployed to replace or partially offset the income
    of workers when they lose income due to unemployment and more importantly
    support the unemployed receive vocational training, supported employment for
    workers soon have a job, have a stable income and life.
    Nationwide, the total number of employees was 49.322 million in 2009, nearly
    50.393 million in 2010, over 51.398 million people in 2011, the unemployment rate
    (calculated width in urban areas) was 4.60% in 2009, 4.29% in 2010, 3.60% in 2011.
    Particularly in Thai Nguyen province, the total number of employees was 665,652 people
    in 2009; 677,070 people in 2010; and 685,630 people in 2011; unemployment rate
    (calculated width in urban areas) was 4.46% in 2009, 4.24% in 2010, and 3.75% in 2011.


    BIBLIOGRAPHY
    1. Cam Phong (2011). Should "further look" the unemployment insurance.
    2. Chung Pham Van (2012). Unemployment insurance: Save in time when
    employees lose their jobs.
    3. Cuc Thu (2009). Implementation of unemployment insurance: Employees are passive.
    4. Dinh Nguyen Van (2008). Organization of unemployment insurance in Vietnam, p43.
    5. Dung Pham Do (2012). Status of implementation of unemployment insurance in
    Vietnam, p37.
    6. Giang Tay (2010). Unemployment insurance only for hunger relief.
    7. Hai Pham Van (2010). Unemployment insurance - Situation and complete
    solutions in Vietnam, p 4.
    8. Hien Van (2012). Unemployment insurance fund at risk of rupture.
    9. Hong Do Thu (2010). Unemployment insurance program and its implementation
    in Hanoi, p6.
    10. Law on Social Insurance (2006).
    11. Milan Vodopivec and Minna Hahn Tong (2008). China: Improving
    unemployment insurance, p13.
    12. Ministry of Labour, Invalids and Social (2010). Circular No. 32, issued on
    10/25/2010 Guiding the implementation of some articles of Decree No. 127,
    issued on 12/12/2008 Regulations detailing and guiding a number of articles of
    Social Insurance Law on UI
    13. Ministry of Labor, Invalids and Social (2010). Circular No. 04, issued on
    03/01/2013 To amend and supplement a number of articles of Circular No. 32
    92
    14. Minh Nguyen Le (1988). Source of employment and labor, p20.
    15. Nhung Dang (2011). Shortcomings in the implementation of unemployment
    insurance.
    16. Nhu Tran (2012). UI System: Enterprises are still difficulty.
    17. Nguyen Pham (2012). Binh Duong: Nearly 100 thousand unemployed workers
    "false" to get the insurance money.
    18. Phuong Nguyen Hien (2008). "Social Security - the problems of theoretical and
    practical”, p45 – 46.
    19. Thai Nguyen Job placement center (2011). Report on the implementation of
    unemployment insurance in 2010.
    20. Thai Nguyen Job placement center (2012). Report on the implementation of
    unemployment insurance in 2011.
    21. Thai Nguyen Job placement center (2013). Report on the implementation of
    unemployment insurance in 2012.
    22. Thanh Kim (2012). Many workers are not entitled to unemployment benefits.
    23. The Government (1995). Decree No. 19 issued on 02/16/1995.
    24. The Government (2008). Decree No. 94 issued on 22/8/2008.
    25. The Government (2008). Decree No. 127, issued on 12/12/2008 Regulations
    detailing and guiding a number of articles of Social Insurance Law on
    unemployment insurance
    26. The Government (2008). Decree No. 100, issued on 11.21.2012 to amend and
    supplement a number of articles of Decree No. 127.
    27. Tien Mac Van (2010). The relationship between unemployment, unemployment
    insurance and social security in Vietnam, p35

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