summary of doctoral thesis in economics the roles of government in social sercurity for farmer in vietnam

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Ministry of Education and Training
National Economics University

THE RESEARCH IS COMPLETED AT NATIONAL ECONOMICS
UNIVERSITY

PHAN THI KIM OANH

Scientific Supervisors:

1. Prof.Dr. Mai Ngoc Cuong
2. Associate Prof.Dr. To Duc Hanh

THE ROLES OF GOVERNMENT IN SOCIAL SERCURITY
FOR FARMER IN VIETNAM
Reviewer 1 :
Specialized Research: Political Economic
Code : 62310102

Reviewer 2 :

Reviewer 3:

SUMMARY OF DOCTORAL THESIS IN ECONOMICS.

The thesis will be reviewed and marked by Government Thesis Examination
Committee
At :……………..
At………. On ……..

Hanoi - 2013

You can read and refer more about the contents of research at:
- State library
- Library of National Economics University


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INTRODUCTION

social protection packages, social priority packages have been amended and
supplemented and codification by Government. However, social welfare system
in general and for for farmers in particular remains many shortcomings and
inadequacies as well as not to meet the demand when the country has a
fluctuation in economic and politics. Thus it requires to have an additional
research to make it becomes better and to complete it in scientific way.

1. Reasons to do the reaseach:
According to active facts of economic innovation implementation within
30 years which has provent that the Party’s policies and decisions are correct
and approriate steps. Development of market economy had profoundly effected
Vietnamese economic and society. Economic has grew fastly, economy
structure has moved toward progress, average income of employees has
increased, economic life of citizen and society have improved markedly.
However, the implications of market economic development such the trends of
inequality, the gaps between rich and poor people tend to increase from rural

areas to urban areas.
In order to ensure the political system remains stable and Vietnam’s
economy will develop sustainable under the way of market-oriented socialism.
Those require the government needs to build and rapidly develop a social
sercurity system instead of following the focused planning economy as previous
time. Because this can contribute and cordinate the rights and obligations of all
citizens in community and thereby regulating social conflicts which have been
and will be arising.
Since independence, Vietnam is still a backward agricultural country with
over 80 % of the population who are farmers. Although under the leadership of
the Vietnam Communist Party, the country now is fast moving on the path of
industrialization and modernization but in the near future, this rate can not
reduce to under 40% yet. It can being said that farmers are still a major
workforce and they specially are always a vital social and political force in
ensuring social stability and national security.
Because of the productivity of agricultural labor and products in Vietnam
is not high. Therefore the contribution of this sector to GDP is still low. For this
reason, in a long time policy makers forgot or delayed issues which related to
social welfare to farmers or only approached problems to express the
superiority of the socialist regime but they seem not to put it in the category of
government management yet.
Up to recent years, the Party and Government have made guidelines and
policies to address the general issues which relate to social security and
particularly for farmers. Many policies such as social insurance, health insurance,

There are several meticulous research on social welfare and social welfare
for farmers in Vietnam. However, the results of these research had not applied or
slowly applied to actual living of citizens. For these reasons, author of this
research found that doing a research of the role of government in social welfare
for farmers in Vietnam is very nessesary and now is an urgent job for the

country. That is reason why the author has choosen the topic: "The Role of the
Government in social welfare for farmers in Vietnam " for her research in the
doctoral thesis in economics politics.
2. The objectives of the thesis research:
2.1. The general objectives:
Basing on the theoretical and practice research of countries and Vietnam
today, the thesis proposes orientations and solutions to strengthen the role of the
Government in social welfare for farmers in Vietnam in next years.
2.2 . Specific Objectives:
- To clarify the theories of the role of the Government on social welfare
for farmers which bases on the basis of theoretical research and experience of
some countries around the world.
- To analys factual effect of the roles of the Government on social welfare
for farmers in Vietnam then pointing out the achievements, constraints and root
causes which limited these roles
- To suggest a directive proposal and solutions to enhance the roles of the
State the Government on social welfare for farmers in Vietnam in next years.
3. Subjects and scope of research
3.1 . Research subjects:
The research’s subject is the roles of the Government in social welfare in
Vietnam. However, this subject is quite broad. Therefore, this thesis mainly
focus on the roles of the Government in legal system construction, policy


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mechanism, policies, policy coordination organization and management
organization, monitoring and supervision in order to set up the system and

creating the conditions to ensure the operation of social welfare system.

- Providing recommendation of directions and solutions to enhance the
roles of the Government in social welfare for farmers in Vietnam in next years.

Regarding the establishment of a social welfare system, the thesis
considers to build up the social welfare system which bases on the principles of
contribution – get benefits and the social welfare system not just is contribution
principle.

The thesis includes an introduction, conclusion, list of references,
appendices of the processing of information, data and survey results as well as
the contents of the four following chapters.

To create the conditions to implement the roles of the Government in
social welfare for farmers, the thesis has focused on analyzing policies and
viewpoints of the Party, economic capacity to ensure that farmers have a chance
to take part in and the the Government’s ability of financial assuarance,
management capacity farmers awareness about social welfare system.

Chapter 2: The roles of the Government in social welfare for farmers:
theoretical issues and practical experiences.

In respect of farmers, a research’s objective, the thesis just select and
research lives of farmers in the north central areas where economic growth
level is average compared to other areas in Vietnam. Additionally, here also
have farmers who live in different terrains such as midland, coastal and
mountainous areas. Those can present for most of farmers over the country.
3.2. Scope of the Study
- In space: Research is done on a national scale, but data is collected

through surveys which were implemented in three North Central provinces of
Thanh Hoa, Nghe An and Ha Tinh.
- On time: the information and data in the research are collected then
choosen from datas which were published from 2000 to 2012, and the proposed
solutions is suggested for the 2020s.
4. Thesis’s contributions:
- To buid a conceptual framework of the roles of the Government in
social welfare for farmers through integration of researchs in Vietnam and
abroad which are based on practical experiences of some countries .
- Through secondary document systems from the ministries and related
departments as well as analysing the data, survey which were conducted and
interviewed in three north-central provinces of Ha Tinh , Nghe An and Thanh
Hoa. The thesis analyzed and assessed the reality of the Government’s roles in
social welfare for farmers in Vietnam and then pointed out achievements,
limitations and causes .

5. Thesis’s Structure

Chapter 1: Overview and research methodology of the roles of the
Government in social welfare for farmers .

Chapter 3: Evaluating actual condition of the roles of the Government in
social welfare for farmers in Vietnam today.
Chapter 4: Viewpoints and solutions to enhance the roles of the
Government in social welfare for farmers in Vietnam in next few years.

Chapter 1
Overview and research methodology of the roles of
the Government in social welfare for farmers
1.1. OVERVIEW OF RESEARCH ON the roles of the

Government in social welfare FOR FARMERS:
1.1.1 . The contexts of research in overseas:
In an overview of the research in the world, the thesis refers to the group
of problems: 1) Studies which involve the roles of the Government in building
legal framework and institutional policies of social welfare for farmers; 2) a
piece of research which relates to the role of the Government in the
coordination of economic – social policies in social welfare for farmers; 3) The
research entails the role of the Government in organizing inspection and
supervision the implementation of social welfare policies for farmers .
1.1.2 . The contexts of research in Vietnam:
After analysing several domestic research, the thesis has clarified three
following issues: 1) The relevant research on the participation forms of farmers
in Vietnam on social welfare activities, 2) Studying the contents of related


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issues to the roles of the Government in social welfare for farmers; 3) Studying
the conditions to ensure the implementation of the Government's roles in the
development of the social welfare system in Vietnam.
Since then, the thesis raises three issues must be addressed: Firstly, how
do farmers engage to any form of social welfare mode? In other words, social
welfare for farmers that will include how many components and who are major
pillars? Secondly, How did the establishment status of welfare legislation
system and institutional policies achieve to encourgate farmers to participate in
the system, was it appropriate or inappropriate? Thirdly, what is the limitation
of roles of the Government in social welfare for farmers now? What does the
Government need to do to continue to help the social welfare system to work
into actual lives of farmers.
1.2 . METHODOLOGY

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Table 1.1: Research Framework
Effect features

Government’s
viewpoints

Roles of the
Government in
social welfare

Assesment criteria

Setting up legal
system,
mechanism,
policies on social
welfare.

1.
Implemention
degree
of
the
Government’s roles:
- Adequacy,
uniform, the
consistent of legal

system
- Efficiency and
effectiveness of
policy coordination,
inspection and
monitoring

Budget capacity
of
Government
and farmers

Coordinating
social
welfare
policy with other
social policies

Management
Ability on social
welfare

Monitoring and
suppervising

1.2.1 . Approaching method:
The research is carried out though approaching the topics from
theoretical to practical studies, from general to specific as well as systemic
approach and interdisciplinary approach.
1.2.2 . Research Mode

The research carries out studying model which bases on the following
basis:
1.2.2.1 . Contents of the role of the Government in social welfare for
farmers:
The research focuses on analyzing three later issues: Firstly, the
Government builds law systems, mechanisms and policies of social welfare for
farmers. The thesis will analyze the development process of legislation system
and related policies to social welfare in general and in particular for farmers.
Secondly, the Government builds and coordinate social welfare policies with
other social – economic policies such as the application of technology and
science to argicultural production process, to create jobs, to improve income
and to reduce poor rate. Thirdly, the Government monitors and supervises the
implementation of policies on social security for farmers.

Social awareness
of social welfare

2. Participation of
farmers in social
welfare:
- The coverage
- Level of impact

1.2.2.2 . The factors that ensure the State's role in social welfare for farmers
The thesis focuses on the following groups : First , the State 's view on
the development of social security system for farmers . Second, the ability to
ensure that budgeting for farmers to participate in the principle of social
security plays - enjoy , as well as state funding . Third, the capacity of the plant
general manager of social security , in particular for farmers . In this thesis
refers to machinery , staff management social security for farmers . Fourth,

social awareness and advocacy measures of social awareness about social
security for farmers.
1.2.2.3. Evaluating criteria for the roles of the Government on social welfare
for farmers
To evaluate the roles of the Government on social welfare for farmer,


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researcher has used two criterion groups. The first group is the criteria for
performance level of the contents of the Government on social welfare for
farmer, such: 1) The degree of completeness, consistency and compliance of
legal systems and mechanisms, policies as well as assurance and commitment
on financial support from government budget for social welfare for farmers; 2)
the effectiveness of the coordination of social welfare policies with economic social policies; 3) The honesty, effective and efficient of monitoring works in
implementation of policies of social welfare for farmers. The second criterion
group is evaluation of farmers' participation in the social welfare components,
how does it work? Because after all , the participation of farmers in social
welfare is a vital measure criterion on validity and effectiveness of the
implementation of the Government's role in social welfare for farmers. This
group includes the criteria of coverage and level of impact of social welfare on
farmers.

departments where their functions and duties related to the roles of the
Government in social welfare for farmers.

1.2.3. Research Methodology:
In order to carry out research which follows the mentioned model, the

conducted thesis conducted uses both qualitative and quantitative method
during studying progress.
1.2.3.1 . Qualitative methods
Based on the methodologies of dialectical and historical materialism,
researcherb has used statistical method and comparative approach method to
analyze and to compare the approach on the role of the Government in
developing and improving the social welfare system, the advantages and
difficulties in enforcing roles of the Goverment in over the country as well as
in three north central provinces , the opportunities and challenges in achieving
the objectives of social welfare implementing progress in incoming stages, then
finding appropriate models to apply and expand social welfare system for
farmers in Vietnam in general and in three central provinces in particular, as
well as analyzing and pointing out factors which affect sustainable development
of the social welfare system for farmers, since then indicating what efforts need
to make to achieve given objectives .
1.2.3.2 . Quantitative Methods
In order to use for targeted quantitative studies , researcher had collected
secondary data from reports of government management departments and local

Besides the secondary data, the thesis has also collected primary data to
specifically evaluate and specify the roles of the Government in social welfare
for farmers and these surveys are conducted in three provinces of Ha Tinh,
Nghe An and Thanh Hoa. Questionnaires for the primary document are divided
into two groups of respondents that are the group of farmers and the group of
managers.
1.2.3.3. Data processing
In the thesis, researcher had used descriptive statistical methods to compare
insurance participation status and the rate of surveyed farmers who involved in
support programs of government, to collect and analyze viewpoints of managers
at all levels on conformity and necessary adjustment which need to implement

from current social welfare system for farmers.
In this research, researcher has implemented cross-checking to limit errors
during the data entry process .

Chapter 2
THE ROLES OF THE GOVERNMENT IN SOCIAL WELFARE FOR
FARMERS: THEORETICAL ISSUES AND PRACTICAL
EXPERIENCES
2.1. DEFINITION, CHARACTERISTICS AND THE ROLES OF
SOCIAL SECURITY FOR FARMERS:
2.1.1 . The concept and necessity of social welfare system:
2.1.1.1 . The concept of social welfare:
According to the research, social welfare is an income guarantee and
other certain essential conditions for individuals, families and communities
under significant changes on economic, society and nature which had impacted
their lives and make them reducing or losing their ability to work or losing their
jobs because of their sickness, disease or a worse case is death. This guarantee
may help vulnerable people such elderly peole, orphans, disabled people, the
victims of war and natural disasters reduce their hurt and can survive.
2.1.1.2 . The need of a social welfare system


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Firstly, to prevent, limit and overcome risks due to growing demand of
human nature .

social - economic crisis, Those impacted farmers’ lives and make them

reducing or losing their incomes then falling into poverty and impoverishment.

Secondly, to overcome the defects which had been occured in the difficult
time and financial crisis during the development cycle of the market economy .

The research illustrates that the roles of the Government in social welfare
for farmers have reflected the basis of Government as well as reflecting social
responsibility of the Government in the distribution and the use of national
product .

Thirdly, the impact of industrialization, modernization also requires to
have a social welfare system for substanable lives of citizens.
2.1.2. The concept and characteristics of social welfare to farmers
2.1.2.1 . The concept of social welfare for farmers:
The research refers that social welfare for farmers is a system of policies
and methods that the Government, family and society had done to help farmers
to deal with the risks which were happened due to the social - economic crisis,
Those impacted farmers’ lives and make them reducing or losing their income
then falling into poverty and impoverishment .
2.1.2.2. The basic characteristics of social welfare for farmers.
Firstly, social welfare for farmers is inextricably linked between the form
of contribution - beneficiary and the form which is not based on the principle of
contribution. Secondly, social welfare for farmers is belonged to the field of
social security for the unofficial sector (non- structural). Thirdly, farmers who
are people wherether most of them have low and unstable incomes therefore the
sustainability and stability of financial capacity of them to take part in a form
of social welfare is not high.
2.1.3 . The roles of social welfare for farmers
The research analyzes the social welfare for farmers to show that this
system has contributed to political stability role besides contributing to

implement social equality and to develop sustainable society and economy.
2.2 THE ORIGIANAL, CONTENT AND AFFECTING FACTORS ON THE
ROLES OF GOVERNMENT IN SOCIAL SECURITY FOR FARMERS

2.2.1. The original and importance of the roles of the Government on social
welfare system for farmers

2.2.1.2. The importance of the role of the Government in social welfare for
farmers
Firstly, to help the Government to prevent risks and keep the lives of
farmers – one of the most vulnerable group in stable
Secondly, to help the Government to achieve the objectives of sustainable
economic development .
Thirdly, to contribute to improvement of social - economic management
tools of the Government.
2.2.2. Contents of roles of the Government in social welfare for farmers:
The thesis focused on three major content groups : 1) Government builds
and enhances legal environment and institutional policies on social welfare for
farmers; 2) The Government coordinates the implementation of social welfare
policies for farmers with other social - economic policies, and 3) The
Government monitors and suppervises the implementation progress of policies
on social welfare for farmers
2.2.3. The factors affect the roles of the Government in social security for
farmers
The research analyzed four groups of factors: 1) The Government
perspective on social welfare for farmers; 2 ) The financial capacity of the
Government and farmers' income; 3) The capacity of the management system
on social welfare for farmers and 4) Social awareness about social security for
farmers .

2.2.1.1. The original of the Government’s roles on social welfare system for
farmers

2.3. SOME EXPERIENCES OF SOME COUNTRIES OVER THE WORLD
ON THE ROLES OF GOVERNMENT IN SOCIAL WELFARE AND
PRACTICAL EXEPERIENCES IN VIETNAM:

In the researcher’s perspective, original roles of the Government in social
welfare for farmers is the Government to build a system of policies and
measures to help farmers to deal with the risks which were happened due to the

From the analysis of the experience of the Federal Republic of Germany
and China in the development of social welfare system for farmers, the research
concludes:


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Firstly, the establishment of a social welfare system for farmers is
necessary for all countries in the developing process of economic market
because it is the most effective method to help farmers - one of the vulnerable
groups of society to prevent, remedy and mitigate risk.

establishes and improves legal environments and policy institutions to help
farmers to participate in voluntary social insuarance system. Secondly, the
government establishes and improves legal environments and policy institutions
to help farmers to participate in voluntary medical insuarance system.

Secondly, depending on each different model of social welfare and the
specific conditions of each country, the Government has different roles on
social welfare deployment for farmers. However, the most common role of the
Government is reflected on the establishment of legal system, institutional
mechanisms and policies to supervise and monitor the implementation of social
welfare policies .

3.1.1.2. Government establishes and enhances legal environment, policy
institutions for farmers to participate in social welfare system not based on
the principle of contribution:

Thirdly, It also depends on the different types of institutions, social economic conditions whether each country will has various ways to operate the
different social welfare system. Therefore, the scope of the Government’s role
in social welfare for farmers varies widely or narrow in different. In some
countries, their government directly intervene in the operation of the social
welfare system as well as directly organise income and expenditure of social
welfare funds. Besides that other countries asign to social welfare organisation
to manage and operate by them-self.
Fourthly, although in some extents, there are differences, but generally
most government must have a financial support policy for farmers to participate
in the social welfare system. Without this support, social welfare mode is hardly
to implement and expand.

Chapter 3
THE STATUS QUO OF THE GOVERNMENT ON THE ROLES OF
SOCIAL WELFARE FOR FARMERS IN VIETNAM TODAY
3.1 . ANALYZING THE STATUS QUO OF THE GOVERNMENT’S
ROLES IN SOCIAL WELFARE FOR FARMERS IN VIETNAM TODAY
3.1.1. Government establishes and enhances legal environment, policy
institutions for farmers to participate in social welfare system.

3.1.1.1. Government establishes and enhances legal environment, policy
institutions for farmers to participate in social welfare system according to
the principles of contribution – getting benefits
The research analyzes two following problems: Firstly, the government

Thesis refers to three issues : Firstly, the government establishes and
improves legal environments and policy institutions of normal social assistant
packages in the community. Secondly, the government establishes and develops
a system of unexpected social assistant packages for farmers. Thirdly, the
Government encourages social organizations and individuals to help from the
community .
3.1.2. Government coordinates the implementation of social welfare
policies for farmers with other social - economic policies
The thesis had analyzed the implementing coordination between social
welfare policies for the farmers and other social economic policies in order to
contribute to socials support and to encourage farmers to take part in as well as
to ensure the implementation of the Government's roles on social security for
farmers.
3.1.3. The Government sets up management mode, inspection and
supervision modes on the general social security and the social welfare for
farmers in particular.
The thesis has described the development and improvement steps of the
organizational model of voluntary social and medical insuarance and the
organization of self - management on social participation for farmers in Vietnam.
3.1.4. Results of farmer participation in the social welfare system today
3.1.4.1. The participation of farmers in social welfare system under the
principle of contribution – getting benefits.
The research shows some participation results of voluntary social and medical
insuarance in particular, which involved farmer participation during the years of
2008 – 2012.

Commenting on the involvement and impact of social welfare system under the
principles of contribution – getting benefits on the farmers.


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Table 2. Statistic of social and medical insuarance participation rate
of farmers in Vietnam

voluntary medical insuarance. At the surveyed provincinces in 2011, these
rates were higher but there was only 9.3 % of farmers who took part in
voluntary social insuarance and 28.8 % on voluntary medical insuarance,
respectively. This result is quite low. The implementation of the guidelines and
policies of the Party and Government on social welfare for farmers into actual
lives has been still slow.

1. The number of official labor
(thousand people)
The number of official labor who
bough forced social insuarance
The rate of official labor who
bough forced social insuarance (%)

2008

2009

11.580,1

12.226,6 13.498,5

2010

8.500

8.800

9.400

73,40

71,97

69,64

2. The number of unofficial labor 30.629,50
(thousand people)
6.110
The number of unofficial labor who
bough voluntary social insuarance
0,019
The rate of unofficial labor who
bough voluntary social insuarance
(%)

37.095,40 36.903,4

3. Total of Vietnamese citizens 85.118,70

(thousand people)
39.700
The number of people who bough
medical insuarance in general
29.100
The number of forced medical
insuarance and medical insuarance
for poor people:
10.600
The number of people who bough
voluntary medical insuarance
19,00
Cover rate of voluntary medical
insuarance (%)

2011

2012

10.104,5 10.436,8*

50.000*

41.193

67.319

0,11

0,18

0,38

86.025,00 86.932,5

87.840,00

50.070

51.140

34.700

47.000

15.300

4.200

29,80

10,5

96.400

134.000*

60.000*

10,30*

4. Voluntary social insuarance
and medical insuarance for
farmers through survey datas
258
The number of farmers who did
survey (person)
9,3
The rate of farmers who bought
voluntary social insuarance (%)
28,8
The rate of farmers who bought
voluntary medical insuarance (%)
Reference sources: Department of invalids and social affairs (Cục TBXH) 2010; Vietnam social
insuarance (BHXHVN 2013); research survey 2011; * researcher’s projection.

1) According to research results show that social welfare system which is
run under the principles of contribution – getting benefits until 2012 just had
0,38% participation rate on voluntary social insuarance and 10,3% on

2) The participants on voluntary social insuarance mainly those who have
taken the time to participate on forced social insuarance then turn to on
voluntary social insuarance or the people who are over working age but not
enough working time to get retired pensions or the farmers who had incomes
from medium to high rate…etc,.The amount of money which is choosen to
participate voluntary social insuarance still remains at low level, normaly they
choose a higher level of the minimum wage .
3) According to a survey in a number of localities, up to now there are
very few farmers who received pensions from voluntary social insuarance.
However, the overall pension rate is quite low, It normaly ranges from 725,000

VND to 1,300,000 VND /person / month. With a pension level is lower than
minimum wage or higher than it a little bit, that is very difficult for
beneficiaries from the voluntary social insuarance to pay living expenses and
get a stable life.
3.1.4.2. The participation of farmers in social welfare which are not based on
the principle of contribution
The thesis presents the participation of farmers in normal social assistant
packages, unexpected social assistant packages from government budget and
expected social assistant packages from community and has drawn the
following comments:
1) The coverage and level of impact of normal social assistant packages
in general and for farmers in particular is low. In 2010, the rate of assisted
cases just reached 1.65 % in comparation with the population. In three
investigated provinces, in 2009, the coverage rate of normal social assistant
packages is higher than national average rate but it only reached 3.19 % .
The impact level of normal social assistant packages is low. Social
assistant standard compared to the poverty line period 2006 - 2010 is by 60 %


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rural poverty standard. In the three mentioned provinces in 2009, the average
amount of received money was 135.416 VND/person/ month.

death, maternity, labor accidents and occupational diseases), while those who
enrolled in VSI only have two benefits which are retirement and death.

2) The unexpected social assistant packages from the Government’s

budget in terms of crop failure, natural disasters, etc,. normaly are very low.
There are still many cases which are incorrect addresses or identifiable moral
support than offseting losses.

- If the retirement pension is less than the minimum wage, those who are
enrolled in CSI will be compensated by the minimum wage, and those who
enrolled in VSI will not.

3) The unexpected social assistant packages from community activities
have been implemented at the local level, especially for the average, poor and
very poor households. However, this support is not stable and the level of
assistance is not high.

Although the number of beneficiaries of social protection policies is
expanding, there are still many limitations regarding irrational approaches and
synchronization with other social policies.

3.2. EVALUATE THE ROLE OF THE GOVERNMENT IN SOCIAL
SECURITY FOR FARMERS
3.2.1. Achievements and limitations the role of the Government in social
security for farmers in Vietnam currently
3.2.1.1.Achievements and limitations in developing and improving the system
of laws, policies and social security for farmers.
Firstly, regarding achievements, the Government built and is gradually
improving the legal system of social security for farmers, including social
security based on get –pay principle (including voluntary social insurance and
voluntary health insurance) and social security not based on the contribution
(including regular social assistance, unexpected social assistance from the
national budget, community social assistance from individuals and social
organizations.

Secondly, there are still some limitations in creating a legal environment
of social security for farmers.
1) Social security system which is based on pay-get principle
- The proportion of contribution between compulsory social insurance
(CSI) and voluntary social insurance (VSI) is equal but those who are enrolled
in CSI receive major support from the Government and enterprises while the
farmers have to pay the entire 18%.
- The average income of farmers is very low, less than the minimum wage
of present society, therefore it is unfair to pay VSI if based on the minimum wage.
- Those who are enrolled in CSI have five benefits (illness, retirement,

2) Social security which is not based on contribution.

Thirdly, having a general evaluation on legal law and policy
- Regulation on social security based on the pay-get principle is not
suitable for the contribution ability of farmers. The principle of receiving
voluntary social insurance is not equal with the principle of receiving
compulsory social insurance.
- The legal system of social support in Vietnam lacks a system of uniform
standards; it is based more on humanity than on the rights of the people. Many
regulations are not suitable for the social economic conditions which lead to
inefficient implementation, causing conflicts and social inequality.
- The allowance has many discrepancies and inconstancies with other
social policies; identifying the beneficiaries is still based on many complicated
criteria which lead to difficulties.
- The socialization in voluntary social insurance and compulsory social
insurance’s regulation is still poor.
3.2.1.2. Achievements and limitations of the Government in combining social
security with other social economic policies.
Firstly, in general, poverty alleviation policies are more appropriate than

the market labor polices for farmers.
Secondly, the influence of social economic policies on social security is
not substantial. Loans are the most effective policy; other policies such as
employment and labor market access policy are still poor.
3.2.1.3. Achievements and limitations of the Government in managing and
observing social security implementation for farmers
Many measures have been implemented but the implementation is still


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inadequate. The mechanism is not transparent; therefore, the solutions which
should handle errors are not serious enough, limiting the effectiveness and
efficiency of the social security program for farmers in our country.

3.2.2.3. National budget and community budget to support social security
which is not based on the pay-get principle for farmers is still limited

3.2.2. The causes of the limited role of the Government in social security
for farmers
3.2.2.1. Social security is still new to farmers, and its guidelines have not kept
pace with the reality.
The regulations on the managing and organizing models are not suitable
for the reality of farmers. This has resulted in a low participation of farmers in
pay-get system as well as other system which does not require farmer’s
contribution .
3.2.2.2. The income of farmers is low which causes difficulties for them to
enroll in social security which is based on the pay-get principle.

The research results show that only households who have an average
income above 3.244 VND / month can participate in social security which is
based on the pay-get principle. Other households with an average income of
around 927.166 VND/ month did not participate in social security.
The thesis analyzed the causes of low income status of farmers:
Table 3. Income of households participating social security
in pay-get principle
The total
number of
households
having
information
(Household)

Total income
of household
having
information
(million/ year)

Average
income of a
househould
having
information
(million/ year)

Number
of people
in a

family
(Person)

Average
income of a
person
(thousand
VND/ month)

1. General income of
investigated
households

247

15784.38

63.904

4,42

1.204.750

2.Households
enrolling in social
security in the pay-get
principle

24

3644.7

151.863

3,9

3.244.916

3. Households did not
enroll in social
security in the pay-get
principle

223

11.150.0

50.178

4,51

927.166

Financial support from these sources is still limited. Compared with some
other countries in religion, social security expenditure is still low.
3.2.2.4. The ability of social security management to farmers still has many
limitations.
Specificity: Firstly, social security network based on the pay-get
principles has not delivered to communal and ward levels to mobile people to
enroll in social security system. Secondly, the number and quality staff working

in social security have not met the requirement.
3.2.3.5. Social awareness of farmers about social security and the
propagation and dissemination of information on social security to people is
limited

Chapter 4
DIRECTIONS AND SOLUTIONS TO STRENGTH THE ROLE OF
GOVERNMENT IN SOCIAL SECURITY FOR VIETNAMESE FARMERS
IN THE NEXT FEW YEARS
4.1. CONTEXT OF STRENGTHENING THE ROLE OF THE
GOVERNMENT IN SOCIAL SECURITY FOR VIETNAMESE FARMERS
IN THE NEXT FEW YEARS
4.1.1. Social economic context has influence on the role of Government in
social security for farmers in the next few years.
4.1.1.1. Career structure in rural areas.

Source: Author’s research results

Although modernization and industrialization has spurred economic
restructuring towards increasing the proportion of industry and services,
reducing agriculture's share in GDP, but by 2011, in rural Vietnam, the
structure of agricultural producers is still big, accounting for 62.0% share of
industrial households and construction accounting for 14.73%, the proportion
of service households accounting for 18.4% . Furthermore, the proportion of
households with the greatest income from agriculture, forestry and fisheries
households is lower than the proportion of agriculture, forestry and fisheries.
This is creating challenges for social security policies.


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4.1.1.2. Population and labor in rural areas in the next few years.
As anticipated, by 2015, population in rural areas will be 60.820 thousand
people, accounting for 66,41% national population; by 2020 will be 60.52
thousand people, accounting for 62,93% national population. As can be seen,
rural population structure will be reduced but the rate is still low; the number of
rural population is still big. This is a challenge for the development of social
security system in rural area.
In addition, by 2020 the proportion of elderly people who are above 65
year old in rural areas will be increased from 6,72% in 2009 to 7,3% in 2019.
This is also a challenge in supporting social security for these objects. In 35,4
million of labor in rural areas, only 3,2 million of labor are trained and most of
them reached only the intermediate level
4.1.1.3. Income, expense, saving and the life of people living in rural areas
Although there has been some improvements, the income of people living
in rural areas is still low; the gap between the rich and the poor, between
economic religions is still getting bigger which makes difficulties in
expenditure and saving for people living in rural areas. This creates a challenge
to the development of social security system for farmers.
This context has shown that population and labors living in rural areas
have a big part; aging population is increasing significantly, farmer’s lives are
still difficult. These are challenges to the development of social security for
Vietnamese farmers, including the pay-get system as well as other systems in
the next few years.
4.1.2. Party and Goverment’s policy in social security for farmers.
The dissertation demonstrates opinions, objects, policies and solutions of
Resolution number 15-NQ/TW on 01June 2012 of Central committee course
XI: Some issues of social issues period 2012-2020 and Resolution 70/NQ-CP
on 01 November 2012, the executive committee presented an Action plan of
the Government in social security implementation by 2020. This is a foundation

for the direction and solution of strengthening the role of Government in
developing social security system to Vietnamese farmer in the next few years.
General spirit of the Party and Government is guaranteed a minimum
level of social security for people in general and farmers in particular

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4.2 DIRECTIONAL ENHANCEMENT
GOVERNMENT IN SOCIAL SECURITY

THE

ROLE

OF

THE

From the real situation of farmers participating to the social security (SS)
system of whole country for several recent years, the socio-economic conditions
of farmers and the law and the policy of the party and the government as
mentioned in the previous parts, the dissertation proposes a method to improve
the participation of farmers to SS in the next few years.
4.2.1. Improvement of the participation of the farmers to the SS
4.2.1.1. The SS based on pay-get principle
Firstly, to increase the organizations to implement and encourage healthy
classes to pay volunteer social insurance fee (VSIF).
Secondly, to increase the impact of SS based on pay-get principle. For the
ones who pay SSF, it needs the policy to maintain the income for the retirees as
much as minimum basic salary. For the ones who have volunteer health

insurance (VHI), the qualities of health checking and health treatments by
health insurance need to improve.
4.2.1.2. The SS not based on payment of farmers
Firstly, to enlarge the coverage of regular social assistance (RSA) in
general and farmer in particular, especially for the vulnerable people.
Secondly, to increase the payment of RSA for different groups of people.
Thirdly, to ensure the unexpected social assistance (USA) be suitable to
different people at different districts and wards with different socio-economic
conditions.
4.2.2. The directional improvement of the role of government to SS for the
famer of the country in the next few years.
4.2.2.1 Continue completing the law system and policies of SS to the farmers
Firstly, to adjust the VSIF that is suitable for the farmers. The rate of
VSIF follows its policy and is adjusted accordingly to the standard income of
the particular area.
Secondly, to add more benefit of volunteer social insurance (VSI) that
reaches to the benefit of compulsory social insurance (CSI). This equality
between VSI and CSI needs to be proposed. The benefit of VSI need to be
further enlarged to reach to the benefit of CSI.


21

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4.2.2.2. Enhance the cooperation of socio-economic policies and social
security system for farmer

Secondly, the government should propose the way to adjust the funds for
social assistance in general and for farmers in particular.

The 4 groups of policies need to be finalized in order to better cooperate
with social security policies are proposed as follows: reducing poorness and
removing the hungriness programs; the programs and methods that support
farmers to participate in the labour market; the policies that provide the basic
social services for farmers; distribute the reasonable government funds for
social security targeting to farmers that includes: education, hospital,
environment and national objective programs on labour, reducing poorness and
removing hungriness, and culture that aims to use effectively the social
financial sources.

4.3.3. Study and innovate the organizational management of social security
based on pay-get principle for farmers.

4.2.2.3. Finalize the policy system of management, validation and observation
of the social security for the farmers.
Increase the validation, observation and construction of information,
report and documentation processes. Implement the financial validation and
testing clearly with financial sources of social security for farmers are used
clearly.
4.3. MEASURES TO STRENGTH THE ROLE OF GOVERNMENT IN
SS FOR THE FARMERS OF THE COUNTRY IN THE NEXT FEW
YEARS
4.3.1. Push the production, increase the income source and income of farmers.
In order for farmers to actively participate in social security pay-get, the
raise of income is the most essential way. Three ways are proposed as follows:
1) increase systematically both agricultural and non-agricultural production; 2)
increase the job training for farmers in the country sides; 3) increase and collect
the government sources for enhance the infrastructure in the country sides that
aims to create a good condition for production, sale the agricultural products.

4.3.2. Push the financial support from government for farmers to participate
in the social security system
Firstly, the methods of financial support for VHI. In order to encourage
the farmers to participate in VHI that orients to whole country people to get
health insurance, the government need to encourage the healthy classes to
participate to VHI system. Also, the government needs to support the poor and
approach to the middle class with the support about 60-80% payment with the
accordance to their income.

The government should study and innovate the organizational
management for social security based on volunteer pay-get principle. It is able
to separate the pay-get parts of volunteer social security in general and for
farmers in particular and give to the other organization from the national scale
to regional scale. Innovate the informatics and statistical processes with the
reference to social security in general for farmers in particular.
4.2.4. Increase the quality of human resources training for social security
process.
The human resources for social security in general and for social security
for farmers in particular need to be increased and trained both quality and
quantity. The code of ethic for these activities is also needed.
4.2.5. Improvement of understanding and consideration of farmer about
benefit of social security programs
The advantages and the need of social security need to be shown and
proved to farmers, especially the benefit when they participate in the social
security systems. These programs should be cooperated with education of selfsecurity of each people, also should educate people to self-improve, self-pay
and save for social security for whole family. On the other hand, the
government has to pay more attention on building the social security system for
farmers, supporting them to participate as well as creating a good social
environment that encourage farmers to self-improve instead of waiting to the
support of government.

CONCLUSION
The whole country is gradually changing to the economic market and has
the big amount of countryside area, so building the social security system play
an essential role that aims the farmers to reduce or resolve the risk of lives. In
order to do so, the government has paid more attention to build and gradually
complete the social security system for people including farmers. However, due
to the limitation of economic conditions, organizing and understanding, the


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24

social security for farmers still faces many difficulties, the coverage is still
small and lowly impacts. There are many reasons including the role of the
government. Consequently, the study on “the role of the Government in social
security for farmers” is needed both practically and theoretically.

Increase the coverage of RSA from 1.65% in 2010 to 3% in 2015 and 5%
in 2020, rise the national fund of RSA from 0.54% in 2010 to 1.12% in 2015
and 2.45% in 2020. Within unexpected social assistance, the support for the
vulnerable farmer’ families is considered well.

Based on the positive role of Government on building and completing the
law, policy system of social security for farmers according to pay-get principle
(VSI and VHI) and social security not according to payment of farmers but with
the support from government and group of people (RSA and USA), the statuses
of role of government in social security of three provinces (Thanh Hoa, Nghe
An and Ha Tinh) have been investigated.

For the organizational system, the Government needs study and separate
the VSI for farmer and others to and official organization from the national
scale to regional scale.

Until now, the social security system for farmers has just been created. It
is not systematic and also the coverage of VSI, VHI and social assistance is
low. It does not impact much and the guarantees of social security for farmer
also face to a lot of difficulties. Consequently, the roles of the Government in
social security need to be improved in the next few years.
In order to increase the coverage areas of VSI, it is needed to encourage
the healthy and middle class people in the countryside participate to this system
and also add some more benefits of VHI that make equal to CHI. For the social
assistance system, it is necessary to enlarge and improve the support of social
assistance at least as current poorness standard, especially consider the
vulnerable families.
Finally, in order to improve the role of the government in social security
for farmers in the next few years, several solutions including job solution,
increase income, government fund support for pay-get systems as well as other
system, complete the management system, training human resources and
enhance the understanding the social security for famers.
Four important solutions are proposed:
In order to develop VSI, the government needs to change the principle of
VSI payment, not follow basic salary but follow the regional average income.
On the other hand, the benefit of VSI should add more that create the equality
to CSI.
In order to cover whole country national health insurance, the
Government should support 60-80% of payment for the farmers with low and
poor income.

25

AUTHOR’S PUBLISHED WORKS
1. Mai Ngọc Anh, Phan Thị Kim Oanh, Phạm Hương Thảo (2012)
Improve income for farmers: Vietnamese experience and recommendation for
Laos.

The summary record of international conference “Vietnam – Lào

economic cooperation: Developing spearhead economic sector by 2020”.
Publisher: National economic University.
2. Mai Ngọc Cường, Phan Thị Kim Oanh (2012) Social security which is
based

on

pay-get

principle

for

Vietnamese

farmers:Reality

and

recommendations. Economic and development magazine, Number 185

November 2012.
3. Mai Ngọc Cường, Phan Thị Kim Oanh and colleagues (2013) Income,
poverty alleviation and social security policy in Vietnam currently: Reality and
recommendations.

Book “Some basic issues of Social policy in Vietnam

currently”. Publisher: National politics.
4. Mai Ngọc Cường, Mai Ngọc Anh, Phan Thị Kim Oanh (2013) About
social security in Vietnam period 2012 - 2020. Book, Publisher National
politics
5. Mai Ngọc Anh, Phan Thị Kim Oanh (2013). Social assistance for
farmers: The reality of 3 provinces and recommendations. Economic and
development magazine, number 191(II) May 2013.
6. Mai Ngọc Cường, Mai Ngọc Anh, Phan Thị Kim Oanh (2013). Social
policy for rural migrant in Vietnam currently. Publisher National politics.