Maximise convenience for enterprises to participate in social insurance

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Can you talk about the significance of raising the ranking of Tax and Social Insurance Payment Index (A2 index) for improving the business environment and improving national competitiveness?

The A2 index is one of 11 indicators investigated and surveyed by the World Bank (WB) to assess the favourable level of business activities of a country and to assess the level of reform in each field. The indicators are evaluated on the following criteria: number of procedures, time, cost and quality measurement indicators of regulations.

The measurement of the time to pay taxes and pay social insurance is ranked on four factors including number of payments (accounting for 25 percent), time (number of hours of tax and social insurance paymentin the year, accounting for 25 percent),total tax interest and payable ( percentage profit accounts for 25 percent) and post-tax payment index (accounting for 25 percent) with evaluation criteria including the number of procedures, time, cost and indicators of regulation quality.

On the basis of the survey results, the World Bank conducts assessment and classification of the components of social insurance payment (enterprises implement the registration of social insurance, health insurance, unemployment insurance and payment) by the annual report on the economic environment for 11 economic sectors of 190 countries around the world.

The measurement and evaluation of the "payment of social insurance" components in the " tax and social insurancepayment" index have great significance in helping investors consider the extent of Vietnam's reform of administrative procedures in helping employers to pay social insurance to their employees in accordance with the law, and helping the social insurance agency perform review assessment independently results on reform activities for administrative procedures affecting enterprises.

How have efforts of the social insurance sector in implementing administrative reforms contributed to facilitating organisations and individuals, especially in implementing registration and payment of social insurance, health insurance and unemployment insurance?

For many years, Vietnam Social Insurance has always identified administrative reforms, especially administrative procedure reformis one of the important tasks of the whole industry, which is carried out regularly and drastically to reduce time and costs for enterprises and people. In 2018, Vietnam Social Insurance continued to hold the leading position in information technology application among Government agencies. According to the World Bank's report on the business environment in 2019,the ranking of Vietnam's Tax and Social Insurance Payment index increased 36 grades compared to the business environment of 2017 (from 167/190 to 131/190).

In particular, the implementation of electronic transactions in collecting and granting social insurance books and health insurance cards has brought many benefits to enterprises. As a result, the number of electronic transactions made by enterprises with social insurance agencies has decreased from 12 times per year ago to one time per year. Along with that is the diversification of forms of receiving and returning results (directly receiving, receiving and returning dossiers through post, electronic transactions), so far, enterprises do not have to queue, andwait to fill in the procedure and receive the results at the social insurance agency like before. In addition, a series of other utilities such as bringing the professional software system into use consistently from the central to local levels; deploying many online public services in the field of regime payment; many professional and management software have been modified, upgraded, facilitating enterprises and participants to enjoy social insurance and health insurance policies.

Along with reviewing and cutting administrative procedures, Vietnam Social Insurance also checked, reviewed and systemised the documents of the industry, thereby having a comprehensive assessment to revise relevant regulations of administrative procedures, professional processes towards creating favourable conditions, reducing procedures for enterprises and people.

In the last five years, the number of administrative procedures in the social insurance sector has been reduced drastically from 115 to 28 procedures (reducing over 75 percent). The time limit for issuing social insurance books from 20 days and health insurance cards from seven days will be shortened to five days (particularly for unemployment beneficiaries not more than two days from the date of receipt of complete dossiers as prescribed), re-issue health insurance cards which does not change the information will be made in the day. All these reforms aim at a consistent goal of serving organisations and individuals better and better participating in social insurance, health insurance and unemployment insurance.

In Resolution No. 02/NQ-CP dated January 1, 2019 on continuing to perform the main tasks and solutions to improve the business environment and improve national competitiveness in 2019 and orientations to 2021, the Government aims to raise the ranking of taxes and social insurance Payment Index by 30-40 grades by 2021, from 7-10 grades by 2019. To achieve this goal, what should we implement in terms of tasks and solutions?

To increase the ranking of social insurance payment components in the Tax - Social Insurance payment index, we must continue to reduce the time for enterprises to implement social insurance-related procedures (currently rated as 147 hours). Therefore, it is necessary to continue to simplify, reduce procedures, records and forms in the regulations on payment of social insurance to support enterprises in preparing, declaring and paying social insurance, research and apply information technology in connecting and sharing common data sources of enterprises with relevant ministries and branches.

Vietnam Social Insurance has developed guidelines for its subordinate units and provincial social insurance agencies to have a correct and unified understanding of the components of "Social Insurance Payment" in the A2 index, and requested units implement urgently tasks and solutions under their functions, tasks and powers to reduce the time to pay social insurance for employers in general and enterprises in particular; promptly and proactively reflect difficulties and problems, propose new solutions to reduce the time of implementing "social insurance payment", contributing to raising the A2 index of social insurance.

First, we must complete the social insurance declaration software to make it easier for enterprises to declare, output and transfer data to the social insurance agency.

Second, hold training and retraining, support employers in implementing the procedures for social insurance declaration and payment.

Third, continue reviewing administrative procedures related to paying social insurance for employees in order to maximise the simplification of procedures and dossiers for payment of social insurance, creating more favourable conditions for enterprises. Clearly regulate the types of documents and records to be kept at the enterprises to serve the examination and inspection of the Social Insurance industry for social insurance paymentfor employees which enterprises and units employ labour most done.

Fourth, update promptly, propagate regularly and extensively about the reduction of regulations on social insurance documents to employers in the locality.

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Fifth, innovate working methods, and practice, raise awareness of responsibility, serving spirit for people. Actively promote activities to support enterprises, effectively deploy SMS services to employers to improve quality, reduce time and costs. Thoroughly handle the feedback and proposals of people and enterprises on mechanisms, policies and administrative procedures.