Tran Tuan Anh y Nguyen Trong Nghia/ Desarrollo de la seguridad social: un estudio de caso en la provincia
de Dong Nai, Vietnam
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ARTÍCULO DE INVESTIGACIÓN
Desarrollo de la seguridad social: un estudio de caso en la provincia de Dong
Nai, Vietnam
DOI: https://doi.org/10.5281/zenodo.11181772
Tran Tuan Anh* y Nguyen Trong Nghia**
Resumen
En el proceso de integración internacional, Vietnam en general y la provincia de Dong
Nai, en particular, han logrado resultados tangibles en la implantación de la seguridad
social, contribuyendo a mejorar la vida material y espiritual de todas las personas. El
estudio evalúa la situación actual del desarrollo de la seguridad social en la provincia
vietnamita de Dong Nai y propone soluciones para aplicarla eficazmente en el futuro. La
investigación se llevó a cabo siguiendo los principios de la metodología del materialismo
dialéctico, como la objetividad, la exhaustividad, la historia y la especificidad. Y métodos
específicos como el análisis y la síntesis, la generalización, la abstracción, la unidad de
la historia y la lógica, la comparación y el contraste, la inducción y la interpretación.
Palabras clave: seguridad social, desarrollo sostenible, provincia de Dong Nai, Vietnam.
Abstract
Development of social security: a case study in Dong Nai province, Vietnam
In the process of international integration, Vietnam in general and Dong Nai Province, in
particular, have achieved tangible results in implementing social security, contributing
to improving the material and spiritual lives of all people. The study assesses the current
situation of social security development in Dong Nai Province, Vietnam and proposes
solutions to effectively implement social security in Dong Nai Province in the coming
time. The research was conducted on the principles of dialectical materialism
methodology such as objectivity, comprehensiveness, history, and specificity. And
specific methods such as analysis and synthesis, generalization, abstraction, unity of
history and logic, comparison and contrast, induction and interpretation.
Keywords: social security, sustainable development, Dong Nai Province, Vietnam
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*University of Social Sciences and Humanities, Vietnam National University, Ho Chi Minh City, Vietnam.
ORCID ID: https://orcid.org/0009-0004-4544-3558 . E-mail: 22922900201@hcmussh.edu.vn
** University of Social Sciences and Humanities, Vietnam National University, Ho Chi Minh City, Vietnam.
ORCID ID: https://orcid.org/0009-0002-0847-0210 . E-mail: ngtrongnghiabd@hcmussh.edu.vn
1. Introduction
Dong Nai is a province of Vietnam bordered by Ho Chi Minh City to the west, Ba Ria
- Vung Tau province to the south, Binh Thuan province to the east, Lam Dong province
to the northeast, Binh Duong and Binh Phuoc provinces to the northwest. With an area
of about 5 million km2, accounting for 1.76% of the country's natural area and 25.5%
of the natural area of the Southeast region; this province has convenient road, waterway
and airway transportation to provinces and cities across the country. Dong Nai was also
one of the first places to access and take over the material facilities, technical means,
and modern technologies left by the French colonists. Dong Nai is also one of the places
that concentrates and exchanges economy, culture and society with domestic regions as
well as with countries in the region and around the world. Therefore, the socio-economic
development of the province is of great significance in the socio-economic development
strategy of the Southern region.
In the process of international integration, Dong Nai Province has achieved many
important achievements in implementing social security, contributing to improving
people's lives towards a civilized, modern and humane city. However, along with the
achievements in implementing social security, there remain limitations such as high
unemployment, low social insurance coverage, unsustainable poverty reduction, the rich-
poor gap between urban and rural areas tends to increase, the service attitude of some
medical staff towards patients is still not good... That has been and is negatively affecting
the implementation of social security in Dong Nai Province. This paper analyzes the
current situation and solutions to strengthen social security in Dong Nai Province.
2. Literature Review
The implementation of social security in Vietnam in general and Dong Nai Province
in particular has attracted the research attention of many scientists and socio-political
organizations around the world from different perspectives such as: The book “The
Nordic Model: Scandinavia since 1945” (Hilson, 2008) by Mary Hilson provided a
comprehensive picture of the history, politics, culture and economy of the Nordic
countries, focusing on the development model of different aspects of life and the social
security system in this region, including Denmark with a separate chapter and other
Nordic countries, including the social security system, and a separate chapter on
Denmark's social security system, explaining why this system is seen as a model for
other countries, while providing an overview of the development of these systems and
how they have affected society and the economy.
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The work “Beyond the statute: Administration of old-age pensions to 1938” (Whyte,
1996 & 2004) by author Gaynor Whyte emphasized that social policy requires every
member of society to have a broader vision than the formal manifestations and items
declared in laws, policy implementation guidelines and political statements to anticipate
practical issues that actually occur. In addition, Gaynor Whyte also presents regulations
on eligibility criteria, benefit levels and other legal criteria for income support programs.
However, considering the whole process of welfare and reform of New Zealand’s
colonial regime, author Tim Garlick analyzed a long process of forming industrial-era
schools along with voluntary assistance and pensions from 1860-1930 in the early part
of the book “Social Developments: An organizational history of the Ministry of Social
Development and its predecessors, 1860-2011” (Garlick, 2012), especially the
increasingly clear outlines of pension policy (p. 21-37). In Part 2 of the book, Tim Garlick
discusses “Command and control: Social Security and Child Welfare, 1925-71” with the
standards of social security, the legal enforcement framework, and the activities of
politicians along with synchronous activities in protecting the rights of children in building
the social security system; “The Nordic Theory of Everything” by Anu Partanen is a book
that provides profound insights into the social security systems of the Nordic countries,
including Sweden. The author is a Finnish journalist who lived in the US, and by
comparing the US and Nordic countries with four key relationships - parents and children,
men and women, workers and employers, government and people, she explains why the
social security systems of these countries are considered the best in the world”
(Partanen, 2017).
The book “Mechanisms of Immigration Control: A Comparative Analysis of European
Regulation Policies” (Hammar, 2020) has many chapters with content on European
immigration and immigration management policies, especially the chapter “Closing the
Doors to the Swedish Welfare State” by author Tove Hammar focused on Swedish
immigration and immigration management policies, emphasizing that this policy has
become more stringent in recent years. The author discusses the measures imposed by
the Swedish government to limit the size and scope of social security policies for
immigrants, including measures on education, health insurance, women and children.
The author also emphasized that although these policies have helped reduce government
spending and ease pressure on social security services, they have had negative
consequences for immigrants, including isolation, reduced income and poor health.
In the exploration of Vietnam's social security landscape, the book "The EU Social
Security System and Lessons for Vietnam" takes a comprehensive look at the intricacies
of the European Union's (EU) social security framework. It not only delves into a
meticulous analysis of the EU's system but also distills invaluable insights for Vietnam as
it endeavors to construct its own social security apparatus. The content of the book not
only elucidates key concepts, standards, and procedural nuances integral to establishing
a robust social security system but also provides a critical evaluation of the efficacy of
social policies. Offering pragmatic solutions, the book becomes a roadmap for Vietnam
to enhance the quality of life for its citizens, safeguard their rights, and advance their
interests. Moreover, in addressing the challenges posed by globalization, the author,
Tran Tuan Anh y Nguyen Trong Nghia/ Desarrollo de la seguridad social: un estudio de caso en la provincia
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Tuan (2008), also sheds light on pertinent issues concerning the management and
development of Vietnam's social security system within this global context.
The book “Social Security Policy – Current Situation and Solutions” gave a general
assessment of the social security situation in Vietnam, including social insurance policies,
healthcare policies, education and training policies, labor protection policies and social
welfare policies. The author also assessed the role of management agencies and
organizations in deploying and implementing social security policies in Vietnam. In
addition, the author raised some key issues in Vietnam's social security policy system,
including service quality issues, lack of resources and funding, fragmentation and
asymmetry in policy deployment, as well as lack of information and advice for people. At
the same time, the document proposed some solutions to improve the effectiveness of
Vietnam’s social security policy system, including raising public awareness of social
security policies, strengthening the role of management agencies and organizations in
policy implementation, promoting coordination between agencies and organizations,
enhancing monitoring and evaluating policy effectiveness, and improving the expertise
and skills of officials in charge of managing and implementing social security policies (Ly,
2014).
The book “Solving Social Security in Thailand, Malaysia, the Philippines and Lessons
for Vietnam” presented how Southeast Asian countries like Thailand, Malaysia and the
Philippines addressed social security issues and provided lessons for Vietnam in
developing its social security system. The author explained the economic and social
situations in those countries, the challenges and opportunities in developing the social
security system. In addition, the document also introduced policies and solutions that
have been applied by these countries to tackle social security related issues, while
assessing the effectiveness and limitations of each solution (Dung, 2015).
3. Research Methods
According to the World Bank (WB), social security includes health care, education,
insurance, cash assistance, labor protection and other social services. At the same time,
the World Bank focuses on managing risks and those who bear risks, vulnerable to
impacts through organizational and legal measures such as public measures by the
State, emphasizing the core, pillar role of social insurance funds. In addition, this
organization also proposes and implements three risk management and response
strategies at different levels: prevention; mitigation; recovery. Based on this
perspective, the World Bank has divided social security into two main issues, namely the
organization of the social insurance network and privatization with the role of the Pension
Fund. However, author Cuong (2009, p.11) argues that this perspective has only focused
on the hunger and poverty reduction strategy and has not promoted and stimulated the
connection with other fields of society.
The globalization imprint of social security was recognized in 1946 when the
International Labor Organization conceptualized: “Social security is the protection that
society provides for its members through a series of widely applied measures to deal
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with economic and social shocks that severely reduce or impair income due to illness,
maternity, work injury, disability or death. Providing medical care and benefits for
families with children" (Phuc, 2012, p. 61).
In 1948, the United Nations officially included the issue of social security in Article 3
of the Universal Declaration of Human Rights “Everyone has the right to life, liberty and
security of person” and Article 25 of this Declaration clearly stipulates: “1) Everyone has
the right to a standard of living adequate for the health and well-being of himself and of
his family, including food, clothing, housing and medical care and necessary social
services, and the right to security in the event of unemployment, sickness, disability,
widowhood, old age or other lack of livelihood in circumstances beyond his control. 2)
Motherhood and childhood are entitled to special care and assistance. All children,
whether born in or out of wedlock, shall enjoy the same social protection” (United Nations
General Assembly, 1948).
Subsequently, as a specialized agency of the United Nations, the International Labor
Organization (ILO) continued to adopt a number of Conventions on social security
worldwide. In particular, Convention 102 dated June 25, 1952 perfected the concept of
social security with minimum standards to ensure support for workers. According to the
Social Protection Floors Recommendation, 2012 (No. 202) (ILO, 2012): This
Recommendation is the first international instrument to guide countries in narrowing
social security gaps and progressively achieving universal protection by establishing and
maintaining comprehensive social security systems. To work towards this goal, the
Recommendation calls for: Giving priority to implementing social protection floors (SPFs)
as a fundamental element of national social security systems and a starting point for
countries without minimum social protection; and (2) extending social security with the
aim to provide higher levels of social security to as many people as possible according
to national financial and economic capabilities and following the guidance of ILO
Convention No. 102 and other ILO social security standards. Social protection floors
should include at least four basic social security guarantees: access to essential health
care and basic income security for children, persons of working age who cannot earn
sufficient income, and older persons and should be provided at a level that allows living
in dignity. Through the concept of social protection floors, Recommendation No. 202 sets
out the essential core content of the human right to social security.
In Vietnam, the formulation of the Vietnam Social Security Strategy for the Period
2011-2020 by the Ministry of Labor, War Invalids, and Social Affairs, alongside the
issuance of Resolution No. 15-NQ/TW on June 1, 2012, by the Central Executive
Committee of the Party, marked a pivotal moment in shaping the nation's social security
landscape. These strategic documents outlined the comprehensive structure of Vietnam's
social security system, encompassing vital components such as Employment, Social
Insurance, Health Insurance, Accident Insurance, Poverty Reduction, and Social
Assistance.
Furthermore, the research undertaken in this context is grounded in a profound
philosophical framework, leveraging the principles of dialectical materialism and
historical materialism. Aligned with Ho Chi Minh's ideology and guided by the Communist
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Party of Vietnam's perspective on the intricate relationship between social security and
socio-economic development in the country, the study employs specific methodologies.
These include analytical and synthetic approaches, generalization, abstraction, the unity
of history and logic, comparison and contrast, as well as induction and interpretation.
Through this comprehensive toolkit, the research aims to provide a nuanced
understanding of Vietnam's social security dynamics and their connection to broader
socio-economic development, ensuring a holistic and insightful exploration of the subject
matter.
4. Results and Discussion
Implementation of Social Security in Dong Nai Province in Recent Years
First, the issue of employment for workers. In the 1991-2000 period, Dong Nai province
overcame the common difficulties of the whole country, the achievements in this period
still had many limitations. In 10 years, the whole province has provided jobs for 504,939
workers, including 195,627 people in enterprises (foreign-invested enterprises with
97,593 people; state enterprises; non-state enterprises with 80,074 people); provided
on-site employment for 307,305 people. In addition, during this period, Dong Nai sent
2,007 people for vocational training and working abroad (mainly in the form of labor
export) (Sang, 2009, p.124).
In the 2001-2005 period, the whole province provided employment for 380,073 people,
achieving 108.59% of the province’s plan (including 10,163 demobilized soldiers). Of
which, 196.59 new jobs were created in enterprises, achieving 83.4% of the plan
(including small projects to create jobs according to Resolution No. 120/HDBT dated April
11, 1992 of the Council of Ministers (now is called the Government) provided 41,044
jobs, achieving 68.41% of the plan). Dong Nai sent 1,124 people for training and
studying abroad, achieving 37.47% of the plan. The number of workers recruited from
other provinces to work in enterprises in Dong Nai province in the same period was
21,058, accounting for 11.6% of the total number of workers recruited to enterprises
(Dong Nai Department of Labor, War Invalids and Social Affairs, 2008). In 2006 and
2007, the whole province provided employment for 172,398 people (Dong Nai Statistics
Office, 2009, p. 25). In 2009, the total number of workers in the province’s economic
sectors was 1,337,670, including 88,115 newly created workers during the year (Dong
Nai Statistics Office, 2010, p. 29). In 2010, the total number of workers was 1,435,515,
including 89,240 newly employed workers during the year (the growth rate was 101.28%
compared to the previous year). By 2011, the total number of workers increased to
1,474,976, including 92,135 newly created jobs during the year (an increase of
103.24%), of which 43,746 were newly employed male workers and 48,389 were female
(Dong Nai Statistics Office, 2012, p.32).
However, at the beginning of 2020, the world situation continued to evolve
complicatedly, the Covid-19 pandemic broke out, disrupting supply chains, shrinking
both aggregate supply and aggregate demand. Domestically, the 4th outbreak of the
Delta variant in the southern provinces in general and Dong Nai in particular with many
new infections and a rapid increase. In the first 9 months of 2021, Dong Nai’s economy
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grew slowly, with total retail sales of goods and services reaching nearly VND 137.5
trillion, up over 1.1% over the same period last year; tourism revenue reached VND 471
billion, down nearly 31%; disbursement of public investment capital reached below 50%;
nearly 900 enterprises had to suspend production and business activities and dissolve
(Gia Cu, 2021). In that context, although Dong Nai’s labor force aged 15 and over
increased by 0.09% compared to 2020 to 1,756.95 thousand people, the number of
workers in economic sectors decreased by 0.28% compared to 2020 (reaching 1,719.64
thousand people). The unemployment rate of working age labor in 2021 is 2.22%
(1.82% in 2020), of which the urban area is 1.66%, and the rural area is 2.66%. The
underemployment rate of working age labor force is 2.7%, of which the urban area is
3.2%, and the rural area is 2.3% (Dong Nai Statistics Office, 2022, p.16).
Along with the shift in economic structure, Dong Nai’s labor structure also shifted
accordingly. The shift in labor structure in the province during the same period took place
more strongly with a significant decrease in the agricultural sector, while at the same
time an increase in the industry and service sector. In 2003, the labor structure in
agriculture was 52.51%, by 2007 it had decreased to 33.32%; the labor structure in the
industrial sector increased from 26.06% in 2003 to 34.12% in 2007; and the labor
structure in the service sector increased from 21.43% in 2003 to 32.56% in 2007[1]. The
transformation of the labor structure in economic sectors in Dong Nai is shifting towards
increasing industry and service structure and decreasing agricultural structure. This shift
not only facilitates the economic development requirements of Dong Nai, but also
facilitates the deployment and implementation of social security activities (both
compulsory and voluntary).
In rural areas, implementing Project 1956 (Prime Minister of Vietnam, 2009), Dong Nai
province has had policies to encourage rural workers to attend vocational training. In
addition, in order to increase the trained workforce, the provincial Social Policy Bank
added two more lending objects for vocational training: demobilized soldiers and rural
workers. In addition, many facilitating mechanisms and policies have been promulgated
by the province, such as support for meals, accommodation, and transportation when
rural workers participate in vocational training, which will effectively improve the quality
of vocational training for rural workers. Thanks to the aforementioned positive policies,
the proportion of trained workers in rural areas has continued to increase: in 2010,
trained workers in rural areas accounted for 6.6%, by 2020 this figure increased to
17.8% (Dong Nai Statistics Office, 2012, p.93). Specifically, in implementing the
vocational training policy for rural workers (according to Decision No. 1418/QD-UBND
dated May 16, 2016 of Dong Nai Provincial People's Committee), in 2020 there were
2,457 newly recruited rural workers for vocational training, of which 799 people were
trained in non-agricultural occupations, accounting for 31.74% and 1,678 people were
trained in agricultural occupations, accounting for 68.29%. The number of graduates
was 1,899, providing jobs for 1,731 people, accounting for 91.15%, the rest are still
being trained and will graduate at the beginning of 2021 (Chuong, 2022). The rural
aspect in Dong Nai province has changed remarkably: agriculture develops steadily, the
structure of the agricultural sector shifts properly according to the general development
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trend of the province; the average agricultural production value per unit area increases
quite highly, reaching VND 85.58 million/ha in 2013. Average per capita income in rural
areas in 2019 reached VND 51.59 million/person/year, up more than 2.28 times
compared to 2011 (Vinh, 2019). In addition, many types of collective economic
production organizations, farm economies, cooperatives and enterprises in the field of
agriculture have emerged. The material life and average per capita income in rural areas
have been improved, reaching VND 32 million/person/year. In recent years and the
future, Dong Nai will continue to implement the project but focus on the occupations
where farmers are living, support them with knowledge and skills to do their job and
make a living. The province focuses on key occupations such as cultivation, backyard
poultry farming, goat breeding, garment industry, etc. to serve locally and provide a
source of migrant labor for enterprises.
In urban areas, particularly in industrial zones, 84.5% of workers in the industrial zones
of Dong Nai province have signed contracts upon joining companies. This can be
attributed to legal education, as the majority of workers voluntarily sign labor contracts
and meet the necessary conditions for employment in enterprises. As a result, the
signing of labor contracts adheres to prescribed content and forms, and complies with
regulations regarding working hours, breaks, and the prohibition of coercing workers to
work overtime beyond legal limits. The implementation of maternity leave, occupational
accident benefits, and other regulations specified by the Labor Law is also ensured.
According to the report by the People’s Committee of Dong Nai Province, by 2016,
enterprises in Dong Nai's industrial zones had trained and provided employment for
523,146 domestic workers and 5,719 foreign workers. Foreign workers accounted for
nearly 60% of the total labor force, with enterprises attracting an additional 20,000
workers annually, especially from countries such as South Korea, Taiwan, China, and
Japan. The skill level breakdown of workers in Dong Nai’s industrial zones is currently as
follows: 8% with higher education (college and university), 32% with vocational training
or technical qualifications, and 60% comprising skilled workers and unskilled laborers
(People’s Committee of Dong Nai Province, 2016, p.12). By 2020, the entire province
had recruited 78,105 new workers, with a 25.18% enrollment rate for vocational training
or higher education among the total recruits, and a vocational training rate of 65.02%
in 2020 (Chuong, 2022). This indicates an increasing educational attainment among
workers, meeting the growing demands of both businesses and the labor market,
domestically and internationally.
In recent years, Dong Nai’s industrial zones have seen a growing number of skilled
workers directly involved in production, equipped with specialized knowledge and
highlevel skills to adapt and manage modern technologies and equipment. A significant
portion of hired labor in private enterprises and foreign-invested enterprises has shown
progress, with some foreign-invested enterprises gradually delegating management
responsibilities to workers. This provides an opportunity and conducive environment for
workers to demonstrate their capabilities in managerial and operational tasks, meeting
the demands of the domestic and international labor markets.
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It can be affirmed that labor policies addressing employment, reducing unemployment
rates, and improving the standard of living for residents have benefited from economic
development. However, in the context of Industry 4.0, the increasing demand for skilled
labor poses challenges in employment for the predominantly unskilled labor force.
Despite a rising trend in trained labor, the overall percentage remains limited. In 2021,
the rate of trained labor aged 15 and above with work experience decreased to 21.9%,
down by 0.7% compared to 2020. Trained labor in urban areas reached 29.8%, while
rural areas only achieved 15.9% (Dong Nai Statistics Office, 2022, p.16).
Nevertheless, Dong Nai province faces a paradox where despite an abundant labor force,
many enterprises experience a shortage of labor, particularly in executive, managerial,
and specialist roles. The largest existing challenge in the training sector is the disparity
between higher education and vocational training, with an oversupply of university
graduates and an insufficient number of skilled workers. Low-income levels lead to low
living standards, negatively affecting the attachment to professions, dedication, and
social welfare for workers. The wealth gap has shown a tendency to increase, especially
between urban and suburban areas. Therefore, prompt measures are needed to enhance
the quality of life and ensure social welfare for residents of Dong Nai province in general.
Secondly, Dong Nai has effectively implemented various social insurance programs,
health insurance, and unemployment insurance, contributing to supporting workers in
minimizing risks and actively compensating for reduced income. In 1995, Dong Nai had
only around 90,000 people participating in social insurance and health insurance.
However, by 2007, the number of people participating in social insurance alone reached
approximately 440,000, with a combined total of around 670,000 people including those
covered by health insurance (a 744.4% increase within 12 years) (Sang et al., 2009,
p.155). In 2010, the total number of participants in insurance programs (including social
insurance, health insurance, and unemployment insurance) was 2,450,262, with
516,806 participating in social insurance. By 2015, the number of participants in
insurance programs had increased to 3,337,654, with 763,860 participating in social
insurance. In 2016, a total of 3,648,630 people participated in insurance programs,
including 717,123 in social insurance, 2,232,576 in health insurance, and 698,940 in
unemployment insurance. In 2017, the total number of participants in social insurance,
health insurance, and unemployment insurance was 2,342,054. Among them, 731,855
were mandatory participants in social insurance, and 717,068 participated in
unemployment insurance. The voluntary participants in social insurance were 2,416. The
number of people covered by health insurance was 2,339,638, with a coverage rate of
80.1% of the population, an increase of 1.8% compared to the Prime Minister’s set target
and an increase of 2,711 people compared to the plan assigned by the Vietnam Social
Insurance. In just 10 months of 2017, the insurance revenue for social insurance, health
insurance, and unemployment insurance reached over VND 13,633.7 billion, achieving
82.6% of the assigned plan and a 14.5% increase compared to the same period in 2016.
Social insurance, health insurance, and unemployment insurance debts accounted for
2.81% of the total receivables according to the 2017 assigned plan (Dong Nai Statistics
Office, 2020, p.110).
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By 2020, the number of insurance participants increased to 4,240,634, including
838,580 in social insurance, over 2.6 million in health insurance, and 800,928 in
unemployment insurance (Dong Nai Statistics Office, 2022, p.128). The number of
beneficiaries of social insurance, health insurance, and unemployment insurance is
increasing, with timely resolution of pension and insurance payment schemes. This
contributes to the stability of workers’ lives and socio-political stability in the region.
Regular beneficiaries of social insurance are mainly those who have completed their
social insurance payment periods and have transitioned to the period of receiving social
insurance benefits. It can be said that social insurance policies have a significant impact
on the social welfare of a large number of people nationwide and specifically in Dong
Nai. Therefore, provincial agencies frequently guide labor-utilizing units, actively direct
various levels of social insurance, and instruct them on procedures and documentation
for settling social insurance regimes for both labor-utilizing units and citizens. Therefore,
resolving social insurance policies in a timely and regulated manner, adjusting pensions
and social insurance benefits accurately for beneficiaries, conducting regular reviews and
supplementing managed benefit files, and actively managing the beneficiaries are
essential. This instills confidence in the people, contributing to ensuring social welfare in
the province. In the first 10 months of 2017, Dong Nai’s social insurance accurately
resolved and fully paid 1,438,812 cases of retirement, social insurance benefits, and
unemployment insurance, a 20.6% increase compared to the same period in 2016. In
2020, the number of monthly beneficiaries of social insurance was 59,642 people, and
the number of people receiving social insurance benefits was 1,974,455 (Dong Nai
Statistics Office, 2022, p.157).
In addition, the process of implementing insurance policies in Dong Nai province has
certain limitations that need to be addressed in the future. Firstly, the coverage of
insurance in the non-state sector is very low. Although the overall social insurance
coverage in Dong Nai is twice the national average, most of this is attributed to
foreigninvested areas. Conversely, the business sector in Dong Nai, where over 65% of
the labor force participates in national economic sectors, only represents about 11% of
the total number of people participating in social insurance in the province, with a
coverage rate of only 6.6% for the entire labor force. In recent years, the participation
structure of the business sector in social insurance remains low, with no significant shift.
Moreover, the situation of arrears, delays, and evasion of social insurance payments
persists in Dong Nai. While this is only a temporary limitation, if left unaddressed, it may
become systemic, creating a “disregard for the law” chain effect among labor-utilizing
units.
Furthermore, the quality of social welfare in Dong Nai, while improving, is still relatively
low compared to the cost of living and the fluctuation of the consumer price index. This
is without considering the challenges in managing insurance beneficiaries, particularly
those in remote areas and belonging to ethnic minority groups. Ethnic minority
populations in Dong Nai are relatively large, primarily residing in remote and challenging
areas.
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Thirdly, regarding efforts to eradicate hunger and reduce poverty, the close relationship
between poverty and social welfare is essential. A locality that consistently experiences
poverty among a significant portion of its population cannot be considered successful in
social welfare, as ensuring social welfare requires addressing poverty. During the 2001-
2005 period, with higher poverty standards (under 130,000 VND/person/month in rural
areas and under 160,000 VND/person/month in urban areas), the total number of poor
households in Dong Nai at the beginning of 2001 was 52,827 households (accounting for
12.26% of the total households). With just a minor adjustment to the poverty criteria,
the number of poor households increased from 1.21% in 2000 to 12.26% in 2001
(applying the new poverty criteria).
The poverty reduction program for the 2001-2005 period in the province set the main
goals of reducing 45,000 poor households out of the total 52,827 households in 2001.
This aimed to decrease the poverty rate from 12.26% in 2001 to below 2% by 2005.
Poor communes were expected to have essential infrastructure, improve the basic living
conditions for the poor, prevent them from falling back into poverty, and reduce the
richpoor gap from 5.7 times to 5.2 times. After 5 years of implementation, the province
successfully reduced 49,002 poor households, achieving 108.89% of the poverty
reduction plan. The total number of poor households decreased from 52,827 households
to 3,795 households, reducing the poverty rate from 12.26% in 2001 to 0.87% by the
end of 2005. Out of 171 communes, wards, and 11 provincial-level units, 114 no longer
had poor households. In the period from 2006 to the present, compared to the national
poverty reduction targets, Dong Nai has been a leading province nationwide in
eradicating hunger and reducing poverty.
The province has surpassed the national poverty criteria. The Prime Minister's Decision
No. 07/2006/QD-TTg on January 10, 2006, approving the program for socioeconomic
development in especially difficult areas of ethnic minorities and mountainous regions
for the 2006-2010 period, stated the goal of striving for no poor households and reducing
the poverty rate to below 30% by 2010. Dong Nai has far exceeded these targets. In
mid-September 2005, the province announced the completion of Program 135, lifting 16
particularly difficult communes out of poverty. Dong Nai has been free of poor
households for a long time, with only 9.84% of households classified as poor according
to the new criteria. According to the government's program, to help rural areas escape
poverty, each province should have over 80% of communes with small-scale irrigation
works to ensure agricultural production. Dong Nai has essentially completed the
construction of internal canals since the 1990s, ensuring irrigation for crops.
Additionally, the government aimed to provide electricity to 80% of hamlets by 2010.
Dong Nai has already achieved 100% electrification for hamlets and residential areas,
with over 95% of households using electricity. The government's goal was for 70% of
households in each region to achieve an average GDP income of over 3.5 million VND
per person per year by the end of 2010. Dong Nai has made substantial progress in this
regard. In 2017, the project “Renewal, development of social assistance in the 20172025
period, and vision to 2030” was implemented in various localities in Dong Nai province.
It is evident that the provincial government has been leveraging internal potential and
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the province’s advantages, maximizing support from the central government,
organizations, businesses, communities, and society to achieve the goal of ensuring
social welfare. This creates conditions for people to improve their self-reliance in welfare,
continually enhancing both material and spiritual aspects, ensuring social justice,
stability, and sustainable development (People's Committee of Dong Nai Province, 2018).
At the end of 2019, the People’s Council of Dong Nai Province issued Decision No.
118/2018/NQ-HDND on the Approval of the multidimensional poverty standards for Dong
Nai Province for the 2018-2020 period. According to this decision, at the beginning of
2020, there were still 5,500 poor households in the province, accounting for 0.64% of
the total households, surpassing the provincial party committee's recommendation to
reduce the poverty target. Out of these, 1,582 households were classified as poor A,
accounting for 0.19% of the households, while the rest were poor B. Near-poor
households numbered 5,755, making up 0.66% of the total households
(Department of Labor, War Invalids, and Social Affairs of Dong Nai Province, 2021, p.5).
Consequently, the People’s Committee of Dong Nai Province issued Plan No.
6129/KHUBND on the comprehensive survey and review of poor and near-poor
households in the province for the 2022-2025 period.
The new criteria for the survey are expected to cover approximately 7.5% of households
in the province, about 68,100 households, with the new poverty standards being
1,450,000 VND/person/month in urban areas and 1,200,000 VND/person/month in rural
areas; near-poverty standards are 1,900,000 VND/person/month in urban areas and
1,550,000 VND/person/month in rural areas; standards for households with average
living standards are 2,550,000 VND/person/month in urban areas and 2,050,000
VND/person/month in rural areas and below. Nevertheless, the effectiveness of
sustainable poverty reduction has been limited, and the disparity in living standards and
cultural enjoyment between urban and suburban residents has grown. The verification
and assessment of newly recognized poor households, newly emerged poor households,
and households escaping poverty in some localities have not followed the correct
procedures and have been influenced by subjective factors. Some areas have not
decisively addressed lazy and unemployed poor households, relying excessively on state
aid policies. Additionally, the cadre team responsible for poverty reduction lacks both
quantity and capacity. The rapid natural population growth continues to exert pressure
on achieving the city's poverty reduction goals. The expansion and development of the
target groups for social insurance, health insurance, and unemployment insurance are
below their potential, and the coverage of social insurance is increasing slowly.
Fourthly, the policy for individuals with merit and social privileges is one of the
fundamental pillars of the social welfare system in Dong Nai province. During the period
from 2001-2005, according to the report from the Department of Labor, War Invalids,
and Social Affairs, various sectors and units in Dong Nai province resolved over 19
thousand cases of individuals and families of those who participated in resistance
activities, receiving one-time allowances, along with 2,570 revolutionary contributors.
The Department of Labor, War Invalids, and Social Affairs provided regular allowances
to 728 resistance activists and their offspring affected by toxic chemicals, supported
house repairs for 1,375 individuals with a budget of 9.2 billion VND, issued 164 savings
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824
books with a total amount of 121 million VND for policy beneficiary households, mobilized
assistance for 259 policy beneficiaries, and provided regular nursing care for 2,387
beneficiaries, with a total expenditure exceeding 1.5 billion VND. The gratitude
repayment fund from 2001-2005 collected a total of 16.9 billion VND.
Additionally, various departments and localities in Dong Nai province organized trips to
Hanoi for some policy beneficiaries, renovated martyrs' cemeteries, built memorial parks
and monuments, collected and preserved martyr remains, etc. The total cost for caring
for wounded soldiers, martyrs, and contributors from 2001-2005 was 71.225 trillion VND
(Pham Van Sang et al., 2009, p.318). As of the end of May 2015, Dong Nai province
recognized and implemented preferential regimes for 55,251 contributors to the
revolution, with 13,745 beneficiaries enjoying preferential allowances. Across the
province, 24,875 households of revolutionary contributors had a standard of living higher
than the local average, and 97 Heroic Vietnamese Mothers received lifelong care from
units and enterprises. In recent years, through activities to care for contributors, the
entire province has mobilized over 82 billion VND, constructing 2,600 charity houses for
Heroic Vietnamese Mothers, martyr families, veteran revolutionary cadres, seriously
wounded veterans, and disadvantaged contributors. They repaired 3,468 damaged and
downgraded houses, issued 2,831 charity savings books (averaging from 1 to 3 million
VND per book), provided assistance to 845 disabled and seriously ill veterans, parents,
and wives of martyrs without relatives, and mobilized over 57 billion VND for the
Gratitude Repayment Fund. In 2013 alone, the “Gratitude Repayment Fund” program
raised nearly 6 billion VND. Particularly, in line with the Prime Minister's Decision No. 22
on supporting the construction and repair of houses for contributors (Prime Minister of
Vietnam, 2013), the Department of Labor, War Invalids, and Social Affairs coordinated
with the Department of Construction to review and propose approval from the provincial
People’s Committee for the construction and repair of over 1,000 houses in 2013 and
2014.
Moreover, the province allocated 2,010 hectares of land to support over 4,000 disabled
and wounded veterans, martyr families, and their children in organizing production and
business activities. It utilized funding sources to address employment, poverty reduction,
and provided over 2,000 policy households with preferential interest rate loans to
develop their family economy, increase income, and improve living standards. Currently,
there are no policy households that are poor in the province, and all 171 communes and
wards are recognized for effectively implementing policies for veterans and martyrs. The
province implemented a fee exemption for vocational training for 421 beneficiaries with
a budget of over 923 million VND, provided meal support for 322 beneficiaries with a
budget of over 154 million VND, etc. In summary, from 2012 to 2021, the province has
carried out the construction and repair of charity houses for contributors using funds
from various sources. This includes the construction of 646 new houses, amounting to
28.923 billion VND, the repair of 1,702 houses, costing 33.352 billion VND, and the
issuance of savings books to 606 families of contributors, totaling 1,630 billion VND.
During this period, contributors in the province had an average standard of living equal
to or higher than the local average, with an average rate of 98% or more (Huy, 2022).
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It can be said that in recent times, Dong Nai has made significant efforts in implementing
the principle of “drinking water while remembering the source” and supporting those
with contributions. The lives of contributors in Dong Nai have been greatly improved
compared to the general population. However, the funding allocated for implementing
preferential policies for contributors still has many limitations. It has only partially met
and improved the material life of the mentioned groups. Nevertheless, it holds great
spiritual significance, reflecting the care of party committees, authorities, and the entire
society. It aligns with the tradition of remembering the source, simultaneously
contributing to educating the younger generation.
However, social assistance activities still face many difficulties due to the city's budget
and funding for this work not meeting the actual needs. The level of support is low
compared to the basic material needs of the beneficiaries, especially those receiving
regular allowances. The range of beneficiaries in the city is diverse, and some vulnerable
groups continue to be overlooked, leading to social destitution. Meanwhile, other groups
emerging due to economic and social changes also need to be considered for inclusion
in the appropriate beneficiary lists for a special urban context. These are issues that
need early research to establish mechanisms for adjusting and supplementing the
coverage of social policies to appropriately assist the intended beneficiaries in a special
urban setting.
Solutions for developing Social Welfare in Dong Nai Province
Firstly, thoroughly and deeply understand the implementation of social welfare at every
step, every strategy, and every economic and social development policy within the Party
apparatus, government, departments, social organizations, and the people of Dong Nai
province. This creates a unified understanding and action in the political system of Dong
Nai province, aiming at development for the sake of humanity.
Secondly, intensify the construction, adjustment, and improvement of social welfare
mechanisms and policies. Simultaneously, identify which issues need focused resolution
to meet the urgent societal goals. Social policies and programs need to be tailored
separately to suit each target group, each locality, and specific social issues at different
times.
Thirdly, propel international collaboration within the realm of social welfare by tapping
into global resources, engaging with experts, and initiating technical projects to test
novel policies and programs. Bolster research capabilities, orchestrate seamless project
implementation, and diligently monitor and evaluate project outcomes. To realize this
vision, Dong Nai province must intensify promotional efforts, proactively seek foreign aid
programs, allocate aid judiciously for their intended purposes, and uphold transparency
in the utilization of international assistance.
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Fourthly, fortify public awareness through robust propaganda, legal dissemination, and
education at all levels and across various sectors, instilling a profound understanding of
the pivotal role social welfare plays in both economic and social development, as well as
in the lives of the labor force.
By implementing these comprehensive solutions, the city will leverage positive aspects,
mitigate and prevent the downsides of market mechanisms, laying the groundwork for
sustainable and harmonious economic development. It aims towards becoming a city
with a good quality of life, prosperity, and modernity.
6. Conclusion
Studying the current situation of social welfare in Dong Nai province is an essential
issue. Throughout its development, Dong Nai has achieved positive results that
contribute to improving both material and spiritual aspects of life, continually
enhancing Vietnam's position on the international stage. However, the negative aspects
of the market economy and international integration have adversely affected the lives
of laborers, leading to issues such as unemployment, wealth disparity, and risks arising
from economic crises. Therefore, more than ever, the construction and improvement
of a multi-layered social welfare system that is flexible in protecting laborers in Dong
Nai province, and Vietnam as a whole, is urgently needed to achieve sustainable
development.
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