Updated  
April, 04 2012 09:12:59

Insurance fund to meet needs of growing number of jobless

Deputy Minister of Labour, Invalids and Social Affairs Pham Minh Huan spoke to Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about the unemployment insurance fund.

How do entrepreneurs' business activities affect workers during this current time of economic hardship? Is there any chance of overspending of the unemployment insurance fund?

Viet Nam's economy has actually seen improvements with many newly invested foreign projects and other ongoing projects. A Viet Nam-based subsidiary company of Nike Corporation is an example. More than 200,000 employees from three regions are working for the company.

Yet more and more workers are accessing the unemployment insurance fund for financial support after losing their jobs. I have heard the opinion that this could lead to an overspending of the fund, but I believe that there's little chance of this happening. The fund is a short-term one, and always adjusted after one or two years. If the revenue is equal to or higher than the spending, the collection of the fund will be increased in the next year to assure balance and vice versa. In fact, the fund has seen a temporary surplus.

In the cases of bankruptcy, both enterprises and employees face hard times. The fund gives priority to employees, but many do not get the money when enterprises refuse to pay. This is a common occurrence in the country.

Could you explain the reason why this happens? What measures have the Ministry of Labour, Invalids and Social Affairs taken to support employees?

The 500,000 private small-scale enterprises are the main cause, as they are likely to go bankrupt in financial downturns. Workers with little knowledge of work regulations and who fail to protect themselves are another reason.

Currently, the ministry has strengthened inspections of enterprise activities regarding workers' benefits and their raised awareness about their rights.

The ministry is working with the Department of Employment to keep watch on labour market fluctuations to chalk out supportive policies for workers.

The Government is currently encouraging enterprises to create jobs for local people. The minimum salary has also been increased as a way to help employees in the inflation situation. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Tan Son Nhat Airport on verge of overloading 1    Tan Son Nhat Airport on verge of overloading

HCM City's Tan Son Nhat Airport will be stretched beyond capacity in the next two years, making construction of the new Long Thanh airport in Dong Nai Province more urgent than ever, experts warn.

BIDV teams up with Japanese banks to facilitate investment BIDV teams up with Japanese banks to facilitate investment

The Bank for Investment and Development of Viet Nam (BIDV) has signed a memorandum of understanding (MoU) with two Japanese banks, namely Minato Bank and the Bank of Yokohama (BOY).

Capital to host biotechnology fair Capital to host biotechnology fair

A three-day fair on technology and biological equipment will take place in the capital on October 21 organised by the National Agency for Science and Information Technology.

Rhino horn demand falls after campaign Rhino horn demand falls after campaign

Vietnamese demand for rhinoceros horns decreased by 38 per cent within a year after a campaign was launched against the practice.

My Lai survivor writes book My Lai survivor writes book

Pham Thanh Cong, 57, was one of only a dozen survivors of 1968's infamous My Lai massacre. More than four decades later, he has written a book about the mass murder, in which American soldiers killed 504 unarmed civilians.