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

HCM City struggles to control influx of substandard produce 1    HCM City struggles to control influx of substandard produce

High demand for farm produce and the sheer variety of ways in which it is brought into HCM City from other localities makes quality control a very difficult task, officials say.

Hoi An hosts silken rendezvous Hoi An hosts silken rendezvous

Top craftsmen and women from seven silk villages in Viet Nam will participate in the Viet Nam Silk Culture Day at Hoi An city's Silk Village centre on December 28.

Local art smashes auction record Local art smashes auction record

Days after noted Vietnamese artist Le Pho's View from the Hilltop set a new auction record, art collector Nguyen Minh still has a lingering feeling of regret.

Long Bien Bridge preservation divides planners 3    Long Bien Bridge preservation divides planners

Architecture and cultural managers discussed Long Bien Bridge's future at a seminar held on Wednesday in Ha Noi.

Malaysia crush VN in AFF semis Malaysia crush VN in AFF semis

Viet Nam suffered a nightmare yesterday at My Dinh Stadium in Ha Noi as they were knocked out of the ASEAN Football Federation-Suzuki Cup.