Wage, insurance reform priorities: PM

January 18, 2018 - 09:00
Prime Minister Nguyễn Xuân Phúc yesterday urged the Ministry of Labour, Invalids and Social Affairs (MOLISA) to accelerate wage and social insurance reform projects.
A worker on a weaving production line at Jasan Việt Nam Ltd Company in Việt Nam-Singapore Industrial Park in the northern city of Hải Phòng. — VNA/VNS Photo Danh Lam
Viet Nam News

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc yesterday urged the Ministry of Labour, Invalids and Social Affairs (MOLISA) to accelerate wage and social insurance reform projects.

He made the statement at an online conference held by MOLISA in Hà Nội yesterday to review its performance in 2017 and set forth tasks for 2018.

Phúc welcomed the mass attendance of ministerial officials in the conference. He said that this demonstrates their interest in not only economic but also social issues as well as the consensus within the government, State, agencies and localities in this sector.

Addressing the event, he highlighted the role of MOLISA in pushing for the creative government – one that serves all people including labourers and the most vulnerable and revolutionary contributors.

While praising achievements of the ministry over the past year, he said, there were a number of shortcomings that needed to be solved.

The labour productivity and average income of workers in Việt Nam are still low and many labourers do not have stable jobs.

PM Phúc also lamented the high rate of graduate unemployment, as well as the low percentage of labourers covered by social insurance. Poverty reduction efforts were considered not sustainable by the leader of the government.

It was necessary to improve the quality of vocational and skills training for human resources, he said, because it was the key to escape the middle income trap.

Favourable conditions should be created for the private sector to participate in vocational training services and building vocational training establishments, he said.

The ministry should continue administrative reforms, particularly administrative procedures in a bid to reduce cumbersome regulations in sectors relating to enterprises and residents.

Phúc demanded that the management of Vietnamese labourers abroad be strengthened.

It was necessary to accomplish and ensure the strong implementation of social welfare and poverty reduction policies, he said.

The rate of social insurance coverage in the country should be improved, he added.

The PM’s instructions were made after a report on the ministry’s achievements in 2017 and challenges and tasks for 2018 delivered by Doãn Mậu Diệp, Deputy Minister of Labour, Invalids and Social Affairs at the conference.

Diệp said over 1.63 million people last year got jobs thanks to the effective implementation of employment policies. The monthly average wage of a labourer was VNĐ5.36 million (US$236) in the third quarter of last year, an increase of 8.8 per cent compared with the 2016’s figure.

Over 13.8 million people, or 25.2 per cent of labour force, have purchased social insurance as of the end of last year.

The ministry has enacted preferential policies for policy beneficiaries and revolutionary contributors. It resolved preferential mechanisms to 1.4 million and implemented social welfare policies for over 2.7 million people with the total cost of nearly VNĐ15 trillion ($660.4 million).

Speaking at the conference, Đào Ngọc Dung, Minister of Labour, Invalids and Social Affairs, said 2017 has been a remarkable year for the ministry as it met all targets set by the government.

The unemployment rate for labourers at working age in urban areas was 3.18 per cent.  The percentage of trained labourers is 56 per cent, of which the percentage of trained workers with certificates was 22.5 per cent.

The rate of poor households in accordance with the multi-dimensional poverty line was reduced by about 1.51 per cent from the end of 2016.

Dung said that in 2018, the ministry would take drastic and innovative measures to boost the effectiveness of the ministry’s operation. — VNS