The Development of Businesses and Implementation of Social Insurance Policy in Hanoi City

about 13.5%, the rest is for businesses of all other economic sectors. By industry, the workforce across Hanoi mainly operates in the fields of agriculture, forestry and fisheries, with an average proportion of about 25% of the employed workforce, followed by the processing industry. , manufacturing (about 18%/year), retail trade, repair of cars, motorbikes and other vehicles (about 17%/year).

An outstanding problem today is that the level of employed workers without professional and technical training in Hanoi City accounts for a relatively high rate of 68.9%, while highly qualified workers Vocational college reached 0.64%, university accounted for 14.26%, master's degree 1.31%. Skilled workers in agriculture, forestry and fisheries account for a small proportion of 0.66%, while unskilled workers account for the largest proportion with 36.95%. Unskilled workers account for 16.83%. With such a proportion of unskilled labor, it shows that the ability to supply unskilled labor is much less than the needs of production facilities and businesses in the City. A current situation in Hanoi is the growing shortage of unskilled workers. Most of the unskilled workers are from outside the province. As for Hanoian workers, they are not interested in work due to the heavy nature of the work, low salary and the picky mentality of workers about jobs and income levels...

Hanoi City promotes labor quality and vocational training for workers. Hanoi has a higher labor level than other cities in the country, so Hanoi's labor productivity is always leading, but compared to other countries in the Southeast Asia region, Hanoi's labor productivity is always at the forefront. also very

low (nearly 15 times lower than Singapore, 11 times lower than Japan and 10 times lower than South Korea) 10 .

3.2. The development of businesses and implementation of social insurance policies in Hanoi city

3.2.1. Development of businesses

In recent years, businesses in Hanoi city have developed quite rapidly, diverse in scale, organizational form and production and business fields. According to the 2019 Vietnamese business white paper, the number of businesses of Ha

10 The World Bank assesses that Vietnam is lacking skilled workers and high-level technical workers. If we take a scale of 10, the quality of Vietnam's human resources only reaches 3.79 points, ranking 11/12 Asian countries participating in the World Bank's ranking.

Currently in operation are: 143,119 enterprises, accounting for 20%. Calculated based on the density of active businesses per 1,000 people, Hanoi has 19 businesses/1,000 people. The number of employees in Hanoi continuously increases in activities with production and business results accounting for 3.4%. The average labor attraction index at enterprises in the period 2016-2017 compared to the average period 2011-2015 in Hanoi increased by 16.9%. The speed of capital attraction for production and business in Hanoi increased by 28.9%. The net revenue rate of Hanoi businesses also increased by 16.2%. Total pre-tax profit of the corporate sector in 2017 increased by 47.1% compared to 2016.

The average monthly income of a worker in an enterprise in Hanoi in the period 2016-2017 is: 8.54 million VND. Hanoi also had a 42.8% increase in the rate of newly established businesses in the 2016-2017 period. Besides, Hanoi also had a return to operations of businesses: 6,470 businesses, an increase of 36%. Besides developing businesses, Hanoi is also facing the situation of many businesses having to complete dissolution procedures. In 2018, Hanoi had 1,698 dissolved enterprises, an increase of 32.8%.

The development of businesses in Hanoi is accompanied by an increase in the number of workers operating in businesses. The increase in the number of workers in businesses is closely related to the proportion of workers in businesses participating in social insurance.

3.2.2. Status of implementation of social insurance policy

The city's social insurance coverage rate by the end of 2018: number of people participating in compulsory social insurance: 1650,417 people; Voluntary social insurance for 22,684 people; Unemployment insurance: 1,541,279 people; Health insurance for 6,487,756 people (not including the number participating in health insurance who are relatives of military officers due to social insurance). Currently, the health insurance coverage rate is 86.5% of the population, 1.2% higher than the target assigned by the People's Council and City People's Committee in 2018 of 85.3%.

In 2018, 16,705 units were exploited and developed, with 84,214 employees. Revenue from social insurance, health insurance, and unemployment insurance is 38,804.8 billion VND, of which compulsory social insurance revenue: 26,457.1 billion VND; Unemployment insurance: 2,094.3 billion VND; Voluntary social insurance: 177.6 billion VND, health insurance: 9,385.8 billion VND; Labor accident and occupational disease insurance: 524 billion VND; Late payment interest collected: 165.7 billion VND.

However, in the process of implementing social insurance, health insurance, and unemployment insurance policies, it also shows that there is a part of businesses and economic organizations that are still sluggish, evading payment, and owing money.

Deposits of social insurance, health insurance, unemployment insurance. The total number of debt units is 28,184 units and there are 405,393 affected workers, with a total debt of 979.2 billion VND (of which social insurance debt is 900.3 billion VND; health insurance debt: 51.4 billion VND; Unemployment insurance debt: 23.2 billion VND; Occupational accident and disease insurance debt: 4.3 billion VND). Debt structure allocation is as follows:

+ Debt from 1 to less than 3 months: 17,164 units with 24.6 billion VND;

+ Debt from 3 to less than 6 months: 4,878 units with 95.7 billion VND;

+ Debt from 6 months to less than 12 months: 2,383 units with 104.6 billion VND;

+ Debt from 12 months to less than 24 months: 1,632 units with 149.3 billion VND;

+ Debt from 24 months or more: 2,127 units with 605 billion VND.

The city's settlement of social insurance regimes also achieved many positive results. Hanoi is the locality with the largest number of beneficiaries and payment amount in the country; The payment of pensions and social insurance benefits is always of concern; payments are always guaranteed to reach beneficiaries before the 10th of every month, ensuring safety and accuracy through 02 forms of payment: through the system. postal system and through personal ATM accounts. The total amount of money spent in 2018 was 34,250.9 billion VND for 1,198,215 subjects, of which, the amount of monthly pension and social insurance benefits was 28,895.4 billion VND for 568,075 subjects; spent a one-time subsidy of VND 1,474.9 billion for 61,676 subjects; spending on short-term social insurance benefits of VND 3,060.1 billion for 509,752 subjects; spent 820.5 million VND on unemployment benefits for 58,712 subjects.

Hanoi Social Insurance has also promoted the reform of administrative procedures, improved the quality of CV services, minimized troublesome procedures, and created the most favorable conditions for organizations and individuals to participate and enjoy social insurance. Health insurance, unemployment insurance. Currently, level 3 and 4 online public service services have been provided for 13 administrative procedures, 100% of administrative procedures are received through the electronic one-stop system, there are 67,774 units using labor. actively implementing electronic record transactions, accounting for 97.3% of units participating in social insurance and health insurance.

In the process of implementing social insurance policy, Hanoi city is currently facing some difficulties: the number of people participating in compulsory and voluntary social insurance is still low compared to the number of subjects eligible to participate; Although the debt situation of social insurance, health insurance, and unemployment insurance has decreased sharply compared to many years ago, it is still higher than the national average; Awareness of people and workers about the meaning of social insurance policy is still limited (low rate of participation in voluntary social insurance, compliance with mandatory social insurance

tied low); The level of satisfaction of workers and beneficiaries of social insurance and health insurance policies is not high, requiring the social insurance agency to have many solutions to improve operational efficiency to meet the increasing needs of the capital's people. .

3.3. Current status of social insurance participation of employees in non-state enterprises

To identify the current status of social insurance participation of employees in non-state enterprises, the researcher focused on analyzing and understanding the following contents: the number of non-state enterprises participating in social insurance festival; number of employees participating in social insurance; Characteristics of employees participating in social insurance in non-state enterprises; Social insurance outstanding debt rate; Advantages and disadvantages of workers in non-state enterprises when participating in social insurance.

3.3.1. Current status of non-state enterprises participating in social insurance

Electronic data source of Vietnam Social Insurance on enterprises participating in social insurance operating in Hanoi city in 2018 shows that the total number of enterprises participating in social insurance payment is 93,695 enterprises, of which, the number of state-owned enterprises is 93,695 enterprises. Countries participating in social insurance account for only 1,504 businesses, a very small proportion of 1.6%; Foreign-invested enterprises participating in social insurance account for 6,561 enterprises, accounting for 7%, and the largest number are non-state-owned enterprises participating in social insurance with 85,630 enterprises, accounting for 91.4%. % (see table 3.1).

Table 3.1. Structure of enterprises participating in social insurance in Hanoi city in 2018

Total number of businesses

Participate in social insurance

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[Source: Project data calculated from the electronic database of social insurance management of Vietnam Social Insurance]

Table 3.2a. Number of working employees and employees participating in social insurance in various types of businesses in Hanoi

Type of enterprise

[Source: Data calculated from the Hanoi Enterprise Survey in 2016, 2017, 2018 of the General Statistics Office]

78

If we only look at the number of non-state enterprises participating in social insurance among the total types of enterprises, we see that the proportion of non-state enterprises participating is the largest. But from the results of the Annual Enterprise Survey of the General Statistics Office, it shows that although non-state enterprises still have the largest number of employees participating in social insurance out of the total number of employees participating in social insurance. of all types of businesses, but the insurance participation rate compared to the total number of employees needing to participate in social insurance is very low, accounting for only 37% (2016), 44.3% (2017). , 53.1% (2018); Meanwhile joint

state-owned enterprises, this rate is 86.5% (2016), 90.1% (2017), 88.1% (2018); joint

FDI enterprises are 84.1% (2016), 83.9% (2017), 85.6% (2018) (table 3.2a). So,

The level of compliance with social insurance laws of non-state enterprises is at a very low level, although it has gradually increased over the years (the proportion of workers participating in social insurance in the total number of workers working in all all types of businesses: in 2016, it was only 48.03%; in 2017 it was 53.29%; in 2018 it was 60.22%), this will lead to a very large part of the workforce working in this type of business. This type of person is not allowed to participate in social insurance, is not entitled to social insurance benefits for sickness, maternity, work accidents, occupational diseases and the risk that when they return home, there will be millions of homeless workers. receive pension. This is even more serious as the non-state enterprise sector is increasingly expanding, the number of workers working in this sector is increasing and the number of state-owned enterprises and workers working here is increasingly increasing. gradually narrow. This is a major policy issue for the implementation of policies and laws on social insurance in the coming time

In addition to non-state enterprises that strictly implement social insurance payments for employees, there are still many non-state enterprises that still avoid paying social insurance for employees in many forms of "circumventing the law". delicate. Qualitative research results show:

"Some businesses usually pay social insurance payments for their employees the following month, the law stipulates that they must be paid monthly."

PVS. Male, social insurance officer

“Social insurance must be paid on the employee's total income. Currently, businesses often pay the regional minimum wage or slightly higher.

According to regulations, contributions must be based on the employee's total income. They do this to circumvent the law. They do not spend money or change social insurance payments for workers."

PVS. Female, social insurance officer

According to many opinions from experts, evasion of social insurance payments often takes place in non-state enterprises and less often in enterprises with foreign investment (FDI). This is explained by the financial resources as well as the sense of compliance with the law of FDI enterprises which are often higher than non-state enterprises, most of which are small and medium enterprises with limited capital.

3.3.2. Number of employees in non-state enterprises participating in social insurance

The results of table 3.2 show that: in 2017-2018, the number of workers in non-state enterprises participating in social insurance increased sharply. Specifically: in 2017, the number of workers from 4,137,032 in 2017 increased to 4,599,719 workers in 2018.

- For enterprises with foreign investment (FDI): number of employees:

4,069,273 in 2017 increased to 4,313,145 workers in 2018.

- For state-owned enterprises: number of employees: 1,077,024 in 2017 increased to 1,033,553 employees in 2018.

Table 3.2. Number of employees and businesses participating in compulsory social insurance divided by type of business nationwide in 2017 and 2018

Type of management

Source: Project data calculated from the electronic database of social insurance management of Vietnam Social Insurance

The results of data on social insurance participation of employees in the 03 types of businesses in Hanoi mentioned above show that the rate is similar to the data on workers.

workers participating in social insurance nationwide. The total number of employees working in state-owned enterprises participating in social insurance accounts for 10.1%, FDI enterprises account for 22.1%, non-state-owned enterprises account for 67.8% of the total number of employees participating in social insurance of 3 types. business form. The results of the Annual Enterprise Survey of the General Statistics Office show that, in the type of non-state enterprise, the ratio of insurance participation compared to the total number of employees needing to participate in social insurance is very low. , only 37% (2016), 44.3% (2017), 53.1% (2018); meanwhile

state-owned enterprises, this rate is 86.5% (2016), 90.1% (2017), 88.1% (2018);

FDI enterprises are 84.1% (2016), 83.9% (2017), 85.6% (2018) (table 3.2a).

The data results above reflect the fact that in recent times the number of employees participating in social insurance at non-state enterprises; in foreign invested enterprises (FDI) and state-owned enterprises both tend to increase. Non-state-owned enterprises have the highest number of employees participating in social insurance, significantly higher than foreign-invested enterprises (FDI) and state-owned enterprises.

With the increase in the number of people participating in social insurance, in recent times, it has proven that non-state enterprises have had a lot of effort in paying social insurance for employees. Non-state enterprises have strictly implemented policies and laws on social insurance and the awareness of workers in non-state enterprises on social insurance has improved. Many workers also consider participating in social insurance as one of the criteria for them to be able to stick with the business for a long time.

3.3.3. Identify characteristics of employees in non-state enterprises participating in social insurance

To identify the characteristics of workers participating in social insurance in non-state enterprises, the researcher focused on analyzing the following factors: average income; sex; Time to participate in social insurance; place of birth; household registration and place of residence of the worker. Determining the characteristics of workers is necessary for a more detailed description of the research content on workers' participation in social insurance as well as a basis for analyzing factors affecting participation. social insurance of workers.