The unemployment insurance (UI) scheme in Vietnam started collecting contributions on 1 January 2009 and released its first payments for UI benefits on 1 January 2010. Beside cash transfers for income replacement set at 60 per cent of previous earnings for a maximum period of six months and maintenance of social health insurance coverage, the UI scheme provides job counseling and placement services via the 69 Employment Service Centers (ESCs) throughout the country. In addition, ESCs is also responsible for collecting labour market information, a function expected to help adjusting policy and programmes aiming to match demand and supply of labour.

Although the UI scheme’s performance in Viet Nam is remarkable for the fast increase in coverage, statistics show that less than 2 per cent of unemployed beneficiaries return to work prior to the end of the benefit entitlements. At the time of registration as unemployed at the ESC, if there is no possible immediate job matching, most probably the insured unemployed will need to undertake some re-training programmes to meet current job requirements. However, up to April 2012, out of the 560,447 cases receiving UI benefits, only 3,969 have attended a vocational training course, accounting for less than 1% of the total UI beneficiaries, even though insured unemployed are entitled to training allowance up to 6 months.

This raises a major concern among policy makers (e.g. Bureau of Employment, General Division of Vocational Training (GDVT), Viet Nam Social Security System (VSS), Viet Nam General Confederation of Labour (VGCL), Viet Nam Chamber of Commerce and Industry (VCCI)) concerning the effectiveness of the employment services to facilitate early return to work by the unemployed. There is a real need to improve programmes/services of the ESCs and learn as well from other countries on good practices to increase performance of ESCs’ services to the unemployed. With more effective services, the job seekers will be able to reintegrate employment before exhausting their unemployment benefits. Better employment support services will allow early return to work which will be beneficial not only for the insured unemployed and the unemployment insurance fund, but also for all job seekers, including those not covered by the UI scheme, and for the economy in general.

Objectives:

1. Raise awareness on the need/advantages to better link unemployment benefits and employment services to increase employability and re-employment of job seekers,
2. Increase knowledge of stakeholders (government and social partners) on employment services and programmes targeting at the unemployed in other countries,
3. Prepare recommendations on how to reinforce the role of public employment services to facilitate  employability and return to work of the unemployed, in particular those covered by the UI scheme but not only.

The Workshop was sponsored by ILO/Japan Multi-bilateral programme. The Workshop benefited from the long experience and great knowledge of Mr. Masayuki Nomiyama, expert on employment insurance and former MoLHW and JICA's official.

Workshop proceedings and recommendations by Celine Peyron Bista and Loan Ngo Thi

Agenda

Presentations

Linkages between unemployment insurance and employment services International experiences, by Celine Peyron Bista

The implementation of Unemployment Insurance and the contents of Employment Insurance in draft Employment Law, by Employment Bureau, Ministry of Invalids and Social Affiars, Viet Nam

Employment Insurance System of Japan, by Masayuki Nomiyama

An overview on Unemployment and time-related underemployment in Vietnam, bu Nguyen Thi Oanh and Nguyen Thi Thanh Mai

Hanoi Employment Service Centre (ESC)'s role in the implementation of the unemployment insurance ( UI) and the implementation of policies to support vocational training for people who are entitled to unemployment benefits in the area of Hanoi, by Vu Trung Chinh

Discussion notes: The situation of payment of unemployment (UI), difficulties, challenges in UI implementation, recommendation, by Viet Nam Social Security