Theoretical background and solutions for Social security model in Vietnam

Through analyzing statistical data, this research attempts to present the situation of the social security model in Vietnam in recent years, thereby pointing out the limitations in the issuance and implementation of relevant policies. The results show that: (i) although the participants in the social security have been expanded, the coverage is yet to meet the target; (ii) Vietnam is adopting the socialization model with the principle of "payment-benefit" where large numbers of participants join to share risks and funds are pooled to pay for the insured. However, there is still a difference between the payment-benefit level between participants and; (iii) the monopoly of the State in providing the service, managing and using the social security funds has revealed many shortcomings. Through analyzing the current practice, the authors propose some solutions to improve Vietnam's social security model in the coming period, including (i) expanding the coverage to ensure the benefits for the participants and increase the revenue; (ii) specifying the principles of insurance, in particular, the premium obligations and funding of the State for each target group so as to reduce the burden for the insurance funds; (iii) encouraging the participation of the private sector in the provision of services to avoid the overloading to the current insurance funds and offer more options for the participants and; (iv) improving the management and using of the funds.