VIETNAM NATIONAL UNIVERSITY UNIVERSITY OF ECONOMICS & BUSINESS FACULTY OF FINANCE AND BANKING GRADUATION THESIS PARTICIPATION IN VOLUNTARY SOCIAL INSURANCE IN BAC NINH PROVINCE — CURRENT SITUATION AND SOLUTION Hanoi, 2021 DECLARATION I hereby declare that the essay "Participation in Voluntary Social Insurance in Bac Ninh Province — Current Situation and Solution" is my own work. The survey data and results in the year are truthful, never been published by anyone in any other work. For the views that the thesis inherits of the preceding authors, it is extracted to clearly state the origin and the name of the author who made that thesis. Supervisor’s Approval Student MSc.
Phung Thi Thu Huong Le Vu Minh Quang ACKNOWLEDGEMENTS To complete this graduate thesis, I would like to express my sincere gratitude to: The University of Economics & Business — Vietnam National University has facilitated installations for information study with a modern library system and diverse books and documents. The teachers in the Faculty of Finance and Banking who devoted themselves to teaching subjects connected to the topic, so that I am well-informed and can effectively apply these ideas in my essay. Foremost, I would like to express my sincere gratitude to my supervisor MSc. Phung Thi Thu Huong for the continuous support for my research, for her patience, motivation, enthusiasm, and immense knowledge.
Her guidance acknowledged and supported me in all the time of research and writing of this paper. I could not have imagined finishing this paper without having a better supervisor and mentor like Ms. Phung Thi Thu Huong. There is some lack of research experience and knowledge constrains shortcomings in the thesis.
I am looking for feedback, suggestions, and criticism from the teachers for the resarch to be improved. Lastly, I would like to wish you good health, success, and happiness! Sincerely, Le Vu Minh Quang Contents INTRODUCTION. ng ng HH nh HH nh 1 Background of the Study N. Gv 2 Scope of the Study.- - G11 Họ HH gà 3 Research methods .-- - s <6 + 1E 111181 91119 9v nh Hệ 3 Research QU€SfIOTS.
4 CHAPTER 1: LITERATURE REVIEW AND THEORETICAL BASIS OF SOCIAL INSURANCCE. HH HH ng ng nh 5 1. TT nh TH TH nh HT nghành 5 L. Foreign documents nh.
National OCUI€TIS.- Ác HH TH HH Hết 14 1. Social Insurance origin and conC€pI(. Types of social 1ISUTATIC. Voluntary social insurance roles.
Voluntary social insurance TeQIMES. Voluntary social insurance Characteristics. Voluntary social insurance subJ€CẨS. Voluntary social insurance participation procedures.
Factors affecting the participation in voluntary social insurance. 21 CHAPTER 2: RESEARCH METHODS. Research model and research hypothesis. Theory of Reasoned Action (TRA) and Theory of Planned Behavior (TPB).
HH HH HH HH nh 23 2. ng ng ng 25 2.- -- <5 c1 191v ng ng kc 27 Chapter 3: THE CURRENT SITUATION OF PARTICIPATION IN VOLUNTARY SOCIAL INSURANCE. Overview of Bac Ninh pr0VÏIC. The current situation of participant development of voluntary social insurance in Bac Ninh province .3 The current situation of factors affecting the employees’ participation in voluntary social insurance according to the survey results.4 Analyze Descriptive statistics, Reliability and Exploratory factor b1) 5800/9007 .5 Confirmatory Factor Analysis (ClA).6 Structural Equation Model (SEM).ccccccccesssceeesseeeeeseeeessseeeeees 63 CHAPTER 4: SOLUTIONS AND RECOMMENDA TIONS.1 Solutions to improve communICafION.2 Solution to improve the operational efficiency of collection agencies 72 4.3 Solutions to apply information technology .4 Solutions to advise and coordinate Implemenftation.- - G1 11v HH nh nh ng kg 76 4.1 Congress and GOV€rnImef(.2 Social insurance AGENCIES .3 Organizations representing employees to participate in voluntary social 090616011.4 People participating in voluntary social insurance.
- - - - G G G G G c2 ng 80 CHAPTER 5: CONCLUSION. ng ng hệt 81 REEFERENCTE.- -- -- - L Ă ĂĂ G G cọ ng 83 'V1efaín€S€. - - - - - GG G c1 1903116006003 1 1110505 5 1K 9E E9 EE ccg 83 5013410100077 .- --- Q1 HT TH HT gu TH Ho nu HH TH HH 87 LIST OF FIGURES & TABLES Diagram 2.1: Organizational model of the Social Insurance Agency in Bac Ninh DTOVITC€. Q22 2 ng EEE EEE EEE EEE EEE ene EEE EEE EEE 38 Diagram 3.1: The map of Bac Ninh province .1: Moral Responsibility Scale .2: Scale of Understanding.3: Scale of AftIfUde.
HS nh nhớt 29 Table 2.4: Scale of State Contribution Support .5: Scale of Customer Consulting .6: Scale of Intention .1: Number of collection agent and collection agent staff of Bac Ninh SOCIaÏ INSUTANCE aØ€TCY. 0n SH SH SH kh.2: The number of participants of voluntary social insurance from PBIIbfnAb:atdiaitaaiiiiiiẳiẳẳ.3: Results on the gender of survey respondents .4: Results on the age of survey respondents .5: Results on the academic level of survey respondents .6: Results on the occupation of survey respondents .7: Results on the income of survey respondents .8: Results on the status of the respondents to participate in voluntary SOCIAl INSUTANCE. SH SH SH ng kh nh nh nà 45 Table 3.9: Results of the reasons for not participating in the voluntary social insurance of the survey respondents .10: Results on the current situation of stop participating in voluntary social insurance of the survey respondents .11: Results on the current situation of stop participating in voluntary social insurance of the survey respondents .12: Summary Table of Descriptive Statistics and Reliability .13: KMO and Bartlett's Test. 0c cece cece cece eee eee eee eee eneeneeeenanneaeeas 51 Table 3.15: CFA Chi-square .16: CFA RMR, GF[.
S2 nh hen 53 Table 3.17: CFA Baseline Comparisons. eee eee ce cee e cece neeee ne eee HH nh ng nh nhà 54 Table 3.19: CFA Regression Weights .20: Standardized Regression Weights .21: Final measurement model testing results.22: Descriptive statistics, correlation matrix. SH nh hy 63 Table 3.24: SEM RMR, GEÌ. ene ences teense Sky 63 Table 3.25: SEM Baseline Comparisons.
cece cece eee e ene eee cent en ene ene eaeneeeneeaenaens 64 Table 3.27: SEM Regression Weights .28: SEM Squared Multiple Correlations .29: Table of Significance Level INTRODUCTION Background of the study Social insurance is an opportunity to reimburse part of the income of employees if they end up losing or decrease their income due to illness, maternity, occupational accident and occupational disease, disability, unemployment, old age, death, on the basis of a financial fund owing to the contribution of the parties to social insurance, with the protection of the State under the statute, to guarantee the safety of life for workers and their families as well as to contribute to the protection of social security. Social insurance policy is a major policy in Vietnam, and an integral part of the social security policy system. The improvement of the social insurance system and the development of voluntary social insurance programs have been described as one of the key alternatives to the development of the social insurance system and have been institutionalized in a variety of legal documents. 21-NQ/TW of 22 November 2012 stated: "Social insurance and health insurance are two significant social insurance programs.
They are the core pillars of the framework of social welfare, leading to social development and equality. Socio-political stability and socio-economic growth are assured. When engaging in voluntary social insurance, low-income freelance workers will benefit from pensions that will help to ensure their old age. However, by the end of 2020, the number of voluntary social insurance applicants will hit almost 1.1 million, an increase of 494 thousand people, nearly doubled in comparison to 2019.2 percent of the workforce in the age is the farmer and the worker of the informal sector participating in voluntary social insurance).
Bac Ninh is a province located in the main economic area of Northern Vietnam with higher economic growth and living standards than other regions, but the number of employees engaging in voluntary social insurance is still very low.2% of the total number of participants). The aim of this study is to examine the current situation of workers participating in voluntary social insurance in the province of Bac Ninh in order to provide effective strategies to encourage more workers to participate in voluntary social insurance. Faced with the low number of voluntary social insurance participants in the province of Bac Ninh and the general possibility of social insurance imbalances in the near future, the problem of attracting voluntary social insurance participants has become even more relevant. That is why I chose: “Participation in Voluntary Social Insurance in Bac Ninh — Current Situation and Solution” as the subject of my graduate thesis.
Aims & Objectives e Aims This research aims to study on the principle of voluntary social insurance, evaluate proposes about the current status about the voluntary social insurance participation in Bac Ninh province, thereby offering solutions to attract employees to participate in voluntary social insurance. ¢« Objectives + To research the theory of voluntary social insurance. + To investigate the status of the participation in voluntary social insurance. + To investigate the reasons why workers do not engage in voluntary social insurance.
+ To provide recommendations to attract workers to get involved in voluntary social insurance. Scope of the study + Scope of space: Voluntary social insurance in Bac Ninh province + Scope of time: In the period from 2015 to 2020 Research methods The study uses a questionnaire method based on consumer behavior theory to collect survey data on factors affecting the decision to participate in voluntary social insurance of people in Bac Ninh province. Then, SPSS software will be used to run the SEM model to help evaluate the role of the factors in this participation decision. Research questions This research is about the factors affecting the participation in the voluntary social insurance of workers in Bac Ninh province.
To collect data about this topic, there are three questions that need to be solved at the end of the research. + What is the current situation of developing participants of voluntary social insurance in Bac Ninh province? + What are the factors affecting the participation in the voluntary social insurance of workers in Bac Ninh province? + What can Bac Ninh provincial social insurance do to attract more workers to participate in voluntary social insurance? Research structure There are 5 chapters: Chapter 1: LITERATURE REVIEW AND THEORETICAL BASIS OF SOCIAL INSURANCE Chapter 2: RESEARCH METHODS Chapte 3: THE CURRENT SITUATION OF PARTICIPATION IN VOLUNTARY SOCIAL INSURANCE Chapter 4: SOLUTIONS AND RECOMMENDATIONS Chapter 5: CONCLUSION CHAPTER 1: LITERATURE REVIEW AND THEORETICAL BASIS OF SOCIAL INSURANCE 1. Vietnam’s Social Insurance Giang Vinh Nguyen and Hanh Thi Hai Nguyen (2020) provide an overview of social insurance in Vietnam, looking at past policy formulation and implementation and social insurance regimes. Research draws optimistic conclusions, limitations, and priorities.
It proposes policy reforms, develops a social insurance system to ensure a safe and healthy life for all members and leads to sustainable economic growth for the country. The Factors Affecting the Decision to Participate in Voluntary Social Insurance of Vietnamese Employees: The Case of Tra Vinh Province The aim of this study by Ha Hong Nguyen, Trung Thanh Nguyen & Phong Thanh Nguyen (2010) is to discover the factors that influence non-state sector employees’ decisions on whether or not to engage in voluntary social insurance. Proposing some recommendations on developing a_ voluntary insurance policy to the Vietnamese government and Social Insurance in Vietnam, strengthened social security for non-state employees in Vietnam. The study of factors influencing Vietnamese employees' decisions to engage in voluntary social insurance in Tra Vinh province, using a primary data collection system of 300 employees in Tra Vinh province and multivariate regression methods.
The study identified 9 factors: social security awareness, employees' behavior, understanding of voluntary social security insurance, the social effect of voluntary social insurance, employee income, social media, volunteer social insurance policy, the awareness of adult health at age and moral obligation that impacts the option of participating in voluntary social insurance policies.