Expert: The new support package should target informal workers

The Government is assigning the Ministry of Labor, War Invalids and Social Affairs to urgently receive comments from ministries and branches and complete a draft resolution on support policies for workers and businesses affected by the pandemic.

In August 2020, the Ministry of Labor, War Invalids and Social Affairs proposed an additional package of 18,000 billion focusing on unemployed workers renting houses, small and micro businesses, but there were no results.

Recently, the second support package is expected to have a total cost of over 27,580 billion VND, however, it is in the process of being completed so detailed information has not been announced.

According to the initial draft, policy groups will aim to reduce the contribution rate to the Labor Accident and Occupational Disease Insurance Fund for 12 months so that businesses have more funding to prevent epidemics;

Hanoi was deserted during the social isolation period in April 2020.

Evaluating after more than a year of implementing support packages and making recommendations for new packages, many opinions in the National Assembly’s Economic Committee on June 15 said that some recent policies have not really approached

According to the Committee, the Government needs to have a comprehensive assessment of support policies and provide forecasts and scenarios with appropriate proposals to make the second support package more effective.

This is also the common opinion of many experts.

Mr. Huan analyzed that the results of disbursement of the VND 62,000 billion package showed that it was directed more towards social policy groups including poor households, near-poor households, people with meritorious services, and patrons (83% of people supported belonged to these 4 groups).

During the two epidemics from the beginning of 2021 until now, localities, whether quarantined or not, have temporarily suspended many services and banned large gatherings;

According to public policy expert Nguyen Quang Dong, the fastest way to support is to shorten procedures and apply information technology in registration, grouping, and data comparison to prevent fraud.

Household-based service business groups with fixed addresses such as cafes and restaurants that employ workers who have to leave work during the period of social distancing or quarantine will have information and data registered with the agency.

Workers apply for unemployment benefits at Hanoi Employment Service Center, June 2020.

Groups of contract drivers and private preschool teachers can instruct employers to make a list before registering information.

Groups of informal workers who migrate from localities to big cities or move frequently between places still need confirmation from authorities at their permanent and temporary residences and support from information technology to enter.

`If we still do it manually with the ministry’s confirmation document system, it will take time and easily miss the time when we need support,` Mr. Dong admitted.

Number of workers negatively affected by epidemics from the beginning of 2020 until now.

The VND 62,000 billion welfare package once included street vendors in support, but many localities were confused during the approval process because they believed this group violated urban order and civilization.

Experts also believe that support policy packages should be customized for each locality.

Former Deputy Minister Pham Minh Huan emphasized that vaccine priority should still be given to workers, creating immunity for normal production and activities.

Vietnam has about 19.5 million informal workers working freely or in small service businesses, typically without contracts, without fixed salaries, and without participating in mandatory social insurance.

According to reports from the General Statistics Office and the World Labor Organization, the majority of informal workers in Vietnam work in three industry groups: `Processing and manufacturing industry`, `Construction` and `Sales`.