1. 1 Ministry of Labour, Invalids and Social Affairs

2. CONTENT I. Key contents of the UI scheme II. Implementation outcomes III. Challenges and future directions 2

3. I. KEY CONTENTS OF THE UI SCHEME 1. Scheme participants: 1.1. Employee: being Vietnamese citizens engaging in following types of labour contract or working contract:  fixed term contract from 12 months up to 36 months;  open ended contract 1.2. Employers: contracting 10 or more employees 2. Scheme contribution The contribution ratio is 1%:1%:1% for Employee : Employer : State out of the registered monthly salary 3

4. I. KEY CONTENTS OF THE UI SCHEME 3. Conditions to UI benefits: UI contributors who lose job or have working contract terminated will be entitled to UI benefits under following conditions:  having made contribution to UI scheme for full 12 months or over, within 24 months before the contract end date, as regulated by laws  having registered as unemployed at Employment Service Centre, under provincial Department of Labour, Invalids and Social Affairs at the working/ labour contract termination, as regulated by laws  having been out of job for 15 working days since the unemployment registration date at ESC 4

5. I. KEY CONTENTS OF THE UI SCHEME 4. UI benefits: 4.1. Unemployment allowance:  Monthly allowance: 60% of the average monthly salary of 6 months before unemployed  Duration of allowance: 5 Benefit durationContribution 3 months12-36 months 6 months36-72 months 9 months72-144 months 12 months144 months and over

6. I. KEY CONTENTS OF THE UI SCHEME 4. UI benefits 4.2. Vocational training support:  This support is based on cost of a specific vocational training and as regulated by Prime Minister  Duration of vocational training is up to 6 months 4.3. Job seeking support: qualified participants can have free service of employment counseling and introduction 4.4. Health care insurance: Vietnam Social Security covers health care insurance for qualified UI participants 6

7. I. KEY CONTENTS OF THE UI SCHEME 5. Unemployment registration within 3 months since job losing or labour/ working contract terminating exeptions of over 3 month registration are allowed in certain cases, but not for more than 7 days (solar calendar) 6. Deadline for UI claim submission UI claims should be submitted within 15 working days since the date of registration 7. Claim processing: within 20 working days from the date of claim submission. 7

8. II. IMPLEMENTATION OUTCOMES 1. UI income 8 YearContributors (million)Income (billion dong) 20095,9 933.510,651 20107,2065.400,3 20117,9686.747,11 20128,3047.973,86 First half of 2013 8,3473.765,14

9. II. IMPLEMENTATION OUTCOMES 2. UI processing and settlement 9 No Content 2010 (person) 2011 (person) 2012 (person) First 9 months of 2013 (person) 1Number of registers189.611335.901482.128371.170 2 Number of participants having claim decisions 156.765291.302421.048346.763 3 Number of participants having changes in claim address 26.66656.79791.06629.404 4 Number of participants receiving job seeking support and job counselling service 125.562217.721342.145301.304 5 Number of participants receiving vocation training support 2701.0374.7767.517

10. II. IMPLEMENTATION OUTCOMES 3. UI expenditure - In 2010: according to report by Vietnam Social Security, the Social insurance agencies have paid out approx. 609,331 billion VND - In 2011: UI expenditure of 1.250,4 billion VND - In 2012: UI expenditure of 2.784,9 billion VND - first half of 2013: 1.443 billion VND 10

11. III. CHALLENGES AND FUTURE DIRECTIONS 1. UI participants Extended participants: employees engaging in seasonal contracts, labour contracts of less than 3 months or self- employed can participate in UI scheme as regulated by laws 2. UI contribution no limitations on the UI contributions, but the UI benefit level 3. UI benefits - supplements to UI benefits - strict regulations on conditions for UI benefits - reconsiderations on vocational training support 11

12. III. CHALLENGES AND FUTURE DIRECTIONS 4. Claim processing Employees prefer one door processing, from registration to claim receiving, so they do not have to approach many departments - VSS: continues managing UI fund and collecting contributions - Departments of Labour, Invalids and Social Affairs: unemployment registration, job counselling and seeking, vocational training support, UI benefit pay out 5. Managing employment status of participants regulations on employee turnover in enterprises in order to manage labour force in the locality, measures to minimise UI frauds 12

13. Thank you for your attention! 13