COUNTRY FACT SHEET
VIETNAM
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COUNTRY FACT SHEET
TABLE OF CONTENTS TABLE OF CONTENTS I. GENERAL INFORMATION 1. Geography 2. Environmental protection II. GOVERNANCE 1. Political Structure 2. Administrative divisions III. ECONOMY IV. EMPLOYMENT 1. Unemployment Assistance 2. Procedures to start Self-employment V. RELIGION AND ETHNIC GROUPS VI. TRANSPORTATION VII.TELECOMMUNICATIONS VIII. SOCIAL WELFARE SYSTEM 1. Social insurance 2.Social relief 3.Support for children 4.Pensions IX. HEALTHCARE X. EDUCATION 1.Educational System 2.Approval of Foreign Diplomas 3.Costs, Loans and Stipends XI. HUMAN RIGHTS AND INTERNATIONAL DISPUTES XII. LINKS
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COUNTRY FACT SHEET I. GENERAL INFORMATION • • • • • • • • • • • • • • •
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Full name: Socialist Republic of Vietnam (Cong Hoa Xa Hoi Chu Nghia Viet Nam). Population: 91,519,289 (July 2012 est., CIA) Capital: Hanoi (Ha Noi) Largest cities: Ho Chi Minh City (pop 5.976 million), Hanoi (pop. 2.668 million), Haiphong (pop. 1.941 million), Da Nang (pop. 807,000) Area: 331,210 sq km Languages: Vietnamese (official), minority languages Religions: Buddhist 7.9%, Catholic 6.6%, Hoa Hao 1.7%, Cao Dai 0.9%, Protestant 0.9%, none 81% (2009) Major ethnic groups: Kinh (Viet) 85.7%, Tay 1.9%, Thai 1.8%, Muong 1.5%, Khmer 1.5%, Mong 1.2%, Nung 1.1%, others 5.3% (1999 census) Life expectancy: Life expectancy at birth 72.41 years Monetary unit: Vietnamese Dong (VND), 1 dong = 100 xu Main exports: crude oil, textiles, seafood, rice, electronics, computers and rubber GNI per capita: US $ 1260 (World Bank, 2011) Internet domain: .vn Borders: Cambodia 1,228 km, China 1,281 km, Laos 2,130 km Flag: Red field with a large yellow five-pointed star in the centre: red symbolises revolution and blood, the five-pointed star represents the five elements of the populace - peasants, workers, intellectuals, traders, and soldiers - that unite to build socialism National holiday: Independence Day, 2 September (1945) Government type: Vietnam is a one-party Communist state, led by Communist Party of Vietnam (CPV), General Secretary Mr Nguyen Phu Trong. President: Mr Truong Tan Sang (since 25 July 2011) Prime Minister: Mr Nguyen Tan Dung Membership of international groupings/organisations: Vietnam is a member of the United Nations, Association of South East Asian Nations (ASEAN) current Chair, the Non-Aligned Movement, the Asia-Europe Meeting (ASEM), the Asia Pacific Economic Cooperation (APEC), and the World Trade Organisation (WTO).
Vietnam, officially the Socialist Republic of Vietnam, is the easternmost country on the Indochina Peninsula in Southeast Asia. Vietnamese history is the story of the struggle to develop a sense of nationhood throughout this narrow, 1,600-kilometer stretch of land, and to maintain it against internal and external pressures. China was the chief source of Vietnam’s foreign ideas and the earliest threat to its national sovereignty. As a result of a millennium of Chinese control beginning in about 111 BC, the Vietnamese assimilated Chinese influences in the areas of administration, law, education, literature, language, and culture. After 900 years of independence, and following a period of disunity and rebellion, the French colonial era began between 1858 and 1883, when the French seized control of the nation and divided it into three parts: the North (Tonkin), the Centre (Annam), and the South (Cochinchina). French colonial rule was, for the most part, politically repressive and economically exploitative. The Japanese occupied Vietnam during World War II but allowed the French to remain and exert some influence. At the end of the war in 1945, Ho Chi Minh, leader of the Communist Viet Minh organisation, declared Vietnam’s independence. However, the French quickly reasserted the control they had ceded to the Japanese, and the First Indochina War (1946–54) was underway. French control ended on May 7, 1954, when Vietnamese forces defeated the French at Dien Bien Phu. The 1954 Geneva Conference left Vietnam a divided nation, with Ho Chi Minh’s Communist government ruling the North 3
COUNTRY FACT SHEET from Hanoi, and Ngo Dinh Diem’s regime, supported by the United States, ruling the South from Saigon (later Ho Chi Minh City). As a result of the Second Indochina War (1954–75), the Viet Cong, the communist forces in South Vietnam, and the forces of the regular People’s Army of Vietnam (PAVN) from the North unified Vietnam under Communist rule. In this conflict, the insurgents, with logistical support from China and the Soviet Union, ultimately defeated the Army of the Republic of Vietnam, which sought to maintain the independence of South Vietnam with the support of the U.S. military. The South Vietnamese army surrendered on April 30, 1975. In 1976, the government of a united Vietnam renamed Saigon Ho Chi Minh City in honour of the wartime Communist leader. Having politically unified the North and the South, the Vietnamese Communist Party (VCP) still had to integrate them socially and economically. In this task, VCP policy makers were confronted with the South’s resistance to Communist transformation. More than a million Southerners, including about 560,000 “boat people,” fled the country soon after the Communist takeover, fearing persecution and the seizure of their land and businesses. About a million Vietnamese were relocated for re-education to previously uncultivated land called “new economic zones”. After the Vietnam War in 1975 Vietnam was unified under a Communist government, but was politically isolated and impoverished. In 1986, the government initiated a series of economic and political reforms, which began Vietnam’s path towards integration into the world economy. By 2000, it had also established diplomatic relations with most nations. 1. Geography The area of Vietnam stretches 1,600 km north to south, but the country is only 40 km wide at its narrowest point in the centre. Vietnam is bordered by China on the north, Laos on the northwest, Cambodia on the southwest and the South China Sea on the east. It is predominantly mountainous with densely-populated fertile plains in the north and the south around the Red River Delta and the Mekong Delta, respectively. The Vietnamese divide Vietnam into three regions -- the North, the Centre and the South. The Vietnamese language spoken in the three areas differs considerably. Vietnam’s 53 ethnic minorities are primarily concentrated in the mountainous areas in the north and in the Central Highlands. The Climate varies considerably from north to south, but is generally hot, humid, and during rainy season, wet. Because of differences in latitude and the marked differences in topography, the climate tends to vary considerably from place to place. During the winter or dry season, which extends roughly from November to April, the monsoon winds usually blow from the northeast along the Chinese coast and across the Gulf of Tonkin, picking up considerable moisture. Consequently, the winter season in most parts of the country is dry only in comparison with the rainy or summer season. The average annual temperature is generally higher in the plains than in the mountains and higher in the south than in the north. Temperatures vary less in the southern plains around Ho Chi Minh City and the Mekong Delta, ranging between 21 and 28 °C over the course of the year. Seasonal variations in the mountains and plateaus and in the north are much more dramatic, with temperatures varying from 5 °C in December and January to 37 °C in July and August. 2. Environmental protection Urbanisation, planning, industrialisation, and intensive farming are having a negative impact on Vietnam’s environment. These factors have led to air pollution, water pollution and noise pollution, particularly in urban and industrial centres like Ho Chi Minh City and 4
COUNTRY FACT SHEET Hanoi. The most serious problem is waste treatment. The impact of land use has led to significant environmental problems, including severe deforestation, soil erosion, sedimentation of rivers, flooding in the deltas, declining fish yields and pollution of the coastal and marine environment. The use of Agent Orange by the U.S. military in the Second Indochina War, or Vietnam War (1954-75) has had a lingering effect on Vietnam, in the form of persistent environmental contamination that has increased the incidence of various diseases and birth defects. Fresh water within a range of one km is accessible to 99% of the citizens. In the urban water supply, great differences exist between the large and small cities. Water supply with tap water in large cities such as Ho Chi Minh and Hanoi cover nearly 100%. In the smaller cities, often less than 60% of the people have access to tap water. In the rural areas, fresh water within a range of one km is accessible to 75% of the population. But only 51% of rural households are having hygienic latrines. Around 60% of the Water Producing Companies (WPCs) are involved in the water markets in urban areas. However the supply is still controlled by the government. The WPCs are reducing their activities related to water supply. In rural areas, hand-dug wells are still the most important source of water and 39% to 44% still rely on it. Only 10% of the rural population is supplied with piped water. Water pollution causes the greatest damage in the Mekong Delta. The delta is considered to be Vietnam’s rice bowl. Water pollution caused by rapid industrialisation results in high rates of diarrhoea, since most people in this region depend on river water. II. GOVERNANCE 1. Political Structure Politically, the Socialist Republic of Vietnam is a single-party Socialist Republic, where the President of Vietnam is the head of state, the Prime Minister of Vietnam is the head of government and the single-party system is led by the Communist Party of Vietnam (CPV). Executive power is exercised by the government and the President of Vietnam. Legislative power is vested in the National Assembly of Vietnam (Vietnamese: Quoc hoi) and the Judiciary is independent of the executive. The parliament adopted the current (fourth) Constitution of Vietnam on 15 April 1992 and it has been amended once since then. The National Congress is the party’s highest organ. The direction of the Party and the Government is decided at the National Congress, held every five years. The delegates vote on policies and candidate posts within the central party leadership. Following the ratification of the decisions taken at the National Congress, the National Congress dissolves itself. The Central Committee, which is elected by the National Congress every five year, implements the decisions of the National Congress during the five-year period. Since the Central Committee only meets twice a year, the Politburo implements the policies of the National Congress. The Central Committee (CC) is the CPV’s most powerful institution. It delegates some of its powers to the Secretariat and the Politburo when it is not in session. 2. Administrative divisions Provinces and municipalities are subdivided into towns, districts and villages. The 5
COUNTRY FACT SHEET provinces (58) and municipalities are centrally controlled by the national government. Towns, districts and villages are locally accountable to some degree through the elected People’s Councils. Some cities and provinces are under the direct control of the central government. The provinces are divided into districts, provincial cities and towns. The cities under direct rule are divided into towns, urban and rural districts. In turn, the districts are divided into communes and townlets. Pursuant to Article 118 of the Constitution, the provincial cities and the towns are divided into wards and communes, and the urban districts are divided into wards. III. ECONOMY Vietnam’s economic growth has been among the highest in the world since 2000. Vietnam also has the highest Global Growth Generators Index among 11 major economies and its successful economic reforms resulted in it joining the World Trade Organisation in 2007. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture’s share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry’s share increased from 36% to 40% in the same period. However, the country still suffers from a relatively high level of income inequality. Severe poverty has gradually declined and Vietnam is working to create jobs to meet the challenge of a labour force that is growing by more than one million people every year. The government’s strong, growth-oriented economic policies have caused a struggle to control one of the highest inflation rates in the region, which reached a peak of 23% in August 2011 and averaged 18% for the year. Vietnam’s managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it by more than 20% through a series of small devaluations. In February 2011, Vietnam shifted its focus away from economic growth to stabilising its economy and tightened fiscal and monetary policies. One U.S. dollar is now equivalent to 20 828.00 Vietnamese dong (October 2012). Vietnam’s progress in macroeconomic reform has taken the delivery of rural public services into account as an effort to develop an equitable market economy. Rural public services in Vietnam play an important role in bringing about rural transformation, economic growth and poverty reduction. However, rural areas are generally extensive, so the quality of basic rural public services differs greatly between the regions and between the provinces in a region. These variations are mostly due to the lack of available financing. Banking The State Bank of Vietnam, a Government agency responsible for issuing currency, managing money and advising monetary policies for Government of Vietnam, is at the top of Vietnamese banking system. The Vietnamese commercial bank system includes five state-owned commercial banks, 34 joint-stock commercial banks, four joint-venture banks, 35 branch offices of foreign banks and representative offices, six financial companies and foreign banks. Some of the largest banks in Vietnam are the Vietnam Bank for Agriculture and Rural Development (Agribank), the Bank for Investment and Development of Viet Nam (BIDV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietin Bank). Three of most popular foreign banks in Vietnam are HSBC, ANZ and Citibank.
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COUNTRY FACT SHEET The following is required for opening a bank account in Vietnam: - Application form - ID card or passport (original, not a notarised copy) - In some banks, a minimum initial deposit is also needed. Vietnam Bank for Agriculture and Rural Development (Agribank) http://www.agribank.com.vn/102/790/about-us/agribank-network.aspx Bank for Investment and Development of Viet Nam (BIDV) http://www.bidv.com.vn/ Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietin Bank) http://www.vietinbank.vn/web/home/en/index.html IV. EMPLOYMENT Vietnam’s labour force totals approximately 46.48 million (2011 est.), of which half is employed in agriculture, forestry and fishery. The 2011 unemployment rate in the urban areas, according to the General Statistics Office of Vietnam, was 3.6 %. 1. Unemployment Assistance The Social Insurance Law was passed in October 2010 and came into force in July 2011. It states that all workers whose employers and who themselves contributed Unemployment Insurance (UI) premiums for one year or more are eligible for UI payments provided that they are dismissed involuntarily and are registered as unemployed while being prepared to take a job. In order to receive UI benefits, the unemployed person must present a document issued by the former employer as proof of his/her dismissal to the public employment service institutions to complete the unemployment registration. Anyone who refuses to take a job or vocational training offered by the departments or institutions that are appointed by the local government without proper reason, will become ineligible to receive UI benefits. The Job Seekers’ Support Program aims to assist those unemployed who are ineligible for unemployment benefits (UB) (i.e. those who are not insured, who cannot receive UB because the insured period is not long enough to meet the criterion, who have exhausted their entitlement to UB, new graduates who have no employment experience, and selfemployed whose business closed down) by providing the following services: a. Free professional training (Job-Seekers Support Training) b. A Professional Training Participation Allowance, if certain conditions, including a means test are met c. Strong employment support by the Public Employment Service (PES). 2. Procedures to start Self-employment As regulated by the Corporation Law, the following two options for business registration exist: • If only one person is making the investment, he/she will set up a private enterprise (hereafter private enterprises). The document required for business registration is: - An application form for business registration
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COUNTRY FACT SHEET • If more than one person are jointly making the investment, they will establish a limited (Ltd. company) or a joint-stock company. The documents required for business registration include: - An application form for business registration - The company’s regulations as required by the provisions of the Corporation Law - A list of the shareholders (a Ltd company with at least two shareholders, or list of the founders (joint-stock company) Documents required for business registration (foundation of private company, limited company limited and joint-stock company) will be submitted to the Business Registration Office under the jurisdiction of the Department of Planning and Investment in the area where the headquarters of the aforementioned companies are located. The founders can submit the document personally, or provide a written authorisation for someone else to submit the documents. After receiving the documents, the Business Registration Office can request the applicant to submit the following papers: - Identity card or passport (if the person is applying for business registration in person). - Identity card or passport and authorisation paper or authorisation contract (if an authorised person is submitting the papers) - Copy of a residence book or identity card or passport (if a company manager and legal representative is submitting the papers) • If a Vietnamese citizen who is living abroad wants to register his/her business in Vietnam, he/she will use one of the following certificates: - Certification for Vietnamese Nationality Verification - Certification for Vietnamese Nationality Loss. - Certification for Citizen Registration. - Certification for Blood Relationship. After checking the accuracy of all documents, the Business Registration Office will issue a receipt. Within 15 days of the receipt of a complete set of accurate documents, the Business Registration Office will issue a business registration certificate to the company founders. However, if the Office declines to issue a business registration certificate, it will have to inform the applicant about reasons why. Upon the receipt of the business registration certificate, enterprises are permitted to start their business operations. After receiving a business registration certificate, the enterprises should go to their local Department of Public Security, and get an official seal, and then go to the Tax Office to register a tax code. V. RELIGION AND ETHNIC GROUPS For much of Vietnam’s history, Mahayana Buddhism, Taoism and Confucianism have been the dominant religions, strongly influencing the national culture. About 85% of Vietnamese identify themselves as Buddhist, though not all practice it on a regular basis. According to the General Statistics Office of Vietnam’s report for 1 April 2009, 6.8 million (or 7.9% of the total population) are practicing Buddhists, 5.7 million (6.6%) are Catholics, 1.4 million (1.7%) are adherents of Hòa Hảo, 0.8 million (0.9%) practise Cao Đài, and 0.7 million (0.9%) are Protestants. In total 18.2% are not formally registered with any religion. Buddhism arrived in Vietnam in the 1st or 2nd century AD through trade routes from central Asia and China in the north and India in the south. Followers in Vietnam practice various traditions without any problem or sense of contradiction. Few Vietnamese Buddhists would 8
COUNTRY FACT SHEET identify themselves with any particular kind of Buddhism, as a Christian might identify him or herself with a particular denomination. Although Vietnamese Buddhism does not have a strong centralised structure, the practice is similar at almost all the temples throughout the country. Christianity was first introduced to Vietnam by Portuguese and Dutch traders in the 16th and 17th centuries, and was further propagated by French missionaries in the 19th and 20th centuries, and to a lesser extent, by American Protestant missionaries during the Vietnam War, largely among the Montagnards of South Vietnam. The largest Protestant churches are the Evangelical Church of Vietnam and the Montagnard Evangelical Church. Two-thirds of Vietnam’s Protestants are reportedly members of ethnic minorities. Ethnic Groups Vietnamese (Kihn) are the predominant ethnic group, constituting 85% to 90% of the population. Chinese account for 3% of the population. Other ethnic groups include the Hmong, Thai, Khmer, Cham, and Montagnards, an indigenous group living in the Central Highlands. Vietnam is a home to 54 different ethnic minority groups. In the elementary and secondary schools, there are programs to conduct classes in the languages of some of the local ethnic minorities. The government works with local officials to develop local language curricula, but it appears that this program is being more comprehensively implemented in the Central Highlands and the Mekong Delta than in the mountainous provinces in the north and north-west. Ethnic minorities are not required to pay regular school fees, and the government operates special schools for ethnic minorities in many provinces, including subsidised boarding schools at the middle- and high-school levels. The government offers special admission and preparatory programs, as well as scholarships and preferential admissions, at the university level. There are also a few government-subsidised technical and vocational schools for ethnic minorities. Nonetheless, there are cases of discrimination against Christian ethnic minorities, although the law provides for universal education for children regardless of religion or ethnicity. VI. TRANSPORTATION Although Vietnam is still a poor country with low per capita income that has suffered years of war, it has continually recorded considerable achievements in building its infrastructure, of which the most visible results is the highway network, the railways, maritime and inland waterways, and aviation. There are a number of major highways and bridges linking Vietnam to its neighbouring countries. The main one is National Highway 18 and 18B, which extends 118 kilometres from an industrial complex at Cai Lan to the border between Vietnam and China. More links to Vietnam’s neighbouring countries are being planned or constructed, such as with the Lao People’s Democratic Republic. The road links with the Lao People’s Democratic Republic will extend to Thailand and form the ADB’s “East-West Corridor.” Railways With a total length of 2,600 km, the Vietnam Railways network connects residential areas to cultural, agricultural and industrial centres, except in the area of the Mekong River Delta. Vietnam Railways is linked to the railways in China in two 2 directions: • From Lao Cai Province to Van Nam Province. • From Lang Son Province to Quang Tay Province
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COUNTRY FACT SHEET Highways Vietnam’s road system includes the following: national roads administered by the central level; provincial roads managed by the provincial level; district roads managed by the district level; urban roads managed by cities and towns; and commune roads managed by the commune level. The total length of the Vietnam road system is about 222,179 km, 19.0% of which are paved, mainly national roads and provincial roads (source: Vietnam Road Administration, 2004). The length of the national road system is 17,295 km, 83.5% of which is paved. The provincial road system is comprised of 27,762 km of roads, 53.6% of which are paved. Expressways are rather a new concept for the Vietnamese. Traffic is increasing rapidly but the major roads are dangerous because of their inappropriate design and an inappropriate traffic mix. Vietnam currently recognises two classes of expressway. Both have a minimum of two lanes in each direction, but the Class-A roads have grade-separated intersections, while the Class-B roads have at-grade intersections. There are four speed categories for roads: 60, 80, 100 and 120 km/h. Generally all cars, buses and trucks are permitted on the expressways, except for cong nong and motorcycles with less than 70 cc engine capacity. Air Vietnam operates 17 major civilian airports, including three international gateways: Noi Bai serving Hanoi; Da Nang International Airport serving Da Nang; and Tan Son Nhat serving Ho Chi Minh City. Tan Son Nhat is the nation’s largest airport, handling 75% of international passenger traffic. According to a state-approved plan, Vietnam will have 10 international airports by 2015. The planned Long Thanh International Airport will be built on an area of 50 square kilometres (19 sq mi), and will have an annual capacity of 100 million passengers. Vietnam Airlines, the state-owned national airline, maintains a fleet of 69 passenger planes, and aims to operate 150 by 2020. Several private airlines are also operating in Vietnam, including Air Mekong, Jetstar Pacific Airlines, VASCO and VietJet Air. Vietnam Airlines http://www.vietnamairlines.com/wps/portal/vn/welcome/ VII. TELECOMMUNICATIONS Media TV is the dominant medium. State-run Vietnam Television (VTV) broadcasts from Hanoi. There is a growing pay TV industry, which includes the K+ satellite platform. The state-run Voice of Vietnam (VoV) has six radio networks, including VoV 5 with programmes in English, French and Russian. There are hundreds of newspapers and magazines. The best-selling dailies are Tuoi Tre and Thanh Nien, which are run by youth organisations in Ho Chi Minh City. Internet Although basic Internet services had existed in Vietnam since the early 1990s, the first commercial Internet Service Provider (ISP) opened for business in 1997. Now there are five ISPs operating: Netnam Company, Vietnam Data Communication Company (VDC), Corporation for Finance and Promoting Technology (FPT), Saigon Post and Telecommunications Services Corporation (Saigon Postel Corporation, SPT) and Viettel Company. 10
COUNTRY FACT SHEET Internet usage remains low in comparison to other Asian nations, yet connectivity has increased rapidly over the past few years, thanks to an initiative by the Ministry of Post and Telecommunications. International country code + 84 VIII. SOCIAL WELFARE SYSTEM 1. Social insurance Social insurance in Vietnam consists of two main types: compulsory insurance and voluntary insurance. The employers pay a monthly insurance fee for their employees by deducting part of their salary and the payment rate varies depending on the types of insurance and the conditions of the payers. 1) Compulsory social insurance This is insurance that the employees must purchase when they are employed. Currently the monthly rate for this insurance is 6% of the monthly salary. Compulsory social insurance is used for the following cases: - Illnesses: for the illnesses of the employees and their children who are under 7 years old. The subsidies rate is from 45% to 100% of the income in the last month before the absence, based on the insurance payment time and the length of the absence. - Maternity: for all women who give birth, adopt kids, abort or sterilize. The subsidies in this case are 100% of the average income of the last six months, in addition to a one-time grant totalling two months of salary. Subsidies are provided for four to six months for those who give birth or adopting children. - Occupational diseases and accidents: for employees who suffer from work accidents or diseases caused by working condition and lose 5 % of the working capabilities. - Retirement: in Vietnam, retired employees receive a monthly pension totalling 45% of their average monthly salary, if they have paid the insurance fee for 15 years. After that, the additional subsidies for each extra year will add 2% for men and 3% for women, but the highest rate must not exceed 75%. - Death: subsidies for the death of the employee are paid to their relatives and is calculated based on the insurance payment period at a rate of 1.5 times the average monthly salary. 2) Voluntary Social Insurance This type of insurance is not mandatory and employees can choose to purchase it or not. The benefit of buying this insurance program is increased benefits for them. The amount of this insurance is calculated by multiplying the monthly income with the voluntary insurance ratio (currently 18%). The monthly income is determined by insurance payer, with the lowest rate equal to one month’s salary and the highest rate to 20 month’s salary. The insurance fee will be paid monthly, quarterly or twice a year. 3) Unemployment insurance This type of insurance is compulsory for the employees. The amount of the unemployment benefit will correspond to 60% of the average salary during the last six months of employment. Unemployment benefits will be paid based on the length of the contribution period and will vary from three months’ benefits, for a contribution period of 1 to 36 months, to 12 months’ benefits, if the contribution period exceeds 144 months. Moreover, in order to facilitate the return of unemployed persons to work, the new legislation also provides for the implementation of support in the form of professional training and job seeking assistance. In addition, unemployed persons receiving benefits 11
COUNTRY FACT SHEET will be provided with healthcare coverage during the period in which unemployment benefits are received. 2. Social relief There are two main kinds of social relief allowances: regular social relief and emergency social relief. The preconditions for beneficiaries are stipulated as follows: Regular social relief • Orphans a) Orphans younger than 16 years old without a father or mother, or who are being neglected or have lost supportive resources and without consanguine relatives (maternal or paternal grandparents; legal adoptive parents, brothers and sisters) to depend on. b) Orphans under 16 years old without a father or mother, but whose living mother or father is missing as defined at Article 88 of the Civil Code or is without the capacity and ability (such as seriously disabled, in the imprisonment period) to care for them, without the supportive sources and no relative to depend on. • Elderly people without supporters a) A person aged 60 or over, living alone without children; without grandchildren or relatives to depend on, without any sources of income. b) A person aged 60 or over with living wife or husband who, however, is old, weak, without children, legally adoptive children, grandchildren and relatives to depend on, without income sources. Emergency social relief • Households a) Households with members who are dead or missing because of natural disasters or participating in the rescue of the state’s or people’s assets. b) Households with houses that have collapsed, floated away, burned, or been seriously destroyed. Households living on boats or ships, which break down, sink or suffer heavy damage, will also be considered for the allowances. c) Households losing principal production equipment and falling into poverty • People a) People who are heavily injured by natural disasters or participating in the rescue of the state’s or other people’s assets. b) People suffering hunger in pre-harvest time or in poor households. c) People who are hospitalised or killed by risks outside their residence, but their families did not know how to take care of or arrange funerals. d) Homeless beggars taken to the Social Relief agents by the Police. How to apply In order to obtain social relief allowances, the orphans and helpless elderly should themselves make the application explaining the situation and make a proposal to the Commune’s People’s Committee for consideration and the District People’s Committee for decision, or ask a relative to do so. Pursuant to Article 6 of the Decree 07/2000/NĐ-CP dated 9/3/2000, the social relief allowance beneficiaries, if wish to be admitted to a social protection institution, should make the application and submit it to the authorised bodies for consideration and decision, or ask a relative to do so.
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COUNTRY FACT SHEET 3. Support for children A child allowance is available mainly for orphans under the age of 16. According to the Population-Family and Children Information Centre, the Government has recently approved a six-year programme to reduce the number of street children, victims of child sexual abuse and children working under harmful and dangerous conditions,. By 2010, the plan aims to reduce the number of street children and children working in unsafe conditions by 90%, with 70% of street children being helped to return to their families. Efforts will also be made to stop the sexual abuse of children. In addition, the Vietnam Children Support Fund hopes to raise five billion Vietnamese dongs (VND) for disabled children and Agent Orange child victims. The Fund plans to provide 4,000 operations free of charge for children with eye diseases, 500 for harelip children, and 25 for those with heart diseases. The plan enlists the co-operation of Government agencies in the labour, social welfare, education and training sectors, exerting pressure on employers to reduce the use of child labour. It will also assist the development of the household economy to attract street working children to return home and send them back to school, or find suitable work for them. 4. Pensions The preconditions for obtaining a pension are well specified in the Labour Act. Labourers are able to obtain a monthly pension if they meet the requirements for labour age and time period of paying social insurance premium, as follows: • Male at 60 and female at 55 years old will be eligible for retirement. The retirement age applicable to those who have difficult or hazardous jobs or work in mountainous areas, border areas or remote islands and other exceptional cases will be regulated by the Government. • Those who have paid social insurance premium for at least 20 years. In case labourers fail to meet any requirements as prescribed above, however, provided that they meet one of the following requirements, they are permitted to obtain monthly pension with lower rate: a) Labourers are old enough to retire as regulated, however they have paid social insurance premium for at least 15 years but not yet for 20 years b) Labourers have paid social insurance premium for at least 20 years, and although they are not old enough to retire, they are already 50 years old (for males) or 45 years old (for females) and their working capacity has also decreased by at least 61%; c) Labourers who have difficult or hazardous jobs as regulated by the Government, have paid social insurance premium for at least 20 years, and their working capacity has decreased by at least 61% Labourers who fail to meet any of these requirements are entitled to obtain lump-sum benefits. The monthly pension and lump-sum benefits will be dependent on the rate and time period of paying social insurance premium as regulated by the Government. The Ministry of Labour, Invalids, and Social Affairs provides general supervision. Ministry of Labour, Invalids, and Social Affairs Address: 12 Ngo Quyen Street, Hoan Kiem District, Hanoi, Vietnam Tel.: +844 824 6137 Fax: +844 824 8036 Email: lasic@molisa.gov.vn 13
COUNTRY FACT SHEET Website: http://www.molisa.gov.vn Vietnam Social Security collects contributions and pays benefits. Vietnam Social Security Address: 7 Trang Thi Street, Hai Ba Trung District, Hanoi, Vietnam Tel.: +844 934 4237 Fax: +844 934 4169 Website: http://www.baohiemxahoi.gov.vn/ IX. HEALTHCARE The overall quality of health in Vietnam is good, as reflected by estimates of life expectancy (72.41 years) and infant mortality (20.24 per 1,000 live births). However, malnutrition is still common in the provinces and life expectancy and infant mortality rates are stagnating. Government subsidies covered only about 20% of healthcare expenses, with the remaining 80% coming out of individuals’ own pockets. There is a serious shortage of doctors and nurses. On average, five to six doctors take care of 10,000 Vietnamese people. Medical insurance exists but it does not operate effectively. In many localities, people with medical insurance card do not have access to high-tech services. Therefore, generally, hospital patients purchase their own medications from pharmacies and also pay for nursing care. Family members in special smocks provide much of the nursing care. The health sector in Vietnam is transforming from a healthcare system fully operated and financed by the state to more private financing and delivery of healthcare. This development has been particularly noticeable in the largest city in the country, Ho Chi Minh City, where a majority of physicians are practising in private clinics and where the private healthcare sector is an increasingly popular option for people. Governmental financial support is provided for people near the poverty level to help them buy health insurance by paying from 50% to 70% of their annual premiums. People near the poverty level are defined as those earning 401,000-520,000 VND (19 to 24 USD) per month in rural areas, and 501,000-650,000 VND (23 to 30 USD) in urban areas. The Government plans to have the entire population insured by 2014, although currently only 60 per cent are insured. X. EDUCATION The main educational goal in Vietnam is improving people’s general knowledge, training high-quality human resources and nurturing and fostering talent. Although Vietnam is still a poor country with a low per capita income that has suffered years of war, Vietnam has continually made great achievements in education. The literacy rate in Vietnam is 94% among total population, 96.2 % among men and 92% among women. The budgetary allocations for education have considerably increased in the last few years. Despite these achievements, the Vietnamese Education System is still facing many difficulties. Many schools and their teaching materials are not updated; teachers have not been qualified as required; and millions of children still do not go to school.
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COUNTRY FACT SHEET 1. Educational System Education in Vietnam is divided into five levels: • preschool • primary school • secondary school • specialised secondary school • higher education Formal education consists of twelve years of basic education: five years of primary education, four years of secondary education and three years of specialised secondary education. The majority of basic education students are enrolled on a half-day basis. As prescribed by Article 44 of Vietnam’s Education Act, there are four types of ownership of educational establishments: • Public education establishments: established and monitored by the state. The state also nominates their administrators and decides their staff quotas. The state invests in infrastructure and allocates funding for their regular spending. • Semi-public educational establishments: set up by the state on the basis of mobilising organisations and individuals in the society to jointly invest in infrastructure. • Organizationally funded educational establishments: Social or economic organisations apply for permission from the state to set up an institution with private capital. • Private educational establishments: Individuals or groups of individuals apply for permission from the state to set up and invest in an institution. The semi-public, organizationally funded and private educational establishments are referred to collectively as non-public educational establishments. 2. Approval of Foreign Diplomas The approval and verification of foreign diplomas is executed through the presentation of the original foreign diplomas. Further verification can be made in different forms (i.e. by direct contact with the foreign schools) for the accuracy and creditability of the diplomas. After the successful verification, the diplomas will be approved. The recognition of foreign diplomas is prescribed in Article 97 of the Educational Act as follows: 1. The recognition of the diplomas issued to Vietnamese by foreign countries must conform to the requirements of the Ministry of Education and Training and the international conventions that the Socialist Republic of Vietnam has signed or acceded to. 2. The Minister of Education and Training takes responsibility for signing agreements on the correspondence of diplomas or mutual recognition of diplomas with other countries and international organisations. Documents for Returning Students Returning students are required to present the original diplomas they have already obtained from foreign schools/universities. Other required documents can include school reports, written comments from previous teachers and professors (if any), and the student’s birth certificate. 3. Costs, Loans and Stipends The costs, loans and stipends for education in Vietnam vary, depending on the school and the academic level. The Government specifies the school fee framework and 15
COUNTRY FACT SHEET the mechanism for collecting and using school fees for all types of schools and other educational establishments, based on a policy of providing exemptions and reductions in school fees for the beneficiaries of social policies and poor people. Based on the school fee framework established by the Government, the People’s Councils at provincial level will to decide the level of collection of school fees and recruitment fees for the schools and other educational establishments in the province on based on a proposal of the People’s Committee of the same level. The Government of Vietnam also provides the cost framework for educational institutions: • In cities, towns, industrial zones: - Nursery schools: from 15.000 to 80.000 VND/month/student - Lower secondary schools: from 4.000 to 20.000 VND/month/student - Higher secondary schools: from 8.000 to 35.000 VND/month/student • On the plains and in the midlands rural areas: - Nursery schools: from 7.000 to 20.000 VND/month/student - Lower secondary schools: from 3.000 to 10.000 VND/month/student - Higher secondary schools: from 6.000 to 25.000 VND/month/student • In the mountainous rural areas: - Nursery schools: from 5.000 to 15.000 VND/month/student - Lower secondary schools: from 2.000 to 8.000 VND/month/student - Higher secondary schools: from 4.000 to 15.000 VND/month/student • For training institutions: - Vocational training institutions: from 20.000 to 120.000 VND/month/student - Technical secondary schools: from 15.000 to 100.000 VND/month/ student - Colleges: from 40.000 to 100.000 VND/month/student - University Degrees: from 50.000 to 180.000 VND/month/student - Master training: from 75.000 to 200.000 VND/month/student - Doctorate training: from 100.000 to 250.000 VND/month/student Tuition fees are collected monthly. The total tuition fees for lower and higher secondary schools equal nine months of fees. The total tuition fees of official training institution equal 10 months of fees. The total tuition fees of kindergartens, nursery schools, short-term vocational trainings and other kinds of trainings equal the total numbers of training months. Tuition exemptions are established for the following students: • Primary school students • Children of military martyrs • Students who are heroes of the armed forces • Children of military invalids, military patients or social welfare beneficiaries, who have lost 61% - 80% of their work capacity. • Students whose parents reside permanently in mountainous areas (excluding mountainous cities and towns), remote areas, and islands. • Disabled students, who are facing economic difficulties, have lost 21% or more of their work capacity and been certified by the Medical Survey Council. • Teacher education students who are committed to work in the education and training sector after graduation. • Orphans without any supportive relatives. • Specifically selected students in ethnic pre-universities, ethnic boarding schools, and vocational schools for the disabled. 16
COUNTRY FACT SHEET • Children in families (natural-born or adopted) that are classified as “households of hunger”, whose income is equivalent to less than 13 kg of rice/person/month, according to the existing government regulations. 50% tuition reduction for the following students: • Children of military invalids, military patients, or social welfare beneficiaries, who have lost 21% to 60% of their work capacity. • Children of government workers, who have accidents at works and receive regular social injury benefits. • Children of families (natural-born or adopted) classified as “poor households”, according to the existing government regulations. “Poor households” are households, whose income is equivalent to: - Less than 25 kg of rice/person/month in cities, - Less than 20 kg of rice/person/month on the plains and in the midlands rural areas - Less than 15 kg of rice/person/month in mountainous areas Most Vietnam schools at all levels of the school system require students to wear uniforms, adding to the cost of education. Transporting students to and from school is another cost. And there are also school textbooks and stationery to be paid for. XI. HUMAN RIGHTS AND INTERNATIONAL DISPUTES The Communist leaders maintain control on political expression. The country continues to experience small-scale protests from various groups – the vast majority are connected to land-use issues, calls for increased political freedom, and the lack of equitable mechanisms for resolving disputes. The freedom of expression and access to information continues to be suppressed through a combination of stringent legislation, tight control of the state-run media, Internet restrictions and the arrest and imprisonment of bloggers and political activists. Figures on the death penalty remain a state secret. Consequently, the Vietnamese authorities are reluctant to share any data with members of the international community. There are also concerns that Vietnam’s legal system does not provide fair trials in many cases. The Constitution provides for freedom of worship, however, government restrictions still apply to the organised activities of many religious groups. Human trafficking affects women, men and children in Vietnam. Trafficked persons experience various difficulties ranging from physical and mental health issues, to economic and social reintegration issues. Trafficking, particularly for sexual exploitation, but also for forced labour overseas, remained a significant problem. Disputed Territory On 30 December 1999, China and Vietnam signed a treaty that settled disputes about the border between the two nations. However, the Paracel and Spratly Islands in the South China Sea are still regarded as disputed territory. Malaysia, Brunei, the Philippines, and Taiwan also claim sovereignty over the Spratly Islands, which are believed to be rich in oil and natural gas reserves. The area is also one of the region’s main shipping lanes, and home to fishing ground that supply livelihoods to thousands of people.
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COUNTRY FACT SHEET XII. LINKS CIA – The World Factbook https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html WHO http://www.who.int/countries/vnm/en/ Wikipedia http://en.wikipedia.org/wiki/Vietnam General Statistics Office of Vietnam http://www.gso.gov.vn/default_en.aspx?tabid=491 Ministry of Labour – Invalids and Social Affairs (MOLISA) http://www.molisa.gov.vn/ The World Bank http://data.worldbank.org/ U.S. Department of State http://www.state.gov/p/eap/ci/vm/ Social Security Online http://www.ssa.gov/policy/docs/progdesc/ssptw/2010-2011/asia/vietnam.html Nation Master http://www.nationmaster.com Ministry of Education and Training www.en.moet.gov.vn/ Human Rights Watch http://www.hrw.org/asia/china The State Bank of Vietnam http://www.sbv.gov.vn/ International Labour Organisation www.ilo.org BBC http://www.bbc.co.uk/news/world-asia-pacific-16567840 Foreign & Commonwealth Office http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/countryprofile/asia-oceania/vietnam?profile=all
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