Thai Nguyen University
Socialist Republic of Vietnam
Southern Luzon State University
Republic of Philippines
EVALUATING THE IMPLEMENTATION
OF UNEMPLOYMENT INSURANCE
IN THAI NGUYEN PROVINCE
ABSTRACT OF DISSERTATION
DOCTOR OF BUSINESS ADMINISTRATION BY
PHUNG THI CAM CHAU – ROSE
August, 2013

The thesis was completed at:
Thai Nguyen University


CHAPTER I
INTRODUCTION
Unemployment insurance is the process of formation and use
of funds through the financial contributions of the employee, the
employer and the help of the state, in order to support of income for
workers in period they have lost their jobs, enabling them to find new
jobs in the labor market. This has important implications for
individual workers and companies, contributing to balancing role in
the economy, helping to decrease social stress caused by
unemployment. That is one of the tools to implement social security
policies of each country.
In Vietnam, unemployment insurance, as a mode of social
insurance and a component of social security, has been built and was
officially implemented in 2009.
BACKGROUND OF THE STUDY
4-year experience, the implementation of unemployment
insurance has made significant achievements, but also has some
limitations that should soon be adjustments to this policy performs its
role in a better way.
As a law lecturer with passion for researching and teaching
law of labor and social security, also derived from the responsibility
of a person was born and raised in the land of Thai Nguyen, the
authors decided to select the topic "Evaluating the implementation of
unemployment insurance in Thai Nguyen province" for her research.
STATEMENT OF THE PROBLEM
The main purpose of this study are evaluating the
implementation of unemployment insurance in Thai Nguyen
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province?
4. What would be the proposed recommendations to improve
the implementation of unemployment insurance in Thai Nguyen
province in the coming years?
SIGNIFICANCE OF THE STUDY
This study would be beneficial to employees, trade unions in
enterprises, enterprises, the unemployment insurance policies
promulgate agencies and the unemployment insurance management
agencies, researcher and future researchers.
SCOPE AND LIMITATIONS
The primary intent of this study is to evaluate the
implementation of unemployment insurance in Thai Nguyen
province in 2012. There were 348 employees who were entitled to
unemployment insurance in Thai Nguyen province used as
respondents in this study.
Measurement of the implementation of unemployment
insurance in Thai Nguyen province is limited to the use of
questionnaires with a limited number of involved people. Checklist is
developed for the purpose of the study.
The time frame of this study covered the period from January
2012 to April 2013.
DEFINITION OF TERMS
The terms are defined to include: A definite term labor
contract, a labor contract, a working contract, an employee, an
employer, an indefinite term labor contract, service unit of the
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State, large enterprise, Small and medium enterprise, social
insurance, the labor force, the social insurance organization, the
unemployed, the unemployment rate, trade Union, unemployment

unemployment; Type
of labor contract/ work
contract had been
signed before
unemployment;
Current job status;
Time has participated
in UI; UI enjoy status.
- The respondents’
perception on
implementation of UI
in Thai Nguyen
province in terms of:
coverage of UI;
conditions for the
enjoyment of UI; UI
fund; UI regimes;
procedures for UI
regimes.

- Data
gathering

- Evaluation
through
questionnaire
checklist

LOCALE OF THE STUDY
This study focuses on assessing the implementation of
unemployment insurance through respondents in Thai Nguyen
province.
RESEARCH DESIGN
In this study, the researcher basically uses the descriptive
method which is appropriate for evaluating the implementation of
unemployment insurance in Thai Nguyen province.
POPULATION AND SAMPLING
In 2012, in Thai Nguyen province, there were 2,665
employees entitled unemployment insurance.
To determine the ideal sample size for a population, Slovin's
formula is used. So, 348 employees are entitled to unemployment
insurance in 2012 (out of 2,665 employees) were selected to answer the
questionnaire. This research used probability-sampling method.
Simple random sampling was chosen in this study.
RESEARCH INSTRUMENTATION
The researcher creates a questionnaire which was the main
tool in gathering data. A questionnaire is divided into two parts. The
first part determined the profile of the respondents; the second part
determined the perception of the respondents on implementation of
unemployment insurance in Thai Nguyen province. There were 30
questions (with weighted scale: (5) very good, (4) good, (3) fair, (2)
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weak, (1) bad) which divided into 5 groups of issues: Coverage of
unemployment insurance, conditions for the enjoyment of
unemployment insurance; unemployment insurance fund,
unemployment insurance regimes and procedures for unemployment
insurance regimes

insurance in Thai Nguyen province, weighted mean was utilized. For
further interpretation, the 5 – point scale ((5) very good, (4) good, (3)
fair, (2) weak, (1) bad) was used.
To find out if there is a significant difference on the
perceptions of the respondents regarding the implementation of
unemployment insurance in Thai Nguyen province, analysis of
variance (ANOVA) was used.
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the analysis and interpretation of data
gathered that would answer the problems stated in the previous
chapter. The data and statistical findings are presented and given
implications to concretize the concepts.
PROFILE OF RESPONDENTS
In 2012, in Thai Nguyen province, 2665 people have signed
up and were decided to unemployment insurance regimes. 348
employees of them have been selected as respondents of the
questionnaire. This section presents statistics and analyses of profile
of the respondents according to the criteria: age, sex, types of units
that worked before unemployment, type of labor contract/ work
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contract had been signed before the unemployment, salary
(according to the labor contract/ work contract) before the
unemployment, current job status, duration has participated in
unemployment insurance, times entitled to unemployment insurance
THE IMPLEMENTATTON OF UNEMPLOYMENT
INSURANCE IN THAI NGUYEN PROVINCE
This section analyzes, explains, comments on the
outstanding issues, finds out the difference in the perception and

very different between three groups of employers (of three groups of
respondents). The procedures for UI regimes for all workers are the
same, but the implementation is affected quite largely by the
responsibility of the employers, but this is different between the three
groups of employers. From here, we can also see that, in the
implementation of UI policy, there are many things that businesses,
especially small and medium enterprises, should learn the service
units of the State.
CHAPTER V
SUMMARY, FINDINGS, CONCLUSIONS AND
RECOMMENDATION
The findings, conclusions and recommendations to improve
the effectiveness of unemployment insurance policy in Thai Nguyen
province are being presented in this chapter.
SUMMARY OF THE FINDINGS
Characteristics of the respondents
There were 348 employees who were entitled to UI in Thai
Nguyen province in 2012 (out of 2,665 employees) were selected to
answer the questionnaire.
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Regarding age, the majority of the unemployed are under the
age of 40 (up 264 people, 348 people in total, corresponding to
75.86%), which, with 162 people under 30 years old (up 46.55%),
102 from 30 to 40 years old (up 29.31%). Meanwhile, unemployed
people aged 40-50 and especially not more than 50 years of age (54
and 30 respectively, accounting for 8.62% and 15.52%).
Regarding gender, unemployed workers are men in this
survey are somewhat more than women (197 men, accounting for
56.61% and 151 women, representing 43.39%).

Regarding the time of beneficiaries of UI policy, the
majority of respondents were entitled one times (335/348, accounting
for 96.26%), only 11 of the respondents were entitled 2 times (up
3.16%) and 2 people benefit more than 2 times (up 0.58%).
The perception of the respondents on the implementation
of unemployment insurance
In terms of the coverage of UI, awareness of the object of the
UI is different workers in the period before the insured after
unemployment and participation, enjoyment mode of UI. Knowledge
workers may be partly because the research efforts them, but depend
significantly to the dissemination of the agencies, organizations and
individuals are responsible for propagating policies to them.
According to the employees, the employers did not meet the
performance needs to provide information about UI for them, the
organization of social insurance to provide information about UI is
the interview assessment level rather than in general has not been
good. Businesses, labor offices, social insurance organizations are
the responsible agencies for policy advocacy UI to workers did not
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meet expectations of workers on the information about this policy.
This is a part of the reasons of situation: the employee very poor
grasp of UI policy.
On the status of current UI policy only cover required
participants, not voluntary participants, the majority of respondents
found that this is a limitation of the current UI program. Social
insurance policy and health insurance is designed program of
compulsory insurance and voluntary groups for different levels of
contribution and different respective beneficiaries, UI not do this.
The provision to employees working under labor contract or

assessment skeptical nature. Reviewed in relation to their assessment
of the cost of premiums employees and employers, employees could
expect higher premiums UI fund for employers.
In terms of UI regimes, on the whole, workers assess the
effectiveness of the UI system, especially the ones who work in the
service units of the state, especially with unemployment allowance.
However, considering the evaluation of each mode, a pity that, the
employees, which is typical worker in the business, did not assess the
effectiveness of vocational training regimes and institutional support
of new jobs, all in the "weak". Medical coverage is also only
received general assessment at "fair". Obviously, there is a paradox
that although workers did not appreciate three of four modes of UI,
but highly effective mode of UI in general. This suggests that
workers seem to only focus on unemployment allowances that have
not paid enough attention to the other mode.
In terms of procedures for UI regimes, the respondents have a
negative assessment in terms of procedures for UI regimes, includes:
The legal provisions of the procedures for UI regimes; regulation of
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many different agencies to consider, resolve and implement UI
regimes; regulation about UI regimes considering and resolving
duration of the agencies; the implementation of regulation about
unemployment registered duration; the implementation of regulation
about inform labor agency of the job search while the enjoyment of
unemployment allowance.
The differences between the perceptions of employees are
grouped in terms of type of unit that employees had worked
before unemployment
In terms of the coverage of UI, we can clearly see the

State, so they do not have business functions, to be issued (partial or
full) operating funds from the state, so they have obligations to
contribute UI fund in a better way.
In terms of UI regimes, there are differences in the
assessment of three groups of workers: employees worked in service
units of the state with two other groups of respondents on the
effectiveness of the regimes: vocational training support, job-seeking
support, health insurance. Thus, it can be seen that, in order to
improve the effectiveness of this policy, UI should express its deep,
broad and meaningful impact to employees of businesses, groups
outnumber of unemployed workers.
In terms of procedures for UI regimes, there are differences
in the assessment of the employee group has been working in units of
government and big business over workers worked in small and
medium enterprises in the form employers are obliged to implement
core insurance records and support workers perform procedures UI
benefits (the business units of the state assessment "very good", big
businesses assessment of "good", while small and medium
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enterprises assess only "weak"). Obviously, in order to protect the UI
right of employees, many small and medium enterprises need further
enhance their responsibility in procedures for UI regimes.
CONCLUSIONS
From the answers of 348 people were selected, the
researcher found that the assessment of the implementation of UI
(relating to each item of this policy) in Thai Nguyen province of the
respondents have many differences. However, we can synthesize
some basic problems such as the following:
- The current UI provides only the mandatory participants

A large number of employees is only interested in
unemployment allowance that are not aware of the importance of
vocational training support job-seeking support assistance.
- Rules of procedures for UI regimes are cumbersome, many
different agencies involved solving UI regimes, lead to difficulties
for employees to enjoy UI.
Many enterprises do not create conditions for their
employees are entitled to UI: social insurance books are not
endorsed, documentations to entitled UI are not supported,
RECOMMENDATION
To improve the implementation of UI in the coming years,
the author would like to offer some recommendations below:
Recommendations on the coverage of unemployment insurance
For the policy
- The State should continue to study to expand the UI participants
to the business, the employer, do not limit the number of employees.
- Unemployment insurance should be mandatory regulations
apply to all employees working under labor contracts, work contract
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work for 3 months or more in any business units, regardless of the
duration of the contracts and the size of the enterprises/businesses
(like it is done with the current compulsory social security)
- Expand the type of participation.
For the implementation of policy
To expand unemployment insurance participants, the
dissemination of information on this policy is extremely important.
Recommendations on conditions for the enjoyment of
unemployment insurance
For the policy

fund in principle sufficient income and expenditure reserve, to be idle
funds investment growth effectively to ensure the safety of funds.
Recommendations on unemployment insurance regimes
For the policy
Continue to maintain the current unemployment insurance
regimes. If fund for permitted, State should continue to research
increasing support levels for unemployment allowance.
For the implementation of policy
Implementation more effectively of systems to support
vocational training, job search assistance, to the unemployment
insurance policy is not just the "Famine" the unemployed, but more
importantly, to help them return to labor market.
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Recommendations on procedures for unemployment
insurance regimes
For the policy
- Regulations on procedures for unemployment insurance
regimes should be simpler, with fewer steps, less involved competent
authorities to resolve.
- Regulations on some kinds of time limitation should be
more specific, more consistent with the actual situation.
- The Government should have some strict sanctions to
employees, employers and the authorities concerned who have not done
or done improperly, incomplete, untimely their obligations in process
the implementation of procedures for unemployment insurance regimes.
For the implementation of policy
- Employers need to implement seriously their obligation:
certifying the social insurance books, supported employees to
complete theirs dossier to enjoy UI regimes