DECREE

DEFINING THE FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF VIETNAM SOCIAL INSURANCE

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

At the proposal of the General Director of Vietnam Social Insurance and the Minister of Home Affairs,

DECREES:

Article1. Position and functions

1. Vietnam Social Insurance is a government-attached agency and functions to organize the implementation of regimes and policies on compulsory social insurance, voluntary social insurance, compulsory health insurance, and voluntary health insurance; organize the collection and payment of unemployment insurance; manage and use the funds of compulsory social insurance, voluntary social insurance and unemployment insurance (below collectively referred to as social insurance), compulsory health insurance and voluntary health insurance (below collectively referred to as health insurance) in accordance with law.

2. Vietnam Social Insurance is subject to the state management by the Ministry of Labor. War Invalids and Social Affairs regarding social insurance, by the Ministry of Health regarding health insurance, and by the Ministry of Finance regarding financial regimes applicable to social insurance and health insurance funds.

Article 2. Tasks and powers

1. To submit to the Government for decision the functions, tasks, powers and organizational structure of Vietnam Social Insurance.

2. To submit to the Prime Minister strategies on development of the Vietnam Social Insurance branch, long-term, five-year and annual plans on the operation of Vietnam Social Insurance; schemes on preservation and growth of social insurance and health insurance funds after they are adopted by the Management Council of Vietnam Social Insurance; and to organize the implementation of these strategies, plans and schemes after they are approved.

3. Responsibilities and relations of Vietnam Social Insurance with ministries performing state management of social insurance, health insurance and financial regimes applicable to social insurance and health insurance funds:

a) With the Ministry of Labor, War Invalids and Social Affairs:

- To propose to the Ministry of Labor, War Invalids and Social Affairs the formulation, revision and supplementation of social insurance regimes and policies; to recommend inspection and examination of organizations and individuals in the implementation of social insurance in accordance with law;

- To submit to the inspection and examination by the Ministry of Labor. War Invalids and Social Affairs regarding the implementation of legal provisions on social insurance;

- To send biannual and irregular reports to the

Ministry of Labor, War Invalids and Social Affairs on the implementation of social insurance regimes and policies and the collection, spending, management and use of social insurance funds.

b) With the Ministry of Health:

- To propose to the Ministry of Health the formulation, revision and supplementation of health insurance regimes and policies; to recommend inspection and examination of organizations and individuals in the implementation of health insurance in accordance with law;

- To join the Ministry of Health in determining the level of health insurance contribution, the scope of benefits of insured patients and mechanisms for paying medical examination and treatment costs;

- To submit to the inspection and examination by the Ministry of Health regarding the implementation of legal provisions on health insurance;

- To send biannual and irregular reports to the Ministry of Health on the implementation of health insurance regimes and policies and the collection, spending, management and use of health insurance funds.

c) With the Ministry of Finance:

- To propose to the Ministry of Finance the formulation, revision and supplementation of financial regimes applicable to social insurance and health insurance funds and financial mechanisms applicable to Vietnam Social Insurance:

- To submit to the inspection and examination by the Ministry of Finance regarding the implementation of legal provisions on financial regimes applicable to social insurance and health insurance funds;

- To send biannual and irregular reports to the Ministry of Finance the collection, spending, management and use of social insurance and health insurance funds.

4. To promulgate documents guiding procedures and operations for settling social insurance and health insurance regimes and policies and the collection and spending of social insurance and health insurance premiums in accordance with law; to promulgate documents of specific application and documents on internal management of the Vietnam Social Insurance branch.

5. To provide public information on social insurance and health insurance regimes policies and laws and organize the mobilization, registration and management of social insurance and health insurance participants in accordance with law.

6. To issue forms of social insurance books and health insurance cards and organize the grant thereof to the insured in accordance with law.

7. To organize the collection of social insurance and health insurance contributions of agencies, units, organizations, employers and individuals in accordance with law. To receive funds allocated from the state budget to pay social insurance and health insurance benefits in accordance with law.

8. To receive dossiers and settle the provision of benefits related to sickness and maternity; labor accidents and occupational diseases; pension: survivorship: health recovery following sickness or delivery, and treatment of labor accident injuries or occupational diseases; and medical examination and treatment in accordance with law.

9. To organize the payment of retirement pensions: allowances for labor accidents and occupational diseases; sickness allowances; maternity allowances, allowances for loss of working capacity; allowances for health recovery following sickness or delivery, and treatment of labor accident injuries or occupational diseases; survivorship allowances; and medical examination and treatment costs in a full, convenient and timely manner.

10. To organize the collection of unemployment insurance contributions of agencies, units, organizations, employers and laborers; to organize the payment of unemployment allowances, job training and seeking supports, and health insurance premiums for those who are covered by unemployment insurance in accordance with law.

11. To manage and use social insurance and health insurance funds, including pension and survivorship allowance fund, labor accident and occupational disease fund; sickness and maternity fund; voluntary social insurance fund; unemployment insurance fund; compulsory health insurance fund; and voluntary health insurance fund on the principles of centralization, uniformity, publicity, transparency and use for proper purposes as prescribed by law; to organize cost-accounting for social insurance and health insurance funds in accordance with law.

12. To organize the signing of contracts and supervise the performance of contracts with medical establishments that satisfy all professional and technical conditions and criteria, and supervise the provision of medical examination and treatment services, protect the interests of health insurance card holders and fight any abuse: to introduce laborers to health assessment councils for assessment of the level of working capacity loss in accordance with law.

13. To organize the signing of contracts with organizations and individuals acting as agents that are recommended and guaranteed by commune, ward or township People's Committees to implement social insurance and health insurance regimes and policies in communes, wards and townships.

14. To provide professional direction and guidance for social insurance agencies of the Ministry of Defense, the Ministry of Public Security and the Government Cipher Committee and coordinate with these agencies in managing the implementation of social insurance and health insurance in the Ministry of Defense, the Ministry of Public Security and the Government Cipher Committee.

15. To examine the signing of contracts, the social insurance and health insurance contribution by and payment to agencies, units and organizations employing laborers, individuals and medical examination and treatment establishments; to decline to receive contributions and reject requests for payment of social insurance and health insurance benefits which are against the law.

16. To settle petitions, complaints and denunciations related to the implementation of social insurance and health insurance regimes in accordance with law.

17. To implement international cooperation in social insurance and health insurance in accordance with law.

18. To define the functions, tasks, powers, organizational structures and work relationships of subordinate units: to decide on the allocation of payrolls to subordinate units within the total payroll assigned by a competent state agency, to recruit public employees and civil servants and manage the organizational apparatus, payrolls, cadres, public employees and civil servants in accordance with law.

19. To manage finance and assets of the Vietnam Social Insurance system and organize the performance of statistics and accounting work in social insurance and health insurance in accordance with law.

20. To decide on and organize the implementation of administrative reform plans of Vietnam Social Insurance in line with the Government's state administrative reform objectives, requirements, programs and plans and the direction of the Prime Minister; to implement the inter-agency one-stop shop mechanism in settling social insurance and health insurance regimes.

21. To preserve dossiers of the insured who enjoy social insurance and health insurance benefits in accordance with law.

22. To organize scientific studies and application and information technology application in social insurance and health insurance statistics and management.

23. To organize training and retraining in social insurance and health insurance operations.

24. Biannually, to report to the Management Council of Vietnam Social Insurance on the implementation of social insurance and health insurance. Annually, to report to the Government on the management and use of social insurance and health insurance funds.

25. To supply adequate and timely information on the contribution of premiums, the rights to enjoy benefits of, and procedures for implementing, social insurance and health insurance at the request of laborers, employers or trade unions. To supply all relevant documents and information in a timely manner at the request of competent state agencies.

26. To assume the prime responsibility for. and coordinate with state agencies, socio-political organizations and social organizations at central and level levels and participants in social insurance and health insurance in, settling issues related to the implementation of social insurances d health insurance regimes in accordance with Jaw.

27. To coordinate with competent state agencies at the latter's request in conducting specialized examination and inspection in the domains of social insurance and health insurance; to propose competent authorities to handle acts in violation of the laws on social insurance and health insurance.

28. To perform other tasks and exercise other powers assigned by the Government and the Prime Minister.

Article 3. Management Council of Vietnam Social Insurance

1. The Management Council of Vietnam Social Insurance (below referred to as the Management Council) shall assist the Government and the Prime Minister in directing and supervising the implementation of social insurance and health insurance regimes and policies and the collection spending, management and use of social insurance and health insurance funds of Vietnam Social Insurance.

2. The Management Council is composed of representatives of the leaderships of the Ministry of Labor. War Invalids and Social Affairs, the Ministry of. Health, the Ministry of Finance, the Ministry of Home Affairs, the General Labor Confederation of Vietnam, the Vietnam Chamber of Commerce and Industry, the Vietnam Union of Cooperatives, the Vietnam Peasants' Association, the General Director of Vietnam Social Insurance, and other members as stipulated by the Government.

3. The Management Council has the President, a Standing Vice President and members appointed, relieved from office and dismissed by the Prime-Minister at the proposal of the Minister of Home Affairs; the term of office of Management Council members is 5 years.

4. The Management Council has an assisting office, which has tasks specified by the Council.

5. Tasks and powers of the Management Council:

a) To direct the formulation of, and adopt, strategies on development of the Vietnam Social Insurance branch, long-term, five-year and annual plans on the implementation of social insurance and health insurance regimes, schemes on preservation and growth of social insurance and health insurance funds before they are submitted to the Prime Minister for approval; to supervise and examine the General Director of Vietnam Social Insurance (below referred to as the General Director) in the implementation of the approved strategies, plans and schemes;

b) To supervise and examine the implementation of plans on the collection, spending, management and use of social insurance and health insurance funds. To propose competent state agencies to amend and supplement the State's regimes and policies on social insurance and health insurance in order to secure the safety of social insurance and health insurance funds;

c) To adopt annual estimates on revenues and expenditures of social insurance and health insurance funds;

d)To adopt annual statements of settlement of revenues and expenditures of social insurance and health insurance funds, and report them to the Ministry of Finance according to current regulations;

e) To decide on forms of investment from social insurance and health insurance funds at the proposal of the General Director;

f) Members of the Management Council who are representatives of ministries and branches shall report on related contents to their ministers and the heads of their branches;

g) To propose to competent state agencies the formulation, revision and supplementation of regimes, policies and laws on social insurance and health insurance, the development strategy of the branch, the consolidation of the organizational system of Vietnam Social Insurance, and mechanisms for the management and use of social insurance and health insurance funds;

h) To propose the Prime Minister to appoint, relieve from office or dismiss the General Director and Deputy General Directors of Vietnam Social Insurance.

Article 4. Working regime of the Management Council

1. The Management Council shall work on a collective regime; and meet once every three months to consider and decide on issues falling under their tasks and powers defined in Clause 5 Article 3 of this Decree. For issues which are not necessarily discussed at a meeting, the President of the Management Council shall collect written opinions from all of its members. The Management Council may hold extraordinary meetings to settle urgent matters at the proposal of the President of the Management Council, the General Director or over 50% of the total number of its members.

2. The President of the Management Council of Vietnam Social Insurance or a vice president who is authorized by the President shall convene and preside over meetings of the Management Council. The contents and documents of a meeting shall be sent to members of the Management Council at least five working days in advance. Members of the Management Council shall study and prepare opinions to contribute in the process of discussing and issuing resolutions of the Management Council.

3. A meeting of the Management Council shall be conducted when it is attended by at least two thirds of the total number of members of the Council. A resolution of the Management Council must be voted for by at over 50% of the total number of members of the Council. For absent members, their opinions shall be solicited in writing. If the numbers of members voting for and against are equal, the opinion of the president of the Management Council is the decision. For matters on which Management Council members cannot not reach agreement, the president of the

Management Council shall report them to the Prime Minister for decision. Members of the Management Council have a right to reserve their opinions.

4. When discussing affairs related to ministries, branches and units under Vietnam Social Insurance, the Management Council shall invite leaders of these ministries and branches and heads of these units to attend the meeting, who may present their opinions but do not participate in voting.

5. Resolutions of the Management Council shall be sent to its members and the General Director for organization of their implementation.

6. Members of the Management Council may request the General Director to supply information and documents on the contents falling within the scope of responsibilities and powers of the Management Council. The General Director shall supply timely, adequate and accurate information and documents on the contents falling within the scope of responsibilities and powers of the Management Council at the request of its members.

7. Annually, the Management Council shall report to the Prime Minister on the situation and results of its operation.

8. The fund for the operation of the Management Council shall be covered by Vietnam Social Insurance. The working venues of the Management Council, the standing vice president and the assisting office of the Management Council shall be arranged by Vietnam Social Insurance. The Management Council may use the seal of Vietnam Social Insurance it its operation.

9. Members of the Management Council shall be assisted by cadres, public employees and civil servants in their respective ministries and branches. They are entitled to position allowances according to regulations.

Article 5. General Director

1. The General Director is the lawful representative of Vietnam Social Insurance, who is appointed, relieved from office or dismissed by the Prime Minister at the proposal of the Management Council. The General Director is responsible to the Government, the Prime Minister, the Management Council and a cabinet member who is assigned to supervise Vietnam Social Insurance for organizing the implementation of social insurance and health insurance regimes and the management and use of social insurance and health insurance funds in accordance with law and for performing the tasks defined in Article 2 of this Decree.

2. The General Director is assisted by deputy general directors who are assigned by the former to direct some areas of work and responsible to the former for their assigned tasks. When the General Director is absent, a deputy general director shall be authorized by the former to lead and run the operation of Vietnam Social Insurance. Deputy general directors shall be appointed, relieved from office or dismissed by the Prime Minister at the proposal of the Management Council and the General Director.

The number of Deputy General Directors must not exceed 3.

3. Working regime and responsibilities and powers of the General Director:

a) The General Director works as the only leader while ensuring democratic centralism: shall issue the working regulation, information and reporting rules of Vietnam Social Insurance, and direct and examine the compliance with this regulation;

b) The General Director shall assign or authorize deputy general directors to settle issues under the competence of the General Director and shall take responsibility for decisions issued by assigned or authorized deputy general directors;

c) The General Director shall prepare contents specified in Clause 5. Article 3 of this Decree and report them to the Management Council of Vietnam Social Insurance for consideration and adoption, and organize the implementation of resolutions of the Management Council;

d) The General Director shall take responsibility before law for any losses of social insurance and health insurance funds under his) her management and execution incurred in the collection and payment of social insurance and health insurance benefits and for the unlawful management and use of social insurance and health insurance funds;

e) The General Director shall specific criteria for leading and managerial titles in the organization of Vietnam Social Insurance and the process of appointing and relieving from office these titles in accordance with law.

Article 6. Organizational system

Vietnam Social Insurance is organized and managed in a centralized and uniform hierarchical system from the central to local level, consisting of:

1. Vietnam Social Insurance at the central level.

2. Social Insurance agencies in provinces and centrally run cities (below collectively referred to as provincial Social Insurance agencies), which are attached to Vietnam Social Insurance.

3. Social Insurance agencies in districts, towns and provincial cities (below collectively referred to as district Social Insurance agencies), which are attached to provincial Social Insurance agencies).

Article 7. Organizational structure of Vietnam Social Insurance at the central level

1. The Department for Implementation of Social Insurance Policies.

2. The Department for Implementation of Health Insurance Policies.

3. The Collection Department.

4. The Payment Department.

5. The Department for Issuance of Books and Cards.

6. The Propaganda Department.

7. The International Cooperation Department.

8. The Examination Department.

9. The Emulation and Commendation Department.

10. The Planning and Finance Department.

11. The Organization and Personnel Department.

12. The Office.

13. The Social Insurance Science Institute.

14. The Information Center.

15. The Archives Center.

16. The Social Insurance Operations Training School.

17. The Social Insurance newspaper.

18. The Social Insurance journal.

Organizations mentioned in Clauses 1 thru 12 of this Article are those assisting the General Director and the organizations mentioned in Clauses 13 thru 18 are attached non-business units.

Organizations assisting the General Director (excluding the International Cooperation Department and the Emulation and Commendation Department) may set up their own divisions. The General Director shall define the functions, tasks, powers, organizational structures and payrolls, and may appoint, relive from office and dismiss managerial officials of these organizations. The number of deputy heads of each of these organizations must not exceed 3.

The General Director shall define the functions, tasks, powers, organizational structures and payrolls, and may appoint, relive from office and dismiss the heads and deputy heads of attached non-business of Vietnam Social Insurance. The number of deputy heads of each of these units must not exceed 3.

Heads of attached non-business units may appoint, relieve from office and dismiss heads and deputy heads of divisions of their units according to title criteria and procedures for appointing and relieving from office these officials issued by the General Director of Vietnam Social Insurance.

Article 8. Provincial Social Insurance agencies

1. Provincial Social Insurance agencies have the legal person status, own seals, accounts and offices: and have functional divisions.

2. The General Director shall define the functions, tasks, organizational structure and payrolls, appoint relieve from office and dismiss directors and deputy directors, and prescribe funds for the operation of provincial Social Insurance agencies. The number of deputy directors of a provincial Social Insurance agency must not exceed 3.

3. The General Director shall decide on the establishment and dissolution of provincial Social Insurance agencies when there are decisions of competent state agencies on the merger, splitting or division of provincial-level administrative units.

4. Directors of provincial Social Insurance agencies may appoint, relieve from office and dismiss heads and deputy heads of divisions under provincial Social Insurance agencies according to title criteria and procedures for appointing and relieving from office these officials issued by the General Director of Vietnam Social Insurance.

5. Directors of provincial Social Insurance agencies Khali manage and employ cadres, public employees and civil servants, finance and assets under the management of provincial Social Insurance as decentralized by Vietnam Social Insurance

Article 9. District Social Insurance agencies

1. District Social Insurance agencies have the legal person status, own seals, accounts and offices.

2. The General Director shall define the functions, tasks and payrolls, and prescribe funds for the operation of district Social Insurance agencies; decide on the establishment and dissolution of district Social Insurance agencies when there are decisions of competent state agencies on the merger, splitting or division of district-level administrative units.

3. Directors of provincial Social Insurance agencies may appoint, relieve from office and dismiss directors and deputy directors of district Social Insurance agencies according to title criteria and procedures for appointing and relieving from office these officials issued by the General Director of Vietnam Social Insurance. The number of deputy directors of a district Social Insurance agency must not exceed 2.

4. Directors of district Social Insurance agencies shall manage and employ cadres, public employees and civil servants, finance and assets under the management of district Social Insurance agencies as decentralized by Vietnam Social Insurance and provincial Social Insurance agencies.

Article 10. Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO" and replaces the Government's Decree No. 100/2002/ND-CP of December 6, 2002, defining the functions, tasks, powers and organizational structure of Vietnam Social Insurance.

Article 11. Implementation responsibilities

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of People's Committees of provinces and centrally run cities, the Management Council and the General Director of Vietnam Social Insurance shall implement this Decree.