DECIDES:

Article 1.- To issue together with this Decision the Regulation on the Organization and Operation of the Vietnam Social Insurance.

Article 2.- The Chairman of the Managing Board of the Vietnam Social Insurance and the General Director of the Vietnam Social Insurance shall have to organize the implementation of this Regulation.

Article 3.- This Decision takes effect from the date of its promulgation. The Chairman of the Managing Council of the Vietnam Social Insurance, the General Director of the Vietnam Social Insurance, the Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister

Chapter I

GENERAL PROVISIONS

Article 1.- The Vietnam Social Insurance is created on the basis of unifying the social insurance organizations run by the Labor, War Invalids and Social Affairs services and the Vietnam General Confederation of Labor at central and local levels to assist the Prime Minister in directing and managing the social insurance fund and executing social insurance regimes and policies according to State laws.

The Vietnam Social Insurance is placed under the direct guidance of the Prime Minister, and subject to the State management by the Ministry of Labor, War Invalids and Social Affairs and the State agencies in related fields, and the supervision by trade union organizations.

Article 2.- The Vietnam Social Insurance has the status of a juridical person, an official seal and a separate bank account. It is headquartered in Hanoi.

The Social Insurance Fund is an independent accounting unit, and is protected and managed in a uniform way according to the State financial regime.

Article 3.- The Vietnam Social Insurance is organized and managed in a uniform way from the central level to districts and provincial cities.

Article 4.- The payroll and operating budget of the Vietnam Social Insurance shall be provided by the State in the starting period.

The Vietnam Social Insurance shall work out its operating budget with the Ministry of Finance, and submit it to the Prime Minister for approval in a separate document.

Chapter II

TASKS, POWERS AND ORGANIZATION OF THE VIETNAM SOCIAL INSURANCE

Article 5.- The Vietnam Social Insurance has the following tasks and powers:

1. To direct and organize the collection of social insurance premiums as provided for by the Labor Code, the Regulation on Social Insurance, and other Government provisions.

2. To manage the social insurance funds and organize the full, convenient and timely payment of social insurances to the insured.

3. To refuse payment of social insurances to the buyers when the authorized State agency concludes that they have committed frauds or forged files and documents to become entitled to social insurances and, at the same time, record this refusal in a written document to the persons, to whom payment of insurances is denied, their employers and the law-enforcement authorities.

4. To compensate for all collections and payments conducted not in compliance with State provisions on social insurance to the buyers, and to be held responsible before law for such wrong doings.

5. To design and organize the implementation of plans and measures to preserve and increase the value of the social insurance funds in line with the Government regulations.

6. To submit to the Prime Minister for decision on the management cost, the collection and payment fees, and the other provisions related to social insurances and the implementation of the above-mentioned provisions.

7. To propose to the Government and the related State agencies on amending and supplementing social insurance policies and regimes to make them suitable to the situation of the country in each period.

8. To organize and maintain records on, and issue cards of, social insurances.

9. To organize statistic documentation and financial accounting; to provide guidance on and inspect the collection and payment of social insurances; to organize dissemination of information and education on social insurance regimes and policies.

10. To monitor the implementation of the regimes on collection and payment of social insurances.

11. To settle in a timely manner complaints from the insured on matters concerning the implementation of social insurance regimes and policies.

12. To engage in international cooperation in social insurance in compliance with Government regulations.

13. To manage the apparatus, staff, finance and material basis of the Vietnam Social Insurance as provided for by the State.

14. To file periodical reports to the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance on the work of collection, payment and other activities of social insurance.

15. The Vietnam Social Insurance is authorized to enter into direct relations with State agencies and people's organizations at central and local levels, and with the parties to social insurances to solve problems related to social insurances in compliance with the provisions of the Labor Code, the Regulation on Social Insurances and this Regulation.

16. To carry out other tasks assigned by the Prime Minister.

Article 6.- The organization of the Vietnam Social Insurance:

1. The Managing Council of the Vietnam Social Insurance is its highest managerial body.

2. The Vietnam Social Insurance is organized as a system from the center to the grassroots, which includes:

- At the central level: The Vietnam Social Insurance;

- In provinces and cities directly under the Central Government (hereafter referred to as provincial level) are services under the Vietnam Social Insurance.

- In districts, wards and provincial cities (hereafter referred to as district level) are district services which are under provincial services of the Vietnam Social Insurance.

Chapter III

THE MANAGING COUNCIL OF THE VIETNAM SOCIAL INSURANCE

Article 7.- The Managing Council has the following tasks and powers:

1. To direct, monitor and control the collection to, payment from, and management of, the fund of Vietnam Social Insurance.

2. To decide on measures to preserve and increase the value of the social insurance fund according to the plan already approved by the General Director of the Vietnam Social Insurance.

3. To approve the annual financial plan for collection and payment of social insurances and the collection and payment fees, and check the financial statements of social insurance funds at the request of the General Director before submitting them to the Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs, and the other concerned agencies.

4. To recommend to the Government and concerned State agencies to amend and supplement policies and regimes on social insurance.

5. To make proposal to the Prime Minister on the appointment and dismissal of the General Director and Deputy General Directors of the Vietnam Social Insurance.

6. To propose to the Prime Minister to issue, amend and supplement the Regulation on the organization and operation of the Vietnam Social Insurance.

7. To consider and settle complaints lodged by the buyers of social insurances according to the provisions of law.

Article 8.- The members of the Managing Council of the Vietnam Social Insurance include the authorized representatives of the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance, the Vietnam General Confederation of Labor and the General Director of the Vietnam Social Insurance. The members of the Managing Council are representatives of their agencies and shall take part in the activities of the Council and shall discuss and vote on its work.

The Managing Council of the Vietnam Social Insurance has a Chairman, Vice Chairmen and members, all appointed and dismissed by the Prime Minister at the proposal of the Minister-Chairman of the Government Commission on Organization and Personnel.

Article 9.- The working regime of the Managing Council:

1. The Managing Council shall work collectively; and meet every three months to consider and decide on matters concerning its tasks and powers.

2. The Managing Council may call extraordinary sessions to settle matters of urgency at the request of its Chairman, the General Director or of over 50% of its members.

3. The meetings of the Managing Council must be attended by the majority of its members. The resolution and decision of the Council must have the approval of 100% of the attending members. On important issues, if the opinions of the Council members are divided, the council Chairman must report to the Prime Minister for decision.

The resolutions and decisions of the Managing Council shall be binding to the Vietnam Social Insurance; the General Director of the Vietnam Social Insurance is responsible for organizing their implementation.

4. The Chairman of the Managing Council shall issue a working statute within the Council, its reporting routine and the allocation of duties to the Council members.

Article 10.- The Managing Council of the Vietnam Social Insurance shall use the same official seal of the Vietnam Social Insurance.

The working office, operating budget and assistant staff of the Managing Council are catered by the Vietnam Social Insurance.

Chapter IV

ORGANIZATION OF WORK AT THE VIETNAM SOCIAL INSURANCE

Article 11.- The Vietnam Social Insurance is managed and operated by the General Director to perform its tasks and powers as stipulated in Article 5 of this Regulation, according to the one-head regime.

The General Director is the representative of the juridical status of the Vietnam Social Insurance, and shall be responsible before the Prime Minister and the Managing Council for all the operations of the Vietnam Social Insurance.

Assisting the General Director in all fields of operation are the Deputy General Directors appointed and dismissed by the Prime Minister at the proposal of the General Director and the submission by the Manging Council.

Article 12.- The organization of the assisting staffs for the General Director of the Vietnam Social Insurance is as follows:

1. The Department for social insurance policies and regimes.

2. The Department for collection of premiums.

3. The Department for premiums payments.

4. The Department of inspection and legal affairs.

5. The Department of planning and finance.

6. The Department of organization and personnel.

7. The Office of the Vietnam Social Insurance.

8. The Center for information and scientific research.

The tasks, powers and staff sizes of these units shall be decided by the General Director.

The appointment and dismissal of the personnel in the leadership of these units shall be decided by the General Director.

In implementing schemes for preservation and development of funds, there shall be separate organizations provided for by the Prime Minister.

Article 13.- The provincial Social Insurance Service shall perform the social insurance duties in the province, as provided for by the General Director of the Vietnam Social Insurance.

The provincial Social Insurance Service shall be managed and operated by a director who shall be assisted by one or two deputy directors. The director and deputy directors of a provincial Social Insurance Service shall be appointed and dismissed by the General Director of the Vietnam Social Insurance.

Article 14.- The assistant staff of the Director of a provincial Social Insurance Service includes a number of specialized bureaus.

The tasks, powers and staff sizes of these bureaus are decided by the General Director of the Vietnam Social Insurance.

Article 15.- The district Social Insurance Service has the tasks of receiving the registrations for social insurances passed on to it by the provincial service; monitoring and prompting the buying of social insurances by the local employers and employees; and directly handling, or organizing the network for, payments of social insurances to the insured in the locality.

The district Social Insurance Service is managed and operated by a Director. In districts where the workload is heavy, there may be a Deputy Director to assist the Director. The director and Deputy Director of a district Social Insurance Service shall be appointed and dismissed by the director of the provincial service in compliance with the delegation of responsibility by the General Director of the Vietnam Social Insurance.

The district Social Insurance Service shall not have an office apparatus. The size of a district Social Insurance Service shall be decided by the Director of the provincial Social Insurance Service, within the overall staff size for the provincial service approved by the General Director.

The Director of the district Social Insurance Service shall define the tasks and powers for each of the staffs at his/her disposal.

The establishment of a district Social Insurance Service shall be decided by the General Director of the Vietnam Social Insurance on the basis of the workload and the number of insured in that locality. In localities where conditions do not warrant the establishment of a district Social Insurance Service, the director of the provincial Social Insurance Service shall delegate a representative at the district to carry out the payment as well the collection of social insurances at the locality.

Article 16.- The provincial and district Social Insurance Service are entities with juridical status and have their own official seals, bank accounts and offices.

Article 17.- The payroll of the Vietnam Social Insurance in the starting period shall belong to the public service payroll allocated annually by the Government Commission on Organization and Personnel at the proposal of the General Director of the Vietnam Social Insurance.

The employment and appointment of staffs for work at offices of the Vietnam Social Insurance at all levels must be based on the professional standards and the allocated payrolls.

Chapter V

FINANCE

Article 18.- The social insurance fund is managed in a uniform manner according to the State financial regime.

Article 19.- The sources of the social insurance fund are:

1. Premiums paid by the buyers of social insurances as stipulated in Article 36 of the Regulation on Social Insurance issued attached to Decree No.12-CP on the 26th of January 1995 of the Government.

2. Allocations from the State Budget for the purposes of:

- Payment to the beneficiaries of social insurances set before the date of issue of the Regulation on Social Insurance.

- Premiums and support budget for purchases of social insurances paid by laborers following the issuance of the Regulation on Social Insurance.

- Purchases of health insurance for the beneficiaries of social insurances.

3. Interests and profits gained from the implementation of schemes for preservation and development of the social insurance fund.

4. Financial supports and aid from inside and outside the country.

5. The asset of the Vietnam Social Insurance after re-evaluation according to Government provisions.

6. Other revenues.

Article 20.- Expenses on social insurance are made:

1. To pay social insurances due to the insured;

2. To buy health insurance according to the provisions of the Regulation on Social Insurance;

3. To pay commissions to agents; cover expenses for the collection and payment of social insurance;

4. To pay for the implementation of the schemes for preservation and development of social insurance funds;

5. Other expenses.

Article 21.- The annual expenses from the State budget for the implementation of social insurances must be included in the State budget proposal to be submitted for approval by the National Assembly.

Article 22.- The expenses for the operation of the managerial apparatus and investment in capital construction for services of social insurances at all levels in the starting period shall be provided for on ad hoc basis from the State budget and be accounted for separately according to the provisions of the Ministry of Finance.

Article 23.- The annual statement on financial revenues and expenses must be approved by the Managerial Council and General Director of the Vietnam Social Insurance before being sent to the Ministry of Finance and the other concerned State agencies.

Chapter VI

FINAL PROVISIONS

Article 24.- This Regulation takes effect from the date of its issue. The Chairman of the Managing Council and General Director of the Vietnam Social Insurance, the Ministers, the Heads of the agencies attached to the Government, and the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Regulation.

For the Prime Minister

Deputy Prime Minister