Directive No. 21/CT-TTg dated November 25, 2022 on promoting digital transformation in cashless payment of social security

DIRECTIVE

PROMOTING DIGITAL TRANSFORMATION IN CASHLESS PAYMENT OF SOCIAL SECURITY

Implementing policies of the Communist Party and the Government on constant improvement of material and mental life of the general public, in the last few years, social security policy system has essentially achieved equality, comprehensiveness, coverage, and approached closer to international standards in order to emphasize security rights of the general public and contribute towards economic development, political stability, and social order. In general, all policy beneficiaries have adequately and promptly received support, especially support for victims of COVID-19 in recent years.

However, implementation of social policies is still physical in nature where payments are made in cash which leads to inconsistency between provinces. There have not been plenty of policies and regulations incentivizing non-state sectors to engage in provision of public services. Implementation of information technology in managing and coordinating policies is still slow. The monitoring, management, and payment for beneficiaries between local governments and central governments are inconsistent which lead to overlaps and tardiness in making payments.

Currently, social security database has been implemented, connected to the national population database, and facilitated management of the beneficiaries. In order to increase application of information technology and digital transformation in carrying out state management affairs, organizing implementation of social policies, and enabling the general public to access social services with ease, especially cashless payments, the Prime Minister hereby requests ministries, central departments, and local governments to promote digital transformation in application of social security policies and make cashless payments for employees and beneficiaries of state budget allowance, to be specific:

1. Ministry of Labor - War Invalids and Social Affairs shall

a) Develop and improve database on beneficiaries of social security policies, connect and share social security data with the national population database according to progress of the Scheme for developing electronic application of population, identity, and identification serving national digital transformation for the period of 2022 - 2025 and vision towards 2030 under Decision No. 06/QD-TTg dated January 6, 2022 of the Prime Minister (hereinafter referred to as “Scheme No. 6”).

b) Take charge and cooperate with Ministry of Public Security and other ministries, central departments in implementing Scheme No. 6 in communes, districts, and reviewing, producing lists of beneficiary groups; cross-check and verify lists of beneficiaries against the national population database in the 1^st Quarter of 2023.

c) Take charge and cooperate with the State Bank of Vietnam, Ministry of Public Security, and relevant authorities in promoting payments via accounts (including bank accounts, e-wallets, mobile money, and other legal methods) of social security beneficiaries, and making cashless payments for social security beneficiaries in 2022.

d) Publicize and guide local governments to implement digital transformation within their state management scope; cooperate with authorities making social security payment in making cashless payments for social security beneficiaries.

dd) Take charge and cooperate with relevant authorities in developing procedures and guiding local governments in making cashless payment for social security beneficiaries.

2. The State Bank of Vietnam shall

a) Direct commercial banks and intermediary payment service providers to research policies on payment service fee support for social security beneficiaries who open and use bank accounts, e-wallet in order to receive state budget support.

b) Take charge and cooperate with Ministry of Labor - War Invalids and Social Affairs, Ministry of Public Security, and relevant authorities in guiding implementation of payment via accounts of beneficiaries of social security paid from state budget.

3. Ministry of Public Security shall

a) Take charge and cooperate with Ministry of Labor - War Invalids and Social Affairs in researching and implementing software for managing citizens eligible for social security of the Government on the base of the national electronic population, identity, and identification database in 2022.

b) Take charge and cooperate with relevant entities in developing system for collecting and updating information of citizens on the base of national electronic population, identity, and identification database; connect and synchronize with other databases of the Ministry of Labor - War Invalids and Social Affairs and relevant entities in order to implement social security policies.

c) Verify information of social security beneficiaries at request of the Ministry of Labor - War Invalids and Social Affairs.

d) Ministry of Public Security and Ministry of Labor - War Invalids and Social Affairs shall connect and synchronize database on social security in accordance with Scheme No. 6.

dd) Direct police authorities of local governments to cooperate with local labor authorities in reviewing, cross-checking, and verifying information on social security beneficiaries for the purpose of cashless social security payments. This task must be completed in 2022.

4. Ministry of Finance shall

a) Take charge and cooperate with ministries in amending regulations on management, use, and finalization of social security policies to fit digital transformation and cashless payment.

b) Direct State Treasury to upgrade online public services and guide local State Treasury to cooperate with authorities in charge of paying social security in order to implement payment procedures of social security policies and benefits via accounts of social security policy beneficiaries. This task must be completed in 1st Quarter of 2023.

5. Ministry of Information and Communications shall

a) Direct telecommunication service providers to implement incentive policies for social security policy beneficiaries who register and use mobile money accounts.

b) Ensure information safety and security, data exchange, connection, and sharing between entities responsible for implementing cashless social security payment.

c) Cooperate with Ministry of Labor - War Invalids and Social Affairs in directing communication authorities to publicize digital transformation and cashless social security payment.

6. Vietnam Social Security shall

a) Cooperate with Ministry of Public Security, Ministry of Labor - War Invalids and Social Affairs in verifying social security beneficiaries who receive payment from Vietnam Social Security.

b) Cooperate with commercial banks and payment service providers to make cashless payment for social security beneficiaries who receive payment from Vietnam Social Security. Unemployment benefit in urban areas shall be provided via cashless payment methods.

7. People’s Committees of provinces and central-affiliated cities shall

a) Direct local departments and People’s Committees of all levels to make cashless social security payments.

b) Direct field-specific authorities to cooperate with Ministry of Labor - War Invalids and Social Affairs in developing and applying software in collecting, managing database on entities in the field of labor - war invalids and social affairs, and regularly updating list of social security beneficiaries in their provinces.

c) Take timely measures in order to produce list of irregular social security beneficiaries (people affected by diseases, natural disasters, etc.).

d) Direct field-specific authorities and People’s Committees of all levels to closely cooperate with police authorities in verifying information of local social security beneficiaries.

dd) Assist individuals, organizations, and socio-political organizations in making cashless payments for local social security beneficiaries.

8. Payment service providers shall

a) Apply information technology, digital transformation, and connect to Ministry of Labor - War Invalids and Social Affairs and commercial banks, intermediary payment service providers in ensuring convenience, ease, safe, transparency, and thorough coverage (be able to reach communes) of payment via accounts; guide and assist the general public in using cashless payment methods.

b) Cooperate with labor - war invalids and social affairs authorities in publicizing, motivating, and convincing the general public to follow cashless payment policy.

c) Cooperate with banks and intermediary payment service providers in protecting rights and benefits of the general public; stay public and transparent in managing and making social security payments.

9. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities shall organize implementation and direct affiliated agencies, organizations, and entities to strictly implement this Directive.