Working regime of the Department of Social Insurance Fund Investment in Vietnam

Working regime of the Department of Social Insurance Fund Investment in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Working regime of the Department of Social Insurance Fund Investment in Vietnam

Department of Social Insurance Fund Investment works under the mode of specialist combined with the mode of head. The Deputy Director is responsible to the Director and to the law for the assigned field of work. The Director of the Department assigns specific tasks to civil servants and public employees in the Department in accordance with the standards of titles and professional capacity to ensure the completion of assigned tasks.

In case a task is assigned to 02 or more officers to perform, one person must be assigned the main responsibility for the assigned task.

2. Organization of the Department of Social Insurance Fund Investment in Vietnam

Department of Social Insurance Fund Investment has a Director, no more than 02 (two) Deputy Directors and officers. The Director General and Deputy Directors are appointed, relieved of duty, or dismissed by the General Director in accordance with the law and Vietnam Social Security.

The payroll of Department of Social Insurance Fund Investment is assigned by the General Director.

Responsibilities and powers of the Director

- Organizing the performance of tasks and powers specified in Article 2 of this Decision.

- The Director General is responsible before the General Director and before the law for all activities of the Department; manages civil servants, public employees, and assigned assets according to regulations.

- Promulgating, organizing the implementation of working regulations and working relationships of the Department.

- Deciding on the work within the scope of management competence of the Department; deciding on specific measures to strengthen discipline and administrative discipline among civil servants and public employees; combating corruption, waste, bureaucracy, bossiness, tyranny, and other negative phenomena in the Department; being responsible for the occurrence of violations.

- Complying with the provisions of the law and of Vietnam Social Insurance.

- Coordinating with internal and external units to perform assigned tasks.

(Clause 1, Article 3, Article 4 of Decision 1221/QD-BHXH in 2020)

3. Tasks and powers of the Department of Social Insurance Fund Investment in Vietnam

Tasks and powers of the Department of Social Insurance Fund Investment include:

- Advising and assist the General Director in consulting with relevant ministries and branches in formulating, amending, supplementing, and promulgating documents on the management and organization of investment activities and managing investment risks of insurance funds in accordance with the provisions of law.

- Assisting the General Director in building long-term and short-term investment plans to preserve and grow insurance funds to ensure safety and efficiency in accordance with regulations; coordinating with the Department of Planning and Investment to compile investment plans in the annual revenue and expenditure estimates and the 3-year state budget-financial plan of Vietnam Social Security.

- Assisting the General Director in organizing and managing investment activities of insurance funds under the provisions of Article 4 of Decree No. 30/2016/ND-CP to ensure transparency, safety, efficiency, and recovery of investment capital, specifically:

+ Annually, at the same time as stipulated on the making of revenue and expenditure estimates for Vietnam Social Insurance, develop a fund investment plan and report it to the General Director, submit it to the Social Insurance Management Council, and organize the implementation after it is approved;

+ Monthly, based on the data provided by the relevant units, determining the temporarily idle amount that can be invested and reporting to the General Director;

+ Updating information on the issuance of Government bonds, bonds, promissory notes, bills, and certificates of deposit, and the average interest rates on deposits of the same term at the time of deposit in four branches in the area of Hanoi city of four commercial banks: Joint Stock Commercial Bank for Industry and Trade of Vietnam, Joint Stock Commercial Bank for Foreign Trade of Vietnam, Joint Stock Commercial Bank for Investment and Development of Vietnam, and Bank for Agriculture and Rural Development of Vietnam, to determine the investment interest rate or to adjust the investment interest rate in a timely manner;

+ On the basis of the investment plan of insurance funds approved by the Social Insurance Management Council, analyze the financial situation and evaluate the basic criteria to ensure the operational safety of the bank selected by the Vietnam Social Security; propose the selection of banks to deposit money, buy bonds, promissory notes, bills, and certificates of deposit to submit to the General Director for investment decision;

+ Inspecting and reviewing documents and documents proving that an important project uses a part of public investment capital in accordance with the law on public investment, which has been decided on investment policies by the Prime Minister. Proposing the investment capital level, investment term, investment interest rate, disbursement, and payment methods, report to the General Director and submit to the Social Insurance Management Council for approval for implementation. Inspect and supervise the use of investment capital to ensure the right purposes and the terms stated in the investment contract for the project;

+ Determining the fees to be paid when implementing investment forms, such as: Government bond depository fee, the bond buying and selling brokerage fee, or other fees arising from investment activities;

+ Summarizing, opening professional books, and updating professional software to monitor fully and in detail investment activities for each form of investment and investment object; urging, examining, comparing, and recovering principal, interest receivable when due for recovery, and other arising interests to ensure accuracy and timeliness; take responsibility for data in business software within the unit's functions and tasks;

+ Comparing and confirming the balance of investment principal and arising interests for each form of investment and investment object of Vietnam Social Insurance as of December 31 of each year;

+ Coordinating with the Finance - Accounting Department to transfer money, compare the investment amount, the amount due to be recovered, the arising interest, and the monthly debt balance of the investment objects must be timely and in accordance with regulations.

- Determining the average annual investment interest rate and the interbank market interest rate for a 9-month term announced by the State Bank of Vietnam in accordance with regulations; submitting the General Director to notify the Social Insurance of the provinces and centrally-run cities, the Social Insurance of the Ministry of National Defense, and the Social Insurance of the People's Public Security as a basis for collecting interest on late payment of insurance according to regulations.

- Advising and assisting the General Director in determining the level of setting aside the risk reserve fund in investment activities from the annual insurance funds and notifying the Finance - Accounting Department as a basis for setting up the risk reserve fund.

- Assisting the General Director in handling risks in the investment activities of insurance funds as prescribed in Article 13 of Decree 30/2016/ND-CP.

- Assuming the prime responsibility for, and coordinating with relevant units in, compiling dossiers of application for the use of risk reserve funds in investment activities and submitting them to competent authorities for decision.

- Every 3 months, summarizing and assisting the General Director in making reports on the situation and results of investment activities from insurance funds and submitting them to the Social Insurance Management Council.

- Summarizing the results of the annual investment activities of insurance funds and transferring them to the Finance - Accounting Department.

- Providing documents and dossiers serving the inspection, inspection, and audit of fund investment activities at the request of competent state agencies.

- Participating in scientific research; administrative reform; applying the quality management system according to the national standard TCVN; Emulation and Reward; information and communication; international cooperation activities; training, retraining, and professional training according to the functions and tasks of the unit.

- Implementing the regime of information, statistics, reports, correspondence, and archiving according to regulations.

- Managing civil servants, public employees, and assets of the unit according to regulations.

- Performing other tasks assigned by the General Director.

(Article 2 of Decision 1221/QD-BHXH in 2020)

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