Sharing vision - Bringing Empowerment

Directive No. 21/CT-TTg of the Prime Minister on promoting digital transformation in non-cash social security payments

  • Perform: Loan Nguyen (Translator: Linh Chi)
  • 22/12/2022

In the past, there were some limitations in the process of organising and implementing social policies, such as:

- Basically, it is still in the form of direct payment, paying in cash, resulting in a lack of synchronisation between locality

- There are not many mechanisms and policies to encourage the non-state sector to participate in public service provision.

- Policy management and administration information technology applications are being implemented slowly.

- The monitoring, management and payment for objects are not consistent and synchronized in real time between the central and local governments, thus the payment for objects is still slow and overlapping.

To improve the use of information technology, digital transformation in state management, organising social policies, and facilitating people's access to social services, particularly cashless payments, the Prime Minister issued Directive No. 21/CT-TTg on November 25, 2022, requiring ministries and localities to promote digital transformation in implementing cash-free social security policies, with some key contents including:

(1) Ministry of Labor, War Invalids and Social Affairs:

- Develop and finalize a database of social security policy beneficiaries, connecting and sharing social security data with the National Population Database according to the progress of the Residential Data Application Development Project, Identification and Electronic Authentication for National Number Transition 2022 - 2025, with a vision to 2030 by Decision 06/QD-TTg of January 6, 2022, Prime Minister (“Project 06”)

- To preside and coordinate with the Ministry of Public Security and ministries, sectors and mass organizations to lead the Implementation Team of Project 06 at the commune and district levels to review and prepare lists by groups of subjects; to confront and validate the list of subjects with the National Population Database and strive to be completed in the first quarter of 2023.  

- Presiding and coordinating with the State Bank of Viet Nam, the Ministry of Public Security and related agencies to promote the implementation of account-based payments (including bank accounts, electronic wallets, mobile money accounts and other legal forms) for social security policy beneficiaries, making cash-free payments to beneficiaries of Social security policy as early as 2022.

- Assume the prime responsibility for, and coordinate with relevant agencies in, formulating processes and guiding localities in the implementation of the task of non-cash payment for beneficiaries of social security policies.

(2) Ministry of Public Security:

- To preside and coordinate with the Ministry of Labour, Invalids and Social Affairs on the implementation of the Civil Management Software supported by the State Social Security Policy on the basis of the National Database of Population, Identification and Electronic Authentication, completed in 2022;

- To lead and coordinate with relevant units to develop a system for collecting and updating citizen accounts based on residential data, identification and electronic authentication; to link and synchronize data with MOLISA databases, relevant units to support implementation of social security policies;

- Instruct local police forces to coordinate with local labor authorities to review, compare and validate information on social security policy beneficiaries in the area for payment of cashless social security benefits, completed in 2022.

The State Bank of Vietnam, Vietnam Social Security, the Ministry of Finance, the Ministry of Information and Communications, the People's Committees of the provinces and centrally-run cities and payment service organizations shall perform the following responsibilities. This Directive aims to promote digital transformation in the implementation of social security policies, non-cash payments to employees and beneficiaries of state budget subsidies.

Directive No. 21/CT-TTg takes effect from November 25, 2022.

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