Social protection systems made stronger through improved public finance management

HANOI, Viet Nam (ILO News) – The Ministry of Labour, Invalids and Social Affairs (MOLISA) of Viet Nam in partnership with the International Labour Organization (ILO) and United Nation Children’s Fund (UNICEF) – today started a regional training workshop on public finance management for social protection.

The workshop, as part of the European Union (EU)-funded programme on Improving Synergies Between Social Protection and Public Finance Management (SP&PFM Programme) is being held in Hanoi. The four-day event brings together more than 40 participants, including representatives from ministries of labour and of finance, workers’ and employers’ organizations from Bangladesh, Cambodia, Lao People’s Democratic Republic, Nepal, Sri Lanka, and Viet Nam.

Key features: Regional training workshop focusing on improving public finance management for social protection Strengthening competencies of governmental and non-governmental stakeholders as well as social partners in assessing PFM systems and rules Facilitating the exchange of knowledge, practices, and experiences across policy areas and countries

In his opening remarks, Mr Nguyen Van Hoi, Vietnamese Deputy Minister of Labour, Invalids and Social Affairs said, “The training course is held in the context of global efforts to recover from the COVID-19 epidemic and the role of social security policies were highly appreciated.” He added, “Recovery will only be sustainable and impacts from future crises will be minimized if countries move towards comprehensive, inclusive, sustainable and shock-responsive social security systems.”

Ms Kristina Buende, Head of Cooperation Department, EU Delegation to Viet Nam shared that the EU-funded SP&PFM program was developed and implemented in the context of the COVID-19 pandemic, which has revealed many shortcomings in the social protection system of several countries. Implemented since 2020, the program has been supporting many countries, including Viet Nam, to strengthen the social security system and link it with the public financial management system to achieve universal coverage.

The training, organized in partnership with the International Training Centre of the ILO (ITCILO), intends to foster dialogue and exchange by bringing together officials responsible for public finance management (PFM) rules and those dealing with social protection policies from different countries, with the aim of overcoming potential bottlenecks in PFM systems and improving the utilization of social protection resources at both national and regional levels.

The SP&PFM Programme is jointly implemented by the ILO, UNICEF, and the Global Coalition for Social Protection Floors (GCSPF). “It has allowed the ILO, UNICEF and other partner organizations to work with Governments not only to improve social protection policies, but also to strengthen the rules and procedures that regulate social protection resources, that is, public finance management,” said Ms  Ingrid Christensen, ILO Country Director for Viet Nam.

The participants in this workshop are from different government agencies – Ministry of Social Affairs, Ministry of Labour, and Ministry of Finance/Planning, as well as representatives from employers’ and workers’ organizations.

Government officials responsible for executing social protection resources will further gain insights into the constraints faced by the Ministry of Finance, along with potential avenues to improve control, accountability, transparency, and resource management. Representatives from employers’ and workers’ organizations will also benefit from learning about the internal processes involved in social protection budget execution. In addition, representatives from the Global Coalition for Social Protection Floors will provide insights on how non-governmental organizations can complement social partners in engaging with institutions responsible for social protection resources to improve accountability and efficiency.

By improving the environment of rules and regulations governing social protection resources, the training aims to enhance service quality, delivery, and trust among stakeholders towards institutions and the government. Streamlining budgeting processes and resource management will lead to better social protection coverage and higher satisfaction among beneficiaries, including workers and enterprises.

Mr Tomoo Okubo, UNICEF Social Policy Specialist said, “Despite the global commitment to end poverty and expand the coverage of social protection under the Sustainable Development Goals, less than half of the global population are covered by social protection, and more than 1.7 billion children lack access to a child or a family benefit. Strengthening the synergies between social protection and public finance is a key area of action to address the gaps in social protection coverage and financing”.

The SP&PFM Programme will host an International Symposium in Geneva on 27-28 June and another regional training in Dakar, Senegal in September 2023.