Proposal to legalize the informal economy and integrate freelance labor in Hanoi

Quỳnh Chi |

The Hanoi Employment Service Center recommends options for officially regulating the informal economy and integrating freelance labor in Hanoi.

In the context of the informal economy being an undeniable factor and the high rate of freelance workers making the implementation of social security policies still have "legal gaps", the Hanoi Employment Service Center recommends options to legalize the informal economy and integrate freelance workers in the capital.

Building a unique and flexible legal framework for freelance workers (Gig)

To solve the legal gap, it is necessary to research and build a third legal position ( Besides employee and workshop), recognizing the nature of competition for jobs. This legal framework must stipulate basic rights and obligations on minimum income (including actual working hours), accounting transparency and labor safety.

Piloting the "flexible welfare" model

It is necessary to build a mechanism of "flexible personal security accounts", in which platform companies are required to deduct a percentage of each transaction to contribute to this account for employees. This account is owned by employees and follows them, allowing them to accumulate benefits from many different platforms.

Exploiting the specific mechanism of the Capital Law 2024 to cover social security for disadvantaged groups

It is necessary to make the most of the special mechanism of the Capital Law 2024 to promote the policy of supporting 100% of the voluntary social insurance contribution level for the poor and 60% for the poor. This is a breakthrough tool to cover social security for the most vulnerable informal laborers. However, there needs to be a close monitoring mechanism to avoid the risk that this support policy will unintentionally reduce the incentive for workers to participate in the formal sector (because the benefits received in the informal sector become more attractive), which can slow down the legalization process.

Upgrading Hanoi Employment Service Center (DVVL) into "Experimental Development Center", focusing on young people

There must be a fundamental transformation of the role of the Hanoi Employment Service Center, from one place that mainly conducts administrative procedures (grant payments) to a specialized "use development center". The new function must focus on modernizing and diversifying solutions to support work transactions (both in-person and online), in-depth consulting, and skills assessment. In particular, it is necessary to provide early career orientation services to students right from the time they are still in school, not just waiting until they are unemployed.

Building a labor market information infrastructure and system and labor market forecasting

It is necessary to urgently build and effectively operate the National Labor Database according to the 2025 Law. Hanoi needs to pioneer in integrating data (tax, social insurance, recruitment) to analyze Big Data, provide multi-dimensional and timely labor market information, forecast skills needs and develop a system of "early warning" of unemployment risks based on real-time unemployment insurance data.

Increasing the responsibility of employers

To ensure the sustainability of the fund and the rights of employees, it is necessary to strictly implement the new regulations of the 2025 Labor Law on the responsibility for fully compensating for the unemployment insurance benefits of enterprises if they do not pay or do not pay enough.

Quỳnh Chi
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Currently, many freelance workers are still having difficulty proving their income to complete their social housing purchase documents.