Le legalizing inspection activities of deposit insurance participating organizations according to the plan and content assigned by the State Bank
The draft Law on Deposit Insurance (amended) proposes to add important rights and obligations for deposit insurance organizations (BHTG), including inspection activities for organizations participating in BHTG according to the plan and content assigned by the State Bank of Vietnam (SBV).
The current Law on Unemployment Insurance has granted the Vietnam Deposit Insurance (VDI) the right and obligation to monitor and inspect compliance with legal regulations on unemployment insurance. In fact, every year, the Vietnam Deposit Insurance Corporation develops a plan and conducts direct inspections of about 300 organizations participating in the Deposit Insurance. The Vietnam Deposit Insurance Corporation will monitor and inspect compliance with legal regulations on unemployment insurance, and recommend that the SBV handle violations of the law on unemployment insurance. The inspection content includes: (i) Implementation of regulations on proposal for issuance and re-issuance; posting of unemployment insurance participation certificate; (ii) Calculation and payment of unemployment insurance fee; (iii) Receipt of insurance deposits; (iv) Provision of information on insurance deposits, other information and reports as required by the Vietnam Deposit Insurance.
In addition to conducting inspections of organizations participating in unemployment insurance according to the provisions of the Law on Unemployment Insurance, on March 12, 2019, the Prime Minister issued Directive No. 06/CT-TTg, in which the Ministry of Foreign Affairs is assigned the task of coordinating the participation and support of the State Bank's inspection and supervision functions for the People's Committees. In addition, the unemployment insurance development strategy to 2025, with a vision to 2030, issued with Decision No. 1660/QD-TTg dated December 30, 2022 of the Prime Minister, sets out the tasks and solutions to study and propose amendments and supplements to the Law on Unemployment Insurance to regulate the rights and obligations of unemployment insurance organizations in supporting the inspection and supervision functions of the State Bank for the State budget.
Based on the direction of the Prime Minister, in the period of 2019-2025, the SBV has piloted the assignment of the Vietnam Deposit Insurance Corporation to conduct an inspection of compliance with legal regulations on safety in banking operations for 354 QTDND. The content includes: (i) Checking savings deposit mobilization activities; (ii) Checking the management and use of seals that are only important; (iii) Checking compliance with regulations on safety ratios in operations; (iv) Checking lending activities.
According to the assessment of the State Bank, the Vietnam Deposit Insurance Corporation has completed the inspection work to ensure the inspection content and time according to the requirements of the State Bank. Through the inspection, the Vietnam Deposit Insurance Corporation has discovered that some organizations participating in the unemployment insurance have errors in implementing legal regulations on unemployment insurance as well as legal regulations, of the State Bank related to the mobilization of insured deposits, the management and use of seals are only important, thereby clarifying the causes and making appropriate recommendations for each inspection subject as well as the State Bank to take timely corrective, remedial and handling measures. At the same time, the Vietnam Deposit Insurance Corporation also discovered unreasonable mechanisms and policies to make proposals and recommendations to competent authorities to amend and supplement them appropriately to strengthen the management of organizations participating in unemployment insurance, creating conditions for organizations participating in unemployment insurance to develop safely and healthily.
This is the practical basis to prove that the Vietnam Deposit Insurance Corporation has sufficient capacity to perform the inspection tasks assigned according to the provisions of the Draft Law on Deposit Insurance (amended).
Le legalizing inspection activities of organizations participating in unemployment insurance according to the plan and content assigned by the State Bank
After 12 years of implementation, the Law on Unemployment Insurance is being reviewed and supplemented to make the unemployment insurance policy truly effective, protect the rights of depositors, contribute to maintaining the stability of the system of credit institutions, and ensure the safe and healthy development of banking activities.
In addition to stipulating the responsibility to monitor and inspect compliance with legal regulations on unemployment insurance as prescribed in the 2012 Law on Unemployment Insurance, the draft Law on Unemployment Insurance (amended) proposes to add important rights and obligations for unemployment insurance organizations, including activities to inspect organizations participating in unemployment insurance according to the plan and content assigned by the State Bank. Accordingly, the draft Law on unemployment insurance (amended) proposes regulations on the rights and obligations of unemployment insurance organizations: "Conduct inspections of organizations participating in deposit insurance according to the plan and content assigned by the State Bank".
The amendment and supplementation of the rights and obligations of unemployment insurance organizations to ensure consistency between the provisions of the Law on Unemployment Insurance and other legal provisions, in accordance with the direction of competent authorities, including strengthening the role and assigning tasks to the Vietnam Deposit Insurance Corporation in coordinating participation, supporting the inspection function of the State Bank for organizations participating in unemployment insurance; at the same time, it is a legal basis for the activities of the Vietnam Deposit Insurance to promote the role and position of the unemployment insurance organization.
In the context of implementing the policy of streamlining the apparatus, the SBV has moved from a system of 63 SBV branches in each province and city to 15 regional SBV branches. Meanwhile, the characteristics of the credit institution system are dispersed in many areas, the scale of operations is increasingly large and complex. Therefore, the assignment of the Vietnam Deposit Insurance Corporation to inspect credit institutions is considered to help mobilize more resources from the Vietnam Deposit Insurance Corporation to support the inspection work of the State Bank and bring a multi-dimensional perspective in assessing the activities of credit institutions. The inspection function of the Vietnam Deposit Insurance Corporation is not/not overlapping with the inspection activities of the State Bank; in order to properly perform the function of the Vietnam Deposit Insurance Corporation, which is to contribute to ensuring the safe development of the system of credit institutions.
According to experts, this regulation ensures consistency and does not conflict with the policy of "Ensuring the principle of conducting inspections and checks only once a year for enterprises" stipulated in Resolution No. 68-NQ/TW dated May 4, 2025 of the Politburo on private economic development. As the host agency, the SBV will develop and approve an inspection plan to assign to the Vietnam Deposit Insurance Corporation for implementation; ensure that there is no overlap, overlap, and no inspection/inspection of more than 01 time per year for a credit institution.
International experience shows that on-site inspection is an important professional activity of the unemployment insurance organization. According to the recommendation of the International Association of Bankruptcies (IADI), a bankruptcy organization is an agency that is subject to many risks (losing the bankruptcy fund) when a bank goes bankrupt; therefore, the bankruptcy organization assigned to inspect can reduce the risk of having to make payments, reduce negative impacts on the bankruptcy fund. There are currently about 40 unemployment insurance organizations in the world with on-site inspection functions (such as the US, Taiwan, Korea, Indonesia, Japan, etc.).
The legalization of the inspection of organizations participating in unemployment insurance according to the plan and content assigned by the State Bank of Vietnam that the Vietnam Deposit Insurance Corporation has been implementing is a necessary requirement and is in line with reality. When the Vietnam Deposit Insurance Corporation participates and supports the inspection work, the SBV will have an additional monitoring channel, while providing a multi-dimensional perspective in assessing the activities of credit institutions. This approach ensures coordination, not overlap: the SBV still plays the leading role, developing a comprehensive inspection and examination plan; on that basis, assigning the Vietnam Deposit Insurance Corporation to conduct specific annual inspections.
