February 2024
13Feb

Vietnam’s workers cash out pensions early ahead of new law

Vietnam is amending its pension laws in an attempt to deter people from abandoning the fund before retirement. Yet in some quarters, the pending change is having the opposite effect. Many workers critical to the world's electronics and clothing supply chains were already taking early payouts to deal with hardships, such as those brought on by the pandemic. Now, more of them are getting jittery after hearing the upcoming law could cut payouts in half, and the communist country is...

February 13, 2024
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January 2024
12Jan

Solving Vietnam’s social protection sustainability problem

As an economy develops, economic policy and social policy tend to overlap. Reports of long queues of people in Ho Chi Minh City withdrawing their social insurance contributions after losing their jobs during the COVID-19 pandemic is an example. Workers in the formal sector viewed their contributions to a retirement income insurance scheme — known generally as ‘social insurance’ — as their savings to be drawn upon in hard times. This helped boost demand and enhanced short-term macroeconomic management. Yet...

January 12, 2024
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June 2023
07Jun

Vietnam strives to maintain replacement fertility rate

More people in a country can lead to a larger workforce which will lead to more products being produced and economic growth subsequently. While other countries in the world with a population of 500,000 people or more have only maintained their fertility rate which means that each woman of reproductive age has an average of 2.1 children for 2-10 years, Vietnam is the only country that has so far maintained a golden population ratio and structure for 23 years, from...

June 7, 2023
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June 2022
27Jun

Vietnam: Most citizens grow old without retirement funding plans

Many Vietnamese citizens likely to grow old without any savings or retirement plan due to low income and lack of access to elderly care. Ms Luong Thi My Hanh, head of domestic asset management at investment fund Dragon Capital Vietnam, said most Vietnamese workers do not have a retirement plan and are focused merely on meeting daily needs, according to a report in VnExpress. Most of them save for short-term goals and usually spend all the money they have, she added. Over...

June 27, 2022
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March 2021
05Mar

Vietnam gets its first private defined contribution plan

Dragon Capital VietFund Management, a Ho Chi Minh-based money management firm, has launched Vietnam's first private sector retirement savings vehicle. The defined contribution plan, with government tax incentives for employees and employers alike, offers savers three fund options — a relatively high-risk 50-50 split between equities and bonds, a 65% bond-35% stock mix and a conservative 80% bond-20% stock mix. Savings can be withdrawn tax-free upon reaching retirement age, currently 62 for men and 60 for woman. Life insurers in Vietnam have...

March 5, 2021
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May 2019

16May

Asignará el Banco Mundial ayuda al Seguro Social de Vietnam para gestión del fondo de pensiones

Hanoi (VNA)- El Banco Mundial (BM) asignará recursos para ayudar al Seguro Social de Vietnam a cumplimentar la segunda etapa del programa de capacitación y mejoramiento de la gobernanza y gestión de fondos de pensiones (2019-2021), dijo un funcionario de esa organización. Tal información fue dada a conocer por Alwaleed Alabatani, experto financiero del BM, durante un encuentro efectuado la víspera con el subdirector general del Seguro Social de Vietnam (VSS), Nguyen Dinh Khuong, con el...

May 16, 2019
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16May

WB continues to support Vietnam Social Insurance

The Deputy Director General of the Social Insurance of Vietnam, Nguyen Dinh Khuong, has just worked with a delegation of the World Bank, led by the financial expert Alwaleed Alabatani. During the recent working session, he said that the first phase (2017-2018) of the technical assistance project on the management and investment of pension funds between the two parties has come to an end. The World Bank would continue to support Vietnam's Social Insurance in reform, improving the...

May 16, 2019
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November 2017

30Nov

ILO: Vietnam should extend social protection to informal economy

Participants at a conference on “Reforming Social Insurance Policies - International Experience and Recommendations for Vietnam”, organized in Hanoi on November 29 by the Ministry of Labor, Invalids and Social Affairs (MoLISA) and the ILO, agreed that social insurance reform should be built on the results already achieved. “Social insurance is a key pillar of the social security system,” Deputy Prime Minister Vuong Dinh Hue told the gathering. “It makes a great contribution to realizing social advancement and justice in that...

November 30, 2017
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July 2017

18Jul

Chart of the Week: A Golden Aging for Vietnam?

Vietnam’s demographic dividend is fast turning into a handicap. For decades, working-age Vietnamese made up an expanding share of the population, boosting economic growth and helping to keep retirement and health spending in check. That changed in 2013. While the southeast Asian nation’s population of 92 million is still relatively young (the median age is 26), it is graying quickly. Birth rates are falling, and life expectancy is rising. This phenomenon is by no means unique to Vietnam. The problem is...

July 18, 2017
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June 2017

12Jun

SSI Asset Management eyes pension fund ops in Vietnam

The capital market in Vietnam has seen a snowballing expansion throughout the last few years. In the years 2011-2015 as Vietnam kicked off its plan to catapult the capital market, the stock market jumped nearly three times in terms of capitalisation and attracted 50 per cent more investors. In 2016, the market capitalisation rose 26.6 per cent year-on-year to reach $72 billion. Vietnam is now also building a pipeline to grow more instruments such as pension funds and derivatives by 2020....

June 12, 2017
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