As Vietnam moves toward an aging population, voluntary pension funds are emerging as a key solution to secure financial stability for retirees. Despite policy progress since the first voluntary pension programs launched eight years ago, participation remains low — with total assets at just 0.01% of GDP by the end of 2023.
Experts say stronger tax incentives, clearer regulations, and greater awareness are needed to expand participation among workers and employers. With the state social insurance fund under growing strain, developing a multi-pillar pension system is seen as essential for Vietnam’s long-term economic resilience.
This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the May 2024 issue of Bloomberg Businessweek Vietnam.