Vietnam’s voluntary social insurance program has significantly expanded over 30 years, reaching 2.311 million participants, but to meet the 2030 target of 60% coverage, further reforms are needed. The World Bank is collaborating with Vietnam Social Security to enhance coverage for informal workers.
As of now, Vietnam’s voluntary social insurance program has seen significant growth over the past 30 years, with participant numbers increasing by 8.9 times since 1995, representing 42.71% of the working-age labor force. Approximately 2.311 million individuals are enrolled in voluntary social insurance, making up about 4.9% of the working-age population, surpassing the targets outlined in Resolution No. 28 on social insurance policy reform. However, to meet the goals of ensuring that 60% of the working-age labor force participates in social insurance by 2030—alongside the inclusion of 5% from farmers and informal workers in the voluntary scheme—further policy reforms and efficiency improvements are necessary.
In a recent meeting with a World Bank (WB) delegation, VSS Deputy General Director Đào Việt Anh acknowledged the WB’s substantial contributions to expanding social insurance coverage. The WB has played a crucial role in advising Vietnam Social Security (VSS) on enhancing social insurance policies, supporting universal health insurance, and improving regulatory frameworks. Their technical assistance has notably led to modernizing and increasing the transparency of social insurance implementations.
WB Chief Economist Mr. Robert J. Palacios highlighted the significance of the revised Social Insurance Law of 2024, which aims to facilitate broader coverage for informal sector groups. He emphasized the need for the government to consider increasing subsidies for voluntary social insurance participants and enhancing WB’s financial support to help VSS meet its 2030 goals. The informal workforce is critical to the Vietnamese economy, with approximately 70% of employment stemming from this sector. Informal workers play a vital role in providing jobs and supporting livelihoods, particularly for vulnerable populations. During the working session, the WB presented recommendations for expanding social insurance coverage for these workers and proposed mechanisms to engage those in technology-based service platforms. To improve outreach and implementation, Mr. Palacios urged VSS to enhance its communication strategies, provide pension calculation tools, and leverage technology in the voluntary social insurance program.
In response, Deputy General Director Đào Việt Ánh requested continued collaboration with the WB in finalizing joint initiatives and emphasized the importance of capacity-building for VSS staff. Additionally, the WB’s support in developing a national data strategy is deemed essential for VSS to establish a robust data infrastructure, ensuring the advancement of social insurance coverage and operational efficiency moving forward.
