VSS and the World Bank discussed expanding social security coverage, especially for informal workers. The Bank proposed raising voluntary insurance subsidies to 50 percent and introducing Monotax and flexible insurance models. Both sides agreed to enhance digital tools, financial forecasting, and reforms to build an inclusive, sustainable social security system.
During a working session between Vietnam Social Security (VSS) and a World Bank (WB) delegation, Deputy Director Tran Dinh Lieu welcomed the Bank’s continued support and highlighted its crucial role in improving VSS operations and advancing the national goal of universal social security under Resolution No. 28-NQ/TW. He emphasized that expanding social security coverage, particularly to informal workers, remains a key priority. WB experts presented preliminary findings of their study on social insurance (SI) expansion and recommended increasing government subsidies for voluntary SI contributions to 50 percent to potentially triple participation.
They also introduced the “Monotax” model, combining SI, health insurance, and tax obligations into one simplified mechanism, successfully applied in Uruguay, Brazil, Mexico, to improve compliance and coverage among small enterprises. Additionally, WB shared international experiences with “flexible combined insurance” systems offering both short-term and long-term benefits to make participation more appealing while maintaining fund sustainability. Both sides discussed enhancing digital transformation in VSS operations, including online tools such as the voluntary SI calculator and benefit estimation features to improve citizen access. Deputy Director Lieu reaffirmed VSS’s commitment to continued collaboration with the WB to pursue modernization, improve management efficiency, and achieve a more inclusive and sustainable social security system.
