Developing the retirement insurance market in Vietnam

Abstract

Vietnam is entering the population aging stage with 12% of the population aged 60 and over by the end of 2020; This rate is forecasted by the International Labor Organization (ILO) to increase to 18% by 2030 and about 23% by 2040. Also according to the ILO (2020) report, there were about
8.3 million people out of 10.1 million elderly people in Vietnam did not receive retirement in 2017, accounting for 83% of people aged over 60 years old. This reduces sustainability in term of social issue and financial sustainability of the Vietnamese pension system in both medium and long term. Retirement insurance has been deployed in Vietnam as a solution to improve pension for employees upon retirement, reduce the risk of dependence on basic retirement income, thereby reducing the burden for the Vietnamese pension system. However, in reality, not many insurance companies pay attention to develop this product, stemming from both objective and subjective reasons. This research presents the legal framework related to pension insurance in Vietnam, analyzes the current situation of pension insurance business of insurance companies in Vietnam through synthesis of product data
from 2017 to Sep, 2020, from there, proposing solutions to develop pension insurance products of insurance companies to sustainably develop the social insurance system.