Viet Nam is currently in a demographic dividend period, with the statutory working-age population twice as high as the non-working age one. Every year, the statutory working-age population participating in the labour market makes up a relatively high proportion exceeding 75 %. Nevertheless, the majority of workers in Viet Nam accept vulnerable jobs, do not have their social insurance premiums paid by employers or a guaranteed labour contract. Such workers are considered to work in informal employment. For a country with a large population and developing economy such as Viet Nam, informal employment is still an integral part of society, making an important contribution to job creation and income generation for workers. Although informality often has negative impacts on workers’ incomes, safety and health, they are in many cases left with no choice but to work in informal jobs to secure livelihoods in the context of limited social welfare conditions or insecure earnings from formal work.
According to Phạm Anh Thắng, Deputy Head of the Office of the Ministry of Labor, Invalids, and Social Affairs, affirmed that informal workers play an inseparable role in the labor structure. In fact, the informal labor force makes significant contributions to economic growth, especially in rural areas. However, the majority of informal workers do not have labor contracts or only have verbal agreements. With this reality, informal workers face the risk of unstable employment, vulnerable positions in wage negotiations, lack of welfare benefits, and insufficient labor protection conditions.
Throughout the country’s dynamic socio-economic development, the Government of Viet Nam has made unwavering efforts to further develop the economy and formalize informal sectors to ensure decent work for workers. However, many workers can still be found in the informal sector, with the situation becoming particularly acute during 2020–21 amid the severe impacts of the COVID-19 pandemic. In order to paint a comprehensive picture of workers in informal employment in Viet Nam, especially amid the pandemic, the General Statistics Office with technical assistance from International Labour Organization (ILO) Country Office for Viet Nam has compiled this “Overall Situation of Workers in Informal Employment in Viet Nam” report. Based on data and information collected from annual Labour Force Surveys, this report has highlighted key characteristics of informality in Viet Nam in different dimensions. It has also assessed the determinants of informality and come up with a number of recommendations to enhance the quality of Viet Nam’s labour force, to help ensure decent work for all. The report is comprised of four chapters. Chapter I. Concept, methods, data sources for calculating informal employment Chapter II. Features of informal workers in Viet Nam Chapter III. Impacts of the COVID-19 pandemic on informal workers Chapter IV. Conclusions and recommendations The General Statistics Office would like to extend its sincere appreciation to the ILO for its technical support and to relevant agencies, organizations and individuals for their close coordination and cooperation during the course of compiling this report.
Statistics from the Ministry of Labour, Invalids and Social Affairs showed that there are currently over 33 million informal workers nationwide.

However, only 0.2 per cent of them participated in compulsory social insurance, 1.9 per cent participate in voluntary social insurance and the remaining 97.9 per cent do not participate in any form of insurance at all.
Causes, Labour experts believe that there are three main reasons why informal workers are not enthusiastic about social insurance.

According to the experts, low income, unstable and precarious jobs, where you live 'hand to mouth' were blamed for the situation. The non-compulsory nature of social insurance also worsened the situation.

Moreover, they have not received full information about the benefits of social security policies such as social insurance, unemployment insurance, occupational accident and disease insurance, or leave and sickness pay.

Resolution No. 28-NQ/TW on social insurance policy reform sets a target of 60 per cent of the eligible workforce taking out insurance by 2030 and that should include five per cent of farmers and part-time workers.

One of the solutions proposed as a way of expanding the coverage of social security network is to require informal workers to participate in social insurance.

However, according to experts, it was very difficult to implement because informal labour income was low, while the State lacks the resources to boost worker contributions.

Solutions, it was necessary to study and amend the system of laws and policies and instead of following the current approach of two groups, formal and informal workers, it should redesign the policy system towards equality and coverage for all workers.

For example, all workers participating in social insurance in the labour market should be guaranteed equal rights, on the principle of contributions-benefits, they would receive accordingly, she said.

Lê Đình Quảng, deputy head of the Law and Policy Department under Việt Nam General Confederation of Labour said the confederation's opinion was that all workers must have the right to participate in and benefit from social insurance policies.

“Our direction is to expand the scope of social insurance participation, moving towards universal social insurance,” he said.

Currently, the number of social insurance participants in the informal sector is very low.

To prevent informal workers from 'falling through the safety net' it needs to gradually abolish the gap between formal and informal workers by changing the labour structure, he said.

Đinh Thị Thu Hiền, deputy director of the Department of Social Insurance Implementation under the Việt Nam Social Security said they needed to communicate better so that social insurance participants fully understand their rights when taking part, so there would be more voluntary participation in taking care of their own and their families' future.

The communication about the draft amended Law on Social Insurance with many new policies and benefits should be promoted so that informal workers know, actively participate in and stay in the network sustainably.