Legislative Reforms Enhancing Social Insurance

A pivotal development is the enactment of  No. 41/2024/QH15 on Law on Social Insurance , set to take effect on July 1, 2025. This law introduces amendments aimed at bridging gaps between existing legislation and practical application, thereby enhancing the rights and benefits of social insurance participants. It supersedes the previous Law No. 58/2014/QH13 and Resolution No. 93/2015/QH13, which pertained to one-time social insurance policies for employees. The new legislation delineates the rights and obligations of relevant authorities, organizations, and individuals concerning social insurance, ensuring a more robust and comprehensive framework.

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Economic Growth Bolstering Social Security

Accoding to World Bank, Vietnam's economy is projected to grow by 6.5% in both 2025 and 2026, up from 6.1% in 2024. This consistent economic expansion not only reflects the nation's resilience amid global challenges but also provides a solid foundation for enhancing social security systems. Sustained growth facilitates increased investments in social welfare programs, ensuring broader coverage and improved benefits for the populace. 

Despite advancements, a significant portion of Vietnam's working-age population remains outside the social insurance system. In 2020, approximately 68% lacked social insurance coverage. To address this, the government has implemented policies since 2018 to encourage voluntary participation, particularly among informal sector workers. These efforts have led to a notable increase in voluntary social insurance participants, rising from 0.22% of the working-age labor force in 2011 to 2.17% in 2019. However, challenges persist, including ensuring sustainable financing for the Social Insurance Fund, as evidenced by a decreasing ratio of contributors to beneficiaries—from 9.4 in 2011 to 7.8 in 2020 (under ILO).

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Strategic Vision for 2030

Looking ahead, Vietnam aims to develop a universal social security system by 2030, fostering a middle-class society and ensuring a safe, equitable, and fulfilling life for its citizens. Specific targets include increasing the proportion of the working-age labor force participating in social insurance to 45% by 2025 and 60% by 2030, with farmers and informal sector workers accounting for 5% of this demographic. Additionally, the country seeks to reduce the national household poverty rate by 1-1.5% annually, underscoring a commitment to social justice and inclusivity (under ILO).

In summary, Vietnam's social security trajectory in 2025 is characterized by proactive legislative reforms, robust economic growth, and strategic initiatives aimed at expanding coverage and ensuring long-term sustainability. These efforts reflect the nation's dedication to enhancing the well-being of its citizens and building a resilient, inclusive society.