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However, the social insurance policy in Vietnam was only effectively implemented starting in 1962, with the introduction of the Temporary Statute on Social Insurance for State employees, issued alongside Decree No. 218/CP on December 27, 1961, by the Council of Ministers. It covered key policies on pensions, survivor, sickness, maternity, and occupational accidents benefits, and the target group was limited to public-sector workers. The state budget was responsible for funding the social insurance schemes.

Along with the country's socio-economic development, the social insurance policy has been continuously amended, supplemented, and perfected to align with the socio-economic characteristics of each period. Entering the renewal period and international integration, with the development of a multi-sector economy, the social insurance policy was gradually expanded to include other economic sectors. In this regard, the issuance of the regulation on Social Insurance  under Decree No. 12/CP on January 26, 1995, laid the foundation for a social insurance policy based on contributions from workers and employers, with support from the state. This system was compatible with the transition from a planned economy to a socialist-oriented market economy and international economic integration.

Up to now, with the introduction of the Social Insurance Law (2006, 2014, 2024), especially the Resolution No. 28-NQ/TW on social insurance policy reform, the social insurance policy has aimed to cover all workers (including those with and without labor relations) through compulsory and voluntary social insurance schemes. The social insurance policy has been gradually improved, harmonized, and aligned with the realities of the country and international practices, increasingly affirming and enhancing its role as the main pillar contributing positively to the Party and State’s social security endeavors.

Since the establishment of the Temporary Social Insurance Statute (1961), Vietnam Social Security (VSS) has undergone 65 years of development, with two major periods: the transition from a centralized planned economy to a socialist-oriented market economy, and four phases of reform during nearly 40 years of innovation. In 1995, the government decided to establish the Vietnamese social insurance system by consolidating central and local social insurance organizations under the Ministry of Labor, Invalids, and Social Affairs, and the Vietnam General Confederation of Labor. This marked an important step in managing the social insurance fund and renewing the implementation of social insurance policies with a clear distinction between government management functions and policy execution.

Subsequently, in 2002, the Prime Minister decided to transfer the responsibilities for implementing health insurance policy from the Ministry of Health to the Vietnam Social Security. This process reflects the development of the social insurance system over the past 30 years, closely linked with the country's renewal efforts and being one of the most notable achievements of social policy innovation, labor relations reform, and the operation of social insurance policies under the market economy mechanism. This has contributed to the increasingly solid formation of a social security system that aligns with the country's development and has made the social insurance fund the largest social security fund.

As a result, the scope and coverage of social and health insurance have gradually been expanded. The number of people receiving benefits has steadily increased, and the diversity of ways to participate in social insurance has drawn increasing public attention. By the end of 2024, over 20.1 million social insurance participants, representing about 42.7% of the workforce at the working age; over 16 million unemployment insurance participants, making up about 34.1% of the workforce of working age; the health insurance coverage rate had reached 94% of the population; the social and health insurance funds continued to grow, with total revenue exceeding VND 526 trillion. Social  and health insurance policies have ensured the livelihood of 3.4 million retirees; more than 186 million people received health care expenses through health insurance; and nearly 10 million people benefited from social and unemployment insurance benefits.

Administrative procedure reform has always been a focus and has been promoted. The procedures have been regularly reviewed, simplified, and minimized in terms of processes, paperwork, forms, and implementation time. Effective digital technology applications have been employed, and operational processes have been revised based on the connection and information sharing among databases to reduce costs and maximize convenience for citizens and businesses when dealing with social security offices. The VSS is one of the seven agencies that have fully implemented the simplification of administrative procedures and citizen documents related to population management. In particular, together with the entire political system, the VSS has actively deployed Project 06. As a result, the industry has verified more than 99.6 million demographic records in its database, matching with the national population database, with about 89.5 million people currently participating in and benefiting from social insurance, health insurance, and unemployment insurance policies.

Notably, the achievements in digital transformation have contributed to building the VSS industry in line with the government's digital transformation vision, meeting the requirements of ensuring national social security. At the same time, the VSS continues to maintain its position in the top 4 ministries and sectors leading the National Digital Transformation Index rankings, laying the foundation for the sector’s continued success in fulfilling its tasks in the coming period.

Through nearly 40 years of reform, Vietnam has chosen and gradually consolidated a social security model suitable for the socialist-oriented market economy, with changes in population, the labor force, the level of socio-economic development, the need for sustainable development, and international integration. However, the process of building and implementing social insurance policy has also revealed several shortcomings, such as: the coverage of social insurance being below its potential, voluntary social insurance not attracting workers in the informal sector, short periods of social insurance contributions, low wage levels for social insurance contributions compared to workers' actual incomes, increasing one-time benefit claims, and persistent issues with arrears and delayed payments, as well as large short-term social insurance fund surpluses.

The development context of a country at a middle-income threshold, with one of the fastest aging populations in the world, increasing life expectancy, growing income inequality, new labor relations emerging, and deeper international integration, presents new challenges for improving social security quality. The main focus is on expanding coverage and enhancing the sustainability of the social and health insurance system, based on addressing major relationships between innovation, stability, and development; between the market economy and socialist orientation; between economic growth and the realization of social progress and equity.

Resolution No. 28-NQ/TW on social insurance policy reform has set out a fundamental goal of developing a flexible, diverse, multi-tiered, modern social insurance system integrated internationally by 2030, aiming for universal coverage in the long term. It also specifies tasks and solutions, with many reforms requiring prompt institutionalization and implementation, and some policies requiring time to prepare and be carried out persistently over a long period, closely tied to the country’s socio-economic development.

The 2019 Labor Code institutionalized the gradual increase in the retirement age, eliminated seasonal labor forms to limit social insurance evasion, recognized electronic labor contract signing, and amended certain labor standards for workers without labor relations, along with some amendments to the pension conditions in the 2014 Social Insurance Law. Likewise, the 2024 Social Insurance Law institutionalizes the objectives of Resolution No. 28-NQ/TW, expanding coverage, reducing the number of years required to receive a pension, and limiting one-time social insurance withdrawals. Thus, these policies need to be implemented promptly, comprehensively, and synchronously in both policy development and improving the effectiveness of law enforcement in social insurance and health insurance.

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More importantly, the VSS must continue to implement reforms in policy execution to strengthen public trust and increase satisfaction with the social insurance system. This includes significantly innovating in content, methods, and outreach to raise awareness among workers about ensuring long-term social security for themselves and their families. These reforms should be implemented patiently, starting with the sector's staff through their daily work. Building trust and support from citizens and businesses hinges on the quality and effectiveness of work resolution, the service mindset of staff in tasks such as outreach, participant expansion, contributions, and the management of social and health insurance funds. Every staff member in the VSS must be deeply aware of the importance of engaging the public through their daily operations, especially in a context where the public's awareness and role as citizens are increasingly expanding, and diverse communication tools, including social media, are more prevalent.