{"id":529253,"date":"2026-06-11T04:27:33","date_gmt":"2026-06-11T04:27:33","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/529253\/"},"modified":"2026-06-11T04:27:33","modified_gmt":"2026-06-11T04:27:33","slug":"viet-nam-moves-to-boost-supplementary-pension-funds","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/529253\/","title":{"rendered":"Vi\u1ec7t Nam moves to boost supplementary pension funds"},"content":{"rendered":"

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<\/p>\n <\/p>\nDespite recent growth, Vi\u1ec7t Nam’s supplementary pension fund market remains small. \u2014 Photo chinhphu.vn<\/td>\n


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H\u00c0 N\u1ed8I\u00a0\u2014 Vi\u1ec7t Nam’s new decree on supplementary pension insurance and proposed amendments to personal income tax policies are expected to support the development of the country’s pension fund market, helping diversify the social security system and attract long-term investment capital, officials and experts have said.<\/p>\n

The Government recently issued Decree 85\/2026\/N\u0110-CP on supplementary pension insurance, replacing Decree 88\/2016\/N\u0110-CP after nearly a decade of pilot implementation. The decree is seen as a step toward implementing the 2024 Social Insurance Law and establishing a clearer legal framework for the development of a supplementary pension pillar alongside the mandatory social insurance system.<\/p>\n

Decree 85 may signal\u00a0a stronger shift toward a market-oriented approach to supplementary pension funds.<\/p>\n

During the drafting process, the Ministry of Finance proposed requiring a portion of participants’ contributions\u00a0be used to purchase annuity insurance products that would guarantee a minimum payout upon retirement. The provision was later removed amid concerns that it conflicted with the voluntary and market-based nature of pension funds, and could increase costs and create potential disputes.<\/p>\n

Instead, the decree places greater emphasis on transparency and risk disclosure. Fund management companies, distributors and consultants are prohibited from marketing supplementary pension products in ways that could be confused with the State pension system or commercial life insurance products.<\/p>\n

This\u00a0measure is intended to reduce the risk of participants mistakenly viewing supplementary pension funds as products offering guaranteed returns.<\/p>\n

The decree also adopts a more flexible investment framework. Rather than requiring all corporate bonds held by pension funds be backed by collateral or payment guarantees, as initially proposed, the new rules allow funds to invest in listed corporate bonds that have been assessed by independent credit rating agencies.<\/p>\n

According to\u00a0Ph\u1ea1m Th\u1ecb\u00a0Thanh Tam, deputy director of the Department of Financial Institutions under the Ministry of Finance, the\u00a0development of supplementary pension funds is necessary to achieve two goals simultaneously: enhancing social security and mobilising resources for sustainable economic growth.<\/p>\n

A small market<\/b><\/p>\n

Despite recent growth, Vi\u1ec7t Nam’s supplementary pension fund market remains small.\u00a0<\/p>\n

By the end of 2025, only four fund management companies had been licensed to manage supplementary pension funds: Dragon Capital Vietnam, SSI Asset Management, MB Capital and Vietcombank Fund Management Company, Ministry of Finance data shows.<\/p>\n

The four firms managed seven supplementary pension funds with total net assets exceeding VN\u01102.2 trillion (US$84\u00a0million) and nearly 28,600 participants, more than 42 times the level recorded five years earlier.<\/p>\n

However, Associate\u00a0Professor\u00a0Dr\u00a0Tr\u1ea7n Th\u1ecb\u00a0Thanh Nga from the Academy of Finance\u00a0said the sector remains\u00a0in its infancy when measured against the size of Vi\u1ec7t Nam’s economy, labour force and long-term financing needs.<\/p>\n

The asset base is\u00a0small, participation is limited, and supplementary pension funds have yet to become a widely used savings channel for workers,\u00a0Nga told thoibaonganhang.vn.<\/p>\n

Deputy director of Ho Chi Minh City Social Security Tr\u1ea7n D\u0169ng H\u00e0\u00a0agreed, saying\u00a0participation levels remain\u00a0modest after nearly 10 years of implementation, suggesting that both employers and employees are still cautious about the model.<\/p>\n

H\u00e0 added that the current framework appears to focus mainly on well-performing enterprises, while workers can only participate through their employers. This is a bottleneck that needs to be addressed if participation is to expand.<\/p>\n

Supplementary pension funds could also play a broader role beyond strengthening social security by providing a source of long-term capital for the economy.<\/p>\n

While\u00a0banks continue\u00a0to supply most medium- and long-term financing,\u00a0a larger pension fund industry could help create a new class of institutional investors in the capital market.<\/p>\n

Taxes, trust key to pension fund growth<\/b><\/p>\n


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<\/p>\n <\/p>\nBeyond tax policy,\u00a0building public confidence would be critical to the pension fund sector’s long-term development. \u2014 Photo daidoanket.vn<\/td>\n


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Despite these regulatory changes,\u00a0Nga\u00a0said\u00a0a lack of adequate tax incentives could be an obstacle to expanding participation.<\/p>\n

Under current regulations, contributions to supplementary pension funds are deductible from taxable income up to VN\u01101 million ($38) per month. This\u00a0threshold has remained unchanged for years\u00a0and is increasingly seen as insufficient, as incomes and living costs rise.<\/p>\n

In a draft amendment to personal income tax regulations, the Ministry of Finance has proposed raising the deductible contribution limit to VN\u01103 million per month to encourage long-term retirement savings and help ease future social security pressures.<\/p>\n

However, according to Nga, stronger incentives may be needed if supplementary pension funds are to gain broader acceptance.<\/p>\n

She noted that in many countries, supplementary pension systems are supported by meaningful tax incentives, convenient participation mechanisms and investment products tailored to different stages of a worker’s career.\u00a0<\/p>\n

Increasing public confidence could also be critical to the sector’s long-term development.<\/p>\n

Many Vietnamese still favour traditional forms of wealth preservation, such as bank deposits, gold and real estate, over locking up savings for decades. At the same time, the country’s supplementary pension fund industry remains relatively new and has yet to establish a strong track record of long-term wealth accumulation.<\/p>\n

Building trust through greater transparency, reasonable management fees and stable long-term investment performance could be essential to attracting broader participation and creating a meaningful source of long-term capital for Vi\u1ec7t Nam’s financial markets.\u00a0\u2014 VNS<\/p>\n","protected":false},"excerpt":{"rendered":"\u00a0 Despite recent growth, Vi\u1ec7t Nam’s supplementary pension fund market…\n","protected":false},"author":2,"featured_media":529254,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[177],"tags":[26125,26113,26154,26156,79,7131,26138,26122,26121,179,18,26146,26143,26140,26105,26102,440,26150,26126,19,17,26016,3255,361,26109,26116,26137,26120,26135,26148,26107,26136,26127,26124,26155,26123,234,235,790,2990,132,26106,26151,26157,26104,26133,26129,26110,26115,26142,26149,26108,26141,26145,26153,26147,26134,26144,26118,26114,26152,26119,26112,26101,26159,26130,26158,26131,9388,26139,26117,26111,26132,26103,26128,7932],"class_list":["post-529253","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-bao-online","tag-bao-vietnam","tag-bao-vn-net","tag-baovietnam","tag-business","tag-current-news","tag-current-news-headlines","tag-daily-nation-newspaper-headlines","tag-daily-nation-today","tag-economy","tag-eire","tag-english-daily","tag-english-news-headlines","tag-english-news-papers","tag-english-newspapers","tag-english-through-the-news","tag-environment","tag-govt-news","tag-headlines-news","tag-ie","tag-ireland","tag-latest-news-today","tag-life","tag-magazine","tag-nation-news-paper","tag-national-news-headlines","tag-national-news-in-english","tag-news-headline","tag-news-headlines-for-today","tag-news-highlights","tag-news-latest","tag-news-paper-online","tag-news-site","tag-news-website","tag-news-vn","tag-newspaper-headlines-today","tag-personal-finance","tag-personalfinance","tag-politics","tag-society","tag-sports","tag-the-vietnam-war","tag-the-vietnam-war-summary","tag-thongtanxavietnam","tag-tin-viet-nam","tag-tin-viet-nam-net","tag-tin-vietnam","tag-today-breaking-news","tag-today-headlines","tag-today-hot-news","tag-today-international-news","tag-today-news-headlines","tag-top-news-headlines","tag-up-to-the-minute-news","tag-viet-nam","tag-viet-news","tag-viet-to-english","tag-vietnam-conflict","tag-vietnam-culture","tag-vietnam-economy","tag-vietnam-exports","tag-vietnam-government","tag-vietnam-history","tag-vietnam-news","tag-vietnam-news-agency","tag-vietnam-people","tag-vietnam-plus","tag-vietnam-today","tag-vietnam-war","tag-vietnam-war-history","tag-vietnam-war-summary","tag-vietnamese-culture","tag-vietnamese-news","tag-vietnamese-to-english","tag-war-in-vietnam","tag-your-say"],"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/529253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=529253"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/529253\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/529254"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=529253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=529253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=529253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}