HANOI – The Vietnam Social Security (VSS) and the World Bank (WB) have joined forces to increase social insurance coverage, with a focus on expanding protection for informal workers. The partnership aims to support Vietnam’s ambitious goal of reaching 60% social insurance coverage by 2030.
The World Bank has expressed its commitment to aiding Vietnam in this endeavor, particularly by providing technical assistance to revise the country’s Social Insurance Law, which was updated in 2024. The law is seen as a crucial step in broadening coverage, especially for informal sector workers, who have traditionally been excluded from the social insurance system.
A key aspect of the collaboration is the World Bank’s proposal to enhance government subsidies for voluntary social insurance, as well as to explore potential additional subsidies from the bank itself. The move is part of a broader strategy to meet the government’s target of 60% coverage by the end of the decade.
Discussions between the VSS and the World Bank, which took place in Hanoi on February 13, also included potential policy recommendations aimed at boosting participation among gig workers. A delegation from the World Bank, led by senior pension economist Robert J. Palacios, participated in the session, which focused on strategies for expanding coverage in the informal workforce and improving the efficiency of the revised Social Insurance Law.
Dao Viet Anh, Deputy Director General of VSS, acknowledged the significant role the World Bank has played in shaping social insurance policies in Vietnam. He emphasized the bank’s contributions to modernizing the sector, advancing universal health insurance, and strengthening social insurance infrastructure.
The World Bank has already provided substantial technical support, including assistance with the revision of the Social Insurance Law, expanding voluntary coverage options, conducting financial projections, and training VSS staff on advanced forecasting models.
At present, only 34% of Vietnam’s workforce is covered by social insurance. In response, Palacios urged further improvements in communication strategies, the development of pension calculation tools, and the integration of more advanced technology in voluntary social insurance programs.
In addition to these efforts, the World Bank suggested a study tour to Egypt’s Social Insurance Authority to explore its digital transformation efforts and strategies for increasing coverage in the informal sector.
VSS has welcomed the World Bank’s recommendations and is seeking continued support in finalizing jointly developed products, enhancing staff capacities, improving data governance, and forecasting the fund balance.
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