Illustrative image (Source: VNA)

Hanoi (VNA) –Vietnam Social Security Fund (VSSF) will not go bust by 2025, Deputy General Director of the Vietnam Social Security Dao Viet Anh has said.

Anh made the affirmation at the Government’s regular press conference in Hanoi on May 3, in response to a query raised by a Vietnam News Agency’s reporter on whether the proposal on raising retirement age is related to the forecast that the VSSF will run out of money by 2025.

He said the forecast was made by the International Labour Organisation before the issuance of the Law on Social Insurance in 2014.

However, under the new law, the coverage of social insurance has expanded and the methods to calculate premium and payments have changed, which made the previous forecast no longer correct, he further explained.

He stressed that the proposal on higher retirement age must take into account various issues like age, the efficiency of human resources use, labour productivity and gender equality, apart from social insurance fund balance.

On April 23 this year, the Ministry of Labour, Invalids and Social Affairs (MoLISA) came up with two scenarios for increasing retirement age to 60 for women and 62 for men; or 60 for women and 65 for men, at a meeting of the National Assembly’s Committee on Social Affairs.

According to MoLISA Minister Dao Ngoc Dung, either of these options, if approved, will be implemented with a planned timeline so that it will not be an immediate change for labourers.-VNA