Vietnam to develop multi-tiered social security system: Deputy PM

Hanoi (VNA) – The government is developing a scheme for reforming Vietnam’s social insurance policy aiming to establish a multi-tiered social security system which will be submitted for approval in May, said Deputy Prime Minister Vuong Dinh Hue on March 5.

Hue made the statement when meeting in Hanoi with Julian Adams, Group Regulatory and Government Relations Director of the UK-based life insurer Prudential, noting that it is part of the government’s strategy to sustainably develop the social security as well as the life insurance system.

The Government of Vietnam is committed to stablise the macro-economy, control inflation and pursue investment attraction policies to facilitate foreign investors, including those from the UK, doing business in Vietnam in the long term, he told Prudential’s director.

Adams said next year will mark the 20th year of Prudential’s presence in Vietnam and the firm wants to be a good “citizen” of Vietnam as it plans to continue operating in the country in the long run.

It is also ready to work alongside the government to address challenges of the aging population in the country, reducing burdens on the State budget, he added.

The Deputy PM affirmed that they are the issues of great interest of the government as Vietnam is experiencing a “golden population structure” but also sees the rapid population aging.

The nation is striving to shift its population policy’s focus from birth control to population and sustainable development and to maintain a reasonable fertility rate, which is declining in big cities, he noted.

At the same, the government is pursuing the public debt restructuring plan and the issuance of long-term government bonds is the key to the plan, Hue stated. He expected Prudential will continue investing in the G-bond and develop more new products.

The government also plans to expand the social insurance coverage by encouraging people to buy life insurance.-VNA