Vietnamese pensioners can enjoy the highest pension rate in the world, 75% of their social insurance payments. However, as the salaries used to calculate social insurance premiums are low, the actual pension they receive in retirement is small.

Previously, because of a regulation on ceiling for total expenditures on patients with health insurance, doctors had to ‘weigh and measure’ expenses to be sure the expenditure was not higher than allowed.

The Ministry of Labour, Invalids and Social Affairs (MoLISA) has proposed the provision of support to people who pay social insurance premiums for less than 15 years and are not eligible for pension benefits.

More freelance labourers in Hoi An have spent part of their monthly income on voluntary social insurance, considering this as a saving for after they retire.

The Ministry of Labour, Invalids and Social Affairs (MoLISA) said that the social insurance policies before January 1, 1995 regulated that pension and monthly allowance were based on the actual working time and the salary level before retiring.

The person with the highest pension in Vietnam receives more than VNĐ124 million (US$5,200) per month, according to the Vietnam Social Security (VSS).

Most of the people who made withdrawal request (up to 72 per cent) are labourers from the southern region. Low income and unstable lives are the reason of their withdrawal choice.

Under the current social insurance law, an employee who has paid social insurance premiums for less than 20 years may request for lump-sum payout of benefits after 12 months from the time he/she stops paying social insurance premiums.

Because of the short length of service and age of retirement, many employees are choosing a lump-sum social insurance withdrawal, and are then beginning to look for a new job where they will pay social insurance premiums for a second round.

The Vietnamese Government has issued a resolution approving an agreement on social insurance signed with the Government of the Republic of Korea (RoK) on December 14, 2021.

Insurance agencies in Ho Chi Minh City saw thousands of cash-trashed employees queuing overnight for one-time withdrawal of social insurance premiums.

The issue of lump sum payouts to workers of social insurance has become alarming. Chosen by cash-strapped workers, the lump sum payouts will lead to a financial burden on workers in the future.

Many people question if the new pension scheme, under which the period of social insurance premium payment will fall from 20 years to 15 years, will leave enough pension to cover basic needs.

The Ministry of Labor, Invalids and Social Affairs has proposed reducing the periods of social insurance (SI) premiums payment from 20 to 15 years to enjoy a pension and not limiting lump-sum social insurance withdrawals.

Over 58,000 businesses in HCMC had owed social insurance premiums totaling over VND4.8 trillion as of the end of January 2023, according to HCMC Social Security.

The Vietnam General Confederation of Labor has proposed applying many measures for enterprises delaying or evading social insurance payments.

The Vietnam Social Security (VSS) is set to hold a dialogue with approximately 100 Japanese firms on October 11 in the southern province of Ba Ria-Vung Tau.

Nearly one million people have applied for lump sum payout of social insurance because they are facing financial problems.

Despite warnings by the HCMC Social Insurance, more and more people are still deciding to withdraw social insurance money  as they need money to cover basic needs.