Vietnam and the IMF discuss social insurance expansion

Topics included enhancing pension policies amidst changes to the Law on Social Insurance.

The Viet Nam Social Security (VSS) met with a delegation from the International Monetary Fund (IMF) to discuss capacity-building activities aimed at increasing social insurance participation, especially in the informal sector, to ensure comprehensive social protection for all workers. 

Deputy Director General Dao Viet Anh chaired the meeting last 17 June in Hanoi, 

VSS representatives included departments focused on international cooperation, fund investment, finance, social insurance, and information technology. The IMF delegation featured Senior Economist Rita Mesias and Economist Weining Xin.

Key topics included enhancing pension policies amid amendments to the Law on Social Insurance, developing a forecasting model for accurate predictions over the next two years, and providing in-depth training for key personnel to ensure long-term fund sustainability and proactive management. 

Discussions also covered improving fund management and finance through coordinated training sessions sponsored by the IMF and gaining support for policy consultation and collaboration with international donors.

Before 2021, the IMF primarily assisted Vietnam in finance, banking, and monetary policy consultations. 

The IMF visited Vietnam twice a year to assess macroeconomic conditions and provide policy recommendations, with limited joint activities with Viet Nam Social Security. 

From 2021 to 2023, the Department of International Cooperation actively engaged with the IMF to secure funding for key tasks, including expanding social insurance coverage, administrative reform, digital transformation, fund investment, communication, and forecasting.

The cooperation included technical support for evaluating the social security system and pension coverage, particularly for informal workers, through policy analysis and data assessment. This laid the groundwork for recommending document amendments to develop a sustainable fund. 

Efforts also involved building and transferring a forecasting model for the social insurance fund, training on its use, and enhancing the capacity for fund balancing. These measures enabled Viet Nam Social Security experts to independently develop and adjust models for fund management, forecasting, and policy consultation.