Fixed pension amounts are too low
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.
The Vietnam Textile and Apparel Association (Vitas) has proposed reducing the social insurance premiums businesses have to pay for workers. However, the Ministry of Labor, War Invalids and Social Affairs (MOLISA) has not agreed to the proposal. The ministry believes that the lowering of the required social insurance payments would have a big impact on social insurance premium payers and the society. Maintaining the current social insurance payment rate will help stabilize the social insurance policy and workers’ benefits.
