In a meeting organized by the Ministry of Labor, Invalids and Social Affairs (MoLISA) and the International Labor Organization (ILO) on August 22, ILO recommended that Vietnam should increase retirement age of both men and women to 65.
The organization warned of a shortfall in Vietnam’s social security fund by 2021 and total depletion by 2034.
As per the Director of ILO in Vietnam, the Vietnamese Government, employers and workers should work together to find ways to ensure long-term pension payment plans, for which ILO has suggested enhancing the retirement age to 65.
Pham Minh Huan, Deputy Minister of MoLISA, emphasized the significance of the report, saying that the country will face a condition whereby senior citizens will outnumber most of the population, even possibly in most of Asia, from the period 2020-2050.
Inspite of an increase in mandatory insurance fund from VND6.3 trillion by 2001 to VND89.6 trillion by 2012, only 47 percent of firms actually pay insurance.
