Poverty Reduction Cooperation Fund

TA 4276: Developing Social Security System in Viet Nam
Financed by Poverty Reduction Cooperation Fund

Project Summary

The TA aims to help the country develop sustainable and pro-poor social security system with expanded coverage. The purpose is to reduce vulnerability of the social security system, especially for poor and low-income households.

The TA will have the following two components:

• In component A, (to be implemented by Ministry of Labor, Invalids, and Social Affairs or MOLISA) the TA will study on the:



• Informal sector's involvement in the social security system, with focus on policy options
• A draft social security law.
• A proposal for social security system design to improve financial sustainability and coverage, which should be backed by statistical models and actuarial analysis.


• Component B (to be implemented by Viet Nam Social Security or VSS) will:



• Formulate a plan for administrative redesign of VSS.
• Explore VSS investment strategies by developing an independent policy to preserve assets and enhance liquidity and increase income for the beneficiaries, and by assessing the feasibility of financial sector investments.
• Conduct financial analysis and projections for Social Security Fund.
• Upgrade the accounting system based on newly adopted accounting standards.
• Propose an information technology system design for VSS based on new pension system and business processes.
• Conduct a survey on the informal sector's involvement in the social security system.

• TA Paper [ PDF: 149kb | 15 pages ]
• Case Study [ PDF: 103kb | 2 pages ]