Starting July 1, 2025, Vietnam will see significant expansions in its social insurance and health insurance systems, marking a major step toward a more inclusive and supportive social safety net. The Social Insurance Law 2024 introduces mandatory social insurance participation for individual business owners, while the Health Insurance Law extends full state-funded health insurance coverage to four new vulnerable groups. These changes reflect the government's commitment to ensuring broader social protection for various segments of society, especially those previously underserved.
The Social Insurance Law 2024, which takes effect from mid-2025, notably expands the mandatory social insurance scheme to include individual business owners with registered businesses under government regulations. This means that owners of small, individual enterprises will now be required to contribute to social insurance, a policy expected to bring long-term benefits such as sick leave, maternity benefits, work accident and occupational disease coverage, retirement pensions, and death benefits.
Ms. Nguyen Thi Dinh Xuan, who has run a grocery store on Ly Thuong Kiet Street in Dong Ha City for nearly two decades without participating in social insurance, expressed cautious support for the new law. She recognizes the importance of social insurance for securing retirement and other benefits but hopes the government will provide partial financial support and maintain stable contribution rates during economically challenging times. "I see the necessity of this policy as it helps us secure rights to retirement pay, maternity, and death benefits," she said. "However, we hope the State can assist with part of the contribution and keep the rates stable, especially when the economy is tough."
Similarly, Ms. Nguyen Thi Thao Ly, owner of a clothing and cosmetics store in Dong Ha, emphasized the importance of understanding social insurance as a necessary investment rather than a burden. "Contributing to social insurance first ensures a pension in old age, and secondly, it serves as a financial safety net," she shared.
The contribution rate under the new law is set at 25% of the chosen income base, which includes 22% allocated to the retirement and death fund and 3% to the sick leave and maternity fund. The minimum income base for contributions is currently pegged to the state's base salary of 2,340,000 VND per month, which means the lowest monthly contribution is 585,000 VND. Business owners can opt to pay monthly, quarterly, or biannually, with the maximum contribution reaching up to 11.7 million VND if the income base is set at 20 times the base salary.
However, the mandatory social insurance requirement has raised concerns among smaller business owners with irregular incomes. Ms. Nguyen Thi Thanh, who runs a small grocery store in Dong Luong, Dong Ha, voiced apprehension about sustaining regular payments. "My shop has unstable income, so paying nearly 600,000 VND monthly for social insurance is worrisome and may be difficult to maintain," she admitted.
To enforce compliance, the law stipulates administrative fines ranging from 12% to 20% of unpaid contributions, with a maximum penalty of 75 million VND. The rollout of mandatory participation will be phased: from July 1, 2025, it applies to business owners registered for tax under the declaration method; from July 1, 2027, to those under the lump-sum tax method; and from July 1, 2029, to other remaining groups.
Experts stress that successful implementation hinges on effective communication and administrative simplification. They recommend creative outreach campaigns through social media, local press, radio, television, and direct community meetings in markets and neighborhoods to raise awareness and clarify procedures. Additionally, streamlining paperwork and removing unnecessary bureaucratic hurdles will be vital to ease the registration and payment process for individual business owners.
Alongside social insurance reforms, Vietnam's health insurance policy is also expanding. From July 1, 2025, four additional groups will have their health insurance premiums fully covered by the state budget, increasing the total number of fully subsidized groups to 20. This move underscores a growing focus on social equity and comprehensive care, especially for vulnerable populations.
The newly included groups are: (1) permanent militia members, recognizing their valuable contributions and unique health risks; (2) individuals aged 75 and older receiving monthly survivor benefits, as well as those aged 70 to under 75 belonging to near-poor households who also receive survivor benefits; (3) recipients of monthly social retirement benefits under social insurance law; and (4) workers who do not qualify for pensions and are not yet old enough for social retirement benefits but currently receive monthly allowances.
Previously, free health insurance cards were only available to those aged 80 and above. Lowering this eligibility age to 75 (and to 70 for near-poor households) represents a compassionate policy shift aimed at addressing the significant health and financial vulnerabilities faced by the elderly. Many in this group face the dual burdens of health challenges and limited income, often compounded by the loss of family members.
The inclusion of individuals receiving social retirement benefits further solidifies the multi-tiered social insurance system, offering support to those who lack formal pensions. Providing free health insurance cards ensures their limited retirement allowances can be directed toward daily living expenses rather than rising medical costs.
The fourth group, workers who have passed retirement age but contributed less than 15 years to social insurance and have not yet reached the age for social retirement benefits, fills a critical gap. These individuals often face the harshest economic and health risks without adequate support. Extending full health insurance coverage to them demonstrates the policy's human-centered approach.
For permanent militia members, the state's full coverage of health insurance is a formal acknowledgment of their often overlooked sacrifices. It also promotes their well-being and readiness, enabling them to focus on essential tasks like disaster response and public safety without the added worry of medical expenses.
The Vietnam Social Insurance agency highlights that these expansions are not merely administrative adjustments but embody deep humanitarian values. By broadening access to free health insurance, especially for the poor, near-poor, elderly, and vulnerable workers, the government ensures more equitable access to healthcare services and strengthens the social fabric.
As these reforms take effect, Vietnam moves closer to a more inclusive social protection system that balances responsibility and support. Individual business owners will gain access to vital social insurance benefits, while marginalized groups will receive critical health coverage, reflecting a society increasingly attentive to the needs of all its members.
