Today : Mar 19, 2025
Politics
18 March 2025

Vietnam's New Early Retirement Policies Impact 100,000 Workers

A shift as the government supports former officials transitioning to private sector employment.

The Vietnamese government recently enacted Decree 67/2025/NĐ-CP to streamline the retirement process for specific groups of workers as part of its goal to restructure the political system. Effective from March 15, 2025, this decree supplements measures first introduced by Decree 178/2024/NĐ-CP, adding early retirement provisions for various categories of officials, civil servants, and public employees.

According to the new regulation, four groups of individuals are eligible for early retirement benefits. These include officials and employees who wish to retire to facilitate personnel adjustments within their working units, and those who were employed under the state budget before January 15, 2019. This group also encompasses armed forces personnel with five years or fewer until their retirement age.

An additional category identified under the decree is those working within the payroll system of associations tasked by the Party and State. The fourth group consists of officials not eligible for re-election who have between 2.5 to 5 years remaining until retirement age but wish to retire early to facilitate leadership transitions.

Dr. Ngo Quynh An, Deputy Dean of the Faculty of Economics and Human Resource Management at the National Economics University, notes significant changes following the government's push for efficiency. “Around 100,000 officials, civil servants, and employees have left state agencies and the armed forces during this streamlining initiative, highlighting the scale of workforce transformation,” Dr. An stated.

While many of these workers have received support for retirement or voluntary resignation, there is concern over reintegrations, particularly for those over 35 years old. The Ho Chi Minh City government has stepped up efforts, actively mobilizing opportunities for these individuals. The city’s Employment Service Center is now connecting workers with private companies, industrial parks, and high-tech zones to facilitate job placements.

The government’s commitment also extends to aiding individuals who are considering entrepreneurship or job transitions by facilitating access to subsidized loans and guidance on business planning. "We are actively mobilizing state-owned enterprises to participate in recruitment," said officials from Ho Chi Minh City, emphasizing collaboration with private sectors to help streamline placements for these experienced individuals.

Despite the wealth of experience and expertise many older workers possess, Dr. An acknowledges several challenges they face upon transitioning from the state sector. “Middle-aged workers over 35 years old also face difficulties when leaving the state sector, including adapting to new technologies and competitive environments,” he remarked.

The Hanoi Employment Service Center has indicated significant demand for labor within the current market; nevertheless, opportunities for those aged 35 and above appear to be limited. Workers are encouraged to leverage their existing skills and expertise to explore new career pathways.

Training programs, such as driving courses for unemployed workers, have seen great interest from older groups. The opportunities for reemployment are promising, with suggestions for consulting roles due to their extensive administrative experience or managing within non-governmental organizations.

“Workers can pivot to roles such as consulting on policy and legal compliance or lead management within non-profit organizations where their governmental experience is valuable,” Dr. An stated. The transition to the private sector provides viable paths; older employees can assume advisory roles or move toward entrepreneurship.

It’s important to note, the flow of nearly 100,000 former public sector workers transitioning to the non-state labor market is expected to grow. The Vietnamese government is being urged to adopt comprehensive solutions, offering assistance via policies for transitioning and actively supporting enterprises hiring these experienced workers.

Through proactive measures and responsive policies, Vietnam aims to navigate the complex transition successfully, fostering both individual growth and economic stability as these seasoned workers reintegrate and contribute to the labor force.