Economics & Development

Viet Nam has made important strides in expanding social insurance (SI) coverage over the past three decades, reflecting sustained economic growth and a strong policy commitment to social protection. Since the introduction of the SI system in 1995, coverage has expanded steadily among formal sector workers, while the introduction of voluntary SI in 2006 marked a critical step toward including informal and self employed workers. Subsequent reforms, most recently the 2024 revision of the SI Law, signal a clear shift toward more inclusive coverage through expanded mandatory participation and enhanced voluntary system. The urgency of expanding coverage is reinforced by Viet Nam’s rapid population ageing, which is proceeding faster than the expansion of contributory participation. Addressing these gaps requires moving beyond a one size fits all approach. This report adopts a sectoral lens to examine SI coverage across key sectors, agriculture, construction, manufacturing, wholesale and retail trade, and transport, each of which exhibits distinct employment structures, income profiles, and compliance challenges. The report also draws on international experience to illustrate how countries have adopted sector specific approaches to expanding coverage. By identifying sector specific barriers and entry points, the report aims to inform more targeted and practical strategies to expand SI coverage in line with how people actually work and earn their livelihoods in Viet Nam today. It provides an analytical foundation for Part II of this work, consolidating these findings with the assessment of the administrative systems and outlining the strategy and suggested action plan to expand SI coverage.