Economics & Development

On June 3, 2026, the Committee on Governance and Executive Directors Administrative Matters (COGAM) met in the Board Room to consider Options for Use of Unallocated IBRD and IFC shares, and a report from the committee to the Board was prepared following the discussion; the meeting adjourned at 4:56 p.m. The committee also recorded that on May 22, 2026, under an Absence of Objection basis, it endorsed Early Arrival of Families: Special Advisor Appointment for Incoming Executive Directors and Alternates – Transitioning from Pilot to Permanent Program.

This document relates to the IFC Project Number 50350.

Viet Nam’s 2024 Social Insurance Law marks a significant expansion of the country’s social insurance system by broadening mandatory coverage to new categories of workers beyond traditional employment arrangements, while introducing incentives and alternative mechanisms for those with limited contribution histories. Despite these reforms, achieving the target of 60 percent labor force coverage remains challenging compared to the current 38 percent. This note adopts a holistic approach to coverage expansion, examining institutional and administrative factors, sectoral dynamics, and diverse employment arrangements. It highlights the need for stronger coordination between social insurance, tax administration, and health insurance systems, supported by recent tax reforms and the integration of Viet Nam Social Security into the Ministry of Finance. While social health insurance has achieved over 90 percent population coverage, limited integration with social insurance presents missed opportunities. The report further analyzes sectoral coverage patterns and policy gaps across employment types, emphasizing the importance of integrated compliance mechanisms. It concludes by identifying solutions to expand contributory coverage while recognizing the complementary role of Viet Nam’s modest non-contributory system.