HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) and Dragon Capital Vietfund Management (Dragon Capital) have officially announced their cooperation to implement the pension programme Huu Tri An Vui, a voluntary supplementary retirement programme for all HSBC employees in Viet Nam.

The cooperation signifies HSBC Vietnam's commitment to the financial well-being of its employees and positions HSBC as the pioneering global bank to introduce such a programme in the Vietnamese market. Furthermore, it sets a new industry benchmark for designing employee welfare initiatives.

Voluntary retirement funds have gained widespread popularity in many countries worldwide, particularly those facing an ageing population, as a means to enhance social security. The voluntary supplementary retirement programme provides businesses with enhanced flexibility and convenience in implementing and applying labour policies, streamlining processes while saving valuable time and effort.

Viet Nam is considered among the nations with the fastest ageing populations in the world. The number of people at and above 60 years old is expected to increase by 5 million and account for more than 17 per cent of Viet Nam’s population by 2030 and is expected to reach 29.8 million, equivalent to 27.2 per cent of the total population of Viet Nam by 2050.

As of 2022, Viet Nam had more than 50 million workers, among which, the age group of 30-40 is considered critical with the highest average income per head. This group is growing in terms of quantity and percentage in total population. In the next 15 years, this group will enter old age. By then, Viet Nam will move from “golden population” to “ageing population”, meaning a hike in social welfare. In a survey about the retirement outlook, 85 per cent of this age group wished for an independent lifestyle when retired. However, only four among 10 people have a plan in place and take actions for their post-retirement life.

In order to better support the life after retirement of their employees, HSBC is continuously improving its employee well-being proposition, not only taking care of the employees’ current well-being but also helping them better prepare for a life after retiring. Dragon Capital Pensions is a long-term investment vehicle which is designed and operated on a voluntary basis, fostering collaboration between employees and businesses, and incentivising long-term investment and savings to ensure a comfortable retirement income. According to Dragon Capital Vietfund Management (Dragon Capital) these voluntary retirement funds are effectively managed and supervised by government bodies to ensure transparency, accountability, and the safeguarding of participants' rights. — VNS