Vietnam might increase the retirement age for both male and female workers from 2021. At a meeting to discuss new-generation free trade agreements (FTAs) co-hosted by Ministry of Labour, Invalids and Social Affairs (MOLISA) and the International Labour Organisation last week, Nguyễn Văn Bình, deputy head of the ministry’s Department of Legislation, stated that some contents in Việt Nam’s Labour Code would be adjusted to fit the provisions of new generation FTAs.

These regulations touch upon the difference between the retirement ages of men and women, disability employment and occupations in which female employment is prohibited.

The retirement age of Vietnamese workers will be raised to 62 for men and 60 for women from 2021, as per MOLISA. Currently, the retirement age for men and women is 60 and 55, respectively.

The draft revision will be presented to the National Assembly in May 2019. But will be submitted for approval in October 2019. Bình said applying the new retirement ages immediately could cause problems for people who were preparing for retirement.

 “Regulations in the Labour Code draft revision also focus on protecting female workers during maternity leave,” Bình added.

Data from Vietnam’s General Statistics Office reveal that by 2035, 1.5 million people will join the labour pool for the first time, while 1.3 million people will be retiring.

The increase in retirement age is to help mitigate the economic impact of a rapidly aging population and dwindling social welfare funds. These funds were forecast to run dry if the current retirement age was kept the same.

The impact of an ageing population and what it means for employers are similarly echoed in a survey of medical insurers by Willis Towers Watson, which states that employer-provided health care benefits costs are expected to increase by 7.8% in Asia Pacific in 2019. The study also found that nearly half of insurers (47%) in the Asia Pacific expect the outlook for medical cost to be higher or significantly higher over the next three years.