Dragon Capital Vietfund Management (DCVFM) launches Vietnam’s first voluntary retirement pension program


On 27 April 2021, DCVFM launched the country’s first voluntary retirement pension program. The event was held at the Hilton Opera Hanoi, with more than 80 participants from The Ministry of Finance, The Ministry of Labour, Invalids and Social Affairs, The State Securities Depository, the World Bank, Standard Chartered Bank, and the media.

The defined contribution pension program will provide a simple and flexible investment solution combining employer and employee contributions in one of three investment funds corresponding to the age and risk preference of each participant.

There will be three default fund portfolios available:

  • Thịnh An Fund:  For higher risk profiles, targeting an asset allocation split of 50/50 between bonds and equities
  • Phúc An Fund:  A balance between risk and return targeting an asset allocation mix of 65% bonds and 35% equities
  • Vĩnh An Fund:  A conservative investment strategy targeting an asset allocation mix of 80% bonds and 20% equities.  This is recommended for participants over 50 years old.The Funds will be professionally managed by a team of experts in accordance with the strict monitoring process of Vietnam’s Ministry of Finance.

Mr. Nguyen Hoang Duong, Deputy Director General of the Banking and Financial Institutions Department of the Ministry of Finance said: “Similar to developed countries, Vietnam is facing population aging, necessitating the development of a pension system.  Multiple solutions, especially voluntary supplemental retirement programs, are an inevitable trend to help consolidate the sustainability of the social security system, encourage savings and support capital market development.”

At the event, DCVFM, the first company to join the program, announced that it has developed a voluntary retirement program for all of its employees.  Khang Dien House Investment and Ho Chi Minh City Securities Corporation also signed a cooperation agreement to implement the retirement program.