Vietnam expands social insurance coverage to gig workers, informal sector

Lawmakers are deliberating a draft law that would amend Vietnam's Social Insurance legislation to encompass workers outside traditional employment arrangements. The proposed amendments target digital platform workers, informal sector employees, and other groups with consistent, regular income who currently lack social insurance protection.

The roadmap for expanding coverage will proceed in phases, with implementation tailored to socio-economic circumstances prevailing in each period, according to the draft presented to the National Assembly's second session. Officials acknowledged that rapid extension of benefits without careful planning could strain resources, necessitating a measured approach.

The expansion addresses a significant gap in Vietnam's social safety net. Millions of workers in the digital economy and informal sectors—from ride-hailing drivers to street vendors—have been excluded from traditional social insurance schemes designed for formal employees.

The proposed changes align with broader healthcare reforms undertaken by Vietnam's Health Ministry, which has similarly pursued a phased approach to expanding coverage. The government has mapped out multiple phases for hospital fee exemptions and in Ho Chi Minh City, officials have proposed providing free health insurance cards to residents aged 60 and older.

The draft legislation reflects Vietnam's effort to modernize its social protection system to accommodate evolving employment patterns while maintaining fiscal sustainability. Officials indicated the expansion would proceed incrementally as the country's economic capacity allows.

Photo: The National Assembly House in Hanoi, Vietnam. RThiele via Wikimedia Commons (CC BY-SA 4.0).