Vietnam

Brief description

Viet Nam made great strides in raising living standards by heavily investing in human development. However, the key challenge is to avoid the risk of the ‘middle-income trap’, where a country’s growth stagnates after reaching middle-income status due to inefficient allocation of resources, a low-skilled labour force and low levels of innovation. The overall objective of the Joint Programme (JP) is to support Viet Nam’s transformation to a more inclusive, productive, green, and climate resilient economy and accelerate the achievement of the SDGs in order to tackle the current challenges.

Approach

The JP will assist the development and rolling-out of Viet Nam’s 2030 integrated financing and investment strategy, of which the SDGs are at the heart, while considering the impact of the recent pandemic, COVID-19. This will be achieved through supporting Viet Nam’s 2030 Finance Strategy, Medium-Term Investment Plan and Medium-Term Budget Plan to deliver the following expected results: (a) Strengthened resource allocation with the new national Socio-Economic Development Plan and national SDG priorities; (b) Improved effectiveness of public investment through better integration across government; and (c) Increased private sector investment, and quality foreign direct investment flows that support the development of green, productive domestic enterprises.

The programme brief description

While Vietnam has a relatively developed social protection system and social insurance system, these two have been independently designed and implemented, leading to gaps in coverage. Children, older people, and people with disabilities lack adequate social protection. This Joint Programme will thus support Vietnam in accelerating its transition towards an inclusive and integrated social protection system. It will aim to achieve the targets set by the government of Vietnam on social insurance, social assistance, and digitalizing social protection service delivery and M&E system. The focus is on expanding the coverage of social insurance and social assistance services to the most vulnerable groups, in order to accelerate the progress towards achieving the SDG. 

Approach

The long-term impact of the UNJP’s integrated approach aims to include, by 2030, having 100% of the 20 million children in Vietnam benefiting from social protection. This would also represent an expansion from 30% to 45% of the workforce participating in social insurance. Likewise, 100% of women giving birth would be protected, as opposed to the 26% who currently have access to paid maternity leave. The new multi-tiered social protection system would also increase old-age protection to 60% of the elderly, as per the Government’s targets, up from around 30% today. Finally, while the current social assistance benefit for PLWD reaches around one million people, the project will promote an expansion to an additional one million people plus an additional 200,000 caregivers. The long-term impact of the intervention could expand care services to 100% of the elderly by 2030, which would be an additional 2 million PLWD. 

Target groups

Women, children, the elderly, people living with disabilities, ethnic minorities.