Solutions to drive talent retention and elevate the standing of Vietnamese enterprises

On 17 September in Ho Chi Minh City, under the direction of the Vietnam Chamber of Commerce and Industry (VCCI), Business Forum Magazine hosted a seminar: "Voluntary Pension Strategies, Tax Optimisation, and Corporate Elevation."

High-calibre human resources: The core engine of growth

Delivering the opening address, VCCI Vice President Hoang Quang Phong highlighted the pivotal role of high-calibre human resources in driving the growth of the private sector.

Mr Phong noted that the 14th National Congress of the Communist Party of Vietnam set a target for average annual GDP growth to exceed 10% between 2026 and 2030. The objective is to transform Vietnam into a developing country with modern industry and upper-middle-income status by 2030, aiming for developed, high-income country status by 2045.

To realise these ambitions, the Party and State have placed the private sector at the heart of the national economy. Resolution No. 68-NQ/TW on private economic development affirmed that the private sector serves as the primary engine and vanguard force of the economy, aiming for 2 million active enterprises nationwide by 2030, with at least 20 large corporations participating in global value chains. Concurrently, Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation, and digital transformation tasks businesses to lead the charge in driving innovation.

Demographic shift demands long-term talent strategies

Compounding these challenges, demographic studies reveal that Vietnam faces one of the fastest rates of population ageing in Asia. The country currently counts roughly 16 million people aged 60 and above, accounting for nearly 16% of the total population, a figure projected to reach 18 million by 2030.

If current trends hold, Vietnam will cross into an "aged society" by 2036, with senior citizens exceeding 14% of the population. This signals a deep demographic transition unfolding far more rapidly than those experienced by developed nations in the past. It underscores an urgent imperative: Vietnam needs forward-looking policy frameworks and long-term corporate strategies to retain top talent while ensuring future social security.

Mr Phong asserted that Vietnamese businesses, particularly in the private sector, can no longer rely on legacy operating models. They must undergo a comprehensive elevation, scaling up operations, modernising corporate governance, embracing technology, and, crucially, strengthening organisational capability to retain workforce talent.

In any growth cycle, especially one driven by productivity, technology, and innovation, high-calibre human resources remains the ultimate decisive factor.

"The core question facing businesses today is no longer merely 'how to grow', but 'how to retain top talent in an increasingly competitive labour market'. In this climate, voluntary pension policies and retirement insurance, long standard practices in developed economies, are becoming essential tools for strategic HR management in Vietnam," Mr Phong stressed.

Regulatory foundations and strategic returns

From a policy standpoint, Mr Hoang Quang Phong observed that the legal framework supporting the second tier of social safety nets is steadily maturing. Decree No. 85/2026/ND-CP on supplementary pension insurance (effective 10 May 2026), alongside commercial pension regulations under Decree No. 46/2023/ND-CP, provides a robust foundation for individual and employee pension schemes.

Simultaneously, existing tax policies offer clear financial incentives for businesses adopting these schemes, creating a win-win framework for employees, enterprises, and the State alike. From a strategic vantage point, a well-structured voluntary pension scheme is far more than a perk; it functions as a multi-purpose tool for workforce management.

As the representative organisation for Vietnam’s business community and employers, VCCI regards its central mission as supporting companies in understanding and executing new national policies into practical business operations.

To that end, in Mr Hoang Quang Phong’s view, the seminar aimed to achieve three primary objectives:

First, enhancing legal and tax literacy: Equip the business community with a thorough understanding of the legal frameworks and tax-optimisation mechanisms, enabling compliant, risk-free, and mutually beneficial implementation. 

Second, foster policy dialogue: Provide a direct dialogue platform linking regulatory authorities, insurance and financial experts, and the business community, ensuring operational challenges are heard and promptly relayed to policymakers.

Third, promoting modern governance thinking: Shift corporate mindsets towards viewing human capital investments, including long-term pension benefits, not as a cost burden, but as a strategic investment in people, trust, corporate social responsibility, and long-term competitiveness.

"The road ahead for Vietnam's business community is intrinsically tied to the nation's broader ambitions. On this journey, every business that elevates its HR capability, and every worker whose future is better secured, contributes a crucial building block towards sustainable national prosperity," Mr Hoang Quang Phong concluded.