Vietnam's workers cash out pensions early ahead of new law

Hanoi considers social media influencers and legal perks to keep savers in state fund

20240211 vietnam factory

Some factory workers have been tapping their public retirement funds in Vietnam, an increasingly important link in global electronics and garments supply chains. (Photo by Lien Hoang)

LIEN HOANG, Nikkei staff writer

HO CHI MINH CITY -- Vietnam is amending its pension laws in an attempt to deter people from abandoning the fund before retirement. Yet in some quarters, the pending change is having the opposite effect.

Many workers critical to the world's electronics and clothing supply chains were already taking early payouts to deal with hardships, such as those brought on by the pandemic. Now, more of them are getting jittery after hearing the upcoming law could cut payouts in half, and the communist country is weighing ways to keep workers in the system, from TikTok campaigns to legal incentives.

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