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PM urges ministry to finish decree on voluntary pensions

Update: May, 21/2016 - 11:28
According to experts, the fund would not only contribute to improving social welfare as a long-term saving but also supply capital to boost demand for the securities market, especially the government bond market, thanks to its investment activities. — Photo bizlive.vn

Viet Nam News HÀ NỘI — Prime Minister Nguyễn Xuân Phúc has urged the Ministry of Finance to complete drafting of a decree on a voluntary pension (superannuation) fund for approval by the end of May.

A voluntary pension fund is a popular investment fund in the global finance market which is normally operated to raise funds through contributions of members and invested with a view to increase the fund’s asset value and income of fund members in their old age.

According to experts, the fund would not only contribute to improving social welfare as a long-term saving but also supply capital to boost demand for the securities market, especially the government bond market, thanks to its investment activities.

The draft decree was expected to develop the legal framework for the operation of the fund in Việt Nam.

Market players have been waiting for the decree on the fund as its issuance missed several deadlines due to overlaps and inconsistencies in regulations between the Ministry of Finance and the Ministry of Labour, Invalids and Social Affairs.

The decree was supposed to have been issued in 2014, and then again in 2015.

The capital market working group of the Việt Nam Business Forum last year urged the legal framework for the funds to be issued soon.

The fund was one of the conditional businesses listed in the Law on Investment which have requirements for their conduct. The prime minister said that the legal frameworks for conditional businesses must be issued before July 1. — VNS

 

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