Hospital fee waiver on the horizon as Việt Nam deepens social welfare

May 14, 2025 - 08:23
Universal hospital fee exemption will bring sweeping benefits including improved access to healthcare, earlier detection and treatment of illnesses, more efficient use of health financing, and reduced financial pressure on households.

 

People register for medical check-ups at the reception desk. — VNA/VNS Photos

HÀ NỘI — Following the recent decision to abolish tuition fees for all public school students, Việt Nam is preparing to take another historic step, waiving hospital fees for the entire population, aiming to ensure the benefits of socio-economic development are directly enjoyed by all citizens.

At a recent meeting with the Party Committee of the Government and central agencies responsible for public health, General Secretary Tô Lâm tasked the Government Party Committee with drafting a roadmap to gradually reduce the financial burden of healthcare. The aim is to implement universal hospital fee exemption between 2030 and 2035.

According to Deputy Minister of Health Trần Văn Thuấn, universal hospital fee exemption will bring sweeping benefits including improved access to healthcare, earlier detection and treatment of illnesses and more efficient use of health financing. With reduced financial pressure on households, this would in turn, contribute to poverty reduction, enhanced labour productivity and promote stronger GDP growth.

In the shorter term, from 2026 to 2030, the Ministry of Health plans to ensure that 90 per cent of the population has full access to preventive services, including vaccinations, reproductive and maternal-child health, mental health support, school-based healthcare and regular screenings. Universal annual health check-ups are also planned, supported by electronic health records to manage individual health over a lifetime.

By 2035, with a projected population of 100 million and an estimated cost of VNĐ250,000 (US$9.6) per check-up, the annual State budget required for basic health screening would be around VNĐ25,000 billion ($962.47 million).

Looking further ahead to 2045, Việt Nam aims to build a health system that meets all public needs for care, protection and well-being, one that eliminates out-of-pocket payments for insured medical services and places the country among the world’s leading nations in health-related social security.

This universal healthcare policy follows in the wake of another major welfare reform.

On February 28 this year, the Politburo decided to waive tuition fees for all children in public schools, from three-month-old infants in nursery care, through to high school students, starting with the 2025–26 academic year. The measure will cost the state approximately VNĐ30,000 billion annually.

For the current 2024–25 school year, Việt Nam has about 23.2 million students.

Education has long been a top priority for the Party and State.

Annual spending on education amounts to between 17 and 19 per cent of the national budget, higher than in many more developed countries, such as the United States (13 per cent) and Indonesia (17.5 per cent) and close to Singapore (19.9 per cent).

A resolution, issued in 2013, set the target for education spending at a minimum of 20 per cent of the budget. In 2024, Việt Nam allocated nearly VNĐ381,000 billion to education and training.

Việt Nam achieved universal kindergarten education for five-year-olds in 2017. Today, all 63 provinces and cities meet national standards for primary education coverage.

A healthcare worker assists a patient during a visit to Hà Nội's Bạch Mai Hospital

Healthcare investment

Alongside education, Việt Nam’s healthcare system has received substantial investment.

Since 2008, public health spending has accounted for between seven and eight per cent of the State budget.

Overall healthcare spending, including private expenditure, has consistently reached six per cent of GDP since 2015.

As of 2024, the country had nearly 432,000 health professionals, with a ratio of 14 doctors per 10,000 people. There are 1,645 hospitals nationwide, including 34 at the central level and nearly 500 at the provincial level. Life expectancy has risen dramatically, from 38 years in 1945 to 60 in the late 1970s, and to 74.5 years today.

This progress reflects the broader economic transformation of the nation.

In 1974, the combined economy of the northern and southern regions was worth under $22 billion.

During 1976–1980, GDP growth was just 1.4 per cent annually, with a contraction in 1980.

By 2024, GDP had surged to $476.3 billion, nearly 129 times the 1975 figure, making Việt Nam the world’s 24th-largest economy by purchasing power parity.

According to IMF forecasts, GDP will reach $506 billion in 2025. Average income rose from just $96 in 1989 to $1,120 in 2009, marking Việt Nam’s rapid transition to middle-income status.

In 2024, per capita GDP reached $4,700, 58.75 times higher than in 1975.

The country now ranks fifth in Southeast Asia, 14th in Asia, and 33rd globally in terms of GDP. — VNS

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