HSBC Vietnam partners with Dragon Capital in voluntary supplementary retirement program for its employees

HSBC Vietnam and Dragon Capital Vietfund Management (Dragon Capital) have officially announced a cooperative arrangement to implement the Huu Tri An Vui pension program, a voluntary supplementary retirement program, for all HSBC employees in Vietnam.

The cooperation signifies HSBC Vietnam’s commitment to the financial well-being of its employees and positions it as the pioneering global bank introducing such a program in the Vietnamese market. Furthermore, it sets a new industry benchmark for designing employee welfare initiatives.

Voluntary retirement funds have gained widespread popularity in many countries worldwide, particularly those facing an aging population, as a means of enhancing social security. The voluntary supplementary retirement program provides businesses with enhanced flexibility and convenience in implementing and applying labor policies, streamlining processes while saving valuable time and effort.

“Since we first opened in Vietnam 153 years ago, our people have been at the core of all that we have achieved,” said Mr. Tim Evans, CEO of HSBC Vietnam. “It is for this reason that we continue to challenge ourselves to refine our employment proposition so that it takes into consideration our people’s physical, social, mental, and financial well-being.”

He added that the partnership with Dragon Capital will provide people with a range of benefits that ensures their financial security and peace of mind in their post-employment years. “We do not intend to stop here, we continue to look ahead and will continue to work towards creating a work environment where everyone has the opportunity to be at their best both professionally and personally,” he noted.

“We are honored that HSBC Vietnam has placed their trust in us and selected Dragon Capital to manage the Huu Tri An Vui retirement program,” said Mr. Beat Schurch, CEO of Dragon Capital Vietnam. “With three decades of experience and a steadfast dedication to the development of Vietnam’s financial market, we will make every effort to meet the expectations of businesses and employees alike. This program will play a pivotal role in creating a sustainable and secure future for HSBC employees as they embark on their retirement journey.”

Vietnam is considered one among nations with the fastest aging population in the world. The number of people at and above 60 years old is expected to increase by 5 million and elderly people will account for more than 17 per cent of Vietnam’s population by 2030, and are expected to reach 29.8 million, or 27.2 per cent of the population, by 2050.

As of 2022, Vietnam had more than 50 million active workers. The 30-40 age group is considered critical, with the highest average income. This group is growing in terms of number and percentage of the total population, and in the next 15 years will enter old age.

By then, Vietnam will move from a “golden population” to an “aging population” structure, meaning a hike in social welfare. In a survey on retirement outlook, 85 per cent of this age group hope for an independent lifestyle once retired. However, only four of ten have a plan in place and are taking action for their post-retirement life.

In order to better support life after retirement for their employees, HSBC is continuously improving its employee well-being proposition, not only taking care of their current well-being but also helping them better prepare for life after retiring.

Huu Tri An Vui is a long-term investment vehicle designed and operated on a voluntary basis, fostering cooperation between employees and businesses, and incentivizing long-term investment and savings to ensure a comfortable retirement income. These voluntary retirement funds are effectively managed and supervised by government bodies to ensure transparency, accountability, and the safeguarding of participants’ rights. Dragon Capital’s Huu Tri An Vui program marks the pioneering introduction of a voluntary supplementary retirement program in Vietnam.

The cooperation between HSBC Vietnam and Dragon Capital exemplifies the shared commitment of both companies towards the financial well-being and prosperity of HSBC’s employees.

By providing employees with a long-term plan for their post-retirement lives, this collaboration will pave the way for a bright and sustainable future for both individuals and their families.