Author: Trinh Ngo
Ngo, Trinh, 2025 The Evolution of The Vietnamese Welfare State Since The ‘Đổi Mới’ Reforms (1986 - 2023), Flinders University, College of Business, Government and Law
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This research explores the evolution of Vietnam's welfare system, focusing on social insurance (SI) and social assistance (SA) since the Đổi Mới reforms of 1986. It examines the development of these programs, their impact on poverty reduction and inequality, and compares Vietnam's welfare policies with those of other Asia countries, including Korea, Malaysia, the Philippines, Thailand, and Indonesia. Using the Expenditure Approach and the Social Protection Index (SPI) from the Asian Development Bank (ADB), the study analyzes social welfare expenditure and coverage. Vietnam's welfare system has transformed from a centrally planned economy to a socialist-oriented market economy, expanding SI and SA programs. These policies have been crucial for poverty alleviation, especially among vulnerable groups like the elderly, children, and low-income households. However, informal sector workers remain largely excluded from SI, perpetuating inequality between formal and informal workers. Compared to its Asian counterparts, Vietnam’s welfare system lags in inclusivity, with countries like Korea and Malaysia offering more comprehensive coverage. The Philippines, Thailand, and Indonesia have also made greater strides in ensuring broader access to social protection, particularly for informal workers. Despite these challenges, Vietnam's increasing government expenditure on SA programs reflects a commitment to expanding coverage. The study concludes that while progress has been made in reducing poverty, significant gaps remain, particularly in SI for informal workers. Recommendations include expanding coverage to informal workers and implementing a universal unemployment support program. These findings contribute to the broader understanding of welfare state development in transition economies and offer valuable insights for strengthening Vietnam’s social protection system.
Keywords: welfare regimes, welfare state, Vietnamese welfare system, social insurance, and social assistance, social protection, generosity, social production index, expenditure approach, Asia welfare system, Asia welfare state, poverty reduction, inequality reduction
Subject: Policy and Administration thesis
Thesis type: Masters
Completed: 2025
School: College of Business, Government and Law
Supervisor: Gerry Redmond