Decree 85/2026 Expands Vietnam Voluntary Pension Fund Market, NAV Hits 2.2 Trillion VND

Overview

Vietnam’s Government issued Decree 85/2026 on supplementary pension insurance, expanding the voluntary pension fund market. Total net asset value of 7 funds managed by 4 firms reached nearly 2,210 billion VND (88.4 million USD) by end of 2025, up 53% from 2024. The decree, effective March 25, 2026, replaces the pilot program under Decree 88/2016 and provides a permanent legal framework for voluntary pension funds, benefiting asset managers including Vietcombank’s fund management subsidiary VCBF.

Key Facts

• Decree 85/2026 was issued on March 25, 2026, and a dissemination workshop was held by the Ministry of Finance on May 22, 2026.
• Total net asset value (NAV) of 7 voluntary pension funds reached nearly 2,210 billion VND by end-2025, up 53% from end-2024.
• The market has grown 26 times since 2021.
• Four firms are licensed to manage voluntary pension funds: Dragon Capital (DC), MB Capital (MBC), Vietcombank Fund Management (VCBF), and SSI Asset Management (SSIAM).
• The decree allows early withdrawal only in force majeure cases similar to social insurance lump-sum withdrawals; other early withdrawals incur a fee of up to 5% of the payout amount.
• Contributions are voluntary, based on agreements between employers and employees, and do not affect existing welfare policies.
• VCB closed at 64,900 VND (+0.46%) on May 21, 2026, with volume of 20.1 million shares.

What Happened

On March 25, 2026, the Vietnamese Government issued Decree 85/2026/ND-CP on supplementary pension insurance, replacing the pilot program under Decree 88/2016/ND-CP. The decree operationalizes the 2024 Social Insurance Law and Resolution 28-NQ/TW on social insurance reform. The Ministry of Finance held a workshop on May 22, 2026, to disseminate the decree’s key policies.

The decree establishes a permanent legal framework for voluntary pension funds, which operate as individual retirement accounts with voluntary contributions from employees and employers. As of end-2025, the total NAV of seven funds managed by four licensed firms reached nearly 2,210 billion VND, reflecting strong demand for long-term savings among middle-to-high-income workers. The decree permits early withdrawal only under force majeure conditions similar to lump-sum social insurance withdrawals, while other early withdrawals incur a fee of up to 5% to protect remaining participants.

Market Context

Vietcombank (VCB), listed on HOSE, is Vietnam’s largest bank by market capitalization (88.4 billion USD). Its fund management arm, VCBF, is one of four licensed voluntary pension fund managers. The decree’s passage supports VCB’s non-interest income diversification and long-term asset management growth. VCB shares closed at 64,900 VND on May 21, 2026, up 0.46% on volume of 20.1 million shares, reflecting stable investor sentiment amid regulatory developments.

Strategic Significance

Decree 85/2026 transforms Vietnam’s voluntary pension market from a pilot to a permanent regime, creating a scalable platform for long-term institutional savings. For VCB, the decree strengthens VCBF’s competitive position in asset management, potentially increasing fee income and assets under management. The 53% NAV growth in 2025 underscores rising demand for retirement savings, which could accelerate as the decree provides clearer rules and tax incentives. This aligns with the government’s goal to deepen capital markets and reduce reliance on bank deposits.

What to Watch

• Implementation details and tax incentives for contributions under Decree 85/2026.
• Growth in NAV and number of participants in voluntary pension funds in Q2 and Q3 2026.
• Any new licenses granted to additional fund management companies.
• VCB’s Q2 2026 earnings report for VCBF’s contribution to non-interest income.
• Potential amendments to the decree based on market feedback from the May 22 workshop.