HSBC Vietnam partners with Dragon Capital on voluntary retirement programme

June 15, 2023 | 09:58
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HSBC Vietnam and Dragon Capital Vietfund Management (Dragon Capital) have announced their cooperation to implement the Huu tri an vui pension programme, a voluntary supplementary retirement scheme for all HSBC employees in Vietnam.
HSBC Vietnam partners with Dragon Capital on voluntary retirement programme

The cooperation signifies HSBC Vietnam's commitment to the financial wellbeing of its employees and positions HSBC as the pioneering global bank to introduce such a scheme 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 ageing population, as a means to enhance social security. The voluntary supplementary retirement offering provides businesses with enhanced flexibility and convenience in implementing and applying labour policies, streamlining processes while saving valuable time and effort.

According to Tim Evans, CEO of HSBC Vietnam, “Since we first opened in Vietnam 153 years ago, our people have been at the core of all that we have achieved. 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 wellbeing."

"Our partnership with Dragon Capital will provide our employees 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 strive to work towards creating a work environment where everyone has the opportunity to be at their best both professionally and personally,” added Evans.

Beat Schurch, CEO of Dragon Capital Vietnam commented, "We are honoured that HSBC Vietnam has placed their trust in us and selected Dragon Capital to manage their pension programme. With three decades of experience and a steadfast dedication to the development of the Vietnamese financial market, we will make every effort to meet the expectations of businesses and employees alike. This initiative will play a pivotal role in creating a sustainable and secure future for HSBC staff members as they embark on their retirement journey."

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

In 2022, Vietnam had an active workforce of more than 50 million. Among these, the 30-40 age group is considered critical, with the highest average income per head. This group is growing in terms of quantity and percentage of the total population.

In the next 15 years, this group will enter old age. By then, Vietnam will move from a golden population to an ageing one, meaning a hike in social welfare. In a survey on the retirement outlook, 85 per cent of this age group hope for an independent lifestyle when retired. However, only 4 out of 10 people have a plan in place and take action to secure their post-retirement lives.

To better support a life after retirement, HSBC is continuously improving its employee wellbeing offerings, not only taking care of the staff’s current needs but also helping them better prepare for a life after retiring.

Dragon Capital Pensions is a long-term investment vehicle that is designed and operated on a voluntary basis, fostering collaboration between employees and businesses, and incentivising 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. The programme marks the pioneering introduction of a voluntary supplementary retirement scheme in Vietnam.

The collaboration between HSBC Vietnam and Dragon Capital exemplifies the shared commitment of both companies towards the financial wellbeing and prosperity of HSBC’s employees. By providing them 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.

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