Vietnam gets its first private defined contribution plan
Dominic Scriven, executive chairman and co-founder of Dragon Capital VietFund Management
Dragon Capital VietFund Management, a Ho Chi Minh-based money management firm, has launched Vietnam s first private sector retirement savings vehicle.
The defined contribution plan, with government tax incentives for employees and employers alike, offers savers three fund options a relatively high-risk 50-50 split between equities and bonds, a 65% bond-35% stock mix and a conservative 80% bond-20% stock mix.
Savings can be withdrawn tax-free upon reaching retirement age, currently 62 for men and 60 for woman.
Life insurers in Vietnam have had some success selling savings products in recent years but those heavily regulated offerings invest almost exclusively in government securities, Dominic Scriven, executive chairman and co-founder of Dragon Capital VietFund Management, said in an interview.