Managing retirement savings in Vietnam

Financial adviser in Vietnam here. Most of my clients are British (and I myself am qualified in the UK), so this advice is more suited to British expats, although I will try to make it as appropriate for others as possible.

Accessing pension funds is generally not an issue in Vietnam. The taxation of those funds depends on your country's Double Taxation Agreement (DTA) with Vietnam. In the case of the UK, Vietnam is responsible for the taxation and it is a bit of a grey area how they tax this. State pensions and annuities are not taxed, but other structures like SIPPs are more vague, given the lack of local equivilent in Vietnam's legislation.

There are plenty of options to save for retirement, although the more efficient tend to go via financial advisers (I would say that of course, but it is also true). International investment platforms that allow access to funds, ETFs, and lifestyled investment options are one option. Regular savings plans are another option. These have higher fees and are fixed contracts with surrender penalties, but they do enforce discipline, and can suit some situations.

Local investment options are much less diversified, only focusing on Vietnam-domiciled assets. The issue of capital controls also comes into play with local options. In other words, it can be hard to take money out of Vietnam.

My advice for younger expats is to do SOMETHING as soon as possible. Time is your friend when it comes to retirement savings. Compound interest can do incredible things over decades. For older expats who are nearing or already in retirement, I would advise sitting down with a qualified and regulated financial adviser who specialises in expats. Your situation approaching retirement is unique to you, so the advice that best suits you will likely need to be tailored to reflect that.

To summarise:

Generally minimal issues getting pension funds into Vietnam

Many savings options available, although tend to be via the global financial adviser network

Most broker platforms don't officially work in Vietnam

Younger expats, save something (anything), get into the habbit early

Older expats, seek professional advice, shop around

***

Hope this helps.

William

@williamgray

Hello William,

Thank you for your input on this thread.

Please note that professionals can not offer their services on the forum section. You are most welcome to register your services in the Vietnam Business directory so that members can reach out to you.

All the best

Bhavna

when i was retired and living in vietnam, I simply kept my us bank account. My US pension and my social security were deposited there and i withdrew money via ATMs. Biggest problem was the low limits per withdrawl.

when i was retired and living in vietnam, I simply kept my us bank account. My US pension and my social security were deposited there and i withdrew money via ATMs. Biggest problem was the low limits per withdrawl. - @woodsdancer

Here in Đà Nẵng I've discovered VP Bank ATMs:

Yesterday I withdrew ₫50,000,000 VNĐ in three pulls (20 million x 2 and 10 million x 1). Absolutely amazing to me that I've been here most of the last 7 years and only recently discovered the 20 million limit at that bank.

For years I've been limiting myself to the ₫5 million I can get per pull at MB Bank.

I didn't do the math to see if I was being charged a withdrawal fee, but it doesn't really matter to me since my ATM withdrawal fees are rebated by Charles Schwab.