Driving Forces of Employee's Intention to Participate in the Voluntary Pension Funds in Enterprises in Vietnam

Abstract

Purpose: This study examines the factors influencing Vietnamese employees' intention to participate in the Voluntary Pension Fund (VPF), with the goal of providing insights into enhancing employee engagement with this financial security mechanism. Design/methodology/approach: A survey was conducted with 320 working employees, followed by Exploratory Factor Analysis (EFA) to identify key factors. An empirical model was then applied to examine the impacts of these factors on employees' participation intentions. Findings: The study identified four significant factors influencing participation intention: the risk protection feature of VPF, the financial security provided by VPF, the expectation of benefits from participating in VPF, and risk perception related to the certainty of receiving benefits from VPF. Research limitations/implications: The findings underscore the need to raise awareness about the benefits of VPF participation among employees and develop effective mechanisms to promote the adoption of VPF in Vietnam, thereby ensuring its effectiveness as a financial security solution. Originality/value: The study offers insight into employees' adoption of voluntary pension schemes. It is also a vital source for policymakers and corporate managers to have appropriate action plans and programs to improve the adoption rate of the Voluntary Pension Fund in Vietnam.