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Vietnam prepares for an aging population

Population aging is a significant issue that is affecting countries around the world, including developing economies like Vietnam. With only 14 years left to prepare for an aged society, Vietnam is facing new pressures and challenges that require flexible responses in the field of population and development.

Experts have noted that Vietnam is experiencing the fastest rate of population aging globally. In 2019, individuals aged 60 and over accounted for 11.9% of the total population, and this figure is projected to rise to over 25% by 2050. By 2038, Vietnam is expected to transition from an „aging“ to an „aged“ society, with over 21 million elderly people, nearly 20% of the total population.

One of the direct consequences of population aging is the risk of labor shortages. With a declining number of young workers and an increasing aging population, industries and service sectors may struggle to find enough human resources to sustain and develop. This could lead to decreased labor productivity, reduced competitiveness, and a negative impact on economic growth.

Nguyen Thanh Binh, Chairman of the Vietnam Association of the Elderly, highlighted that the rate of elderly people participating in the workforce has been increasing over the past two decades. However, population aging also poses challenges to healthcare and social security systems, requiring the development of appropriate policies and infrastructure to ensure the best possible care for the elderly.

Recognizing the inevitability of population aging, the Party and the State in Vietnam have been developing policies and guidelines to make effective responses. For example, older persons can access preferential loans to develop livelihoods and improve living standards. Additionally, Vietnam has around 3.1 million elderly people receiving monthly pensions and social insurance allowances, putting pressure on the social security system.

Assoc. Prof. Dr. Ta Minh Tuan emphasized that Vietnam should view population aging as both a risk and an opportunity for sustainable development. Older people can actively contribute to socio-economic, family, and community development with their experience, knowledge, skills, and financial resources. Policies that encourage women to have children, promote workforce participation, invest in education and training, and enhance automation in industries are essential to address the challenges of population aging.

Pham Vu Hoang, Deputy Director of the Population Department under the Ministry of Health, highlighted the opportunities that population aging can bring, such as promoting the development of sectors like insurance, banking, tourism, and technological innovation. To address the challenges of population aging and labor shortages, Vietnam needs to be proactive and creative in finding effective solutions, learning from other countries‘ experiences, and developing policies that enhance older persons‘ self-reliance and independence.

By implementing flexible policies and creating favorable conditions for the elderly to participate in economic and social development, Vietnam can overcome challenges and be prepared for an aged society. With strategic planning and proactive measures, Vietnam can navigate the complexities of population aging and ensure a sustainable future for all its citizens.

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