Ageing population: Transforming demographic challenges into economic opportunities

The country has about 16.1 million elderly people, accounting for over 16 per cent of its population

Population ageing is an irreversible global trend and has a strong impact on all areas of society. The challenges that population aging brings to economic growth, politics and social security issues are directly affecting the elderly.

Việt Nam is currently in the group of 15 countries with a population of more than 100 million people. According to national population data, the country has about 16.1 million elderly people, accounting for over 16 per cent of its population. Of the elderly, about 2.6 million people are over 80 years old; more than nine million people are women; and 10.3 million people live in rural areas.

Việt Nam is still in the "golden age of population" - the period when the proportion of people in the working age (15-64 years old) is twice the proportion of dependents (under 15 years old and over 64 years old). However, the country is facing rapid ageing population and a declining birth rate.

Jobs for the elderly

In developed countries, population ageing occurs after the golden population period when these nations accumulate conditions to ensure social security for the elderly.

Meanwhile, although Việt Nam has just entered the group of countries with middle income, the proportion of elderly people is high in its population structure. Moreover, not many of them get pensions, the majority of elderly people have to rely on the care of their children and grandchildren and partly on social assistance.

In fact, with their own dynamism, the elderly in Việt Nam have promoted the spirit of diligence, hard work, and perseverance. They still keep working and work as bread winners.

According to statistics, by the end of 2023, the whole country had about 2.7 million elderly people receiving monthly pensions and social insurance benefits, accounting for more than 20 per cent of the total elderly population. About 60 per cent of the elderly aged 60-69 are still working; about 40-45 per cent of the elderly, including post-retirement workers, participate in economic activities, about 3-4 per cent of the working elder people are managing enterprises or farms that offer millions of jobs for workers across the country.

In addition, tens of thousands of elderly people, including post-retirement workers, participate in scientific research, teaching, and cultural and artistic activities, among others.

According to the General Statistics Office, by 2036, Việt Nam will officially enter the period of ageing population, with more than 21 million elderly people, accounting for 19.48 per cent of the total population.

The elderly's working potential is still large. According to experts, in the next ten years, tens of millions of elderly people are expected to set up shop, require vocational training and new jobs. That poses a huge concern for society. However, if the employment issue for older workers is addressed properly, they will be an important labour force that contributes to the country’s economic growth.

As the skills and experience of elderly workers are very valuable, it’s an inevitable and urgent task to support them to change livelihoods or start new ventures.

In the context of rapid population ageing in Việt Nam, the Central Committee of the Việt Nam Association of the Elderly (VAE) is proposing to the Prime Minister a project on the participation of elderly people in start-ups, employment, digital transformation and green transition.

According to VAE Chairman Nguyễn Thanh Bình, sectors and localities need to coordinate better with the association to assist elderly people in vocational education, employment and housing.

It is also necessary to perfect policies on employment, vocational training, job creation and career orientation, especially for the elderly in difficult circumstances.

Bình urged sectors and localities to support pilot models of start-ups and business development for older workers and give priority to them to access loans with preferential interest rates.

Completing national strategy on the elderly

Throughout the history of Việt Nam, the elderly have made great contributions to the cause of national construction and defence. The valuable traditions and heritage of the elderly in Việt Nam were promoted by the Communist Party of Việt Nam and late President Hồ Chí Minh.

President Hồ Chí Minh once said: "The elderly shoulder the burden of ensuring prosperity and existence of a country.

"They are a precious resource of the nation, an important force of the country, and pillars of Vietnamese families and society."

Tapping the potential of the elderly is an urgent task that requires society to have proper awareness and timely actions so that the force of nearly 20 per cent of the population can improve their lives, making worthy contributions to the country’s economic, social and cultural development.

To support the elderly in career conversion, in December 2021 Prime Minister Phạm Minh Chính issued Decision No 2156/QD-TTg approving the National Action Programme for the Elderly for the 2021-2030 period, as proposed by the Ministry of Labour, Invalids and Social Affairs (MOLISA).

The programme sets out specific goals. In the 2022-2025 period, at least 50 per cent of the elderly with the need and ability to work will have jobs, and at least 20,000 elderly people will be supported to set up shop and receive vocational training.

In the 2026-2030 period, at least 70 per cent of the elderly who have the need and ability to work will have jobs, at least 30,000 elderly people will be supported to set up shop, or receive vocational training.

The ministry also proposed adding regulations on supporting job transition and employment for the elderly, including support for vocational training, counselling, and job referrals for older workers, and incentives for businesses that employ older workers.

In order to promptly and effectively respond to the rapid population ageing process in Việt Nam today, Deputy Prime Minister Lê Thành Long has requested the MoLISA to urgently complete the national strategy for the elderly and submit it to competent authorities for approval in the fourth quarter of 2024. In particular, it is necessary to pay attention to solutions and policies for the ageing population and employment for the elderly.

Long requested the MoLISA to further strengthen the inspection and supervision of the implementation of work relating to the elderly; train and improve the professional capacity, skills and expertise of cadres, employees and collaborators working to support the elderly; and coordinate with the Central Committee of the VAE to soon complete the regulations on the operation of the Việt Nam National Committee for the Elderly.

In addition, the Deputy PM assigned the Ministry of Natural Resources and Environment to coordinate with the Central Committee of the VAE to study, develop and complete the project "Elderly people participating in start-ups, job creation, digital transformation, and green transition".