(VOVWORLD) - Population aging could slow down Vietnam's long-term growth in the 2020-2050 period by 0.9 percentage points compared with the last 15 years, a new World Bank (WB) report finds.
According to the report "Vietnam: Adapting to an Aging Society," jointly produced by the WB and the Japan International Cooperation Agency (JICA), Vietnam is going through the demographic transition to an older society at an earlier stage of economic development and a lower level of per capita income than other countries who have experienced a similar shift.
The prospect of “getting old before getting rich” means that Vietnam faces a set of important challenges whose solutions require making hard policy choices.
With falling birth rates and a rising life expectancy, Vietnam’s elderly are expected to account for between 10 percent to just under 20 percent of its population by 2035.
The report offers recommendations including reforms to help improve labour force participation and productivity, increase the efficiency of public expenditures, and strengthen service delivery system.