VNExpress-June 15

Vietnam will enter the aging population stage in 2040, expected to burden social security. A survey conducted by Prudential Vietnam on 500 people (30-45 years old) in Ho Chi Minh City and Hanoi revealed that only 4 out of 10 respondents are confident of being financially independent in their old age. Vietnam is amid its demographic window period, the most balanced development stage of a country when the proportion of labor force is double the number of dependents. A total 75 percent of the population is of working age, making a crucial contribution to driving Vietnam’s GDP growth, the fastest in Southeast Asia. From 2040, Vietnam will transition into an undesirable stage: the period of an aging population. One of 10 countries with the fastest aging population in the world, Vietnam has an estimated 30 years within the “demographic window” period, considerably shorter than many of its neighbors. The rapid aging rate and low ratio of independent seniority are expected to entail considerable pressure on social security.

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