Vietnam’s population is ageing quickly. In 2017, more than 10 per cent of the population will be 60 and older, and in 15–20 years the elderly will account for one third of the total population. This raises concerns about healthcare, welfare and pensions for the elderly at a time when Vietnam is focusing on economic integration and requires a large labor force. So far two solutions have been proposed: to loosen the two-child policy and to increase the retirement age to 58 for women and 62 for men. By ending the two-child policy the government expects to make up for the ageing population within the next 20 years. But its effect could be creating an uncontrollable boom in the Vietnamese population. When the government loosened the two-child policy in 2015 in a trial period, in the first 6 months of 2016 the third child birth rate increased remarkably by 7.5 per cent.
Raising the retirement age has been proposed by the Ministry of Labor pending parliamentary evaluation in May 2017. While the policy is beneficial in utilizing the work experience of the elderly while creating savings in the pension budget, it also means fewer job prospects and promotion opportunities for younger generations. It is also not in the interest of all the elderly, especially the 70 per cent of Vietnam’s labor force working in manual labor-intensive sectors such as agriculture, manufacturing and construction where working above the age of 50 can be dangerous and unproductive. Despite these drawbacks, raising the retirement age is still considered by policymakers as one of the key solutions to the ageing population problem in Vietnam. However, these are only temporary solutions.
(Adapted from http://www.eastasiaforum.org/2017/01/25/)
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