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Economic gains from population to fall sharply from 2019: UNFPA

Though Vietnam has a golden population structure until 2042, with the rapid population aging speed like at present, economic gains from population will sharply decline from 2019.
Economic gains from population to fall sharply from 2019: UNFPA ảnh 1Young people receive advice on future careers (Photo: VNA)

HCM City (VNA) – Though Vietnam has a goldenpopulation structure until 2042, with the rapid population aging speed like atpresent, economic gains from population will sharply decline from 2019.

The remark was made by Nguyen Ngoc Quynh, arepresentative of the United Nations Population Fund (UNFPA), at a workshopheld by the National Assembly’s Committee for Social Affairs in Ho Chi MinhCity on December 18.

She noted that the strong decrease of economicgains from population is because the population’s total income will be lowerthan total spending.

At present about 70 percent of Vietnam’spopulation are of working age, which is a chance for the country to stronglypromote economic growth. However, opportunities from golden population do notnecessarily mean economic gains.

Quynh said a UNFPA study shows that in 2017,total income of Vietnam’s population is bigger than their total spending. Withrapid population aging, this income – spending scale will balance in 2018 andbegin to have deficit in 2019 as total spending will be bigger than totalincome of the population.

[Video: Population ageing challenges Vietnam]

To capitalise on economic gains from the goldenpopulation opportunities, she suggested the country increase the number ofpeople in working age along with the employment rate while creating favourableconditions for the elderly and women, especially ethnic minority women, towork.

It is also important to boost labourproductivity since Vietnam is among countries with lowest productivity in Asia.To extend economic gains from population until 2042, local labour productivitymust be raised by 1.28 percentage points each year, she added.

At the workshop, former Vice Chairman of the NationalAssembly’s Committee for Social Affairs Nguyen Van Tien said the Governmentshould have a road map for gradually raising the retirement age, firstly forwomen. 

He added it is also necessary to encourage theelderly to engage in employment and social activities, encourage the employmentof old persons, provide vocational training for people near retirement age,reform the social insurance regime, and build a friendly environment for theelderly.-VNA
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