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Changing demographics and challenges for old age support in Vietnam

The paper analyzes changing demographics and changes for old age support in Vietnam, and suggests some solutions for the issues, notably: a more coherent approach to old-age support, deeper consolidation of delivery systems in the interests of efficiency, transparency and client friendliness, more humane and fiscally sustainable aged and long-term care systems built around a system of home- and community-based care. The role of government will remain paramount both in short and long terms, but non-state providers would gradually be expected to player more of such a role. | Vietnam Social Sciences, No.1(171) - 2016 PHILOSOPHY – LAW – PSYCHOLOGY – SOCIOLOGY Changing Demographics and Challenges for Old Age Support in Vietnam Dang Nguyen Anh * Gabriel Demombynes ** Abstract: Vietnam is currently facing a far-reaching evolution in the age structure of its population. The one-off advantage of demography is reaching its limit, and more attention should be paid to employment policies, old age support, social security and pension. The paper analyzes changing demographics and changes for old age support in Vietnam, and suggests some solutions for the issues, notably: a more coherent approach to old-age support, deeper consolidation of delivery systems in the interests of efficiency, transparency and client friendliness, more humane and fiscally sustainable aged and long-term care systems built around a system of home- and community-based care. The role of government will remain paramount both in short and long terms, but non-state providers would gradually be expected to player more of such a role. Key words: Demographics; old age support; challenges; Vietnam. 1. Demographic change Vietnam is currently facing a farreaching evolution in the age structure of its population. Over the last two decades, Vietnam has cashed in its “demographic dividend” the economic growth boost generated by a bulge in the share of the population that is of working age. This has been considered a great opportunity for the national development. However, the dividend is nearly spent as the working age share peaked in 2013 and is now in decline. More importantly, in 2015 Vietnam has reached a turning point in the size of its old age population and will soon become one of the most rapidly aging societies in the world. The share of the population that is over 65 will rise from 6.7 percent in 2015 to 14.4 percent in 2035 (Figure 1). Figure 1: Age Structure Change in Vietnam: 1975-2075 Source: UN Population Projections. This demographic transformation has a number of