Vietnam is entering a period of rapid population ageing, a demographic shift that is creating fresh momentum for the care economy to emerge as a significant driver of growth, according to United Nations policy advisers and experts.
Doan Huu Minh, an analyst at the United Nations Population Fund (UNFPA), said population ageing should not be viewed solely as a challenge, noting that it also opens space for new services and economic sectors, particularly care-related industries.
UNFPA data show that Vietnam entered the ageing phase in 2011, when people aged 60 and above accounted for more than 10 per cent of the population. By 2034, this share is expected to reach 20 per cent, officially classifying Vietnam as an aged society. The transition coincides with the expected end of the country’s golden population period around 2036 and a decline in the number of school-age children.
As demand for health care and long-term care rises, existing support systems remain limited. About 76 per cent of older people do not receive a pension and nearly all rely on unpaid care from family members. Women account for around 72 per cent of caregivers, most of whom work in the informal sector without stable income, labour protection or social insurance.
Pham Vu Hoang, Deputy Director of the Population Department under the Ministry of Health, said Vietnam’s geriatric care system is still far from meeting demand. Nationwide, there is only one provincial-level geriatric hospital, located in Quảng Ninh. Private nursing homes number only about 20, mainly in large cities, and remain unaffordable for most families.
Currently, about 10,000 older people receive care at social protection facilities, a very small figure compared to nearly 15 million elderly nationwide. The shortage of long-term care services highlights the need for a broader approach that extends beyond healthcare alone.
International research suggests the care economy can become a strong growth engine. UN Women estimates that every one US dollar invested in care can generate up to four dollars in economic benefits through job creation, higher productivity and improved social outcomes. Globally, care-related activities contribute about one-third of GDP.
In Vietnam, women spend an average of three hours per day on unpaid care work, nearly twice as much as men, according to the 2022 National Time Use Survey. This creates a double burden that reduces women’s productivity and limits their employment opportunities.
Caroline T Nyamayemombe, UN Women’s Representative in Vietnam, said businesses play a crucial role in providing affordable, high-quality care services while ensuring decent working conditions for care workers, most of whom are women. Investing in care, she said, is an investment in people and long-term growth.
However, women-led care businesses continue to face barriers, particularly in access to finance, training and technology. Experts say the sector requires innovation, improved service quality, reasonable pricing and fair working conditions to grow sustainably.
UNFPA recommends that Vietnam view population ageing as a development achievement rather than a crisis. Developing the care economy should be part of a long-term strategy, supported by stronger public investment, clearer regulations, tax incentives and standardised training for care workers. Digital tools such as telemedicine and remote health monitoring could also help expand access, especially in rural and remote areas.
“Population ageing cannot be reversed,” Minh said. “The key is to adapt early and wisely, so Vietam can protect older people while supporting inclusive and sustainable growth.”
