The number of people aged 65 years and older in Vietnam is 6.5 million but will increase by 3 times, reaching 18.4 million in 2040, according to the latest report of the World Bank (WB).

Illustrative image (Photo: Rehahn)

According to the report Vietnam Economic Situation in the first half of 2016, released on July 19, Vietnam is among the countries with rapidly aging population. Vietnam’s average income is low compared with that of other nations with aging population.

The WB said the aging population will affect the country’s labor market, raising many challenges for policy-makers, businesses and the public.

To minimize the impact, Vietnam needs to take action in policies on the labor market, pension system, health care, and long-term health care.

The WB also forecasts that Vietnam’s GDP growth this year will slow to 6%, lower than 2015 due to impacts from prolonged drought, and salt water intrusion that affected nearly 400,000 hectares of farmland.

According to the UN Food and Agriculture Organization (FAO), drought will continue to affect some areas until September this year, threatening 600,000 hectares of rice land. Vietnam’s rice output in the winter-spring crop fell by 6.3%.

"In order to maintain high growth rates, Vietnam should continue in-depth restructuring to increase productivity," said Mr. Achim Fock, Acting Director of the World Bank in Vietnam./.

( VNF/VNN )