The United Nations Development Programme (UNDP) in Vietnam launched its Asia Pacific Human Development Report entitled “Shaping the Future: How Changing Demographics can power human development,” in Hanoi on April 27.

The report acknowledged that demographic changes in the Asia-Pacific region is happening at a rate the world has never seen before. An explosion in the working age population and a fall in birth rates, that took a century in Europe are happening in the region in just 30 years.

It noted that Asia-Pacific countries now have more working-aged people and fewer dependents than at any point in history, providing a springboard for growth. Region-wide, 68% of people are of working age and only 32% are dependents.

When countries have a greater share of people who can work, save and pay taxes, they have the potential to transform their economies and power investments into healthcare, education and other means of building future prosperity.

The report says if countries do not start planning for this demographic change, they will miss out on an unique opportunity to boost growth and investments for the future.

The report calls for the creation of decent jobs to match the workforce, equal employment for women, and ways to turn savings into investments inside the region.

In an attempt to maximise the potentiality of the demographic change in the region, the report also suggested several policies for Vietnam such as focusing on productivity and substantial employment, technical transfer and skills, healthcare and education reforms, gender equality, and social welfare.

Asian nations see boom in working age population

Demographic changes in Asia and the Pacific region are occurring at unforeseen rates. An explosion in the working age population and a fall in birth rates - changes that are expected to take a century in Europe and North America - could occur here in just 30 years.

If countries do not start planning for the demographic change, they will miss out on opportunities to boost growth and investment in the future, said Bakhodir Burkhanov, United Nations Development Programme Deputy Country Director in Vietnam, at the launch of the 2016 Asia-Pacific Regional Development Report yesterday.

The report, entitled “Shaping the future: How changing demographics can power human development”, found that Asia-Pacific countries now have more working-aged people and fewer dependents than at any other point in history, providing a springboard for growth.

About 68 per cent of the region’s population is at working age, and only 32 per cent are dependents.

“When countries have a greater share of people who can work, save and pay taxes, they have the potential to transform their economies and power investment in health care, education and other building blocks of future prosperity,” said Thangavel Palanivel, lead author of the report.

The report called for an immediate response and outlined actions for sustainable development.

As Vietnam is at the end of the middle stage of transitioning to an ageing demographic, the country’s biggest challenge is to capitalise on its remaining demographic dividends and prepare for the demands of an ageing population, experts at the meeting said.

Richard Marshall, Policy Advisor for the UNDP, said Vietnam should focus on improving productivity and creating quality work.

He suggested that the country mobilise savings, invest in productive sectors and ensure gender equity within labour market.

It is necessary for the Vietnamese Government to accelerate social protection reform, especially pensions, he said.

He advised the Government to focus not only on technology transfer, but also wider education, skills training and health care reforms.

Dr Nguyen Quang, Programme Manager of the United Nations Human Settlements Programme in Vietnam, said despite the fact that urbanisation was considered low in Vietnam compared with other countries in the region, much attention should be paid to the management of cities.

Once cities are well-managed, it would be a great source for the country’s development, bringing about high production values and productivity as well as more employment, he said.

Although the country is benefiting from the “golden age” population, it will last a short period of time. Therefore, Vietnam should prepare for an ageing population. The country should invest more in healthcare and education, and create jobs for young people, he said.

Quang also emphasised the need to take advantage of senior citizens’ knowledge for research activities and consultancy related to policy making programmes. Senior citizens should be encouraged to associate their activities with recreation and the community, he said.

VNS/VNA