Economic and social consequences of declining birth rates

An aging population and declining birth rates are becoming major challenges to global economic development, especially for developing economies like Vietnam.

Many worries

Over the years, Vietnam has witnessed significant changes in its demographic structure, with a sharp decline in birth rates. Forecasts from international and domestic organizations indicate that if this trend continues, the Vietnamese economy will face a series of major challenges.

Vietnam entered the process of population aging relatively early, with a sharp decline in birth rates over the past two decades. As of 2023, Vietnam's birth rate had fallen below the replacement rate. Consequently, each year, the number of children born is insufficient to maintain a stable population.

One of the biggest impacts of declining birth rates is the shift in the labor structure. As the young population decreases, there will be an increasing shortage of labor, especially in industrial and service sectors, which can lead to labor shortages, affecting labor productivity and the competitiveness of domestic businesses.

Along with declining birth rates, the proportion of elderly people in the population is increasing, creating worrying long-term impacts on the economy. As the population ages, the demand for health services, healthcare, and social security increases. This places a significant burden on the state budget and drives the need for investment in healthcare infrastructure, social insurance, and elderly care.

An aging economy can also lead to decreased consumption, as older adults tend to spend less than working-age people, negatively impacting manufacturing, consumer goods, and services.

Financial solutions are an important measure.

Regarding the issue of an aging population, Vietnam can implement measures such as reforming population policies, encouraging people to have more children through financial incentives, healthcare, and education . At the same time, strengthening vocational training, improving the quality of the workforce, and promoting automation and the application of technology in production can help alleviate the labor burden.

At the recent seminar "Choosing to be a Mother: To Have Children or Not to Have Children," experts analyzed the main reasons for the declining birth rate, citing increased work pressure and rising child-rearing costs as factors that deter many families from having children.

Furthermore, the trend of remaining single and childless is becoming increasingly common, as women have more opportunities for education, career development, social participation, and easier access to birth control.

Furthermore, infertility is increasing due to various factors such as rising ages of both men and women at marriage and childbirth, and environmental pollution affecting the reproductive system.

Associate Professor Dr. Hoang Thi Diem Tuyet, Director of Hung Vuong Hospital, assessed that the rapidly increasing rate of infertility and subfertility in Vietnam not only affects the population but also profoundly impacts the health and psychology of couples.

The key is to raise awareness about reproductive health, encourage early screening, and facilitate access to advanced treatment methods for patients.

Dr. Tuyet emphasized that financial support and expanded treatment opportunities not only help reduce the economic burden but also provide motivation for families on their parenting journey, contributing to the stability and sustainable development of society.

Support from businesses, especially in providing employee benefits, plays a crucial role in alleviating economic and psychological pressure, thereby helping workers feel more confident in having children.

Merck Vietnam is one of the pioneering companies in implementing the "Employee Welfare Policy for Assisted Reproductive Technology as Medically Indicated". This program provides financial support to employees and their spouses to undergo assisted reproductive technology when medically indicated, with subsidies up to VND 410 million.

Dr. Ghislaine Dondellinger, General Director of Merck Healthcare Vietnam, shared: “We believe that an ideal work environment is one where women are not only supported in their career development but also have the opportunity to build a family. Through these initiatives, Merck is making a practical contribution to the overall progress of society, improving fertility rates and sustainable development.”

The Ministry of Health is reviewing population policies and compiling a report on the current fertility rate. The draft amendment to the Population Ordinance proposes that couples and individuals have the right to decide on the number of children, the timing of childbirth, and the spacing between births.

At the same time, the Ministry of Health also proposed strengthening financial support measures, improving maternity leave, childcare allowances, and other incentives to encourage families to have more children.

Furthermore, experts suggest that to address declining birth rates and an aging population, Vietnam needs to focus on improving the quality of its human resources, enhancing the education and vocational training system, and implementing support policies such as flexible work arrangements, longer maternity leave, and financial assistance for young families.

Source: https://baodautu.vn/he-luy-kinh-te-va-xa-hoi-khi-muc-sinh-giam-d252504.html