Economic and social consequences of declining birth rates

The aging population and declining fertility rate are becoming one of the major challenges for global economic development, especially for developing economies like Vietnam.

Many worries

Over the years, Vietnam has witnessed a significant change in its population structure, with a sharp decline in fertility. Forecasts from international and domestic organizations show that if this trend continues, the Vietnamese economy will face a series of major challenges.

Vietnam has entered the process of population aging quite early, with a sharp decline in the birth rate over the past two decades. As of 2023, the birth rate in Vietnam has fallen below the replacement rate. Accordingly, each year, the number of children born is not enough to maintain a stable population.

One of the biggest impacts of declining fertility rates is the shift in the labor force. As the young population declines, the labor force will become increasingly scarce, especially in the industrial and service sectors, which can lead to labor shortages, affecting labor productivity and the competitiveness of domestic enterprises.

Along with the declining birth rate, 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 medical services, health care and social security increases. This creates a heavy burden on the state budget, while increasing the need for investment in medical infrastructure, social insurance and elderly care.

An aging economy can also lead to reduced consumption, as older people tend to spend less than working-age groups, negatively affecting manufacturing, consumer and service sectors.

Financial solutions are important measures

With the aging population, Vietnam can implement measures such as population policy reform, encouraging people to have more children through financial incentives, health care and education. At the same time, enhancing vocational training, improving labor quality and promoting automation and technology application in production can help reduce the labor burden.

At the recent seminar “Choosing Motherhood: To Have Children or Not to Have Children”, experts analyzed the main reasons leading to the decline in births as increasing work pressure and increasing costs of raising children, making many families reluctant to have children.

Along with that, the trend of being single and childless is becoming more and more popular, as women have more opportunities to study, develop their careers, participate in social activities, as well as easily access birth control pills.

In addition, infertility is increasing due to many factors such as increasing age of marriage and childbirth for both men and women, environmental pollution affecting the reproductive system...

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

The key is to raise awareness of reproductive health, encourage early screening and facilitate access to advanced treatments.

Dr. Tuyet emphasized that financial support and expanded treatment opportunities not only help reduce economic burdens, but also motivate families on their journey to parenthood, contributing to the stability and sustainable development of society.

Support from businesses, especially in providing benefits to employees, plays an important role in reducing economic and psychological pressure, thereby helping workers feel more confident in having children.

Merck Vietnam is one of the pioneers in implementing the “Welfare Policy for Employees Performing Medically Indicated Reproductive Support”. This program provides financial support to employees and their spouses for performing medically indicated reproductive support, with a subsidy of up to VND 410 million.

Dr. Ghislaine Dondellinger, General Director of Merck Healthcare Vietnam, shared: “We believe that an ideal working environment is one where women are not only supported in their career development, but also have the conditions 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 preparing 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 to increase financial support measures, improve maternity leave, childcare allowances and other incentives to encourage families to have more children.

In addition, experts say that to cope with the declining birth rate and aging population, Vietnam needs to focus on improving the quality of human resources, improving the education and vocational training system, and implementing support policies such as flexible labor, longer maternity leave, and financial support for young families.

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