RMIT expert: Preparing for Vietnam’s silver economy starts now

Associate Professor Catherine Earl, RMIT University Vietnam. (Source: RMIT)

Vietnam faces a critical question: who will care for its rapidly growing older population?

The answer lies in developing a comprehensive care economy that extends well beyond hospitals and nursing homes, creating new jobs, supporting families and opening opportunities for innovation and economic growth.

A new economic opportunity

Across the Asia-Pacific, unpaid care work has been valued at around US$3.8 trillion.

Meanwhile, Vietnam's silver economy, centred on home-care solutions, is forecast to almost double in value from US$2.6 billion in 2023 to US$4.8 billion by 2034.

The development of the 'silver economy' is one of the significant shifts Vietnam is undergoing in the first quarter of the twenty-first century, along with rapid urbanisation, shrinking family size, and the rapid ageing of the population.

Accordingly, a model for the care economy should not focus only on social welfare provision but on the development of a sustainable and holistic care economy. Multiple pillars of the care economy should be integrated and supported to respect and support elders.

Vietnam can learn from the care economy development experiences of several countries, such as Indonesia. The Indonesian strategy combines childcare, long-term care, gender equality and workforce development, with the International Labour Organization estimating it could create around 10.4 million jobs by 2035.

Building tomorrow's care workforce

Developing a sustainable care economy will require an equally significant transformation of Vietnam's workforce.

On this basis, Vietnam can implement three mutually supportive policy priorities, including: flexible workplace training, new formal qualifications and targeted skilled migration. Three interconnected policy solutions would assist in meeting the urgent need for workforce development. First, workplace training is key.

Additionally, micro-credentials – short, skills-based learning modules assessed in the workplace – could rapidly expand the capabilities of carers while providing recognised qualifications. Micro-credentials are useful because they develop up-to-date skills in a flexible way.

This approach could be particularly valuable in Vietnam's rural communities, where around 70% of older people live, and formal support services remain limited. Many women already provide extensive family care without formal qualifications, and micro-credentials could recognise and strengthen these existing skills.

Moreover, universities and vocational education providers should expand programs in disciplines that support the care economy. As Vietnam builds its capacity in transnational education, care economy training could become a major attractor of international students.

Vietnam can build retraining programs for mid-career workers and women returning to paid employment could help address future workforce shortages while creating attractive new career pathways. In the short term, Vietnam should also consider targeted high-skill migration to recruit experienced geriatric specialists and other professionals while domestic capacity is being developed.

In less than a decade, Vietnam will become a country with an aging population. (Source: Magnific)

Supporting families, not replacing them

While professional care services will become increasingly important, family-based care should remain the foundation of the elderly care system in Vietnam. Most elderly people prefer to be cared for at home rather than in nursing facilities.

Instead of sidelining families, policies should focus on supporting them through better training, expanded community services, and more equitable distribution of caregiving responsibilities. Notably, care should be shared between genders and generations so that women no longer bear the majority of the burden.

This requires society to accept two changes in the perception of caregiving work. First, society needs to accept the caregiving role of men. Second, society needs to understand and encourage changes in traditional expectations regarding women's participation in the workforce, freeing them from the dual burden of paid and unpaid work.

Many countries have begun experimenting with new care economy models to expand services and improve delivery efficiency. In 2024, the World Economic Forum introduced several notable initiatives, including the Care Blocks model in Bogotá (Colombia), which provides daytime care services for the elderly while supporting job searches for caregivers. In the Netherlands, the Buurtzorg model empowers nurses to self-manage community care activities. Meanwhile, Paraguay has developed a digital care management platform, expanding service access to remote and underserved areas.

Many programs in the care economy aim to support women, who currently undertake the majority of caregiving work, while removing barriers to enhance women's participation in the workforce.

Opening new development paths

Beyond workforce development, the silver economy presents significant opportunities for technology innovation.

Besides the care economy, the emergence of a new economy centred on the digital transformation of ageing offers opportunities for young tech-savvy people and entrepreneurs to contribute to the silver economy development and to support the ageing population to age well.

Digital health platforms, digital communication tools, and other AgeTech solutions hold great potential in targeting the elderly, enhancing the quality of life for the elderly, especially as Vietnam's population continues to age.

However, technology alone is not enough. Successful adoption will depend on reliable internet access, technical support, and training that helps older people confidently use digital tools independently. At the same time, ethical safeguards must ensure technology enhances rather than undermines older people's autonomy and privacy.

Looking ahead, Vietnam has an opportunity to redefine how society values care.

In this process, businesses can play a larger role by incorporating training and volunteering in elderly care into their corporate social responsibility programs, as caregiving responsibilities increasingly affect workers across all sectors of the economy.

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