Elderly people are taken care for in the Nhan Ai Nursing Centre in Hanoi. (Photo courtesy of the centre)The Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City and theUnited Nations Population Fund (UNFPA) launched the Network for the Developmentof Business Services for Older Persons in Vietnam.
According to the VCCI's Elderly Care Service Market Outlook Report in Vietnam,the country has a promising market for elderly care services, with 20 millionpotential customers by 2035.
The network was designed as a special forum to connect business stakeholders,explore cooperation and seek opportunities in the development of businessservices for the growing elderly population in the country.
VCCI Vice President and VCCI HCM City head Vo Tan Thanh said: “The increasing demandand more diversified needs of older persons present numerous opportunities fordomestic and foreign businesses and investors in Vietnam."
"Fully recognising the importance and necessity of formulating a networkof stakeholders to promote the development of this potential service industry,VCCI, as a representative organisation of the business community to perform thefunctions of trade and investment promotion in Vietnam, will strongly andeffectively support the network's operation going forward.”
Naomi Kitahara, the UNFPA Representative in Vietnam shared the same view: “Thenetwork is designed to contribute to developing a diverse senior care serviceindustry in terms of types, sizes and fields of operation, meeting the growingneeds of older persons, promoting business links and attracting domestic andforeign investors."
"The network also supports the development of human resources withqualifications and skills to work in the senior care service industry. UNFPA isdelighted to contribute to the establishment of the network.”
VCCI’s report estimated that the elderly care market in Vietnam will have anannual growth rate of up to 7 percent from 2020 to 2027. In the Asia Pacificregion, the rate was expected to be up between 7.7 and 14.6 percent from 2018to 2022, with a total value of up to US$2 trillion, making it a potentialmarket of great value, the report said.
Bui Anh Trung, director of the Binh My Nursing Home, said: “There are manyopportunities for businesses to participate in the elderly care service field.”
Trung said after the pandemic, all family problems and health perceptions hadbeen changed, especially for the elderly care as children wanted a place totake care of the elderly to ensure safety, especially in a pandemic.
Trung also said the aging population was increasing in Vietnam while the marketfor nursing homes was currently very small, adding: “Investment opportunitiesin the construction of nursing homes are of great potential.”
Earlier, Matthew Powell, director of Savills Hanoi, told local media: “Thesenior living and medically-assisted living healthcare sector iswell-established in many countries globally, where there is a growing elderlypopulation. This sector has evolved to provide a professional and pleasantenvironment for those that need care, a relief to family caregivers who oftendo not have a specialised understanding of elderly care or thefacilities."
"It has also led to the emergence of an interesting liquid real estateinvestment opportunity akin to specialised ‘branded residences’ with rentalpools or serviced apartments appealing to large investors, developers andindividuals.”
Promoting business links and Investment attraction
Considering the financial dependence of the elderly on their children andrelatives as a challenge of the market, members of the network said service providersmust develop services convincing enough to both the elderly and theirdescendants, who pay for the services.
For example, a private room in the Nhan Ai Nursing Centre or the Tuyet Thai Centrein Hanoi cost more than 15 million VND (750 USD) each, while higher fee will beasked for a room in the Thien Duc Nursing Home or the Lotus Nursing Centre inHCM City.
The network would create an in-depth forum for partners to exchange, connectand seek co-operation opportunities to promote the development of the elderlycare service, as well as improvement the service industry ecosystem for theelderly in Vietnam.
The network has been developed with technical support from UNFPA and financialsupport from the Government of Japan through the Project "Mitigating thenegative impacts of COVID-19 on vulnerable population groups - EnsuringNational Progress to Achieve SDGs in Vietnam."
Vietnam’s population aging is progressing fast due to mortality and fertilitydeclines. In 2020, older people aged 65 and above accounted for 8 percent ofthe population, and it is estimated that by 2036, Vietnam will transit from an“aging” to an “aged” country where those aged 65 and above will be 14 percentof the total population.
The Ministry of Labour, Invalids and Social Affairs estimates that the numberof older persons who require daily care will increase from 4 million in 2019 toaround 10 million by 2030.
According to a report by Savills Vietnam, by 2050, Vietnam will have asuper-aged population, in which over 20 percent of the population will be over65, adding that in 2019, people over 60 accounted for 11 percent of Vietnam’spopulation, increasing from 8.6 percent in 2009.
The report said the residential facilities with care services, for older peoplewere mostly untouched in Vietnam though there were increasing numbers ofprivate offerings.
Out of the country’s 63 provinces, only 32 have specialised facilities for theelderly. The Government aims to have at least one facility in each province by2025./.
VNA
