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The population of Vietnam is growing old at the fastest rate of any nation in recorded history. In about 15 years, the share of Vietnamese citizens 65 and older will expand from 7 percent to 14 percent of the population. Victoria Kwakwa is the World Bank’s Country Director for Vietnam. She says there will be a slowing down and shrinking of the Vietnamese labor force in the future. She says this will create increasing demands on the people who do work. Low-cost labor has supported businesses in Vietnam. Kwakwa says it is the only country in East Asia where economic growth was higher in 2015 than 2014. But the aging labor force is a threat to that growth. For many years, Vietnam has been a country of money savers. But now household debt there is growing. Ralf Matthaes is managing director of Infocus Mekong Research. He says the company found that 30 percent of Vietnamese consumers took out a loan in 2015. He says that Vietnam is becoming a culture of debt. Many countries are worried about how China’s economic problems could hurt them. But Vietnam may not be affected. Vietnamese officials say the country’s exports to Europe or the United States are about two times more than its exports to China. Vietnamese relations with China have worsened recently over territorial disputes in the South China Sea. But that has not stopped Vietnam from buying more products from China than from any other trading partner.
