Experts say that instead of raising the retirement age to 65, Vietnam should focus on improving young workers’ productivity and skills to sustain growth, rather than simply increasing the number of working years.

During a socioeconomic discussion at the National Assembly on October 30, Prof. Nguyen Thien Nhan proposed raising the retirement age to 65 to expand the workforce and meet the target of double-digit growth from 2026. However, many experts believe this requires careful consideration, as economic performance depends on productivity, not simply the number of people working.

Older Workers Struggle to Maintain Productivity

Under current regulations, the retirement age has been increasing gradually since 2021, by 3 months each year for men and 4 months for women, until it reaches 62 for men in 2028 and 60 for women in 2035. People in physically demanding occupations or with declining health may retire up to 5 years early, while those with advanced expertise may retire later.

Prof. Giang Thanh Long of National Economics University (NEU) said that “raising the retirement age requires caution,” as labor data for 2010–2023 show that the share of productive workers fell from 86% to 78%. This means that the number of people working effectively and generating high value is gradually declining, particularly as the proportion of older workers increases. “Increasing the number of working years does not equate to growth,” he said, warning that as businesses accelerate digitization, older people often struggle to adapt to new technologies and are vulnerable to unemployment.

Prof. Giang Thanh Long has spent many years researching population issues, the economic aspects of population aging, and social security. Photo: Gia Chinh

Three national surveys show that 55% of people over 60 want to work but cannot because of illness. Average life expectancy has increased, but “healthy life expectancy” has not improved proportionately. Older people in Vietnam live an average of 22.4 years after retirement, including 5.7 years living with illness.

Dr. Bui Sy Loi, former Vice Chairman of the National Assembly’s Committee on Culture and Social Affairs, said that most Vietnamese workers work in high-pressure, physically demanding environments, particularly in textiles and garments, mining, and transportation. “Surveys show that 60% of men and 70% of women over 55 experience a marked decline in health, making it very difficult to perform their jobs if the retirement age is raised,” he said. He added that raising the retirement age could reduce opportunities for young people, slow technological innovation, and cause frustration, particularly among female workers.

Increasing Productivity—a Sustainable Solution

Pham Thu Lan, former Deputy Director of the Institute for Workers and Trade Unions, said that raising the retirement age is no longer appropriate in an era of digital transformation, because growth based on labor rather than technology would leave Vietnam behind. Instead of extending workers’ working lives, Vietnam needs to invest heavily in science, innovation, and improving young workers’ skills to achieve double-digit growth without putting pressure on employment or insurance funds.

Prof. Giang Thanh Long emphasized that Vietnam is in a demographic dividend period, with its young workforce currently its greatest advantage. Generations Y and Z—groups able to adopt new technologies quickly—will account for the largest share over the next 30 years and could become a pillar of growth if given appropriate training.

He said that approximately 1.6 million young people are currently neither employed nor in training, while only 29% of workers have received training leading to formal qualifications. “If we do not focus on improving this group’s skills, we will miss a golden opportunity before the population ages,” he said.

Sharing this view, Dr. Bui Sy Loi described increasing productivity as a “two-in-one” measure that both expands employment and improves workforce quality. When young workers are equipped with digital, foreign language, and technological skills, along with industrial work discipline, they can take on roles that generate greater value in the production chain, thereby increasing national productivity. He said that policies on vocational training, higher education, and the labor market need to be closely linked to form an “input–output” chain for workforce development.

Flexible Retirement Ages by Occupational Group

Against the backdrop of population aging, Dr. Bui Sy Loi said retirement-age policy should be applied flexibly by occupational group. People engaged in intellectual work, science, education, healthcare, and management could work until 65 or beyond if they are healthy enough and choose to do so. Meanwhile, workers directly involved in production lines should be allowed to retire early at ages 50–55 while retaining their social insurance entitlements.

He said that establishing flexible retirement-age ranges has become a common trend in many countries. People with the ability and experience can continue contributing, while those working in hazardous or high-intensity environments can retire early without losing benefits. “Differentiating by occupation helps both retain the capacity of the intellectual workforce and ensure that policy is fair and humane,” he said.

Beyond grouping workers by the nature of their occupations, experts believe Vietnam also needs to encourage part-time work, advisory roles, and on-the-job training arrangements for experienced older people. This would draw on the knowledge of the previous generation while creating room for young people to enter the workforce and facilitating the transfer of skills and technology.

“Improving the quality of the young workforce, enhancing skills and occupational health, and developing flexible retirement pathways by occupational group will help Vietnam maintain growth momentum, ensure social security, and adapt to population aging,” he said.

Source: Vnexpress

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.