1.3.2X Demographic dividend (Vietnam) Flashcards
Background of Vietnam
Second quickest economy to grow in Asia
Focused on agricultural goods, raw material and manufactured goods export to boost productivity and efficiency in the second industry
Abandoned its two child policy to maintain the fertility rate and boost economic growth
Historical and political causes of demographic change
Two child policy promoted fall of fertility rate → lower young dependency ratio
Dependency ratio is low → big advantage to grow economy
During 1960-1970 there was bitter civil war → fertility rate was really high and as the children grew up, the working age group started to increase rapidly after the 1970s
Economic benefits to Vietnam after demographic change
Vietnam’s economic growth can be attributed to three main factors: the demographic dividend, a shift from agriculture to manufacturing and services, and increased productivity.
In 1999, 12 million people joined the labour force due to a significant youth population.
Improved productivity through mechanisation and better population health also contributed to Vietnam’s economic success.
in 2000, labour force grew by 2.8% per year
