Unit 1 - Vietnam - Demographic Dividend

Question 1

Where is Vietnam located?

Answer 1

• Southeast Asia

Question 2

What is demographic dividend?

Answer 2

• refers to the growth in an economy that is the resultant effect of a change in the age structure of a country’s population

Question 3

How could one describe Vietnams economy?

Answer 3

• second quickest economy to grow in Asia

Question 4

How is Vietnam constantly boosting productivity and efficiency in the second industry?

Answer 4

• by focusing on agricultural goods, raw material and manufactured goods export

Question 5

What is essential for boosting economic growth?

Answer 5

• abandoning its two child policy to maintain the fertility rate (only considered this)

Question 6

How were the demographics in 1960?

Answer 6

• 6.5 births per woman
• birth rate: 42
• death rate: 12
• life expectancy: 59 years
• 0-14 year olds: 40%
• 15-64 year olds: 55%
• 65+ year olds: 5%

Question 7

What was introduced in Vietnam in 1960?

Answer 7

• two child policy

Question 8

What were the historical and political factors causing demographic change?

Answer 8

• 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

Question 9

How did Vietnam benefit economically from the demographic change?

Answer 9

• rapid and sustained economic growth
• joined the World Trade Organisation in 2007
• three main factors of help in rise of Vietnam’s economic growth: the increase in labour force that was made possible by the demographic dividend, a structural shift from agriculture towards manufacturing and service industries, an increase in productivity brought about by mechanisation and improved health of the population
• in 1999 34% of population was aged between 5 and 19 causing 12 million people joining the labour force
• mid 1980s, the communist government went on a series of economic reforms → enabled markets to operate freely, guided an agriculturally-based economy into development of manufacturing and service industries, tapped into demographic dividend by educating children and youth so they could participate in new workplace opportunities
• in 2000, labour force grew by 2.8% per year