At a specialized seminar on real estate for the elderly in Vietnam, organized recently by Savills Vietnam and WeCare247, experts highlighted that Vietnam is facing rapid population aging, leading to a significant increase in the demand for elderly care services.
According to the National Statistics Office, by 2038, the proportion of people over 60 in Vietnam could reach 20.1 per cent, officially placing the country among those with an aging population. Similarly, the United Nations Population Fund (UNFPA) predicts that by 2050, more than one-sixth of Vietnam's population will be over 65.
Savills Vietnam assesses that the rapid aging of the population places considerable pressure on the care system, as the demand for elderly care services becomes increasingly urgent and diverse. However, despite the strong demand, Vietnam's elderly care system has not yet fully developed. Most current care activities are spontaneous, lack formal training, and are fragmented, while the service gap widens each year.
These limitations lead to limited housing and integrated care service options for the elderly, such as specialized housing, resorts, or combined medical facilities.
Nevertheless, Mr. Matthew Powell, Director of Savills Hanoi, believes that Vietnam's elderly care real estate market will grow rapidly and is expected to double in the next decade as millions of people enter retirement age.
According to preliminary research by Savills Vietnam, the market size is currently around $2.3 billion in 2024 and could reach $3.6 billion by 2032, with an annual compound growth rate of 5.81 per cent
Ms. Emily Fell, Senior Director of the Living Sectors division in the Asia-Pacific region, emphasizes that the Vietnamese market has great growth potential but requires a unique development strategy. Moreover, policy is also a key driving factor.
Meanwhile, Mr. Le Quoc Huan, Deputy General Director of WeCare247, believes that geographical factors will directly impact the implementation of care service models nationwide.
Sharing international lessons, Mr. Yusuke Hirai, Representative of Kitahara Group Vietnam, emphasized the importance of technology and technical transfer, while also opening up investment opportunities in the healthcare sector, thereby contributing to enhancing capacity and promoting the development of elderly care services in Vietnam.
According to Ms. Olivia Wood, Director of Lotus Advisory Group Vietnam, businesses need to carefully consider important factors, from understanding the local market, service quality, to suitable operating models and the ability to meet the diverse needs of the elderly.
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