Hanoi (VNA) – Demand for “housing with care” – a range ofresidential formats (which often provide care services) for older people – isincreasing, but the market remains almost untouched in Vietnam, according toproperty consultancy Savills Vietnam.

Vietnam entered an “ageing phase” in 2011. The number of peopleaged over 60 increased to 11 percent of the population in 2019 from 8.6 percent in 2009, most ofwho live in northern cities and provinces.

Since the implementation of “Doi Moi” (Renewal) policies, the countryhas seen enormous socio-economic growth and vast improvements to publicservices, quality of life, and life expectancy.

This growth has changed how people live and has resulted inmodernisation, urbanisation, and increased levels of rural-urban migration.These changes have influenced the living arrangements of the elderly.

According to Vietnam’s General Statistics Office, the number of elderlypeople living alone or with just their spouse increased from 18.3 percent in2009 to 27.8 percent in 2019.

Globally, there is a deep and growing demand for housing with caresolutions in many markets; a demand that is going unmet due to limited supply.

Out of 63 cities and provinces in Vietnam, only 32 have specialisedfacilities for the elderly. Although the government aims to have at least onefacility in each province by 2025, this does not reflect the rapid growth ofVietnam’s ageing population.

In Vietnam, private nursing homes provide services at relatively highcosts, averaging about 15 million VND (663 USD) for a single room and 19million VND for a double room per month. But even lower-cost facilities arealso out of reach of most Vietnamese. So elderly care is mostly provided athome and by volunteering caregivers.

With complex cultural, regulatory, and operational factors at play –some housing with care solutions that are popular internationally might not bepractical in the Vietnamese market. There has still been a stigma about nursinghomes in the country.

The concept of “family obligations” in most cases makes sending theelderly to a nursing home very difficult. Many people oppose this idea becausethey think children doing so means they do not love their parents.

“In Vietnam there are multiple levers at work behind the aged careequation,” said Troy Griffiths, Deputy Managing Director, Savills Vietnam. “Notleast the spreading acceptance of insurance that allows alternate fundingmodels. From an operating perspective, it is presently difficult to resourcewith quality medically trained staff. Certainly, the traditional family modelis rapidly evolving, and the next decade will see a raft of changes.”/.