Summary: Vietnam is being experienced the important stage of the “population transition” process with lower fertility, lower mortality rate and higher life expectancy. For more than sixty years, the population of Vietnam has undergone changes in size and age structure. Under the impact of population policies and family planning, the total fertility rate (TFR) has been controlled, and the crude death rate decreased. Demographic change also brought changes in the age structure: the proportion of children (0-14 years) in the total population is declining, while the proportion of working-age population (15-64)and the elderly (65 or older) is increasing.

Because Vietnam has been listed into the groups of lower middle income countries, the expected demographic change will provide the country with a number of opportunities and challenges. The increased working-age population will contribute to   growth and development, as well as adapt to the rapid aging of the population process , to avoid the worst scenario is “old before rich”.

By applying the method of the (NTA) on the available data source, this study examined the labor income model and consumption patterns in 2007 of the Vietnamese people of different age groups. Research found out that at average, a Vietnamese person the less income than expenditure during two age period of his life: (i) from birth until the age of 22, and (ii) from age 54 onwards. In both periods, the “deficit” was recorded, but on the contrary, from 23-53 years of age his/she has more income than expenditures and, therefore this is the period of ‘surplus