Building nursing homes for high-income individuals/families in Vietnam

Abstract

This study employs a Bayes model to examine the impact of income groups on the Nursing home usage costs across 10 provinces and cities in Vietnam: Ha Noi, Vinh Phuc, Bac Ninh, Hai Phong, Nam Dinh, Da Nang, Ho Chi Minh City, Can Tho, Dong Nai, and Binh Duong. The study utilizes 8 variables: Average population (DSTB), Average income (TNTB), Income group 1 (TN1), Income group 2 (TN2), Income group 3 (IG3), Income group 4 (TN4), Income group 5 (TN5), Cost of using nursing home (CP), with data collected annually from 2012 to 2022. The results indicate that major cities attract larger populations and a higher proportion of elderly individuals, thus attracting more investment in various forms of nursing homes, thereby improving their competitiveness. Among income groups of residents in provinces and cities, income group 5 has the highest income and shows a positive correlation with cost of using nursing home, which aligns well with reality. In recent years, affluent families have shown a preference for high-end nursing homes offering the best care services, albeit at higher costs than standard ones. However, fundamentally, Vietnamese individuals have not prioritized the choice of living in nursing homes during their elderly years. Research results show that it is necessary to focus on the quality of nursing home services because of increasing demand and the aging population trend of Vietnam in the future.