In brief
The recent repeal of Vietnam's two-child policy marks a significant move to address the country’s declining fertility rates, officially allowing families to have more children as part of a strategy to bolster future economic growth.
Vietnam has officially lifted its two-child policy, which had been in place since 1988, in a bid to reverse a worrying decline in the nation’s birthrate. Approved by the National Assembly, this regulation change aims to mitigate a fertility rate that has fallen to a historic low of 1.91 children per woman, a figure that has dropped below the replacement level for three consecutive years.Previously, while the two-child restriction was loosely enforced overall, it imposed heavier consequences for Communist Party officials, who risked losing bonuses or employment for exceeding the limit. Now, all families are encouraged to grow, reflecting increasing concerns over Vietnam’s demographic trends as it transforms from a youthful population to an aging society.With a population of 100 million, Vietnam faces the prospect of fewer workers to support a growing elderly population if the birthrate doesn't rebound. The United Nations Population Fund has highlighted that Vietnam has entered the ‘population aging’ phase, cautioning that the transition from an “aging” to an “aged” population could occur in as little as two decades.To bolster fertility, the Vietnamese government has initiated promotional campaigns, including dating shows and outreach efforts, to inspire young couples to have more children. In major cities like Ho Chi Minh City, which sees an even lower fertility rate of 1.39, the government has introduced a baby bonus of approximately $120 for women who have two children before 35, hoping to incentivize family growth in a rapidly changing demographic landscape.
