HO CHI MINH (Web Desk) - Vietnam has announced new incentives for second-child births as it seeks to address a declining birth rate and a rapidly aging population, a year after ending its long-standing two-child policy.
Under the policy effective from today, mothers giving birth to a second child will receive extended maternity leave of seven months instead of six.
In addition, the government will provide subsidies for premature births and newborn medical checkups, along with a one-time cash bonus for eligible mothers.
Under the scheme, qualifying mothers can receive up to $228 in cash support, which is roughly two-thirds of the average monthly salary in Vietnam.
Pham Thi Lan, head of the United Nations Population Fund in Vietnam, said the policy reflects a major shift in government thinking, moving away from restrictive family planning measures toward balanced population growth.
For decades, public employees and especially members of the Communist Party faced penalties for having a third child, but the government lifted those restrictions last year.
According to official data, Vietnam’s fertility rate has fallen to 1.93 children per woman, below the replacement level of 2.1 needed to maintain population stability, while the average life expectancy has risen to about 75 years.
It is estimated that by the middle of the century, people aged over 60 will make up one-quarter of the population, after which the total population could begin to decline.
Economists say that without an increase in birth rates, Vietnam may face labor shortages and slower economic growth. However, they note that while the new incentives are a step forward, cash bonuses alone will not be enough. Sustained government support for housing, childcare, education, and other costs will be necessary to meaningfully boost birth rates.