Vietnam has introduced new incentives for families having a second child as part of efforts to address the country’s declining birth rate and rapidly ageing population.
Under the new policy, which took effect on Wednesday, mothers giving birth to a second child will receive seven months of paid maternity leave, up from the previous six months.
The government has also announced subsidies for premature births and newborn health screenings, along with a one-time cash bonus for eligible mothers.
Qualified families can receive up to US$228, equivalent to about two-thirds of Vietnam’s average monthly salary.
According to United Nations Population Fund representative Pham Thi Lan, the policy reflects a major shift in government thinking, moving away from birth restrictions toward promoting balanced population growth.
For decades, government employees—particularly members of Vietnam’s Communist Party—faced disciplinary measures for having a third child, but those restrictions were abolished last year.
Official data show Vietnam’s fertility rate has fallen to 1.93 children per woman, below the 2.1 replacement level, while life expectancy has risen to around 75 years.
Economists warn that unless birth rates recover, Vietnam could face labour shortages and slower economic growth in the coming decades. They also argue that financial bonuses alone are unlikely to reverse the trend without broader support for housing, childcare and education.
A recent government survey found that 73% of married couples consider their financial situation the most important factor when deciding how many children to have.
