Vietnam's New Focus: Abolishing the Two-Child Policy to Combat Low Birthrates

Vietnam's recent decision to abolish its long-standing two-child policy reflects a strategic shift aimed at addressing a declining birthrate that poses risks to its economic future. On June 4, 2025, the National Assembly officially repealed the regulation, which had been in place since 1988, allowing families the freedom to have as many children as they wish. This legal change comes as fertility rates in Vietnam have reached alarming lows; last year, the average birthrate dropped to 1.91 children per woman, below the critical replacement level of 2.1.

Although this policy had often been loosely enforced, particularly for non-party members, Communist Party officials faced repercussions for exceeding the two-child limit. With the new policy, the government is actively promoting procreation, fearing that the consequence of a declining workforce will adversely impact the nation’s economic stability. Vietnam is currently experiencing a demographic sweet spot, characterized by a robust young working population; however, the UN Population Fund warns this phase is rapidly changing towards an aging demographic.

To combat this trend, Vietnamese authorities are implementing creative initiatives, including television dating shows and advertisements designed to incentivize childbirth. In cities like Ho Chi Minh City, where the fertility rate fell to an alarming 1.39 last year, the government has introduced a baby bonus of approximately $120 for women who have two children before the age of 35. These proactive measures signify Vietnam's recognition of the urgent need to bolster its population and ensure a balanced demographic structure moving forward.