Facing a Demographic Shift, Vietnam Abolishes Two-Child Policy
Vietnam has eliminated its policy of limiting families to having no more than two children, as the country seeks to boost a declining fertility rate that threatens its long-term economic prospects.
The new regulation, approved by the National Assembly on Tuesday, formalizes what had already been common practice for most Vietnamese couples — with the exception of Communist Party officials. Since the fertility policy was introduced in 1988, and until the legal change this week, party members could lose bonuses or be fired for having more than two children.
Now, all families can have as many children as they want, and, in fact, officials are actively encouraging couples to procreate as their concerns about Vietnam's demographic balance have begun to intensify. The country of 100 million saw its birthrate fall to a record low last year, at 1.91 children per woman. It was the third consecutive year that Vietnam's birthrate dropped below the replacement level of 2.1.
Like many countries across Asia — including China, Japan, South Korea — Vietnam fears a downward spiral: Fewer children born now means fewer workers later to support the economy and larger generations of aging citizens. It is currently in a demographic sweet spot, with a bumper crop of young workers, but that is already starting to change.
'Vietnam is in the period of population aging,' according to the United Nations Population Fund. The agency said the transition from an 'aging' to an 'aged' population will occur over just 20 years.
To try and counter the shrinking size of families, Vietnam has rolled out dating shows and propaganda posters that aim to goad young people into having more babies. In Ho Chi Minh City, where the fertility rate fell to just 1.39 last year, officials recently introduced a baby bonus of around $120 to be given to women who have two children before turning 35.
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