Vietnam abolishes two-child policy to combat aging population and boost economic growth.

Vietnam has recently abolished its long-standing two-child policy in an effort to combat declining birth rates and address the challenges posed by an aging population. The National Assembly approved amendments that remove restrictions on family size, as reported by the state-run Vietnam News Agency. Traditionally, the two-child limit has been enforced more strictly among members of the ruling Communist Party, who risked losing promotions or bonuses for having a third child. However, the trend indicates that Vietnamese families are opting for fewer children than ever.

In 2021, the birth rate was modestly above the replacement level at 2.11 children per woman, but it has been on a steady decline, dropping to 1.91 in 2024. This trend is not unique to Vietnam. Similar issues are observed in other Asian nations, such as Japan, which reported a record low of newborns in 2024, marking the 16th consecutive year of decline. Unlike Japan and South Korea, Vietnam remains a developing economy, facing unique pressures as it navigates these demographic changes.

Individuals like Nguyen Thu Linh, a 37-year-old marketing manager from Hanoi, reflect the current mindset of many Vietnamese parents who prioritize education and financial stability over having larger families. Linh stated that despite considering a second child, the financial and temporal pressures make it a daunting proposition. Vietnam’s two-child policy was first introduced in 1988 as a response to resource constraints following years of conflict. The country’s population has since grown from around 62 million to over 100 million by 2023.

Concerns are now rising about the potential economic impact as the working-age population begins to peak around 2042, eventually leading to a shrinking workforce. Additionally, Vietnam grapples with an unbalanced gender ratio due to societal preferences for sons. While regulations prevent doctors from disclosing the gender of unborn children and ban sex-selective abortions, some families still seek to determine the gender using coded language. The Ministry of Health has proposed increasing fines for such practices to combat this issue.

In conclusion, Vietnam is at a pivotal point as it aims to reverse declining birth rates while addressing the long-term economic and social challenges associated with an aging population and gender imbalances.