Vietnam ends two-child limit as aging population poses economic challenges

Written by: Sachin Mane

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Vietnam has ended its long-standing two-child limit to address declining birth rates and reduce the challenges of an aging population. The National Assembly approved changes that remove restrictions limiting families to one or two children, according to state media Vietnam News Agency.

Families in Vietnam are having fewer children than ever. The birth rate was 2.11 children per woman in 2021, just above the replacement level needed to maintain population size. Since then, this rate has steadily dropped to 2.01 in 2022, 1.96 in 2023, and 1.91 in 2024.

While many Asian countries like Japan, South Korea, and Singapore also face low fertility rates, Vietnam is unique as it is still a developing economy. Nguyen Thu Linh, a 37-year-old marketing manager in Hanoi, said she and her husband chose to have only one child to ensure they could provide the best education and upbringing for their 6-year-old son. She added that having another child would bring significant financial and time pressures.

Vietnam first introduced the two-child limit in 1988 to encourage women to spend more time working rather than on childcare. The country experienced a “golden population” period starting in 2007, where the working-age population outnumbered dependents, expected to last until 2039. However, the workforce is projected to peak by 2042, with the overall population likely to shrink by 2054. This demographic shift could slow economic growth as fewer workers support a growing elderly population.

The decline in birth rates varies across the country. In Ho Chi Minh City, Vietnam’s largest city and economic center, the fertility rate was only 1.39 children per woman in 2024, much lower than the national average. Nearly 12% of the city’s population is over 60, increasing pressure on social services. To encourage births, local officials began offering around $120 to women who have two children before age 35 starting last December.

Vietnam also faces an imbalanced gender ratio due to a cultural preference for sons. To address this, doctors are prohibited from revealing the baby’s sex before birth, and sex-selective abortions are banned. The health ministry recently proposed tripling fines for choosing a baby’s sex before birth to $3,800.

This policy shift in Vietnam comes as China, which introduced a one-child policy in 1979 to curb overpopulation, has been gradually relaxing its restrictions due to similar concerns about an aging population. Despite allowing two and then three children, China has struggled to increase its birth rates significantly.

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