Vietnam to spend $68M a year paying women to have a second child

Vietnam is taking significant steps to address its declining birth rate by proposing a new national financial incentive program. The Ministry of Health has drafted a decree that would allocate approximately VND1.8 trillion, or $68 million, annually to provide cash bonuses to women who choose to have a second child. This initiative is designed to counteract a falling fertility rate that has recently dropped below the critical replacement level, marking a shift in the country's demographic policy as it faces the prospect of an aging population.

Under the current proposal, which is slated for government review this month, mothers could receive a tiered subsidy. The minimum payout for a second child is set at VND2 million, roughly $76. However, those who meet specific criteria—such as living in provinces with fertility rates below the replacement level of 2.1, belonging to small ethnic minority groups, or giving birth before the age of 35—can receive stacked benefits totaling up to VND6 million, or about $228. These measures are expected to take effect on July 1, coinciding with the launch of Vietnam's updated Population Law.

Beyond direct cash bonuses for births, the health ministry is also seeking to fund a broader support network for families. The proposal includes an additional annual allocation of VND2 trillion for prenatal and newborn screenings to help detect congenital diseases. This would provide direct financial assistance to expectant mothers, offering VND900,000 for prenatal screening and VND600,000 for newborn health checks, aiming to reduce the economic burden associated with early childhood healthcare.

The urgency of these measures is underscored by recent data from the General Statistics Office, which shows the national fertility rate falling from 2.11 in 2021 to 1.91 in 2024. While there was a slight uptick to 1.93 in 2025, officials maintain that the long-term trend is downward, and the decline is no longer confined to major urban centers like Hanoi and Ho Chi Minh City. Ho Chi Minh City has already been testing a similar model since late 2024, providing payments to thousands of mothers to combat a fertility rate that remains the lowest in the country.

Despite these efforts, many experts remain skeptical about the efficacy of cash-based incentives. International experience from countries like South Korea, Japan, and Singapore suggests that even substantial investments in family support and housing benefits often fail to significantly alter demographic trends. Vietnamese demographers have pointed out that the proposed bonuses represent only a fraction of the cost of raising a child in an urban environment, and they caution that financial payments alone may not be enough to overcome the complex socio-economic factors currently discouraging couples from having larger families.