Vietnam abolishes two-child policy to combat declining birth rates

Vietnam has taken a significant step to address its declining birth rate by abolishing the long-standing two-child policy, a measure that was first introduced in 1988. The National Assembly's decision to scrap restrictions on family size was officially communicated on June 5, 2025. The nation's birth rate, which was 2.11 children per woman in 2021, has fallen to 1.91, marking a concerning trend that threatens economic growth as the population ages. Current experts cite various factors influencing this decline, including work stress, financial pressures, career ambitions, and shifting social norms. The decreasing birth rate, particularly pronounced in urban centers like Ho Chi Minh City where rates have plummeted to 1.39, has ignited fears about the long-term demographic changes for Vietnam. With a growing elderly population that is expected to intensify by 2054, the government faces mounting pressure to ensure a balanced working population. Measures to incentivize higher birth rates are now being considered amidst rising living costs in such economic hubs. Additionally, the nation continues to address gender imbalance influenced by cultural preferences for sons. In light of this issue, the health ministry has proposed harsher penalties for prenatal sex selection, hoping to improve gender ratios. The new policies are communicated with the context that many families have chosen to limit their number of children due to the desire to provide better educational opportunities for their offspring, reflecting a shift in how Vietnamese families prioritize child-rearing. In summary, this legislative change allows Vietnamese families to select the number of children they wish to have, thus opening a door for demographic improvement as part of broader economic growth strategies. The long-term implications of population dynamics regarding labor supply and economic sustainability are critical considerations as Vietnam navigates these changes in reproductive policy.