Vietnam plans to spend more than VND1.8 trillion (US$68 million) a year on cash bonuses for women who have a second child, part of an urgent boost to reverse a fertility decline that has pushed the country's birth rate below replacement level.
Under the proposal by the Population Department under the Ministry of Health, women would receive a minimum of VND2 million ($76) per birth, with a maximum stacked benefit of VND6 million ($228) for those who qualify under all three eligibility criteria: those from very small ethnic minorities, those living in provinces with fertility below the replacement rate of 2.1 children per woman, and those who give birth to a second child before age 35.
The health ministry submitted the draft decree to the Ministry of Justice on April 22 for review and is expected to send it to the government within the month. If approved, the policy will take effect on July 1, the same day Vietnam's first-ever Population Law goes into force, replacing a 2003 ordinance.
Ho Chi Minh City has been running a similar program since late 2024. The southern megacity, whose population swelled to more than 14 million after its July 2025 merger with the former provinces of Binh Duong and Ba Ria-Vung Tau, has paid out VND3-5 million ($114 to $190) to nearly 9,000 mothers who had a second child before age 35.
The city's total fertility rate currently stands at 1.51 children per woman, the lowest in Vietnam, though slightly above the 1.43 recorded in 2024.
Separately, the health ministry is proposing about VND2 trillion ($76 million) a year for prenatal and newborn screening for congenital diseases. Pregnant women would receive VND900,000 ($34) for prenatal screening and VND600,000 ($23) for newborn screening.
The push reflects how quickly Vietnam's demographic position has deteriorated. The country's total fertility rate fell from 2.11 children per woman in 2021 to 1.91 in 2024, the lowest figure ever recorded by the General Statistics Office.
It edged up marginally to 1.93 in 2025 but officials describe the broader trend as downward, and the decline has spread well beyond Hanoi and Ho Chi Minh City into provinces that once posted high fertility rates.
With life expectancy at 74.7 years and a rapidly aging population, Vietnam is now on a similar trajectory to its East Asian neighbors, only at a much earlier stage of economic development.
Whether the cash bonuses will actually move the needle is another question. South Korea, which has spent hundreds of billions of dollars on family-support measures over the past two decades, still records the world's lowest total fertility rate.
Japan, Singapore, and China have run their own variations of cash incentives, parental leave expansions, and housing benefits with limited demographic effect.
Vietnamese demographers have been candid that bonuses equivalent to a few weeks of urban living costs are unlikely to change a couple's decision-making about whether to have a second child. -- VNExpress
