Vietnam unveils 'baby bonus' after scrapping two-child policy

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Hanoi: Vietnam has officially unveiled new ‘baby bonus’ incentives to boost declining birth rates and counter a rapidly aging population.

The new population law, which took effect on Wednesday, introduces financial aid and extended maternity leave exactly one year after the communist nation scrapped its long-standing two-child policy.

Under the newly implemented regulations, mothers who choose to have a second child will receive seven months of maternity leave, up from the previous six-month allowance.

The government is also subsidizing prenatal and newborn medical screenings alongside one-off cash bonuses reaching up to $228, which represents roughly two-thirds of the average monthly salary in the country.

Demographic experts and economists warn that Vietnam is currently one of the fastest-aging nations in the world. With a birth rate of 1.93 children per woman well below the replacement level of 2.1- officials fear the nation will suffer severe labor shortages and strain its social safety nets before achieving advanced economic development.

Despite the new state incentives, many residents express skepticism, noting that the one-off financial payouts are not enough to offset the steep, long-term costs of housing and childcare. Recent surveys indicate that high financial and mental pressures continue to deter young workers from expanding their families.