Vietnam unveils 'baby bonus' after scrapping two-child policy
Vietnam has introduced new financial incentives and extended maternity leave to encourage higher birth rates one year after ending its two-child policy. The government is concerned about a rapidly aging population and potential labor shortages threatening the country's economic development.
Why it matters
As one of the world's fastest-aging nations, Vietnam's demographic shift highlights the challenges developing economies face in balancing growth with population sustainability.
This photo taken on June 26, 2026, shows a woman walking with two children along Hoan Kiem Lake in Hanoi. One year after lifting its longstanding two-child limit, Vietnam is actively encouraging people to have more babies as the communist country risks getting old before it gets rich. Agence France-Presse
The report balances government perspectives with expert analysis from the UNFPA regarding demographic trends.
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