With the looming concern of an aging population impacting economic development, Vietnam abandones its two-child limit policy.

With the looming concern of an aging population impacting economic development, Vietnam abandones its two-child limit policy.

Embrace the change, Vietnam is saying goodbye to its 38-year-old two-child limit! This Southeast Asian gem aims to combat the dwindling birth rates and alleviate the pressures of an aging community.

In a groundbreaking move, the National Assembly voted to scrap the stringent family planning rules that have held the country's families to one or two kids for decades, according to Vietnam News Agency (VNA).

A common sight among the Communist Party was penalties for those who dared to welcome a third child. Now, that's in the past!

The Vietnamese have been bearing fewer offsprings than ever before. In 2021, the birth rate registered 2.11 children per woman, just a breath above the replacement rate required to maintain population stability. However, by 2024 the number dropped to 1.91, a concerning decline if factors aren't addressed.

Vietnam isn't the only populous Asian nation grappling with low fertility rates. Japan and South Korea are in similar predicaments. Japan recently marked another record low of 686,061 newborns in 2024, a staggering drop of 5.7% compared to the previous year, while South Korea's fertility rate plunged to 1.15 in the same year.

However, what sets Vietnam apart is its dynamic economic growth potential, unlike Japan and South Korea which have matured into developed economies.

Nguyen Thu Linh, a 37-year-old marketing manager in Hanoi, offers insights into parents' hesitation to expand their family. Thinking about her 6-year-old son, she ponders the thought of having another child for companionship but acknowledges the financial and time pressures that having another child brings.

The two-child policy was implemented in 1988, following years of turmoil due to conflict with France and the United States, to ensure resources were not heavily burdened as the country rebuilt and transitioned towards a market-oriented economy. Since then, Vietnam's population has skyrocketed from approximately 62 million in 1988 to over 100 million in 2023.

Now that Vietnam's ambitions reach beyond merely feeding and sheltering its citizens, the nation is preparing to face a unique demographic conundrum: figuring out how to balance aging populations with a growing labor force. Economic growth hinges on this equilibrium, as the working-age population will peak around 2042, and the possibility of a population decline may materialize as early as 2054.

Vietnam's challenge is above par when accounting for the country's gender imbalance, primarily triggered by the prevailing preference for male children. Steps have been taken to combat this imbalance, including banning sex-selective abortions and prohibiting doctors from revealing the baby's sex prior to birth.

Other countries like China, faced with similar concerns about their aging population, have been gradually easing family planning policies, too. In China, a one-child policy was implemented in 1979, and the policy evolved to permit second and even third children in recent years without achieving significant success in reversing the declining birth rates. Meanwhile, Japan's fertility rate dived to an alarming 1.15 in 2024, barreling down from 1.2 a year prior.

The decreasing fertility rates in these countries can be attributed to economic pressure, shifting societal norms, reluctance among the younger generation to marry, and a high cost of living. Each country faces unique challenges while attempting to stimulate birth rates and offset the mounting pressure of aging populations.

1. The decision to abolish the two-child limit in Vietnam could have implications for the nation's retirement policy, as a larger population could potentially support a higher number of retired individuals in the future.
2. The ease of family planning rules in Vietnam could also impact capital investments, as a growing workforce could stimulate economic growth and attract more foreign capital.
3. Science and health-and-wellness sectors might benefit from the relaxation of family planning policies, as more families could result in increased demand for goods and services related to nutrition and general-news issues.
4. The recent developments in Vietnam's family planning policies could influence policy-and-legislation and politics on a larger scale, as other countries may adopt similar strategies to tackle their own demographic challenges.

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