Ho Chi Minh City (HCMC) is taking further steps to address its declining birth rate with new policies aimed at supporting families, beyond the initial financial rewards for women who give birth to two children before the age of 35.

Low birth rates and policy responses

Vietnam’s fertility rate in 2024 was estimated at 1.91 children per woman, the lowest in the country’s history, continuing a downward trend from 2023.

HCMC has consistently reported the nation’s lowest fertility rate, remaining under 1.5 children per woman for several years. In 2024, the city’s total fertility rate was estimated at 1.4, a slight increase from 1.32 in 2023 but still well below replacement levels.

On December 11, the HCMC People’s Council issued a resolution offering financial support: 3 million VND for women who have two children before turning 35; 2 million VND for pregnant women and newborns from low-income families, social welfare groups, or island communes, to cover prenatal and newborn screenings.

Pham Chanh Trung, Director of the HCMC Population Department, acknowledged the limitations of such financial incentives.

“Financial support alone cannot solve the low birth rate problem,” Trung said, emphasizing that the 3 million VND is more symbolic, reflecting care and attention rather than a significant economic incentive.

He described the policy as a first step among many measures needed to address HCMC’s low birth rate.

Additional family support initiatives

In late 2024, HCMC approved free tuition for nearly 500,000 secondary school students. Early 2025 discussions will focus on extending this support to preschool and high school levels.

The health sector is also proposing: Free premarital health check-ups for couples; Full coverage of prenatal and newborn screening costs for all residents.

These initiatives aim to create a comprehensive support system to encourage families to have children.

The challenges of incentivizing childbirth

Experts warn that direct financial rewards are rarely effective in increasing birth rates.

Professor Giang Thanh Long, a senior population and development specialist, pointed to Japan, South Korea, and Singapore as examples of countries with limited success despite implementing monetary rewards for childbirth.

“The primary issue isn’t the financial reward but the broader socioeconomic considerations couples weigh when deciding to have children,” Long said.

Instead, he argued, policies must focus on long-term improvements to living conditions and opportunities for growth. Education, healthcare, and child-rearing services play crucial roles in creating a supportive environment for families.

Global context

According to the World Population Policies Report 2021, as of 2019:

55 governments worldwide had policies to increase fertility rates.

The most common measures included paid or unpaid maternity leave, state-funded childcare, child or family allowances, and tax benefits for dependents.

Over half of these governments also implemented flexible working hours, part-time options, or one-time bonuses for children.

Experts agree that the most effective strategies combine financial support with broader social measures, such as affordable childcare and quality education, to address the long-term needs of families.

Vo Thu