On July 1, 2024, Vietnam implemented its first Population Law, introducing measures to encourage higher birth rates amid a declining fertility trend. Women in targeted groups will receive a minimum childbirth subsidy of about €66 ($75), while maternity leave for second-time mothers has been extended to seven months.
New Family Support Measures in Vietnam
The new law not only increases maternity leave for female employees giving birth to a second child but also doubles paternity leave for fathers to 10 working days. Additionally, subsidies for prenatal and newborn screenings will initially be available to specific groups before a nationwide rollout in January 2025.
Families with at least two biological children may also gain priority access to social housing, reflecting the government's commitment to reversing the demographic decline. Despite these incentives, Vietnam's fertility rate has dropped to a record low of 1.91 children per woman, significantly below the replacement level of 2.1.
Concerns Over Aging Population
According to the United Nations Economic and Social Commission for Asia and the Pacific, by 2050, the working-age population in Vietnam is projected to decrease from 68.6% to 63%, while the share of those aged 65 and over is expected to rise from 8.4% to 21.2%. This demographic shift raises concerns that Vietnam may face significant economic challenges as it ages before achieving substantial wealth.
Bussarawan Teerawichitchainan, an associate professor at the National University of Singapore, noted, "If countries age before becoming rich, economic growth may slow, while income inequality and pressure on healthcare and social support systems may increase," highlighting the implications of an aging population.
Aging Trends Across Southeast Asia
The aging process in Southeast Asia varies, with countries like Singapore and Thailand already experiencing demographic shifts. In Singapore, the population aged 60 and above surpassed those under 15 in 2010, and Thailand reached a similar milestone in the mid-2010s. Vietnam is projected to follow by around 2035.
The increasing elderly population puts additional pressure on healthcare systems and social support, especially in Vietnam, where pension and social insurance coverage is inconsistent, particularly among the informal workforce. Thailand's experience shows that rising income levels do not eliminate these challenges, as it adjusts to a shrinking workforce and a growing elderly demographic.
- **Childbirth subsidy:** €66 ($75)
- **Maternity leave for second child:** 7 months
- **Paternity leave for second child:** 10 working days
- **Projected fertility rate:** 1.91 children per woman
- **Working-age population drop by 2050:** from 68.6% to 63%
- **Elderly population increase by 2050:** from 8.4% to 21.2%
As the region ages at different rates, it is crucial for Vietnam to consider alternatives beyond increasing birth rates. Experts suggest focusing on improving the health and productivity of the existing workforce while addressing the broader economic and social factors contributing to declining fertility.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by DW English. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
