The former policy, enacted in 1988, was mainly enforced among Communist Party officials, who faced penalties for exceeding the two-child limit. Now, all families in Vietnam can have as many children as they desire, with officials actively encouraging larger families to counteract looming demographic issues.

The country, home to 100 million people, experienced a decline in its birthrate, averaging only 1.91 children per woman last year—the third consecutive year below the replacement level of 2.1. This trend echoes the growing concerns seen across various Asian nations like China, Japan, and South Korea, where an aging population threatens economic sustainability due to a shrinking workforce.

According to the United Nations Population Fund, Vietnam is at a critical juncture as its youthful labor force transitions towards an older demographic within just 20 years. To incentivize procreation, the government has initiated campaigns including dating shows and public awareness initiatives, while also offering financial incentives. For instance, in Ho Chi Minh City—whose birthrate plummeted to just 1.39—officials have introduced a baby bonus of about $120 for women who have two children before the age of 35.

As Vietnam navigates the complexities of this demographic shift, the removal of the two-child policy represents a hopeful step towards fostering a more balanced and sustainable population growth.