Vietnam launches baby bonus to boost birth rates

Vietnam is introducing a baby bonus package to encourage citizens to have more children, a year after abandoning its long-standing two-child policy. The communist nation faces the risk of an aging population before achieving significant economic development.

The new population law, effective Wednesday, extends maternity leave from six to seven months for mothers having a second child. It also provides financial assistance to families. For Hanoi resident Nguyen Kim Bich, the changes mean an additional month at home with her baby and more days off for her husband.

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I could stay at home one more month with the baby, and my husband could stay home some more days.

"I could stay at home one more month with the baby, and my husband could stay home some more days," the 32-year-old said. The regime includes subsidized prenatal and newborn screenings. It also offers one-off cash bonuses of up to $228, roughly two-thirds of the average monthly salary, for mothers meeting specific criteria.

"This is a significant shift in approach," said Pham Thi Lan, head of population and development. The government's move signals a proactive strategy to manage demographic changes and ensure future economic stability.

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This is a significant shift in approach.