HCMC’s Initiatives to Boost Birth Rate

In an effort to combat the declining birthrate, Ho Chi Minh City (HCMC) is implementing new policies aimed at providing more support to families, moving beyond the initial financial incentives for women who have two children before the age of 35.

The fertility rate in Vietnam hit a historic low in 2024, standing at an estimated 1.91 children per woman, continuing a downward trend that began in 2023. HCMC is particularly affected, reporting the lowest fertility rates in the nation, which have been below 1.5 children per woman for several years. In 2024, the city’s fertility rate was projected at 1.4, a slight improvement from 1.32 in 2023 but still insufficient for population replacement.

On December 11, the HCMC People’s Council announced a resolution to offer financial assistance: 3 million VND for women having two children before age 35, and 2 million VND for low-income pregnant women and newborns, aimed at facilitating health screenings.

Pham Chanh Trung, the Director of the HCMC Population Department, expressed that while financial assistance is part of the solution, it is far from a complete answer to the low birth rate issue. He noted that the monetary support is largely symbolic and reflects societal concern rather than a substantial economic incentive.

Trung characterized this initiative as only the beginning, with many more measures required to effectively tackle the city’s low fertility rates.

In late 2024, HCMC also approved free tuition for nearly 500,000 secondary students, with plans to extend this policy to preschool and high school students in early 2025.

The health services are proposing additional measures, including free premarital health check-ups for couples and full coverage of costs for prenatal and newborn screenings for all residents. These programs aim to build a supportive environment that encourages family growth.

Experts caution that simple financial rewards often fail to significantly influence birth rates. Professor Giang Thanh Long, an expert in population and development, highlighted that countries like Japan, South Korea, and Singapore have struggled to increase birth rates despite offering monetary incentives.

Long suggested that the decision to have children is influenced more by socio-economic factors than by financial incentives alone. He advocates for policies that focus on improving living conditions and expanding opportunities for families, emphasizing the importance of education, healthcare, and quality child-rearing services.

According to the World Population Policies Report 2021, as of 2019, 55 governments globally have established policies aimed at boosting fertility rates, with common strategies including maternity leave, state-funded childcare, and tax benefits for families. Many of these governments have also introduced flexible work arrangements and bonuses for childbirth.

Experts agree that integrating financial support with robust social measures—such as affordable childcare and quality education—will be essential in effectively meeting the long-term needs of families.