Vietnam Proposes Monthly Allowance for Children Under 3 to Boost Birth Rate

The Ministry of Health is seeking public feedback on a draft circular guiding new population policies, with a key highlight being the proposal to allow local authorities to allocate monthly financial support for children from birth up to 36 months of age. This initiative is the latest effort to revive Vietnam's birth rate, which has hit a historic low with an average of 1.91 children per woman, below the necessary replacement level. The draft grants provinces and cities the autonomy to decide the level and form of financial assistance based on their fiscal capacity and socio-economic characteristics. Instead of a uniform national figure, localities can choose to provide cash or in-kind support to pregnant women and mothers who give birth to their second child. In addition to the monthly allowance for children under three, the draft also expands other support packages, such as lunch expenses for preschool children and direct rewards for women who complete their childbearing goals before the age of 35. Data from the Population Department indicates that despite pronatalist policies implemented over the past five years, their effectiveness has not met expectations due to the current support levels being too low. Most localities offer only one-time bonuses ranging from VND 450,000 to VND 1 million per case, which is a negligible amount compared to the actual cost of raising a child today. In reality, some bright spots like Tay Ninh province have spent nearly VND 20 billion to reward communes with good birth rates and support over 4,500 women who had two children. Similarly, Dong Nai and Hai Phong have also spent billions of dong from their budgets to assist families. However, to create a real turning point, the shift from one-time bonuses to regular monthly financial support is considered a more sustainable and substantial solution. Besides the goal of increasing the average number of children, the Ministry of Health's draft also aims to balance sex ratios and improve the quality of the population. Localities will develop policies to honor families with two daughters and provide tuition fee exemptions and health insurance support for girls in impoverished areas. Vulnerable groups and poor households will also receive free support for prenatal and neonatal screening, as well as regular contraception and healthcare services. Following the official issuance of this circular, provincial Departments of Health will directly advise their respective People's Councils to approve specific expenditure levels, ensuring they align with local budget constraints and the needs of the local population. East Asian powerhouses like South Korea, Japan, and Singapore also spend billions of dollars on "baby bonus" packages and monthly child allowances, yet the results have not reversed the record-low birth rates. In Europe, Nordic countries have achieved more favorable outcomes by combining cash subsidies with comprehensive welfare systems, focusing on free preschool education and extended paid parental leave for both mothers and fathers. Hungary's experience shows that drastic measures like lifetime personal income tax exemption for women who have four children can create an immediate boost, but population stability is difficult to maintain without long-term social security elements. International experts assess that financial support plays a "necessary" role in alleviating the financial burden of child-rearing, while the "sufficient" condition lies in policies balancing work and life, along with gender equality in childcare. Overall, cash is an essential support solution, but its actual effectiveness depends heavily on the availability of public service infrastructure and the economic stability of each country.