Vietnam is turning to financial incentives to address two growing demographic challenges: a declining birth rate and an imbalanced sex ratio at birth.
In July 2026, the Ministry of Health began seeking public feedback on a draft plan to bring the sex ratio at birth back to its natural balance over the next decade.
One notable proposal is to reward families for having and raising two daughters. Meanwhile, several localities, including Ho Chi Minh City, are already offering cash incentives to women who have two children before the age of 35.
Rewards For Families With Two Daughters
The proposal aims to solve two problems at once: maintaining the replacement fertility rate and addressing the sex ratio imbalance at birth, by giving cash incentives to families giving birth to two daughters.
Specifically, families who give birth and raise two girls to be healthy and perform well academically may receive cash or in-kind rewards. Depending on local budgets, support could also include pregnancy assistance, monthly childcare allowances and preschool lunch subsidies.
Communes where all villages adopt rules against son preference and sex selection may also be rewarded. Healthcare facilities and cultural content providers could receive recognition for complying with the ban on prenatal sex selection and supporting public awareness campaigns.
The draft also aims to maintain the replacement fertility rate of 2.1 children per woman. Communes where at least 60% of women have two children may receive cash or in-kind support, either as a one-off reward or after sustaining the result for three or five years.
The Ministry of Health also plans to launch a campaign encouraging couples and individuals to have two children in 10 localities with low birth rates, including Hanoi and Ho Chi Minh City. Ho Chi Minh CIty has already introduced a one-off payment of VND5 million (US$192) for women who have a second child before turning 35.
Can Cash Solve The Problem?
While the proposed incentives offer a practical response to Vietnam’s demographic challenges, experts warn that cash alone may not address their deeper causes.
Delhi, India, has introduced similar financial support. Under its Ladli Scheme, the government provides payments when a girl is born and at key stages of her education. Initially targeting low-income families, the programme was later expanded to cover all eligible girls in Delhi, aiming to reduce prenatal sex selection and improve girls’ access to education.
An evaluation found that the scheme significantly improved the sex ratio at birth in several districts, particularly when combined with laws against prenatal sex selection and public awareness campaigns. However, part of the increase may have resulted from more girls being officially registered at birth.
After nearly two decades, Delhi’s ratio remains below the natural range of around 950–960 girls per 1,000 boys. There is also little evidence that the programme has changed parents’ preference for sons. Some families still view the final payment as money for their daughters’ future weddings.
According to Dr. Trinh Phuong Thao, a lecturer at Hanoi National University of Education’s Faculty of Social Work, the root of the problem lies not only in access to sex-selection technology but also in the persistent social pressure to have a son. Unless that preference changes, a one-off payment is unlikely to create lasting progress.
Dr. Trinh Phuong Thao stressed with Vietnamnet that authorities must therefore clearly define what the policy is intended to change: whether son preference declines, whether families are less likely to keep having children until they have a boy, and whether girls receive more equal care, investment and opportunities.
The same concern applies to incentives aimed at boosting birth rates. Experts say declining fertility is shaped by broader social and economic pressures, including childcare costs, housing, job insecurity and difficulties balancing work and family life. Against this backdrop, a payment of up to VND5 million (around US$192) per mother is unlikely to make a significant difference.
In September 2026, the Ministry of Health launched the National Target Programme on Health Care, Population and Development for 2026–2035. Its first phase sets clear goals for 2030: increasing the crude birth rate by 0.5% and reducing the sex ratio at birth to below 109 boys per 100 girls.
But achieving these ambitious targets will require more than cash incentives or other short-term measures. Lasting change will depend on broader policies that reduce the cost of raising children, strengthen childcare and work-life support, and challenge the deep-rooted preference for sons.
