Vietnam unveils ‘baby bonus’

One year after lifting its long-standing two-child limit, Vietnam is offering incentives for people to have more babies as the communist country risks getting old before it gets rich.

A new population law and regulations came into effect yesterday extending maternity leave from six to seven months for mothers having a second child as well as offering financial help.

If Hanoi residents Nguyen Kim Bich and her husband have a second child, she will get an extra month of maternity leave, free prenatal screenings and a small cash bonus.

“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 as her young son romped in a colourful pit of plastic balls.

The new regime subsidises prenatal and newborn screenings and establishes one-off cash bonuses of up to $228 — two-thirds of the monthly average salary — for mothers who meet certain criteria.

“This is a significant shift in approach,” said Pham Thi Lan, head of population and development at the UN Population Fund (UNFPA) in Vietnam. “We are moving from controlling family planning to focusing on population development,” Lan said.

The change, in a country where communist party members faced sanctions for having a third child until last year, comes as the demographic picture darkens.

Soaring life expectancy and declining birth rates have turned Vietnam into one of the fastest-ageing countries in the world.