Hanoi, Vietnam – 18 November 2025

In a landmark political shift, Vietnam has officially scrapped its two‑child policy, a long-standing population control measure, as part of a broader effort to address a declining birth rate and modernize its public sector. The move reflects deep demographic and economic concerns, as well as a growing desire within the government to enhance administrative efficiency.

Tackling the Demographic Challenge

Vietnam’s fertility rate has sagged to 1.91 children per woman.
Lawmakers in the National Assembly passed amendments to the Population Law, effectively giving families the freedom to decide how many children to have.

Officials say the old policy was increasingly unsustainable: not only does it limit population growth, but it also exacerbates the challenges of a rapidly aging society.

Social observers have noted that while the two-child guideline was often enforced strictly for Communist Party members and government officials, ordinary citizens could exceed the limit without facing heavy penalties.

Still, many Vietnamese face other barriers to having more children—such as high living costs. One resident in Hanoi, for example, questioned whether lifting the policy would make a practical difference for her family, citing the expense of raising children.

Reforming the State: Leaner, More Efficient Government

Backed by the Communist Party, Vietnam’s leadership is also pushing through an extensive administrative reform designed to streamline government operations.
As of July 2025, a two-tier local governance system was introduced, eliminating many district-level units to reduce bureaucracy and improve efficiency.
The reform is expected to cut up to 20% of state administrative units, merging several ministries and agencies to reduce redundancy.

Officials argue that a leaner government will not only reduce costs, but also free up resources for critical national priorities like education, technology, and infrastructure.

Why These Changes Matter

1. Economic Sustainability: With fewer working-age people expected in the future, Vietnam needs a growing labor force to support its manufacturing-driven economy.
2. Social Stability: By removing the child limit, the government is sending a clear signal it wants to reverse population decline — a move that could help maintain its “golden population” window.
3. Governance Efficiency: The administrative overhaul is designed to make government more responsive, less bloated, and more capable of supporting public policy goals.
4. Long-Term Modernization: Alongside demographic reform, Vietnam is positioning itself to better meet its future needs through digital transformation and more efficient public institutions.

Challenges Ahead

• Cost of Raising Children: Even without a policy limit, many young families may still be reluctant to have more children, citing the high cost of living.
• Implementation Risks: Large-scale government reform can face resistance. Merging ministries and eliminating agencies could disrupt existing workflows.
• Social Services Pressure: A potential rise in birth rate would require expansion in childcare, education, and health services — putting pressure on public budgets.
• Cultural Shift: For decades, the two-child guideline was deeply embedded in the political system. Changing norms and cultural attitudes may take time.

References:

1. The Guardian. Vietnam scraps two‑child policy as it tackles falling birthrate. Link
2. NPR. Vietnam ends 2‑child policy. Link
3. PwC Vietnam. Administrative reform snapshot – local governance restructuring. Link
4. Reuters. Vietnam parliament to approve plan for leaner government. Link
5. Le Monde. Vietnam wants to revolutionize its bureaucracy. Link

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