Hanoi’s total fertility rate has been below the replacement level for several years, recording 1.88 in 2023, 1.86 in 2024 and 1.87 in 2025. To encourage larger families, the city announced a cash payment of VND4 million (about $154) for women who have two children before age 35.

The municipal People’s Committee warned that prolonged low fertility could shrink Hanoi’s population, speed up ageing and put long‑term pressure on the labour force. These demographic risks are why the city is seeking ways to raise the birth rate.

The new policy, approved by the city’s People’s Council, will give VND4 million to each qualifying woman as partial financial assistance, not full coverage of childcare costs. The committee estimates about 15,000 women will qualify each year, requiring an annual budget of roughly VND60 billion.

Officials say the incentive aims to bring the fertility rate back to replacement level. They note that many families now face higher housing, childcare and education expenses, as well as difficulties balancing work and family life.

If the cash payments succeed, Hanoi hopes to reverse its declining birth trend and secure a more stable future labour force. The city’s approach shows how local governments can use financial tools to address demographic challenges.