Vietnam to End Two-Child Policy

Not too long ago, China also lifted its one-child policy. Now, Vietnam is going to do the same for its two-child policy.

I think countries recognise a healthy demographic is always better.

When MNCs want to consider foreign direct investment, a population filled with bright, young, educated workforce is always preferred.

When a new Government takes over a country, a population filled with working people is extremely beneficial to tax revenues base. Through employment given by MNCs, their wages are likely to increase and it also lifts the standard of living in the country. In turn, it forms a robust domestic consumption that contributes to the GDP.

Finally, I refer to the resident old-age support ratio where Govts prefer a higher number of young adults supporting the old-age.

Reading Vietnam hopes third, fourth child will be the economic charm, 

If the new system encourages families to have more children, it will stimulate consumer spending and the economy. Greater spending on children has an impact on several sectors, from food to toys to education, and indirectly, the housing, automotive and insurance industries.

The country’s toy market is currently worth an annual $5.2 billion and has been growing around 20% each year. According to a local private research agency, each family in urban areas spends on average 2 million dong ($88.6) a month on toys.

Vietnam’s real GDP grew 6.2% in 2016. The pace was one of the highest among Southeast Asian economies, but it slowed for the first time in four years.

The arrival of even more newborns could significantly boost the economy.

Another country I will watch keenly is… Philippines.