Hanoi's fertility rate has remained below the replacement level in recent years, according to the municipal People's Committee. The total fertility rate stood at 1.88 children per woman in 2023, 1.86 in 2024 and 1.87 in 2025.

The committee said prolonged low fertility could affect Hanoi's population size and structure, accelerate population ageing and put pressure on the labor force in the long term.

The policy, approved by the city's People's Council, is intended to encourage couples to have two children and gradually bring the city's fertility rate back to the replacement level, the committee said, acknowledging that residents in Hanoi face mounting pressure from rising housing, childcare and education costs, as well as the challenges of balancing work and family life.

The city estimates that about 15,000 women will qualify for the payment each year, requiring an annual budget of around VND60 billion.

The VND4 million payment is intended as partial financial assistance for families raising children, rather than full compensation for childcare and education costs, the committee said.

Total spending on population-related policies in 2027 is projected at VND245.9 billion, including higher allowances for 8,500 population collaborators and support for premarital counselling and health checks.