Vietnam scraps two-child policy as Southeast Asia births drop

Economic growth may sputter as 'demographic dividend' disappears

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Children at a holiday celebration in Hanoi, Vietnam. The Vietnamese government is trying to ease child-rearing burdens by lowering education costs. © Reuters

KOSUKE INOUE, YUJI NITTA and FUMIKA SATO

BANGKOK/HANOI/SINGAPORE -- Southeast Asian countries are scrambling to tackle falling birth rates, with Vietnam abolishing its two-child policy this week to take on an issue also plaguing neighbors Thailand and Singapore.

Although Vietnam's total population is still rising, some say its period of abundant labor driving economic growth will end by 2040. This March, the ruling Communist Party eliminated penalties for members who have a third child.

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