Why are cash bonuses alone failing to persuade some Hanoi parents?

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Cash Bonuses Insufficient to Encourage Second Child Due to High Costs, Say Hanoi Parents

Cash bonuses and extended maternity leave offered by Vietnam are proving insufficient to persuade some Hanoi parents to have a second child, primarily due to the substantial financial burden of raising children. For one Hanoi couple, the combined incentives of an extra month of maternity leave and a potential US$75 bonus are outweighed by the reality that nearly half of their US$1,000 monthly income is already dedicated to their first child. This financial strain, coupled with high housing and childcare expenses, presents a significant barrier to expanding their family.
High Cost of Living Outweighs Financial Incentives

The financial support package, which includes a one-off cash bonus of up to US$228, representing two-thirds of the monthly average salary in Vietnam, along with subsidized prenatal and newborn screenings, has been met with skepticism by some parents. One Hanoi resident explained that even with an additional month of maternity leave and a US$75 bonus, the benefits do not adequately compensate for the ongoing expenses associated with raising a child. This sentiment is echoed in a government survey where 73% of married respondents identified their wages as a key factor in their decision-making regarding children.
Existing Child-Rearing Expenses Consume Significant Income

For many families, the existing costs of raising a single child already represent a substantial portion of their household income. A Hanoi parent highlighted that nearly half of their combined monthly earnings of US$1,000 are allocated to their first child, illustrating the significant financial commitment involved. This leaves limited capacity for additional dependents without a more substantial increase in disposable income or a reduction in essential living expenses.
Housing and Childcare Costs Identified as Major Hindrances

Beyond direct child-rearing expenses, broader economic factors such as high housing and childcare costs are cited as significant deterrents to having more children. These persistent economic pressures contribute to a general reluctance among parents to expand their families, as the overall cost of living and raising children in urban centers like Hanoi remains a primary concern. The current incentives, while a step towards encouraging population growth, do not appear to address these fundamental economic challenges.

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Why are cash bonuses alone failing to persuade some Hanoi parents?

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