A declining birth rate led lawmakers to approve a new policy on Tuesday that lifts the limit on the number of children many families may have.

Vietnam on Tuesday scrapped its nearly four-decade policy limiting families to two children, as Vietnamese birth rates continue to drop, the older population increases and officials warn of the long-term risks of demographic decline for the economy,

Vietnam's move follows a similar shift in neighbouring China, which ended its one-child policy in 2016 and later allowed up to three children per couple.