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,

The National Assembly passed amendments scrapping rules that limit families to having one or two children, state media Vietnam News Agency reported on Wednesday.

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.