In a sweeping move to modernize Vietnam’s grassroots governance, the Ministry of Home Affairs is pushing forward with a series of reforms aimed at reorganizing village and commune-level administration, updating policies for non-specialized officials, and standardizing public service units across major cities. These changes, currently under intense discussion and development, reflect a nationwide effort to streamline local government operations and adapt to the country’s rapidly evolving administrative landscape.
According to Dân trí, as of January 6, 2026, the Ministry of Home Affairs is actively researching and drafting a new decree on the organization and operation of villages (thôn) and residential groups (tổ dân phố). This move comes in direct response to concerns raised by voters in Tuyen Quang province, who called for the swift issuance of new regulations to replace outdated criteria for classifying administrative units. The existing standards, set by Resolution 1211/2016/UBTVQH13 and amended by Resolution 27/2022/UBTVQH15, are now seen as inadequate following a wave of provincial and communal mergers that have transformed Vietnam’s administrative map.
The Ministry’s response highlights a crucial point: the current framework for determining administrative unit standards no longer matches the reality on the ground. As provinces and communes have merged, the old benchmarks—based on population, land area, and development level—have become less relevant. Recognizing this, the government issued Decree No. 307/2025/ND-CP on November 27, 2025, which lays out new, more detailed criteria for classifying administrative units at both the provincial and commune levels. These criteria, stipulated in the Law on Local Government Organization No. 72/2025/QH15, now require consideration of population size, natural area, economic and social development conditions, and the unique characteristics of rural, urban, and island communities.
But the reforms don’t stop at technical definitions. There’s also a pressing need to clarify the roles and compensation of so-called “non-specialized” officials—those who work at the grassroots level but aren’t career civil servants. The Ministry of Home Affairs is currently drafting a decree that would establish new policies and allowances for these officials, a move that has drawn particular attention from local governments grappling with the aftermath of administrative mergers.
Take the case of Khanh Hoa province. As reported by LSVN, the local Department of Home Affairs recently sought clarification from the Ministry about how to calculate allowances for non-specialized officials after three communes—A, B, and C—were merged into a single new commune. Previously, each commune had its own allowance fund, calculated as a multiple of the base salary (21.0 times for Commune A, 18.0 for B, and 15.0 for C). After the merger, 15 non-specialized officials were temporarily assigned to the new commune, and local officials wondered whether the allowance funds from the old communes could simply be combined and divided among the new staff.
The Ministry’s answer was clear: “Do not merge the allowance funds of old administrative units to form a new fund for post-rearrangement allowances.” Instead, the Ministry pointed to existing regulations, including Decree No. 154/2025 and guidance from the Politburo and Secretariat, which state that non-specialized officials should continue to receive allowances according to the rates set by their previous Provincial or City People’s Council resolutions. If needed, the new councils can issue their own resolutions to unify the rates, but the process must not involve simply pooling old funds to create a new allowance baseline.
This approach, the Ministry argues, ensures fairness and avoids potential confusion or inequity among officials who might otherwise see their compensation dramatically change overnight due to administrative restructuring. The policy is set to remain in place at least until May 31, 2026, giving local governments time to adjust and new regulations to take effect.
Meanwhile, in Ho Chi Minh City, Vietnam’s largest metropolis, the drive for greater efficiency and clarity has taken a slightly different form. On December 6, 2025, the city’s Standing Committee of the Party Committee issued Conclusion No. 97, which unified the names of public service units at the commune level. As reported by Tuổi Trẻ, all basic, essential multi-sector public service units at the ward, commune, and special zone levels will now be known as the “Center for Public Service Provision at Ward/Commune/Special Zone.” For management of investment construction projects and compensation, the relevant units will be called the “Management Board of Investment Construction Projects at Ward/Commune/Special Zone.”
The Ho Chi Minh City People’s Committee has tasked local chairpersons with implementing these changes, ensuring that the establishment and reorganization of public service units follow proper procedures and regulatory requirements. The city’s Director of the Department of Home Affairs has been charged with overseeing the process, providing guidance, and reporting on progress.
This push for standardization is part of a broader effort to decentralize authority and empower local governments. At a recent meeting, Ho Chi Minh City’s Chairman, Nguyen Van Duoc, emphasized the importance of “delegating authority to the commune level and implementing a clear roadmap to ensure effectiveness and compatibility with actual capacity.” For smaller, less experienced localities, the city has proposed a flexible model: if a commune or ward lacks the capacity to manage its own projects, it can “order” services from existing, well-performing management boards elsewhere.
These reforms reflect a delicate balancing act between efficiency, local autonomy, and fairness. On one hand, the government wants to streamline administration and reduce bureaucracy by merging smaller units and clarifying roles. On the other, there’s a recognition that abrupt changes—especially those affecting pay or job security—can cause anxiety and resistance among local officials. By phasing in new policies, maintaining existing allowances during the transition, and providing clear guidance, the Ministry of Home Affairs hopes to smooth the path toward a more modern, responsive local government system.
As Vietnam continues to urbanize and its administrative landscape shifts, these reforms are likely to have far-reaching effects on everything from rural governance to urban project management. The Ministry of Home Affairs has acknowledged the concerns of Tuyen Quang voters and pledged to report them to higher authorities during the drafting of the new decree. The coming months will be crucial, as local governments, officials, and citizens alike adapt to a new era of grassroots administration—one that promises greater clarity, consistency, and, the government hopes, better service for all.
