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Politics
18 September 2025

Vietnam Pushes Forward With Sweeping Public Sector Reforms

Lawmakers and government agencies advance new legal frameworks and administrative measures to modernize Vietnam’s public workforce and improve service delivery across the country.

On September 18, 2025, Vietnam’s National Assembly in Hanoi found itself at the center of a pivotal conversation about public sector reform. Under the leadership of Hoang Thanh Tung, Chairman of the Legal and Judicial Committee (UBPLTP), lawmakers gathered to scrutinize the amended draft Law on Public Employees. The session, which came just days after the Government Office released a new circular on administrative reforms, underscored the nation’s ongoing efforts to modernize its public administration, ensure transparency, and better serve its citizens.

According to Sức Khỏe Đời Sống, the Standing Committee of UBPLTP gave its nod to a sweeping revision of the Law on Public Employees. The aim? To fully implement new resolutions and conclusions from the Communist Party regarding Vietnam’s public employee workforce. At the heart of the debate was the need to harmonize this law with the Constitution, international treaties, and related legislation. The Committee stressed the importance of clarifying how the new law would interact with other specialized laws governing public employees—a detail that, if overlooked, could lead to legal confusion down the road.

One of the thorniest issues was Article 5, which addresses the regulation of public non-business units. Here, the Committee found itself split. Some members argued that these regulations should be left out of the Law on Public Employees entirely, suggesting they be reserved for a separate, overarching law on public and non-public units. Their reasoning was simple: avoid any legal vacuum that might arise in the interim, while including transitional provisions. Others felt it was best to keep the current regulations in place, at least for now, to give the government a solid legal footing for further, more detailed rules. The debate is far from academic—it has real implications for how Vietnam’s public sector is governed and how quickly reforms can be implemented.

Perhaps the most notable change in the draft law is the proposed shift to managing public employees based on job positions. This move is closely tied to salary reform and aims to bring the Law on Public Employees in line with the Law on Cadres and Civil Servants. As Sức Khỏe Đời Sống reports, the Committee also supports expanding the right for public employees to sign labor or service contracts with other units, as long as these agreements don’t conflict with existing contracts or the law. The goal? To make the most of professional expertise and help public employees boost their legitimate income.

Recruitment authority, outlined in Article 18, is another area where the draft law suggests significant change. The inspection agency has proposed a more decentralized approach, delegating recruitment powers to management agencies of public non-business units. The level of financial autonomy each unit enjoys would determine the extent of this authority. This approach mirrors the recruitment process for teachers under the Law on Teachers, and it’s seen as a way to promote autonomy and efficiency across the public sector.

When it comes to evaluating public employees, the draft law suggests putting this responsibility in the hands of agency or unit heads, or following a delegated structure. The government would provide a common framework, but each unit could adapt its evaluation regime to suit its specific needs. This flexibility is designed to ensure fairness and transparency, while still holding public employees to consistent standards.

Deputy Minister of Home Affairs Truong Hai Long addressed concerns raised by delegates, assuring them that the drafting agency would fully incorporate UBPLTP’s feedback. "We will adjust the draft law to be open and avoid overlapping with specialized laws," he stated, according to Sức Khỏe Đời Sống. In cases where there’s a conflict, specialized laws would take precedence. The draft law also introduces a new approach to classifying public non-business units—not just by financial autonomy, but by allowing the government to specify details based on the field. For example, universities could enjoy full autonomy even if the state continues to cover all their costs.

On the issue of recruitment, the draft maintains that the general principle is to assign authority to public non-business units themselves. Only in special cases or for small-scale units would higher-level authorities step in. This decentralized approach is seen as a way to encourage innovation and responsiveness at the local level.

By the end of the session, most lawmakers agreed that the draft law was ready to be submitted to the Standing Committee of the National Assembly ahead of the 10th session. Still, as Chairman Hoang Thanh Tung pointed out, several major issues remain unresolved. Chief among them are the detailed regulations in Article 5, particularly those concerning the scope and criteria for financial autonomy of public non-business units. "Premature detailed regulations might cause difficulties for the government when issuing guiding documents, as current autonomy criteria no longer rely solely on financial factors," he cautioned, echoing concerns raised by several committee members.

Meanwhile, just a few days earlier, on September 15, the Government Office had issued Circular 03/2025/TT-VPCP. This document provides guidance on implementing Decree 118/2025/ND-CP, which deals with administrative procedures under the "one-stop" and "inter-connected one-stop" mechanisms at the One-stop Department and the National Public Service Portal. As reported by Sức Khỏe Đời Sống, the circular clearly defines the duties and powers of Commune-level Public Administrative Service Centers—entities that play a critical role in bringing government services closer to the people.

These centers are tasked with advising local People’s Committees on organizational matters, guiding and monitoring the implementation of administrative procedures, and ensuring everything runs smoothly and efficiently. They’re also responsible for organizing professional training, evaluating compliance among their staff, and proposing new ways to improve service quality. The centers guide citizens and organizations through the sometimes labyrinthine process of preparing and submitting paperwork, check the status of electronic identification accounts, and help with both paper and electronic dossiers. They even collect fees and other financial obligations when necessary.

Beyond these core functions, Commune-level Centers support the implementation of online public services, update management software, and transfer cases to the appropriate authorities. They also play a key role in monitoring and reporting on administrative reforms, ensuring that local governments stay accountable and responsive. The centers are expected to take the lead in building "e-government," tracking the application of information technology, and managing the infrastructure needed for digital public services. By coordinating with other local departments, they help train community digital teams and support residents in accessing online services.

These reforms—both at the legislative and administrative levels—reflect Vietnam’s ongoing commitment to modernizing its public sector. By aligning legal frameworks, decentralizing authority, and embracing digital transformation, the country hopes to create a more efficient, transparent, and citizen-friendly government. While challenges remain, particularly around the details of financial autonomy and the coordination of overlapping laws, the direction is clear: Vietnam’s public administration is changing, and the country’s leaders are determined to get it right.

As the National Assembly prepares for its 10th session, all eyes will be on how these reforms unfold—and whether they can deliver the efficiency and accountability that Vietnam’s citizens expect.