On August 17, 2025, Vietnam’s government took a decisive step in addressing the complex challenges faced by public officials, civil servants, and workers affected by the ongoing reorganization of the nation’s administrative apparatus. The draft proposal, grounded in Conclusion No. 183-KL/TW of the Politburo, aims to ensure fair treatment and support for those whose careers and livelihoods are directly impacted by sweeping structural changes across local and national government bodies.
The reorganization—part of a broader effort to streamline governance and improve efficiency—has led to significant shifts in staffing, responsibilities, and even the existence of certain administrative units. According to the draft, officials, civil servants, public employees, and workers who have reached the retirement age specified in Appendix II of Decree No. 135/2020/ND-CP are entitled to immediate retirement. This move is designed to provide clarity and security at a time when uncertainty could otherwise dominate the professional landscape for thousands of government employees.
But the proposal goes further. For those who have dedicated at least 15 years to heavy, hazardous, or particularly challenging work environments—or who have served in economically and socially difficult regions, as defined by government labor management agencies—the policy offers a significant one-time allowance. Specifically, these individuals will receive a payment equivalent to 30 months of their current salary upon immediate retirement, a measure intended to recognize both the hardship and commitment involved in their careers. This provision, outlined in Article 2 of Decree No. 178/2024/ND-CP (amended by Decree No. 67/2025/ND-CP), is not only a financial gesture but also a symbolic acknowledgment of the sacrifices made by those serving in the toughest conditions.
Officials from the commune level and above, who are currently receiving retirement, loss of labor capacity, or invalidity benefits due to the reorganization and the implementation of the two-level local government model, are also included in this safety net. They, too, will receive a one-time allowance equal to 30 months of their current salary—a benefit that will be funded directly from the state budget. For those who have already retired between July 1, 2025, and the effective date of the draft resolution, the policy ensures they will be retroactively compensated according to the new guidelines.
The draft doesn’t stop with traditional civil servants. Workers employed in organizations assigned by the Party or State at the provincial or district level before July 1, 2025, who are forced to retire immediately due to the reorganization, will also receive a one-time allowance. The amount, determined by local authorities based on available budget, cannot exceed the maximum set by the aforementioned decrees. This approach gives local governments some flexibility while maintaining a consistent standard of support.
Trade union officials, particularly those working under labor contracts before January 15, 2019, in authorized organizations at various union levels, are also covered. Upon immediate retirement due to the transition to the two-level government model, these individuals are entitled to salaries and allowances from union funds. The specifics of their compensation depend on years of service and proximity to retirement age, as detailed in Appendix II of Decree 135/2020/ND-CP. For example, those less than five years from retirement will receive a one-time allowance calculated as 0.6 times their current monthly salary multiplied by the number of months they retire early, plus an additional 1.5 months’ salary for each year of compulsory social insurance contributions made through the union. They also retain the right to preserve their social insurance contributions or receive a lump-sum payment, along with unemployment benefits as stipulated by law. Those with five or more years until retirement will receive similar benefits, with the one-time allowance replaced by the 1.5 months’ salary per year of social insurance contributions.
For officials who have already retired between July 1, 2025, and the effective date of the draft resolution, the policy promises retroactive supplementation to ensure no one is left behind. This comprehensive approach reflects a recognition that large-scale administrative reforms, while necessary for the nation’s progress, can have profound personal consequences for those on the front lines.
Meanwhile, on August 16, 2025, Prime Minister Pham Minh Chinh addressed another pressing issue: the development of social housing. At a national conference reviewing the first seven months of 2025, the Prime Minister acknowledged both the progress made and the significant hurdles that remain. According to coverage by Tinnhanhnhadat, he praised the preparation work and welcomed the “sincere, frank, and practical opinions” of the delegates, but also highlighted ongoing challenges such as slow project implementation in many localities and delayed disbursement of a 120,000 billion VND preferential credit package intended for social housing.
Enterprises, he noted, continue to struggle with land access, investment procedures, bidding, credit, and preferential policies. “From now until the end of 2025, many tasks remain to complete the targets of social housing projects assigned by the Government for 2025,” the Prime Minister emphasized. He reaffirmed the government’s commitment to completing at least 100,000 social housing units by the end of the year—a goal he described as “non-negotiable.”
To achieve this, he called on ministries, sectors, and localities to lead with “high concentration and political determination.” A key part of this effort involves reviewing and inventorying officials, civil servants, public employees, and workers who face housing and transportation difficulties as a result of the administrative reorganization. The Prime Minister also instructed relevant bodies to streamline policies for accessing capital, purchasing, and building social housing, and to eliminate unnecessary administrative procedures to ensure ease of access for citizens and businesses alike.
To guard against corruption and abuse, he stressed the importance of strict oversight, saying, “absolutely do not allow corruption, negativity, waste, or profiteering from policy when social housing policies are made more open.” The Ministry of Construction was tasked with guiding the implementation of key directives and collaborating with the Ministry of Finance to propose a draft decree on a national housing fund, with a deadline of August 20, 2025.
Other ministries, including the Ministry of National Defense and the Ministry of Public Security, were directed to coordinate with provincial governments to launch housing projects for armed forces personnel. The Vietnam General Confederation of Labor was instructed to spearhead social housing projects for trade union members, ensuring that these initiatives align with government targets.
The State Bank of Vietnam, for its part, was told to accelerate the disbursement of the 120 trillion VND credit program and diversify loan packages, lowering interest rates and leveraging digital technology to help those struggling with housing. Localities were urged to push investors to speed up construction, with a particular focus on completing projects already underway and ensuring that at least 26,000 new units are finished by year’s end.
Finally, the Prime Minister expressed support for proposals to raise the income threshold for social housing eligibility, charging the Ministry of Construction with amending Decree No. 100/2024/ND-CP to better reflect current realities.
As Vietnam navigates the dual challenges of administrative reform and social housing development, the government’s latest moves signal a strong commitment to supporting both its workforce and its most vulnerable citizens. The months ahead will test the resolve and resourcefulness of all involved, but the policies now on the table offer a roadmap for both stability and progress.
