On July 1, 2025, Hanoi officially implemented a major administrative restructuring, inaugurating 126 new commune and ward-level units as part of a sweeping reform aimed at improving governance and urban management. Among these changes, the newly formed Dân Hòa commune in Thanh Oai district stands out as a significant example of Hanoi's efforts to streamline administrative boundaries and boost local development.
Created by merging the entire natural areas and populations of five former communes—Cao Xuân Dương, Tân Ước, Liên Châu, Dân Hòa, and Hồng Dương—the new Dân Hòa commune now encompasses 38.43 square kilometers and is home to 62,755 residents. This consolidation reflects Hanoi's commitment to rationalizing its administrative divisions, reducing fragmentation, and fostering more efficient local governance.
Geographically, Dân Hòa enjoys a strategic location bordering several other Hanoi communes such as Thường Tín, Hòa Phú, Ứng Thiên, Phượng Dực, Thanh Oai, Tam Hưng, and Thượng Phúc. The commune benefits from proximity to National Highway 21B and the under-construction Ring Road 4, enhancing connectivity to Hanoi's urban center and neighboring provinces. Additionally, access to the North-South railway and the Nhuệ River provides vital transport and logistics advantages, facilitating trade and agricultural commerce.
Historically and culturally, Dân Hòa is rich with heritage sites, including three nationally recognized relics: the Đình and Chùa làng Vác in Canh Hoạch hamlet, honored since 1991, and the Nguyễn family church, designated in 1995. Numerous other temples, communal houses, and relics dot the commune, such as Đình Từ Châu, Chùa Từ Châu, Đình Châu Mai, and Đình Ước Lễ, underscoring the area's deep cultural roots. Notably, Đình Ước Lễ is famed for the discovery of Đông Sơn drums and artifacts dating back 2,000 to 2,500 years, highlighting the commune's ancient Vietnamese heritage.
Economically, Dân Hòa remains predominantly agricultural, with a focus on animal husbandry, fruit cultivation, and traditional crafts. The commune has embraced modern agricultural practices, such as VietGAP-standard duck egg production, establishing a value chain that boosts local incomes. Large safe vegetable-growing areas complement livestock farming and small-scale services, promoting sustainable rural development.
One of Dân Hòa's cultural-economic highlights is the Ước Lễ village, renowned for its traditional pork sausage craft. This village not only preserves cultural identity but also contributes significantly to the commune's economy and residents' livelihoods.
Infrastructure investments have supported the commune's growth, with upgraded schools, healthcare centers, cultural houses, and rural roads enhancing residents' quality of life. Educational institutions such as Trường Mầm non Hồng Dương and Trường Tiểu học Tân Ước serve the community, while healthcare facilities provide essential medical services. These developments promote social stability and progressive rural life in line with Hanoi's broader modernization goals.
Leadership in the new Dân Hòa commune is headed by Party Committee Secretary and Chairman of the People's Council Mai Xuân Trường, alongside Deputy Secretary and Chairman of the People's Committee Đinh Hữu Bình. Their stewardship will be pivotal in guiding the commune through this transition and future growth.
Beyond local administrative reforms, the Ministry of Home Affairs has issued detailed guidance on supporting cadres, civil servants, public employees, and workers affected by these organizational changes nationwide. The ministry emphasizes policy support for four key groups: those nearing retirement within five years, personnel not meeting job requirements, individuals lacking required professional qualifications, and those with health issues impairing performance.
Importantly, the ministry urges retention of capable staff with at least ten years remaining before retirement, recognizing their experience and contributions. Resignation requests are to be handled promptly and fairly, ensuring full legal benefits as stipulated in Decree No. 178/2024/ND-CP and Decree No. 67/2025. Local authorities are tasked with timely financial arrangements for these payments, with provisions to report funding shortfalls to the Ministry of Finance for central budget support.
Complementing these personnel policies, the Ministry of Finance has been actively overseeing the allocation and disbursement of funds to support affected employees. At a Q2/2025 press conference, Deputy Head of the State Budget Department, Mr. Dương Tiến Dũng, confirmed that approximately 29.8 trillion VND had been disbursed by June 30, 2025, covering about 7.6 trillion VND for central government staff and 22.2 trillion VND for local government personnel.
To meet ongoing payment needs, the ministry has proposed a supplementary central budget allocation of 61.461 trillion VND, with 52.308 trillion VND earmarked for 31 central ministries and agencies, and 9.153 trillion VND for 22 localities. Deputy Minister Nguyễn Đức Chi assured that funding for benefits is fully allocated and will be distributed as required by each agency.
In parallel, the Ministry of Finance is spearheading efforts to review and manage public assets, particularly redundant land and buildings resulting from administrative restructuring. Deputy Director Nguyễn Thị Thoa of the Public Asset Management Department highlighted the submission of a revised Law on Management and Use of Public Assets to the National Assembly to provide a stronger legal framework.
The government has issued four official dispatches in May and June 2025 to ensure strict, timely, and principled handling of these assets nationwide. An inter-agency task force led by Deputy Minister Bùi Văn Khắng has engaged directly with all 63 provinces and cities, offering tailored guidance, especially to those facing challenges in asset management post-restructuring.
The guiding principles for asset handling prioritize maintaining operational continuity of the new administrative units, favoring public uses such as education, healthcare, and cultural-social activities, while minimizing sales or transfers. Localities are required to complete reports on asset management outcomes within 90 days from July 1, 2025, providing critical data to evaluate the effectiveness of the restructuring.
While some facilities are deemed surplus, flexible solutions like repurposing or reallocating them for central government offices or public benefit projects are encouraged. This pragmatic approach ensures resources are utilized efficiently without compromising service delivery.
Hanoi's ambitious administrative overhaul, exemplified by the formation of Dân Hòa commune, reflects a broader national drive to modernize governance structures, enhance public service quality, and stimulate socio-economic development. With careful policy implementation, adequate funding, and attentive asset management, the reforms hold promise for creating more dynamic, efficient, and livable communities across Vietnam.
