Local Government Organizational Restructuring Efforts Gain Momentum Across Provinces
With the goal of streamlining operations and increasing efficiency, local governments across Vietnam are implementing significant organizational restructuring plans beginning March 1, 2025.
Following the directives outlined by the central government, various provinces are adopting resolutions aimed at improving administrative effectiveness. One notable example is Bình Phước Province, where the healthcare sector has aggressively downsized its administrative structure.
Dr. Đỗ Thị Nguyên, deputy director of the Bình Phước Department of Health, shared insights on the province's progress with restructuring under Resolution No. 18-NQ/TW, which calls for reforming and reorganizing government apparatus. This modernization effort, initiated on October 25, 2017, has led to remarkable outcomes over the past seven years.
“Since the implementation of this resolution, we have dramatically reduced administrative overhead,” said Dr. Nguyên. “Bình Phước’s health sector streamlined by cutting down 29 administrative bodies — this includes two department offices, five provincial units, and reconfiguration of numerous local public health centers.”
The restructuring has also enabled the establishment of the Center for Disease Control through the merger of five units dedicated to public health promotion, HIV prevention, and social disease control initiatives. Health centers have been consolidated to improve coordination and service delivery.
The province has seen substantial workforce reductions, shedding 6 public servant positions and 1,269 health sector officials supported by public funds. There was also significant leadership cutback: 85 management roles, including 17 directors and 14 deputy directors, indicating serious commitment to fiscal responsibility and efficiency.
“By decreasing organizational complexity and leadership layers, we have not only cut costs but enhanced our operational effectiveness,” emphasized Dr. Nguyên. “ These changes allow us to utilize resources more efficiently, ensuring enhanced healthcare services for all.”
Simultaneously, restructuring measures are coming to fruition across other administrative divisions. The Ministry of Finance implemented Decision No. 385/QĐ-BTC on February 26, 2025, effective March 1, 2025, outlining the new roles and structure for the State Treasury (Kho bạc Nhà nước). This change will affect how funds are managed across regions, aiming to establish uniformity and improve financial oversight.
The reorganization involves ten central units within the treasury, including departments dedicated to management, accounting, and information technology. Local treasury offices will adhere to this new framework, forming regional units with specific mandates and operational guidelines.
Central to this restructuring is the merger of treasury divisions from Đồng Nai, Bà Rịa - Vũng Tàu, Ninh Thuận, and Bình Thuận Province, forming the newly established Regional Treasury Unit XV headquartered at Bà Rịa - Vũng Tàu.
“All provincial treasury offices are expected to adapt to this new model within three months,” stated Hà Lê, reporting on the Ministry’s restructuring plan.
Further local government changes were documented recently during the Thanh Hóa City Council's announcement of its administrative restructuring efforts. A conference reviewed the establishment of several new departments aimed at consolidative governance.
The City Council's Resolution No. 19/NQ-HĐND led to the merging of existing offices: most prominently combining the Department of Labor, Invalids and Social Affairs with the Department of Internal Affairs. Comprising similar functions, this merging aims to increase efficiency and response times to public needs.
“Today, we are proud to announce the formation of new departments, enhancing our city’s governance,” remarked city officials during the conference, which included important personnel appointments to manage the restructured offices effectively.
Leadership restructuring also took place within Quận 4 (District 4) of Ho Chi Minh City, where two new departments were inaugurated: the Department of Infrastructure and Urban Development, as well as the Department of Culture, Science, and Communication. This change is part of broader efforts to harmonize public administration systems.
“We have effectively reduced from nine departments down to seven, creating more streamlined operations and comprehensive oversight,” stated Lê Văn Chiến, chairman of the District 4 People's Committee. The committee also discussed advancements necessary for adopting digital solutions and improving overall public service delivery.
Local governments like these are affirming their commitment to not only restructuring but doing so with the intent to bolster public service capabilities and responsiveness. Observers have noted these changes could lead to notable improvements in local governance and community satisfaction.
All these significant organizational changes across Vietnam promise to create modernized, efficient governmental bodies focused on meeting the dynamic needs of citizens. The emphasis on combining resources and pruning unnecessary bureaucratic layers marks a foundational shift toward effective governance.
By enhancing the delivery of services through the consolidation of roles and responsibilities, these local governments are showing what is possible when they prioritize effectiveness over redundancy. Continued monitoring and adaptation will be key to ensuring these initiatives lead to tangible improvements for local constituents.
The overarching hope remains: as local governance evolves through such restructuring, the quality of services provided to the public will improve, fostering healthier communities and more responsive local governance.